Multidimensional Poverty Index 2020
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Chapter III the Poverty of Poverty Measurement
45 Chapter III The poverty of poverty measurement Measuring poverty accurately is important within the context of gauging the scale of the poverty challenge, formulating policies and assessing their effectiveness. However, measurement is never simply a counting and collating exercise and it is necessary, at the outset, to define what is meant by the term “poverty”. Extensive problems can arise at this very first step, and there are likely to be serious differences in the perceptions and motivations of those who define and measure poverty. Even if there is some consensus, there may not be agreement on what policies are appropriate for eliminating poverty. As noted earlier, in most developed countries, there has emerged a shift in focus from absolute to relative poverty, stemming from the realization that the perception and experience of poverty have a social dimension. Although abso- lute poverty may all but disappear as countries become richer, the subjective perception of poverty and relative deprivation will not. As a result, led by the European Union (EU), most rich countries (with the notable exception of the United States of America), have shifted to an approach entailing relative rather than absolute poverty lines. Those countries treat poverty as a proportion, say, 50 or 60 per cent, of the median per capita income for any year. This relative measure brings the important dimension of inequality into the definition. Alongside this shift in definition, there has been increasing emphasis on monitoring and addressing deficits in several dimensions beyond income, for example, housing, education, health, environment and communication. Thus, the prime concern with the material dimensions of poverty alone has expanded to encompass a more holistic template of the components of well-being, includ- ing various non-material, psychosocial and environmental dimensions. -
Why Is Child Malnutrition Lower in Urban Than Rural Areas? Evidence from 36 Developing Countries
FCNDP No. 176 FCND DISCUSSION PAPER NO. 176 WHY IS CHILD MALNUTRITION LOWER IN URBAN THAN RURAL AREAS? EVIDENCE FROM 36 DEVELOPING COUNTRIES Lisa C. Smith, Marie T. Ruel, and Aida Ndiaye Food Consumption and Nutrition Division International Food Policy Research Institute 2033 K Street, N.W. Washington, D.C. 20006 U.S.A. (202) 862–5600 Fax: (202) 467–4439 March 2004 Copyright © 2004 International Food Policy Research Institute FCND Discussion Papers contain preliminary material and research results, and are circulated prior to a full peer review in order to stimulate discussion and critical comment. It is expected that most Discussion Papers will eventually be published in some other form, and that their content may also be revised. ii Abstract While ample evidence documents that urban children generally have better nutritional status than their rural counterparts, recent research suggests that urban malnutrition is on the rise. The environment, choices, and opportunities of urbanites differ greatly from those of rural dwellers—from employment conditions to social and family networks to access to health care and other services. Given these differences, understanding the relative importance of the various determinants of child malnutrition in urban and rural areas—and especially whether they differ—is key to designing context- relevant, effective program and policy responses for stemming malnutrition. This study uses Demographic and Health Survey data from 36 developing countries to address the question of whether the socioeconomic determinants of child nutritional status differ across urban and rural areas. The purpose is to answer the broader question of why child malnutrition rates are lower in urban areas. -
Urban and Rural Poverty Areas
Urban and Rural Poverty Areas The Developmental Disabilities Assistance and Bill of Rights Act of 2000, P.L. 106‐402, includes two references to “urban and rural poverty areas” in SUBTITLE B‐‐FEDERAL ASSISTANCE TO STATE DEVELOPMENTAL DISABILITIES COUNCILS. The references are: 42 USC 15024 SEC. 124(C)(5)(E) State Plan (E) URBAN AND RURAL POVERTY AREAS. ‐The plan shall provide assurances that special financial and technical assistance will be given to organizations that provide community services, individualized supports, and other forms of assistance to individuals with developmental disabilities who live in areas designated as urban or rural poverty areas 42 USC 15026 SEC. 126. FEDERAL AND NON‐FEDERAL SHARE (a) AGGREGATE COST. ‐ (2) URBAN OR RURAL POVERTY AREAS. ‐In the case of projects whose activities or products target individuals with developmental disabilities who live in urban or rural poverty areas, as determined by the Secretary, the Federal share of the cost of all such projects may not be more than 90 percent of the aggregate necessary cost of such projects, as determined by the Secretary. Definition of Poverty In August 1969, the U.S. Bureau of the Budget (the predecessor of the U.S. Office of Management and Budget) designated the Census Bureau poverty thresholds as the federal government’s official statistical definition of poverty. * According to Bureau of the Census Statistical Brief/95‐13, in 1990, more than 1 in 5 Americans – or 52 million – lived in a “poverty area.” Poverty areas are census tracts or block numbering areas (BNAs) where at least 20 percent of residents were poor in 1989. -
Understanding Rural Poverty in the United States Madhura Swaminathan*
BOOK REVIEW Understanding Rural Poverty in the United States Madhura Swaminathan* Tickamyer, Ann R., Sherman, Jennifer, and Warlick, Jennifer (eds.) (2017), Rural Poverty in the United States, Columbia University Press, New York, pp. 476, USD 40. This book, written by a group of American sociologists, is based on careful quantitative analysis and cartography. It is in five parts. The first part is on the geography and demography of the rural population of the United States (US). The rural population of the US today exceeds 50 million and is spread geographically over 75 per cent of the area of the country. The definition of rural in the United States is essentially that which is not urban. Specifically, counties, the basic unit of government, are classified as either metropolitan or non-metropolitan (or rural). A metropolitan county is one “with an urban core (city) population of 50,000 or more residents, along with adjacent counties (the suburbs) that link to the urban core by commuting patterns.” There are 1,090 metropolitan counties and 2,051 non-metropolitan counties in the country. The first chapter by Kenneth Johnson brings out two distinctive features of change in respect of the rural population: ageing and diversifying in terms of minorities. While the rural population is still predominantly white with clear pockets of African Americans and Hispanics, the Census data point to a rise in ethnic and racial diversity over the last two decades. The next chapter by Bruce Weber and Kathleen Miller maps changes in rural poverty over the last century. The official poverty measure (OPM) in the US, developed by the Census Bureau, is based on a 1960s estimate of the cost of a minimum adequate diet (adjusted for family size and composition). -
The Challenge of Measuring Poverty and Inequality: a Comparative Analysis of the Main Indicators
A Service of Leibniz-Informationszentrum econstor Wirtschaft Leibniz Information Centre Make Your Publications Visible. zbw for Economics Martín-Legendre, Juan Ignacio Article The challenge of measuring poverty and inequality: a comparative analysis of the main indicators European Journal of Government and Economics (EJGE) Provided in Cooperation with: Universidade da Coruña Suggested Citation: Martín-Legendre, Juan Ignacio (2018) : The challenge of measuring poverty and inequality: a comparative analysis of the main indicators, European Journal of Government and Economics (EJGE), ISSN 2254-7088, Universidade da Coruña, A Coruña, Vol. 7, Iss. 1, pp. 24-43, http://dx.doi.org/10.17979/ejge.2018.7.1.4331 This Version is available at: http://hdl.handle.net/10419/217762 Standard-Nutzungsbedingungen: Terms of use: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Documents in EconStor may be saved and copied for your Zwecken und zum Privatgebrauch gespeichert und kopiert werden. personal and scholarly purposes. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle You are not to copy documents for public or commercial Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich purposes, to exhibit the documents publicly, to make them machen, vertreiben oder anderweitig nutzen. publicly available on the internet, or to distribute or otherwise use the documents in public. Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, If the documents have been made available under an Open gelten abweichend von diesen Nutzungsbedingungen die in der dort Content Licence (especially Creative Commons Licences), you genannten Lizenz gewährten Nutzungsrechte. may exercise further usage rights as specified in the indicated licence. -
Lecture 1: Measuring Poverty, Slide 0
AREC 345: Global Poverty & Economic Development Lecture 1: Measuring Poverty and Inequality Professor: Pamela Jakiela Department of Agricultural and Resource Economics University of Maryland, College Park TheGoodNews Worldwide, the total number of people living in extreme poverty has been declining at an increasing rate since the 1970s Source: Max Roser, Our World in Data (2016) AREC 345: Global Poverty & Economic Development Lecture 1: Measuring Poverty, Slide 2 TheGoodNews Three Questions: 1. How did we arrive at this number? 2. What do we mean by extreme poverty? 3. Where would we find the people living in extreme poverty? Oxford English Dictionary definition of poverty: “lacking sufficient money to live at a standard considered comfortable or normal in society” • Until recently, the poorest people in every country lived in absolute poverty, unable to afford basic necessities like food, shelter, etc. • Now we are lucky enough that this is no longer the case (OED example: “people who were too poor to afford a telephone”) AREC 345: Global Poverty & Economic Development Lecture 1: Measuring Poverty, Slide 3 Measuring Inequality Measuring Inequality Standard approach to measuring income inequality: examine the share of total income received by each quintile (or fifth of the population) Inequality in the U.S. Quintile Income Share 13.8 29.3 3 15.1 4 23.0 5 48.8 Source: 2013 data from US Census Bureau AREC 345: Global Poverty & Economic Development Lecture 1: Measuring Poverty, Slide 5 Measuring Inequality We can present the same information graphically -
Measuring Progress on Hunger and Extreme Poverty
BRIEFING PAPER AUGUST 2016 Measuring Progress on Hunger and Extreme Poverty by Lauren Toppenberg What is the 2030 Agenda for FIGURE 1: Sustainable Development Goals Sustainable Development? Bread for the World’s mission is to build the political will to end hunger both in the United States and around the world. From 2000 to 2015, an essential part of fulfilling our mission at the global level was supporting the eight Millennium Development Goals (MDGs)—the first-ever worldwide effort to make progress on human problems such as hunger, extreme poverty, and maternal/child mortality. The hunger target, part of MDG1, was to cut in half the proportion of people who are chronically hungry or malnourished. of course, these efforts continue today. There are groups and The MDGs spurred unprecedented improvements. The individuals working on all 17 SDGs scattered throughout U.S. goal of cutting the global hunger rate in half was nearly government and civil society. These initiatives aren’t (yet) con- reached, and more than a billion people escaped from extreme sidered actions toward meeting the SDGs, but that is what they poverty. Building on these successes, the United States and are. The SDGs offer an opportunity to articulate a common 192 other countries agreed to a new set of global develop- vision and to tailor a framework for action to the work of the ment goals in September 2015, ahead of the MDG end date of various stakeholders. December 31, 2015. Among the new Sustainable Development Once achieved, the SDGs will make an enormous difference Goals (SDGs) are ending hunger and malnutrition in all its to this country, to humanity, and to the planet. -
Multidimensional Poverty Index Sen, A
Development Strategy and Policy Analysis Unit w Development Policy and Analysis Division Department of Economic and Social Affairs Multidimensional Poverty Development Issues No. 3 21 October 2015 The measurement of poverty is composed of two fundamental steps, according to Amartya Sen (1976): determining who is Summary poor (identification) and building an index to reflect the extent of poverty (aggregation). Both steps have been sources of debate Measuring poverty with a single income or expenditure over time among academics and practitioners. For a long time, measure is an imperfect way to understand the deprivations unidimensional measures were used to distinguish poor from of the poor since, for example, markets for basic needs and non-poor. More recently, new measures have been proposed to public goods may not exist. Complementing monetary enrich the understanding of socio-economic conditions and to with non-monetary information provides a more complete better reflect the evolving concept of poverty. picture of poverty. From unidimensional to multi- dimensional poverty assesses human deprivation in terms of shortfalls from minimum Poverty measurement has primarily used income for the iden- levels of basic needs per se, instead of using income as an interme- tification of the poor since the early twentieth century. In the diary of basic needs satisfaction. The reasoning for this relies on 1950s, economic growth and macroeconomic policies domi- the argument that, while an increase in purchasing power allows nated the development discourse, which meant little attention the poor to better achieve their basic needs, markets for all basic was paid to the difficulties faced by poor people (ODI, 1978). -
Poverty Measures
Poverty and Vulnerability Term Paper Interdisciplinary Course International Doctoral Studies Programme Donald Makoka, (ZEF b) Marcus Kaplan, (ZEF c) November 2005 ABSTRACT This paper describes the concepts of poverty and vulnerability as well as the interconnections and differences between these two. Vulnerability is a multi-dimensional phenomenon, because it can be related to very different kinds of hazards. Nevertheless most studies deal with the vulnerability to natural disasters, climate change, or poverty. As a result of the effects of global change, vulnerability focuses more and more on the livelihood of the affected people than on the hazard itself in order to enhance their coping capacities to the negative effects of hazards. Thus the concept became quite complex, and we present some approaches that try to deal with this complexity. In contrast to poverty, vulnerability is a forward-looking feature. Thus vulnerability and poverty are not the same. Nevertheless they are closely interrelated, as they influence each other and as very often poor people are the most vulnerable group to the negative effects of any type of hazard. There are also attempts to measure the vulnerability to fall below the poverty line, which is mostly done through income measurements. This paper therefore reviews the major linkages between poverty and vulnerability. Different measures of poverty, both quantitative and qualitative are presented. The three different forms of vulnerability namely, to natural disasters, climate and economic shocks, are discussed. The paper further evaluates different methods of measuring vulnerability, each of which employs unique and/or different parameters. Two case studies from Malawi and Europe are discussed with the conclusion that poverty and vulnerability, though not synonymous, are highly related. -
Poverty and Inequality Prof. Dr. Awudu Abdulai Department of Food Economics and Consumption Studies
Poverty and Inequality Prof. Dr. Awudu Abdulai Department of Food Economics and Consumption studies Poverty and Inequality Poverty is the inability to achieve a minimum standard of living Inequality refers to the unequal distribution of material or immaterial resources in a society and as a result, different opportunities to participate in the society Poverty is not only a question of the absolute income, but also the relative income. For example: Although people in Germany earn higher incomes than those in Burkina Faso, there are still poor people in Germany and non-poor people in Burkina Faso -> Different places apply different standards -> The poor are socially disadvantaged compared to other members of a society in which they belong Measuring Poverty How to measure the standard of living? What is a "minimum standard of living"? How can poverty be expressed in an index? Ahead of the measurement of poverty there is the identification of poor households: ◦ Households are classified as poor or non-poor, depending on whether the household income is below a given poverty line or not. ◦ Poverty lines are cut-off points separating the poor from the non- poor. ◦ They can be monetary (e.g. a certain level of consumption) or non- monetary (e.g. a certain level of literacy). ◦ The use of multiple lines can help in distinguishing different levels of poverty. Determining the poverty line Determining the poverty line is usually done by finding the total cost of all the essential resources that an average human adult consumes in a year. The largest component of these expenses is typically the rent required to live in an apartment. -
How to Build a National Multidimensional Poverty Index (MPI): Using the MPI to Inform the Sdgs
OPHI Oxford Poverty & Human How to Build a National Development Initiative Multidimensional Poverty Index (MPI): Using the MPI to inform the SDGs United Nations Development Programme (UNDP) and Oxford Poverty and Human Development Initiative (OPHI), University of Oxford Copyright © UNDP 2019 by the United Nations Development Programme 1 UN Plaza, New York 10017 USA Creative Commons Attribution-NonCommercial 4.0 International (CC BY-NC 4.0) at https://creativecommons.org/licenses/by-nc/4.0/ OPHI Oxford Poverty & Human Development Initiative How to Build a National Multidimensional Poverty Index (MPI): Using the MPI to inform the SDGs United Nations Development Programme (UNDP) and Oxford Poverty and Human Development Initiative (OPHI), University of Oxford Sponsored by: Foreword A transformational development agenda, premised on Human Development Index in 1990. the ambition to eliminate all poverty and rooted in a sustainability framework of complexity, interdependence As noted by Nobel Laureate Sen: “Poverty is the deprivation and multidimensional development, requires a systematic of opportunity… [it] is not just a lack of money; it is not measurement for poverty that is as nuanced and lucid as having the capability to realize one’s full potential….” the 2030 Agenda itself. UNDP is pleased to build on this strong collaboration UN Member States adopted the 2030 Agenda for with OPHI supporting nationally developed MPIs. While Sustainable Development and its 17 Sustainable income-based poverty represents a key factor influencing Development Goals (SDGs) at the General Assembly in well-being and societal progress, there is a broader set September 2015. The Agenda’s Goals and Targets are of deprivations—relating to health, education and basic universal – for all nations and all people – and endeavor standards of living—that affects the lives and livelihoods to reach the furthest behind first, an idea reinforced by of individuals and families, and their ability to break out of the Agenda’s simple yet powerful commitment to ensure inter-generational cycles of poverty. -
Measuring Poverty Laura Wheaton and Jamyang Tashi
Measuring Poverty Laura Wheaton and Jamyang Tashi Many agree that the official measure of poverty in the United States is flawed. The official measure is based on cash income, and the thresholds for measuring poverty are based on outdated data. Experts have recommended an alternative measure of poverty that includes all family resources net of taxes and nondiscretionary expenses and updates the thresholds to reflect current spending patterns (Citro and Michael 1995; Iceland 2005). Representative Jim McDermott (D-WA) and Senator Chris Dodd (D-CT) have co- sponsored the Measuring American Poverty (MAP) Act, which recommends a modern poverty measure based on this alternative. • The official measure of poverty includes pretax cash income sources in its definition, and it uses a threshold based on a subsistence food budget times three. The measure was developed in 1963 and is based on spending patterns observed in a 1955 consumption survey. The thresholds represent nationwide spending averages, adjusted for inflation. The thresholds vary by family size, number of children, and whether the family is headed by an older adult. The official measure assumes that adults age 65 and older need less money to support their basic needs than younger adults. - In 2006, a family consisting of one adult and one child was considered poor if its cash income fell below $13,896, and a family of two adults and two children was considered poor if its income fell below $20,444.1 - In 2006, a family consisting of two elderly adults was considered poor if its cash income fell below $12,186. • The alternative measure of poverty developed by the National Academy of Sciences (NAS) in 1995 uses a definition that includes both cash and in-kind income and subtracts taxes and nondiscretionary work-related and out-of- pocket health expenses.