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Samuel Freije Senior economsit poverty and gender unit LAC-PREM There are several “political” arguments behind the idea of multidimensional measures… ◦ The objective of the 2006 Bolivian National Development is... ”Vivir Bien” (Living well) ◦ The new (2009) Constitution of the Plurinational State of Bolivia has in its preample: “Un Estado basado en el respeto e igualdad entre todos, con principios de soberanía, dignidad, complementariedad, solidaridad, armonía y equidad en la distribución y redistribución del producto social, donde predomine la búsqueda del vivir bien;… “ ◦ The Andean Indigenous Peoples Bureau 2010 report on “Vivir Bien” (suma qamaña , suma kwasay) There are also “economic” reasons behind the search for multidimensional measures… ◦ Monetary poverty rates have been unsensitive to large economic and political changes ◦ There are several multidimensional measures of welfare/poverty produced during the last decade HDI by UNDP in 2004, Child Poverty by UNICEF in 2009, NBI by Bolivian INE in 2001, Capacity Gaps Index by World Bank in 2006, … The authorities in the country may not be aware of the technical difficulties behind the production (and use) of multidimensional measures: ◦ What is the purpose of the index? Targeting beneficiaries of social programs? Describe and profile poverty/welfare ? Monitor and analyze social programs? ◦ What is to be measured welfare or poverty? ◦ How will the dimensions be chosen? Rights approach (Constitution, National Laws, Human Rights Declaration, Millenium Goals…) A priori (academic references Sen(1999), Nussbaum (1998)…etc) ◦ How will the indicators be chosen? Theory driven vs data driven ? Inputs vs outputs vs outcomes Short-term vs long-term ◦ How and why the dimensions will be aggregated? Aggregation vs dashboard Currently the Bank is producing a review of existing multidimensional measures in Bolivia It is also producing a Human Opportunities report for Bolivia It will provide support for reviewing monetary measures of poverty It can provide technical support regarding newer multidimensional measures discussed in the current international debate Future Poverty Assessments need to be more comprehensive and have a multi-instrument approach to poverty/welfare measurement Thanks! Samuel Freije-Rodríguez