Download Presentation on Poverty, HBS 2012

Poverty
Ms. C. Rughoobur
Africa Statistics Day
18 November 2013
Poverty measurement
Poverty is a multi dimensional phenomenon
No single definition
No single measurement
Two approaches – Monetary & Non monetary
Poverty measurement
Monetary approach
• Absolute poverty line e.g ‘minimum vital’
• Relative poverty line (lower income group
relative to higher income group)
Absolute poverty
World Bank $1.25 & $2 a day poverty lines
Very few households below these lines in Mauritius
2012
$1.25 (PPP) a day per person
Monthly equivalent (Rs per person)
1,020
Proportion of poor persons
<1%
$2 (PPP) a day per person
Monthly equivalent (Rs per person)
1,640
Proportion of poor persons
< 2%
$1 PPP ‘Purchasing Power Parity’ = Rs17.73
based on 2005 International Comparison Program
$1.25 a day poverty line
% poor persons, 2010-2011
Mauritius
< 1%
World
22%
Seychelles
< 2%
Brazil
6%
China
12%
South Africa
14%
India
33%
0%
5%
10%
15%
20%
25%
30%
35%
$2 a day poverty line
% poor persons, 2009 - 2011
Mauritius
< 2%
World
40%
Seychelles
< 2%
Brazil
11%
China
27%
South Africa
31%
India
69%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Relative poverty
Poverty line: Half median household income per adult
equivalent, i.e. adjusted for household size, age
composition and economies of scale
Poverty line
2006/07
2012
1-person household
Rs 3,821
Rs 5,652
Average household
(2 adults and 2 children)
Rs 9,000
Rs 13,300
How many are in relative poverty?
Number
%
Poor households
33,900
9.4%
Poor persons
126,900
9.8%
Who are more likely to be poor?
Households:
with 3 or more children
With one parent and unmarried children
With 1 person only & elderly living alone
headed by: women, divorced / separated
persons, persons with low educational level,
persons who are economically inactive
Who are more likely to be poor
By type of households
Households with 3 or more
children
25%
1 - person households
15%
Households with elderly living
alone
10%
0%
10%
20%
30%
Who are more likely to be poor?
By profile of head
Divorced / separated heads
22%
Heads who retired, home
maker, disabled, etc.
19%
Heads with education level
below CPE
18%
Female headed households
17%
0%
10%
20%
30%
Children are more likely to be in
poverty
Children (< 16 yrs)
15%
Youth (16-24 yrs)
10%
Adults (25-59 yrs)
8%
Elderly (60+ yrs)
7%
0%
5%
10%
15%
20%
Income
Poor households are more dependent on transfers
Average household size
Poor
households
All
households
3.7
3.5
Average number of income
earner
Average monthly household
resources* (Rs)
% of monthly employment
income
1.5
2.0
9,800
33,800
51%
73%
% of monthly transfer income
29%
13%
*Household resources include imputed rent, a rental value for non-renting
households
Expenditure
Poor households spend a higher of share of their budget
on food, clothing and housing
Poor
All
households households
Average monthly household
Consumption expenditure* (Rs)
8,300
21,200
Average monthly consumption
expenditure on food, clothing and
housing (Rs)
5,400
9,700
% of food, clothing and housing
65%
45%
of which
* Figures on total consumption expenditure have not been adjusted for under reporting
on items like alcoholic beverages and tobacco, etc..
Basic pensions contribute to poverty
reduction
With Government transfers, 9.4 % poor households in 2012
Without Government transfers
% poor
households
Old age pension
16%
Widow’s pension
10%
Invalid pension
11%
Social Aid and other social security benefits
11%
All Government transfers
19%
Government free services contribute to
poverty reduction
With Government free services, 9.4 % poor households in
2012
Without Government free services
% poor
households
Free education (primary & secondary)
16%
Free health services
14%
Free transport (elderly, students and disabled
persons)
All Government transfers
10%
20%
Relative poverty increases
2001/02 2006/07
2012
Relative poverty line – RPL (Rs)
2,804
3,821
5,652
Estimated number of poor households
23,700
26,400
33,900
7.7%
7.9%
9.4%
Proportion of poor households
Estimated number of poor persons
Proportion of poor persons
93,200
7.8%
104,200 126,900
8.5%
9.8%
Has the poverty level
increased?
Relative poverty line (RPL)
Uses
• Provides a snapshot of the poor
Who are they?
What are their characteristics?
Limitations
• Poverty line not easily understood
• Not relevant for measuring trends
• Focus on income inequality
Absolute poverty line
Uses
• Useful to track evolution of poverty
• is fixed at a point in time, and is usually
updated with price changes
Relative poverty – limitation
e.g.
Households
Monthly income (Rs)
Year 2013
Year 2014
1
6,000
60,000
2
9,000
90,000
3
20,000
200,000
4
25,000
250,000
5
50,000
500,000
Median
20,000
200,000
Half median (Relative poverty line)
10,000
100,000
2
2
No. of poor households
Trend in poverty
Using 2012 RPL as a fixed threshold
2001/02
2006/07
2012
Poverty line (Rs)
3,171
4,250
5,652
Proportion of poor households
11.7%
11.7%
9.4%
Proportion of poor persons
11.8%
12.3%
9.8%
Trend in poverty
Using 2001/02 RPL as a fixed threshold
2001/02
2006/07
2012
Poverty line (Rs)
2,804
3,757
4,997
Proportion of poor households
7.7%
7.5%
6.1%
Proportion of poor persons
7.8%
8.2%
6.5%
Trend in poverty
Using 2006/07 RPL as a fixed threshold
2001/02
2006/07
2012
Poverty line (Rs)
2,851
3,821
5,082
Proportion of poor households
8.0%
7.9%
6.5%
Proportion of poor persons
8.1%
8.5%
7.0%
Other poverty related indicators
Non monetary - Relative Development Index (RDI)
• An adapted version of the UN HDI
• A composite index for small areas based on
Housing and living conditions
Literacy and education
Employment
• From 0 (low devpt.) to 1 (high devpt.)
Relative Development Index (RDI)
The level of development has improved
RDI
2000
2011
Republic of Mauritius
0.57
0.77
Island of Mauritius
0.68
0.77
Island of Rodrigues
0.35
0.56
Based on Housing and Population 2000 & 2011
Relative Development Indices by Municipal Ward and Village Council
Area – Censuses 2000 & 2011
CENSUS 2011
CENSUS 2000
Quality of Life indicators
1. Economic sustainability and material living standards
2. Health
3. Education
4. Personal activities including work
5. Political voice and governance
6. Social connections and relationships
7. Environment
8. Insecurity
http://statsmauritius.gov.mu/English/StatsbySubj/Pages/quality-of-life.aspx
What next?
• Public consultation on the QOL indicators
• Subjective indicators: well-being and
happiness
• Possibly a composite index
Happiness does not solely
depend
on income
120
Mostly
Caribbean and
Latin American
countries ,
100
Rank fo Happiness index
Denmark
Finland
Sweden Singapore
Canada
80
60
Mostly Sub
Saharan and
South Asia
countries ,
40
20
Mauritius
China
Singapore,
Australia
United States,
Germany
Mainly European
countries
Latvia,
Lithuania
0
0
20
40
60
80
Rank GDP (US $) per capita Rank of GDP per capita
Rank of Happiness index
100
120
How happy are Mauritians?
UN World Happiness index 2013
Country
Rank
Index (0-10)
Denmark
1st
7.7
Mauritius
67th
5.5
Togo
156th
2.9
Factors: GDP per capita, healthy life expectancy, having
someone to count on, perceived freedom to make life
choices, freedom from corruption, and generosity
Thank you