Djibouti Poverty Assessment
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Report No. 16543-DJI Dj ibouti Crossroadsof the Horn of Africa Public Disclosure Authorized PovertyAssessment October 7, 1997 1--lurnanD)evelopment CGroup?IV Africa Regiork Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Documentof4ftbe World Bank FItEEGSPY CURRENCY EQUIVALENTS Currency Unit = Djibouti Franc (Fdj) US$1 = 177.721 Fdj ACRONYMSAND ABBREVIATIONS AfDB African Development Bank AES Adult Equivalent Expenditure AIDS Acquired Immune Deficiency Syndrome BCR Bureau Central du Recensement BND Banque Nationale de Djibouti CPS Caisse des Prestations Sociales CNR Caisse Nationale des Retraite DINAS Direction Nationale de Statistique EDAM Enquete Aupres des Menages EDI Enquete Ddmographique Intercensitaire EPL Extreme Poverty Line IEC Information, Education, Communication IMF Intemational Monetary Fund FGM Female Genital Mutilation GDP Gross Domestic Product GNP Gross National Product HIV Human Immunodeficiency Virus ONED Office National des Eaux de Djibouti OAU Organization of African Unity ODA Official Development Assistance OLS Ordinary Least Squares ONED Office National des Eaux de Djibouti PMI Protection Matemelle Infantile PPA Participatory Poverty Assessment PRA Participatory Rapid Appraisal SMI Service Medical Interentreprises TB Tuberculosis TFR Total Fertility Rate UNCHR United Nations High Commission for Refugees UNDP United Nations Development Program UNICEF United Nations Children's Fund US$ United States Dollar USAID United States Agency for International Development WDR World Development Report WFP World Food Program WHO World Health Organization Vice President Callisto Madavo, AFRYP Director : Harold Wackman, AFMKE Sector Manager: Arvil Van Adams, AFTH4 staff : Luisa Ferreira, Task Manager (AFTH4); Robert Blake (AFTM2); Branko Milanovic (DECRG); Antoine Simonpietri, Olivier Dupriez (AFTll); Andrew Follmer, Ugo Panizza (AFTHI); Anna Martelia, Carlo-Federico Perali (Consultants). Djibouti - Sedentary Population: Household Welfare Indicators Expenditure quintile NATIONAL J)JIBOUT'I-1Vl.LE Unit of Indicator measure All 1 2 3 4 5 All 1 2 3 4 5 Demographic indicators Samplesize (households) Number 2,380 562 438 426 422 532 1,591 291 285 292 316 407 Populationbelow 15years Percent 38 46 40 38 35 30 36 43 39 38 32 29 Population60 years and above Percent 4 3 4 4 4 5 4 4 4 4 3 4 Age dependencyratio Percent 67 93 75 68 58 46 63 84 70 67 52 45 Numberofmales per 100females Number 81 81 81 79 81 81 79 77 77 83 79 81 (age 15 and over) Averagehousehold size Number 6.7 7.2 7.5 7.1 6.9 5.3 6.8 7.4 7.7 7.5 6.9 5.4 Education and literacy Net primaryenrollment rate (total) Percent 68 53 70 70 75 79 68 55 71 70 75 79 Male Percent 73 60 74 77 78 83 73 60 75 76 80 82 Female Percent 62 45 66 64 71 74 63 49 66 64 69 76 Net secondaryenrollment rate (total) Percent 28 9 23 35 37 51 30 9 28 35 42 52 Male Percent 33 11 26 42 40 59 37 10 34 42 45 61 Female Percent 23 6 19 28 34 45 28 7 23 29 38 46 Literacyrate (total) Percent 53 36 49 52 59 63 59 39 53 55 61 65 Male Percent 73 66 69 76 80 85 73 53 69 75 79 84 Female Percent 43 32 41 43 47 52 45 35 42 44 48 54 Head of household Marital status of head Monogamousmale-headed Percent 63 62 59 66 64 65 64 63 60 67 62 68 Polygamousmale-headed Percent 10 11 13 8 10 8 9 9 9 9 9 8 Singlemale-headed Percent 4 2 3 3 3 8 4 2 3 3 4 8 De facto female-headed Percent 5 8 6 7 2 4 5 8 8 4 3 3 Dejure female-headed Percent 17 17 20 16 20 15 18 19 21 16 22 13 Education levelof head No Formaleducation Percent 61 86 75 66 55 33 58 83 73 60 53 32 Completedprimary, no secondary Percent 14 6 10 14 20 18 15 7 10 16 22 18 Secondarynot completed Percent 11 2 5 12 12 20 12 3 7 13 12 21 Completedsecondary / higherlevel Percent 5 0 1 2 5 15 6 0 1 3 5 17 Labor market (population aged 15 to 64) Number of employedpeople in sample Number 2,585 382 427 470 562 744 1,958 231 309 374 440 604 Proportionofemployed Percent 17 9 13 15 19 26 17 10 14 17 20 27 Labor forceparticipation (total) Percent 48 40 49 48 49 53 50 44 49 51 49 54 Male Percent 62 53 65 64 63 72 64 57 63 64 64 71 Female Percent 33 29 37 37 37 39 38 35 37 40 38 39 Householdexpenditure Meanpercapitaexpenditure(FDJ) OOOs 190 60 104 148 208 433 206 71 117 161 222 461 Populationbelow soft povertyline Percent 45 100 100 25 0 0 39 100 100 24 0 0 Share of food in total expenditure Percent 43 58 47 42 37 30 40 52 44 40 37 29 Household amenities Type of fuel for cooking Firewood Percent 4 16 4 1 0 1 0 1 0 0 0 0 Gas, kerosine Percent 90 79 91 95 92 93 94 92 96 95 92 94 Charcoal Percent 0 1 0 0 1 0 0 0 0 '0 0 0 Electricity Percent 4 2 4 2 5 5 4 3 3 3 6 5 Other Percent 2 3 1 1 2 1 2 3 1 1 2 1 Accessto sanitation Percent 18 4 5 11 20 41 20 4 5 14 21 45 Access to water Pipe/Borne Percent 79 57 73 79 89 91 80 57 73 85 90 91 Well Percent 3 13 3 2 1 0 0 2 0 0 0 0 Other Percent 18 30 24 19 10 9 19 41 27 15 10 9 Owner occupancyrate Percent 68 80 73 65 65 58 65 74 71 65 64 57 Source:Household Prorty Survey,1996. "Enquete Djiboutienne aupres des menages.Indicateurs sociaux." TABLE OF CONTENTS PREFACE EXECUTIVE SUMMARY ......................................................................... i 1. ECONOMIC AND SOCIAL CONTEXT ...................................................................................1 A. BACKGROUND ................................................................... 1 Djibouti: A city-state .................................................................. l1 Population ................................................................... 1 B. INTERNATIONALCONTEXT ................................................... 2 C. ECONOMIC CONTEXT ................................................................... 3 Economic Structure ................................................................... 3 Past Performance ................................................................... 5 Recent Economic Developments ................................................................... 5 D. THE REPORT................................................................... 7 2. DJIBOUTI: POVERTY PROFILE .......................................................................... 8 A. MEASURING AND DETERMINING POVERTY ..................................................................... 8 Sources of Data .......................................................................... 8 How to Rank Households .......................................................................... 9 The Poverty Line ......................................................................... 10 Choice of Poverty Index ......................................................................... 12 B. THE SIZE AND DISTRIBUTION OF WELFARE IN DJIBOUTI ............................................... 13 Levels of Expenditure ......................................................................... 13 Distribution of Expenditures......................................................................... 13 C. INCIDENCE AND DEPTH OF POVERTY......................................................................... 15 How Robust are the Findings? ......................................................................... 18 D. TARGETING THE POOR ......................................................................... 19 E. VULNERABLE GROUPS: REFUGEES, NOMADS, AND STREET CHILDREN ......................... 19 Refugees ......................................................................... 20 Nomads ......................................................................... 21 Street Children ......................................................................... 22 F. CHARACTERISTICSOF THE POOR IN DJIBOUTI ................................................................ 23 Consumption Patterns of the Poor ......................................................................... 23 Basic Demographic Characteristics ....................................................................... 24 Ownership of Assets ......................................................................... 27 Banking and Credit ......................................................................... 27 G. THE PROBABILITY OF BEING POOR ......................................................................... 29 H. HOW THE POOR PERCEIVE THEIR OWN POVERTY: THE RESULTS OF A PARTICIPATORY POVERTY ASSESSMENT ......................................................................... 31 Perceptions ......................................................................... 32 Coping Strategies ......................................................................... 32 Priorities ......................................................................... 33 I. POVERTY,INEQUALITY AND GROWTH: OUTLOOK FOR THE FUTURE ............................... 33 Poverty and Inequality ................................................. 34 Sectoral Growth and Poverty ................................................. 35 J. MONITORINGPOVERTY ................................................. 36 K. CONCLUSIONS................................................. 37 3. HUMAN CAPITAL UNDERDEVELOPMENT ...................................................... 39 A. EDUCATION...................................................... 39 The Education System ...................................................... 39 Educational Attainment ........................................................ 40 Private Costs of Education ....................................................... 46 B. HEALTH...................................................... 47 Health Status