DOCSLIB.ORG

New Alternative Possibilities for Measuring Poverty In

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
New Alternative Possibilities for Measuring Poverty In SEA - Practical Application of Science Volume I, Issue 2 (2), 2013 Oana-Ramona LOBONŢ Faculty of Economics and Business Administration, West University of Timisoara NEW ALTERNATIVE Literature review POSSIBILITIES FOR MEASURING POVERTY IN ROMANIA Keywords Aggregate Romanian Index of Deprivation Poverty Social exclusion JEL classification I32 Abstract Poverty assessment requires and is generally based on the existence of well-defined levels of standard of living. Therefore, in this paper we try to investigate the opportunities for measuring poverty offered by economic practice, as well as to outline the real possibilities for building an aggregate index, sufficiently complex to reveal the evolution of poverty as economic deprivation in Romania. In this paper, the construction of an Aggregate Romanian Index of Deprivation involves a subjective judgment because this index represents one of the methods used for configure the level and dynamics of poverty and social exclusion. The proposed index focuses on specific issues such as combining a number of indicators, chosen to cover a range of economic, social and housing issues, into a single deprivation score for each region in Romania. 158 SEA - Practical Application of Science Volume I, Issue 2 (2), 2013 1. INTRODUCTION 2002 based on surveys of family budgets. Moreover, in order to meet monitoring in a During the last years, Romania has comparative approach of the progress of paid special attention to social policies, Member States in relation to the objectives especially those related to social cohesion, of the European Union social policy, in equal opportunities and equitable 1997, the National Institute of Statistics distribution of income in order to ensure has suggested an indicator to measure the the resources and opportunities necessary relative magnitude of poverty, as amended for communities to actively take part in the and adapted to the requirements of the economic, social and cultural life. European Council in 2001. The new These objectives have a strategic methodology for the calculation of relative status, being established and put into poverty indicators considered a set of 18 practice at governmental level through indicators to measure social inclusion, out numerous strategies, programmes, policies of which 10 primary indicators and 8 and measures to fight back poverty and secondary indicators. social exclusion. However, since poverty In Romania, by Resolution no. 488 stands for an element which is both of 26 May 2005, approving the national quantitative and qualitative, the economic social inclusion indicators system, it is practice imposed the outline of a set of being outlined the list of main level specific indicators that measure this indicators, also secondary and tertiary, to phenomenon. be calculated annually by the National Avoiding extensive theoretical Institute of Statistics and the Anti-Poverty debates on poverty and social exclusion, and Endorsement of Social Inclusion the approach of the present article is Commission. Diagnosis poverty level is limited to trying to determine opportunities based primarily on the absolute method for to shape a new methodology to quantify the quantification of the phenomenon on these phenomena, without ignoring the the basis of certain indicators to capture the already existing methodologies. dynamics of the monetary dimension of poverty and identification of groups at 2. RETROSPECTIVE LOOK ON THE highest risk: POSSIBILITIES OF MONITORING The poverty rate, the threshold of POVERTY 60% of median income available per adult equivalent, also called In outlining the possibilities relative poverty or risk of poverty; of quantification of the poverty The ratio between top and bottom phenomenon, stands the cooperation quintile of the distribution of between specialists and experts in this population by available income topic, the Ministry of Labour, Family and (the wealthiest 80% compared to Social Protection for the Elderly (current the poorest 20%); name), the National Institute of Statistics, The rate of persistent poverty, at and a number of international bodies, the threshold of 60% of median including the World Bank, the Heritage income available per adult Foundation, The Organisation for equivalent; Economic Co-Operation and Development, Deficit relative to median U.S. Department of Human Services threshold of 60% of median The first attempts to analyze and income; measure poverty have emerged in 1995, Coefficient of variation of when the National Institute of Statistics employment rates; launched a poverty analysis programme, Long-term ILO unemployment based on households’ surveys and, since rate; 159 SEA - Practical Application of Science Volume I, Issue 2 (2), 2013 Proportion of population in Protection and Social Inclusion to achieve jobless households; a permanent exchange (peer -reviewed) The share of young people 18-24 between European Union member states. years old who left the school Moreover, we notice that recently, the early; Romanian Government adopted a number Life expectancy at birth; of strategic documents aiming to fight back The percentage of people who poverty and social exclusion , including the appreciate their health as being National Plan against Poverty and for bad or very bad. Social Inclusion (2004 ) , National Strategy Such systems, developed in order to for Sustainable Development which takes measure poverty, represent a more easily over the stipulations of the Strategy for assimilated instrument for decision-making Sustainable Development renewed for an system as it has been proven the enlarged Europe, adopted by the European sustainability of implementing the Joint Union Council in 2006, the Millennium Memorandum on Social Inclusion, a Declaration which sets the ONU agenda programmatic document of reference for for the 21st century in terms of peace, the elaboration of social policies, security and development, the National concluded between the Government of Strategy for the development of social Romania and the European Commission in services , national reform programs and 2005. other sectoral strategies and action plans . Harmonizing the agents that disseminate the change of vision in the 3. INDICATORS FOR MEASURING area of poverty and social inclusion POVERTY AND SOCIAL through methodologies of calculus EXCLUSION developed within CASPIS and data provided by Romania to the European Means for measurement and Union's official statistics (based on analysis of poverty dynamics in Romania EUROSTAT methodology) assumed are implemented by the National Institute compatibility on the 3 basic pillars: i) of Statistics, based on Household budget concepts, definitions, classifications, ii) survey, taking into consideration poverty data collection methods, iii) sampling lines or thresholds, i.e. a basket with goods methods. and services considered necessary to cover Thus, in compliance with Briciu the basic needs of an individual or (2009: 163) we notice that the household. Poverty assessment implies the implemented methodologies have put a existence of well-defined levels of living two way pressure, namely ”awareness and standards, poverty thresholds called addressing serious concerns, respectively "absolute" and "relative", according to broadening the makers of the current issues their updates on large periods of time, that are already planned resources general compared to the national standard of living issues that require a coherent and of the society. corroborating responsibilities of public The indicator of measuring absolute institutions.” Directions of development of poverty is based on a national social statistics are based on information methodology, developed in 2002 in order collected through a series of surveys of to monitor and evaluate policies and family, household, statistics on living programs aimed at increasing the welfare, conditions and the labour force. to reduce the lack of resources necessary to Strategic approach to social policies ensure basic needs, while the indicator required the adoption of a new instrument, measuring relative poverty is based on the flexible and decentralized called Open methodology approved by the European Method of Coordination on Social Council of Laeken in December 2001, and 160 SEA - Practical Application of Science Volume I, Issue 2 (2), 2013 is adequate to monitor and evaluate poverty assessment, which in their policies aimed at reducing inequality. construction involve both setting monetary Poverty measurement is based on and non-monetary risk indicators, and an the poverty threshold calculated from the equivalence scale for monetary variables results of surveys that provide information and application of methods of aggregation on the rules implemented in food that lead to obtaining synthetic indicators. consumption expenditure, considered as However, poverty measurement and necessary or on the income (or analysis equally lead to the identification expenditure) level of the population, i.e. a of levels of individual or household percentage of them, each of which can be inequality and vulnerability in the society, highlighted as both positive and negative. quantified by specific indicators: Among the indicators used to - Indicators that measure inequality: highlight the poverty profile (Anghelache Gini index, Theil index, dispersal et al, 2006): ratio and income of distribution / - Indicators measuring the consumption of the poorest share of incidence of the phenomenon: the population, human development total poverty rate (head count
Load more

Recommended publications
  • Investing in Children: Independent Experts Breaking the Cycle of Disadvantage on Social Inclusion a Study of National Policies
    EU Network of Investing in children: Independent Experts Breaking the cycle of disadvantage on Social Inclusion A Study of National Policies Romania This publication has been prepared for the European Commission by © Cover illustration: European Union Neither the European Commission nor any person acting on behalf of the Commission may be held responsible for use of any information contained in this publication. The opinions expressed are those of the author(s) only and should not be considered as representative of the European Commission’s or Member States’ official position. Further information on the Network of independent experts is available at: http://ec.europa.eu/social/main.jsp?catId=1025&langId=en © European Union, 2014 Reproduction is authorised provided the source is acknowledged. Investing in children: Breaking the cycle of disadvantage A Study of National Policies LUANA MIRUNA POP COUNTRY REPORT - ROMANIA Add title 2 Employment, Social Affairs & Inclusion Country Report - Romania Table of Contents Acronyms and abbreviations ............................................................................... 7 Summary ......................................................................................................... 9 1. Assessment of the overall approach and governance ....................................... 13 1.1. Institutional arrangement of child protection in Romania: to what extend does Romania have an integrated multi-dimensional strategy? ................. 13 1.2. A children’s rights approach: is there an effective
    [Show full text]
  • The Case of Romania
    USAID’s Approach to Poverty Reduction The Case of Romania Summary overty reduction is not a formal, overarching objective of the Government of Romania or its development donor community. The government’s overwhelm- Ping preoccupation is accession to NATO and the EU, though these goals stand for the economic growth and poverty reduction expected to follow. Poverty reduction has figured in several governmental statements and programs, but there is no well-coordinated effort to implement a poverty reduction program. KEY IDEAS As a middle-income country that does not qualify for debt relief, Romania is not crafting a Poverty ■ Lack of coordination on poverty Reduction Strategy Paper (PRSP) for the interna- reduction at the central level of tional financial community. There is no comprehen- government increases the difficulty sive development strategy that unifies Romanians of coordinating donor initiatives and international partners around a common vision around this theme, even though for the country. Without poverty reduction as a donors are concerned about rising compelling theme or a commonly shared strategy poverty rates. paper, each donor in Romania promotes its own strategic vision, leading to a plethora of strategy ■ The presence of a program econo- papers and lack of coordination. The situation is mist on the mission’s staff is compounded by the absence of the concept of part- required to enable market and nership, wherein the government determines its pri- political economy analysis of poli- orities and invites international donors to contribute cy choices in economic growth, to specific components. democracy and governance, and social service sectors. As Romania struggled in the late 1990s to recover from the legacy of communism, economic growth ■ Funding directives may result in was negative—average annual GDP growth was resource allocations that exceed the –1.5 percent from 1996 through 2000.
    [Show full text]
  • Summative Evaluation of “First Priority: No More ‘Invisible’ Children!” Evaluation Report
    MINISTRY OF LABOR AND SOCIAL JUSTICE for every child National Authority for the Protection of Child′s Rights and Adoption Summative evaluation of “First priority: no more ‘invisible’ children!” Evaluation report International Consulting Expertise Initiative • Commitment • Energy MINISTRY OF LABOR AND SOCIAL JUSTICE for every child National Authority for the Protection of Child′s Rights and Adoption Summative evaluation of “First priority: no more ‘invisible’ children!” Evaluation report Contracting Agency and Beneficiary: United Nations Children’s Fund (UNICEF), Romania Country Office Contractor: International Consulting Expertise in consortium with Camino Association Evaluation Coordinators (UNICEF): Viorica Ștefănescu, Voichița Tomuș, Alexandra Grigorescu Boțan Evaluation Team Members: Project Manager Alina-Maria Uricec Gabriela Tănase Team leader Irina Lonean Evaluation Experts Liliana Roșu Adriana Blănaru Alina Bîrsan Anda Mihăescu Ecaterina Stativă Oana Clocotici International Consulting Expertise Initiative • Commitment • Energy Bucharest 2017 SUMMATIVE EVALUATION OF “FIRST PRIORITY: NO MORE ‘INVISIBLE’ CHILDREN!” Contents List of tables .......................................................................................................................................VII List of figures ...................................................................................................................................... IX Acronyms ............................................................................................................................................
    [Show full text]
  • Poverty and Disability: a Survey of the Literature Public Disclosure Authorized Ann Elwan
    SP DISCUSSION PAPER NO.9932 21315 Public Disclosure Authorized Poverty and Disability: A Survey of the Literature Public Disclosure Authorized Ann Elwan December1999 Public Disclosure Authorized FILECOPY Public Disclosure Authorized Prot ttion LABOR MARKETS,PENSIONS, SOCIAL ASSISTANCE T H E W O R L D B A N K POVERTY AND DISABILITY A SURVEY OF THE LITERATURE December 18, 1999 Ann Elwan This paper was prepared as a background paper for WDR 2000/20001 and as part of the Social Protection Unit's research on the economic consequences of disability. The supervisors were Louise Fox and Christian Grootaert. The author would like to acknowledge the helpful comments received from Ms. G. Habibi at UNICEF; Ms. E. Sandborg at WHO; Mr. G Jung at ILO; Mr. D. Henderson at Rehabilitation International; and C. Hansen on the anthropological aspects of disability; as well as from others World Bank staff and seminar participants. Comments can be sent to aelwanp.worldbank.org or [email protected]. ABSTRACT This review summarizes the literature on disability and its relationship to poverty, including education, employment, income, and access to basic social services. Despite the dearth of formal analysis, it is clear that in developing countries, as in more developed areas, disabled people (and their families) are more likely than the rest of the population to live in poverty. It is a two-way relationship -- disability adds to the risk of poverty, and conditions of poverty increase the risk of disability. Disability in developing countries stems largely from preventable impairments associated with communicable, maternal and perinatal disease and injuries, and prevention has to remain a primary focus.
    [Show full text]
  • Academics Stand Against Poverty Launches Its First Eastern European Chapter in Romania
    Academics Stand Against Poverty launches its first Eastern European Chapter in Romania In a world where the inequality gap is extremely disproportionate, where 67 individuals own a fortune equivalent with 3.5 billion (half the planet’s population) poorest people, where famine and poverty related diseases are killing more than 18 million people a year and where the global institutions, through policies, have the capacity and the moral obligation to eradicate poverty worldwide and offer universal respect for human rights, a group of prominent academics have united to find the policies that can adjust to solving the current problems. Official launch of ASAP Romania, May 25th, 2015 Academics Stand Against Poverty (ASAP) is a global organization focused on utilizing scholarship to influence policy and public attitudes to poverty. More than 150 academics, experts and researchers worldwide, are constantly working on a global institutional formula that can rapidly and through clear measures is designed to end world poverty. Because the status quo of the world institutions consists in policies that are rather pursuing the interests of the most affluent, the ASAP members are doing rigorous research to tackle the causes and give recommendations suitable for a just global society. So far, many academics were debating essential global issues within conferences and in niche articles, with no actual success in reaching the ears of the policy makers, the civil society, or the general public, even though their research and possible solutions where very well thought. As a consequence, the global discourse on poverty was only sold to the public by the global institutions which were responsible to end poverty.
    [Show full text]
  • Social and Employment Policies in Romania
    STUDY Requested by the EMPL Committee Social and employment policies in Romania Policy Department for Economic, Scientific and Quality of Life Policies Directorate-General for Internal Policies Author: Cristina VASILESCU PE 626.064 – March 2019 EN Social and employment policies in Romania Abstract This study aims to provide an overview of the economic, employment and social inclusion context and recent policies in Romania. The document was prepared at the request of the European Parliament’s Committee on Employment and Social Affairs in view of its delegation visit to Romania in September 2018. This document was requested by the European Parliament's Committee on Employment and Social Affairs. AUTHOR Cristina VASILESCU, Istituto per la Ricerca Sociale ADMINISTRATORS RESPONSIBLE Susanne KRAATZ, Aoife KENNEDY EDITORIAL ASSISTANT Roberto BIANCHINI LINGUISTIC VERSIONS Original: EN ABOUT THE EDITOR Policy departments provide in-house and external expertise to support EP committees and other parliamentary bodies in shaping legislation and exercising democratic scrutiny over EU internal policies. To contact the Policy Department or to subscribe for updates, please write to: Policy Department for Economic, Scientific and Quality of Life Policies European Parliament L - 2929 - Luxembourg Email: [email protected] Manuscript completed: September 2018 Date of publication: March 2019 © European Union, 2019 This document is available on the internet at: http://www.europarl.europa.eu/supporting-analyses DISCLAIMER AND COPYRIGHT The opinions expressed in this document are the sole responsibility of the authors and do not necessarily represent the official position of the European Parliament. Reproduction and translation for non-commercial purposes are authorised, provided the source is acknowledged and the European Parliament is given prior notice and sent a copy.
    [Show full text]
  • Romania, 2007
    The United Nations Development Program – UNDP NATIONAL HUMAN DEVELOPMENT REPORT – ROMANIA, 2007 MAKING EU ACCESSION WORK FOR ALL Fostering Human Development by Strengthening the Inclusiveness of the Labor Market in Romania Bucharest, 2007 C O N T E N T S FOREWORD Chapter 1: Romania at the moment of the EU Accession – An overview of human development issues ……………………………………………………………………………….5 Chapter 2: Deepening democracy and strengthening macro-economic stability as a pre- requisite for more Inclusive Labor Market and Sustainable Human Development ……….18 2.1. The EU Accession process: pre- and post-accession issues, the challenges of the decade to come ………………………………………………………………………………………….18 2.2. Consolidating macro-economic stability and improving predictability - assessing the readiness of Romania’s economy and labor market to face the competitive pressures of the Single Market ………………………………………………………………………………………..22 2.3. Together for a consolidated democracy and a dynamic emergent market economy; the role of civil society, social partners and international organizations harnessing Romania’s human development potential following the moment of EU Accession …………………………….33 2.4. Agenda for the decade to come ……………………………………………………………………..39 Chapter 3: The Demographic challenge - harnessing the potential of a large working age population ……………………………………………………………………………………….41 3.1. Romania’s population: where to from now on? Half a century of demographic shocks and the challenges of the half a century ahead ……………………………………………………….41 3.2. The current state – working age population at a historic peak? ……………………………...45 3.3. Can the current trends be reversed? Alternative demographic forecasts and scenarios and their potential impact on human development and labor market inclusiveness …………………...47 3.4. Agenda for the decade to come ……………………………………………………………...52 Chapter 4: Advancing Labor Market Reforms – Bettering Labor Market Governance as prime tool for higher inclusiveness and stronger social cohesion……………………………54 4.1.
    [Show full text]
  • Full Text (PDF)
    EASTERN JOURNAL OF EUROPEAN STUDIES Volume 9, Issue 1, June 2018 | 63 The dynamics of poverty and its consequences on regional inequalities in Romania Marinela ISTRATE*, Raluca Ioana HOREA-SERBAN** Abstract Poverty has raised growing interest due to its various spatial aspects and implications. The purpose of this paper is to highlight the relationship between poverty and inequality, analysing the way in which a high degree of social and economic inequality influences the different forms of poverty manifestation. We made use of a three-dimension analysis: actual poverty (as expressed by absolute and relative thresholds), inequality of income distribution and regional distribution of these phenomena. Although poverty has diminished, the feeling of poverty remains strong both in relation to the income of other co-nationals and to that of other European countries, Romania continuing to be, unfortunately, one of the poorest countries in EU-28. The investigation carried out revealed the fact that the economic development of the country has been accompanied by a fast decrease in absolute poverty but also by a slight increase in relative poverty. Keywords: poverty indicators, inequality, dynamics, regional disparities Introduction Inequality and poverty represent the main elements development strategies are aimed at, the complex but controversial relationships between them having drawn much attention during the past years, once decision factors understood the importance of the interconnections between them for the success of this process. Preoccupations in this field date back to the middle of the 20th century, when Kuznets (1955) advanced the pattern of the inverted U-curved between these variables, stating that development brings about economic inequality until a certain level of wages, beyond which inequality starts to diminish.
    [Show full text]
  • Working to Overcome the Global Impact of Neglected Tropical Diseases Annexe I
    Working to Overcome the Global Impact of Neglected Tropical Diseases Annexe I Working to overcome the global impact of neglected tropical diseases First WHO report on neglected tropical diseases WHO Library Cataloguing-in-Publication Data First WHO report on neglected tropical diseases: working to overcome the global impact of neglected tropical diseases. 1 Tropical medicine - trends. 2 Endemic diseases. 3 Poverty areas. 4. Parasitic diseases. 5 Developing countries. 6. Annual reports. I. World Health Organization ISBN 978 92 4 1564090 (NLM Classification: WC 680) Working to overcome the global impact of neglected tropical diseases was produced under the overall direction and supervision of Dr Lorenzo Savioli (Director, WHO Department of Control of Neglected Tropical Diseases) and Dr Denis Daumerie (Programme Manager, WHO Department of Control of Neglected Tropical Diseases), with contributions from staff serving in the department. Regional directors and members of their staff provided support and advice. Valuable inputs in the form of contributions, peer reviews and suggestions were received by members of the Strategic and Technical Advisory Group for Neglected Tropical Diseases. The report was edited by Professor David W.T. Crompton, assisted by Mrs Patricia Peters. © World Health Organization 2010 All rights reserved. Publications of the World Health Organization can be obtained from WHO Press, World Health Organization, 20 Avenue Appia, 1211 Geneva 27, Switzerland (tel.: +41 22 791 3264; fax: +41 22 791 4857; e-mail: [email protected]). Requests for permission to reproduce or translate WHO publications – whether for sale or for noncommercial distribution – should be addressed to WHO Press, at the above address (fax: +41 22 791 4806; e-mail: [email protected]).
    [Show full text]
  • 2. the Romania Experience
    A Multi-Partner Evaluation of the Comprehensive Development Framework Public Disclosure Authorized Public Disclosure Authorized Implementation of CDF Principles in a Transition Economy A Case Study of Romanian Experience Public Disclosure Authorized Public Disclosure Authorized The findings, interpretations, and conclusions expressed here are those of the author(s) and do not necessarily reflect the views of the Board of Executive Directors of the World Bank or the governments they represent. The World Bank cannot guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply on the part of the World Bank any judgment of the legal status of any territory or the endorsement or acceptance of such boundaries. Contact: Operations Evaluation Department Partnerships & Knowledge Programs (OEDPK) e-mail: [email protected] Telephone: 202-458-4497 Facsimile: 202-522-3125 http:/www.worldbank.org/oed iii TABLE OF CONTENTS Abbreviations and Acronyms ......................................................................................................vi Foreword ......................................................................................................................................vii Executive Summary....................................................................................................................... x Main Findings: the “CDF Consultations” of 1999-2000................................................. xii Main Findings:
    [Show full text]
  • National Strategy on Social Inclusion and Poverty Reduction 2015-2020 Content
    M S I N D I N S T U R F Y N O E A F E U R O P National Strategy on Social National Strategy on Social Inclusion and Poverty Reduction and Poverty on Social Inclusion Strategy National Inclusion and Poverty Reduction 2015-2020 Romania 2015-2020 Ministry of Labor Family, Social Protection and Elderly Content INTRODUCTION ................................................. 7 1. POOR AND VULNERABLE GROUPS .......................... 21 1.1. People at Risk of Poverty or Social Exclusion ................................... 22 1.2. Main Vulnerable Groups ...................................................... 28 2. PEOPLE-BASED POLICIES .................................. 31 2.1. Employment ................................................................. 32 2.2. Social Transfers .............................................................. 38 2.3. Social Services ............................................................... 46 2.4. Education .................................................................... 58 2.5. Health ........................................................................ 61 2.6. Housing ...................................................................... 65 2.7. Social Participation ........................................................... 68 3. AREA-BASED POLICIES ..................................... 73 3.1. Territorial Dimension of Poverty ............................................... 74 3.2. Integrating Marginalized Communities ......................................... 77 4. STRENGTHENING INSTITUTIONAL CAPACITY
    [Show full text]
  • Tipse the Territorial Dimension of Poverty and Social Exclusion in Europe
    TiPSE The Territorial Dimension of Poverty and Social Exclusion in Europe Applied Research 2013/1/24 Interim Report ANNEX 1 Working Paper 1 Review of Concepts of Poverty and Social Exclusion Hilary Talbot, Ali Madanipour, Mark Shucksmith University of Newcastle December 2012 This report presents the interim results of an Applied Research Project conducted within the framework of the ESPON 2013 Programme, partly financed by the European Regional Development. The partnership behind the ESPON Programme consists of the EU Commission and the Member States of the EU27, plus Iceland, Liechtenstein, Norway and Switzerland. Each partner is represented in the ESPON Monitoring Committee. This report does not necessarily reflect the opinion of the members of the Monitoring Committee. Information on the ESPON Programme and projects can be found on www.espon.eu The web site provides the possibility to download and examine the most recent documents produced by finalised and ongoing ESPON projects. This basic report exists only in an electronic version. ISBN number - © ESPON &Nordregio, 2012. Printing, reproduction or quotation is authorised provided the source is acknowledged and a copy is forwarded to the ESPON Coordination Unit in Luxembourg. ii CONTENTS INTRODUCTION ........................................................................................................................ 1 1 Academic Conceptualisations ...................................................................................... 2 2 Territoriality of Poverty and Social Exclusion
    [Show full text]