Kunming Poverty measurement

Approaches to Measuring Poverty: 

Approaches to Measuring Poverty International Symposium on the Indicator System for Building a Xiaokang Society Kunming, Yunnan 9-10 July, 2007 Dr. Dorothy Rosenberg Senior Policy Advisor

Why measure Poverty?: 

Why measure Poverty? Key to successful and sustainable strategy to reduce poverty and improve human and social welfare. An issue must be clearly understood before it can be addressed. After specifying what is poverty (definition), possible to measure its scope (quantify), determine who is at risk (identification) and target policy response.

Key components of Strategy Development: 

Key components of Strategy Development Definition Identification Quantification Goals Targets Indicators Monitoring

Identifying Risk Groups: 

Identifying Risk Groups Determine: Who is poor? How (in what way) are they poor? Where are the poor? Why are they poor?

What is Poverty? Definitions/Concepts: 

What is Poverty? Definitions/Concepts Lines or Complex interactions? Income Capability Human Development Social exclusion/inclusion

Poverty Lines: Income-based or proxy: 

Poverty Lines: Income-based or proxy Food poverty - Measurement minimum nutritional subsistence (2,100 Kcal/day), below this level defined as absolute poverty Uses: crisis or emergency relief Advantages: simple, clear, concrete Disadvantages: unsuitable for longer-term use (malnutrition), difficult to monitor

Poverty Lines: 

Poverty Lines Simplified Food Poverty – Measurement: Monetized as $1 dollar per day or $2 dollars per day Uses: generalized use in poverty reduction strategies Advantages: simple, clear, concrete, appropriate in least developed countries, easily comparable across countries. Disadvantages: unsuitable for long-term use, measurement relies on extrapolation from HBS survey data, calculation of PPP suffers from distortions, not appropriate in developing or middle-income countries

Modified Food Poverty : 

Modified Food Poverty Food Poverty Plus – Measurement: Monetized minimum nutritional subsistence (2,100 Kcal/day calculated as 67% plus 33% non-food essentials (soap, shoes & clothing, shelter) Use: non-crisis, low income countries Advantages: suitable or longer-term use Disadvantages: relies on survey data and PPP

National Consumer Basket: 

National Consumer Basket Minimum adequate consumption – Measurement: Quantification of inputs (food, including meat, eggs, oil, fruits and vegetables; non-food including housing, energy, health care and medicines, etc. monetized in national currency Uses: developing and middle-income countries Advantages: clear, concrete, reflects national context, can be applied at sub-national level Disadvantages: not simple, not cross-country comparable

Other Poverty Lines: 

Other Poverty Lines Unmet Basic Needs– Measurement: Assesses household living conditions and access to basic goods and public services Uses: low-income, developing and middle income countries Advantages: reflects real living conditions and access to public goods Disadvantages: expensive survey-based extrapolation, comparable at similar level

Other Poverty Measures: 

Other Poverty Measures ILO “decent work” definition – Measurement: Wages above nationally defined poverty line plus social services and insurance – education, health, pension, disability, unemployment, supplemented by social pensions and insurance, if required. Not in common use

Relative Poverty: 

Relative Poverty Based on national living standards: Measurement: % of median income < 60% of median poor + social insurance < 50% of median extreme poor + soc.ins. Uses: middle-income & developed countries Advantages: appropriate to social and economic context and self-perception Disadvantages: comparable only at similar level of development, e.g. EU Laeken ind.

Instruments and data sources: 

Instruments and data sources Census Administrative data (line ministries) Specialized survey data (QWIC, MICs, HBS, LSMS, LMS, Panel, UBS) CSO validation and oversight (citizen report cards, social watch, etc.)

Diagnostics for Evidence-based policy-making: 

Diagnostics for Evidence-based policy-making Poverty measurement, mapping and monitoring Disaggregation: Demographics: age, sex, ethnicity, disability Distribution: geographical location, urban/rural Dynamics: movement over time Databases and GIS systems