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Poverty Measurement and Analysis   Suresh Babu International Food Policy Research Institute
Dietary Intake Macro-nutrients Micro-nutrients Health Status Access to food Household income/ expenditures on food Maternal & child care practices Quality & quantity of care Health environment & services Access & quality of health, sanitation &  water ,[object Object],[object Object],[object Object],[object Object],Policies & programs that increase -caregivers access -caregivers resource control -caregivers knowledge, adoption & practice  Policies that improve -adequate sanitation -safe water supply -health care availability -environmental safety/ shelter  Political & legal Institutions Political commitment, legal structures for implementing food laws Potential resources Poverty /natural resources availability/ agricultural technology Resource control, ownership, use Resource use & pricing policies Adult development  and Labor productivity Immediate  Causes Underlying  Causes Basic  Causes Nutrition Security Conceptual Framework of Linking Poverty & Nutrition
Nutrition  Security Dietary Intake Macro-nutrients Micro-nutrients Health Status Access to food Household income/ expenditures on food Maternal & child care practices Quality & quantity of care Health environment & services Access & quality of health, sanitation &  water Immediate Causes Labor productivity Adult development
[object Object],[object Object],[object Object],[object Object],Policies & programs that increase -caregivers access -caregivers resource control -caregivers knowledge, adoption & practice  policies that improve -adequate sanitation -safe water supply -health care availability -environmental safety/ shelter  Underlying Causes
Political & legal institutions Political commitment, legal structures for implementing food laws Potential resources Poverty /natural resources availability/ agricultural technology Resource control, ownership, use Resource use & pricing policies Sources: Adapted from UNICEF (1998); Haddad (1999); and Smith and Haddad (2000) Basic Causes
Introduction to Poverty Analysis ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
What is Poverty? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
What do we mean by “Poverty”? The primary focus is on individuals or groups suffering from multiple deprivations Core Poor Education poor Health Poor Security Poor Income Poor
Poverty Lines and Poverty Measurement ,[object Object],[object Object],[object Object]
Methods of Fixing Poverty Lines ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Cost-of-Basic-Needs Method ,[object Object],[object Object],[object Object],[object Object]
How to calculate the Food Poverty Line ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Cost of the average food bundle *
How to Calculate the Non-food Poverty Line ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Minimum daily caloric requirements by sector and gender Urban  Rural  Age categories Male Female Male Female 0 to 1 year 820 820 820 820 >1 to 2 years  1,150 1,150 1,150 1,150 >2 to 3 years 1,350 1,350 1,350 1,350 >3 to 5 years 1,550 1,550 1,550 1,550 >5 to 7 years 1,850 1,750 1,850 1,750 >7 to 10 years 2,100 1,800 2,100 1,800 >10 to 12 years 2,200 1,950 2,200 1,950 >12 to 14 years 2,400 2,100 2,400 2,100 >14 to 16 years 2,600 2,150 2,600 2,150 >16 to 18 years 2,850 2,150 2,850 2,150 >18 to 30 years 3,150 2,500 3,500 2,750 >30 to 60 years 3,050 2,450 3,400 2,750 >60 years 2,600 2,200 2,850 2,450 Source: Caloric requirements are from WHO (1985, Tables 42 to 49). Notes: Requirements used are for men weighing 70 kilograms and for women weighing 60 kilograms.  Urban individuals are assumed to need 1.8 times the basal metabolic rate (BMR), while rural individuals are assumed to need 2.0 times the average BMR. Children under one year of age are assigned the average caloric need of children either 3–6, 6–9, or 9–12 months old.
Poverty lines and spatial price indexes by region Region Food  poverty  line Reference  poverty  line Ultra poverty  line Relative  price index Metropolitan 50.18 129 .19 75.36 1.000 Lower urban 45.94 101 .72 67.52 0.787 Lower rural 44.29 85 .38 64.71 0.661 Upper urban 45.19 67.51 0.785 Upper rural 40.36 53.37 0.641 101.36 82.81 Notes: Poverty lines are monthly, per capita figures in Egyptian pounds.  The Metropolitan poverty line is used as a base line to create the relative price index, which is simply the ratio of each region's reference poverty line to the base line.
Issues in the Poverty Line ,[object Object],[object Object],[object Object],[object Object],[object Object]
Measures of Poverty ,[object Object],[object Object],[object Object],[object Object],[object Object]
Head-count Index of Poverty  ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Example of the Head-count Index Calculation  ,[object Object],[object Object],[object Object]
  Head-count of Absolute Poverty for Bangladesh - - - - 52.9 33.6 - 50.0 46.8 Rural Urban 1991/ 1992 - n.a. 33.4 43.8 n.a. - 49.7 35.9 - 48.0 44.0 Rural  Urban 1988/ 1989 - n.a. 30.6 41.3 n.a. 47.1 29.1 45.9 30.8 51.6 66.8 51.0 56.0 Rural Urban 1985/ 1986 - n.a. 42.6 50.0 n.a. 49.8 39.5 53.8 40.9 n.a. n.a. 57.0 66.0 Rural Urban 1983/ 1984 - n.a. 48.4 65.3 n.a 79.1 50.7 - 71.8 65.3 73.8 66.0 Rural Urban 1981/ 1982 55.9 37.8 n.a. 63.2 71.3 n.a. 65.3 62.5 - - 82.9 81.4 (5.6) Rural Urban 1973/ 1974 Muqtada (1986) Sen & Islam (1993) Hossain & Sen (1992) Rahman & Haque (1988) Ravallion & Sen (1994) Ahmed et al. (1991)+ BBS Graph* Fitting Method + Sector Year
Poverty Gap Index (PGI) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Example of Poverty Gap Calculation Income of4 individuals in a sample: 1,2,3,4 Poverty line = Z = 3; n=4 PG = [(3-1)/3 + (3-2)/3]/4 = [(2/3) + (1/3)]/4 = [(3/3)/4] = ¼ or 0.25 Poverty gap index does not capture differences in severity of poverty.
Why? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Squared Poverty Gap Index (SPG) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Poverty Analysis Income/Consumption Poverty Profile ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Qualitative Analysis of Poverty ,[object Object],[object Object],[object Object],[object Object]
Use of Qualitative Methods ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Income or Consumption? ,[object Object],[object Object],[object Object],[object Object]
Measuring Income/ Consumption Poverty ,[object Object],[object Object],[object Object],[object Object],[object Object]
Data Needs for Poverty Analysis ,[object Object],[object Object],[object Object],[object Object],[object Object]
Data Needs for Poverty Analysis cont. ,[object Object],[object Object],[object Object],[object Object],[object Object]
Data Needs for Poverty Analysis cont. ,[object Object],[object Object],[object Object],[object Object],[object Object]
Data Sources for Poverty Analysis ,[object Object],[object Object],[object Object],[object Object]
Types of Household Surveys ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

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  • 1. Poverty Measurement and Analysis Suresh Babu International Food Policy Research Institute
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  • 3. Nutrition Security Dietary Intake Macro-nutrients Micro-nutrients Health Status Access to food Household income/ expenditures on food Maternal & child care practices Quality & quantity of care Health environment & services Access & quality of health, sanitation & water Immediate Causes Labor productivity Adult development
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  • 5. Political & legal institutions Political commitment, legal structures for implementing food laws Potential resources Poverty /natural resources availability/ agricultural technology Resource control, ownership, use Resource use & pricing policies Sources: Adapted from UNICEF (1998); Haddad (1999); and Smith and Haddad (2000) Basic Causes
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  • 8. What do we mean by “Poverty”? The primary focus is on individuals or groups suffering from multiple deprivations Core Poor Education poor Health Poor Security Poor Income Poor
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  • 14. Minimum daily caloric requirements by sector and gender Urban Rural Age categories Male Female Male Female 0 to 1 year 820 820 820 820 >1 to 2 years 1,150 1,150 1,150 1,150 >2 to 3 years 1,350 1,350 1,350 1,350 >3 to 5 years 1,550 1,550 1,550 1,550 >5 to 7 years 1,850 1,750 1,850 1,750 >7 to 10 years 2,100 1,800 2,100 1,800 >10 to 12 years 2,200 1,950 2,200 1,950 >12 to 14 years 2,400 2,100 2,400 2,100 >14 to 16 years 2,600 2,150 2,600 2,150 >16 to 18 years 2,850 2,150 2,850 2,150 >18 to 30 years 3,150 2,500 3,500 2,750 >30 to 60 years 3,050 2,450 3,400 2,750 >60 years 2,600 2,200 2,850 2,450 Source: Caloric requirements are from WHO (1985, Tables 42 to 49). Notes: Requirements used are for men weighing 70 kilograms and for women weighing 60 kilograms. Urban individuals are assumed to need 1.8 times the basal metabolic rate (BMR), while rural individuals are assumed to need 2.0 times the average BMR. Children under one year of age are assigned the average caloric need of children either 3–6, 6–9, or 9–12 months old.
  • 15. Poverty lines and spatial price indexes by region Region Food poverty line Reference poverty line Ultra poverty line Relative price index Metropolitan 50.18 129 .19 75.36 1.000 Lower urban 45.94 101 .72 67.52 0.787 Lower rural 44.29 85 .38 64.71 0.661 Upper urban 45.19 67.51 0.785 Upper rural 40.36 53.37 0.641 101.36 82.81 Notes: Poverty lines are monthly, per capita figures in Egyptian pounds. The Metropolitan poverty line is used as a base line to create the relative price index, which is simply the ratio of each region's reference poverty line to the base line.
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  • 20.   Head-count of Absolute Poverty for Bangladesh - - - - 52.9 33.6 - 50.0 46.8 Rural Urban 1991/ 1992 - n.a. 33.4 43.8 n.a. - 49.7 35.9 - 48.0 44.0 Rural Urban 1988/ 1989 - n.a. 30.6 41.3 n.a. 47.1 29.1 45.9 30.8 51.6 66.8 51.0 56.0 Rural Urban 1985/ 1986 - n.a. 42.6 50.0 n.a. 49.8 39.5 53.8 40.9 n.a. n.a. 57.0 66.0 Rural Urban 1983/ 1984 - n.a. 48.4 65.3 n.a 79.1 50.7 - 71.8 65.3 73.8 66.0 Rural Urban 1981/ 1982 55.9 37.8 n.a. 63.2 71.3 n.a. 65.3 62.5 - - 82.9 81.4 (5.6) Rural Urban 1973/ 1974 Muqtada (1986) Sen & Islam (1993) Hossain & Sen (1992) Rahman & Haque (1988) Ravallion & Sen (1994) Ahmed et al. (1991)+ BBS Graph* Fitting Method + Sector Year
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  • 22. Example of Poverty Gap Calculation Income of4 individuals in a sample: 1,2,3,4 Poverty line = Z = 3; n=4 PG = [(3-1)/3 + (3-2)/3]/4 = [(2/3) + (1/3)]/4 = [(3/3)/4] = ¼ or 0.25 Poverty gap index does not capture differences in severity of poverty.
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