International Comparison Program (ICP)
The International Comparison Program is a global initiative managed by the World Bank. Its aim is to collect and analyze data on the prices of goods and services across various countries, with the goal of calculating the Purchasing Power Parity (PPP) between these countries by using a basket of similar goods and services. The program aims to measure the total cost of a specific set of goods and services in different countries, thus enabling comparisons between price levels in those countries.
The International Comparison Program requires participating countries (including Lebanon) to collect accurate and reliable price data for the same items, which are common across the countries involved, to ensure comparability. Each item has been given precise and detailed specifications.
The data collection is required for the following categories: household consumption, machinery and equipment, construction, residential rents, private education, and government expenditure.
Indicators Resulting from the International Comparison Program:
The program produces the following indicators: - Purchasing Power Parities (PPPs): These are used to compare the purchasing power of different currencies across countries. It is the determination of the true value of currencies by comparing prices based on a basket of similar goods and services. - Price Level Indicators: These are standard indices calculated by dividing the country's PPPs by its market exchange rate. They represent the price level of a given country in relation to another country.
