OPHI Oxford Poverty & Human Development Initiative Department - PowerPoint PPT Presentation

OPHI Oxford Poverty & Human Development Initiative Department of International Development Queen Elizabeth House, University of Oxford www.ophi.org.uk hi k Multidimensional Poverty from OPHI’s Multidimensional Poverty from OPHI’s perspective S bi Sabina Alkire & James Foster Alki J F CONEVAL, 10 December 2009

Intellectual heritage • Amartya Sen: Poverty is multidimensional “There are good reasons for seeing poverty as a deprivation of basic capabilities, rather than merely as low income.” Poverty Measurement: Identification Aggregation Aggregation (Sen 1976) (Sen 1976)

Alkire & Foster 2007 • We constructed a multidimensional poverty methodology including: methodology including: – Who is poor? • Based on Breadth of deprivations Based on Breadth of deprivations – How much poverty? • Headcount (H) ( ) • Breadth (A) • Overall M 0 = H * A • The first measure ( M 0 ) is simple but powerful. • Other methods reflect Depth Inequality Other methods reflect Depth, Inequality .

Headcount Ratio (H) ‘Multidimensional headcount ratio’ – • Very useful partial measure (F&S) What does it show? • Percentage of people who are poor. What does headcount NOT show? What does headcount NOT show? • Breadth of poverty CONEVAL d CONEVAL desiderata – H cannot satisfy. id H i f • Identify the contribution of each dimension • Axiom

Breadth of Poverty (A s ) Average Number of Deprivations among the poor poor. • Very Useful Partial Measure What does it show? • Breadth What does it not show? • How many people are poor (headco nt ratio) • How many people are poor (headcount ratio)

Measure of Intensity • M 0 = H * A • M 0 = Headcount times Breadth d d • M 0 = Measure of ‘intensity’ (Coneval’s term) of poverty in the total population • Can be broken into H and A • Tracks poverty over space and time Tracks poverty over space and time. • Can be decomposed • Axioms A i

M 0 is being adopted as MD measure • Has been applied to data of 25+ countries with more underway. y • India 14 African Countries • China • China Brazil Brazil • Chile Mexico • El Salvador Uruguay • Pakistan Argentina g • UK?!

M 0 is being adopted as MD measure • Has been presented very widely, in academic meetings such as AEA, Royal Economic society, g , y y, WIDER; in institutions such as the World Bank and Asian Development Bank; to policy groups, & p ; p y g p , universities. • Related applications have been used to measure Related applications have been used to measure governance, child poverty, quality of education, as well as to target social programs. well as to target social programs.

M 0 is being adopted as MD measure • Was adopted by Bhutan as the basis of their Gross National Happiness Index Gross National Happiness Index

GNH

M 0 is being adopted as MD measure • M 0 is being considered at the moment by a M 0 is being considered at the moment by a number of other countries with OPHI. • Mexico’s experience will be of great interest

OPHI will implement a Multidimensional Poverty Index M 0 in over 100 developing and developed countries for the UNDP’s p 2010 Human Development Report

CONEVAL’s 10 methodological criteria: Fulfill legal and normative requirements • Legal Incorporate relevant indicators • Data Be applied using information from INEGI • Identify who in the population is poor • Identification Off Offer an analytical framework to identify the regions l i l f k id if h i • with breadth and groups who are the most deprived Decomposable Identify the contribution of each dimension to poverty Id ntif th ntrib ti n f h dim n i n t p rt • • by dimension by dimension Be decomposable by different population groups • Decomposable Reveal the contribution of different administrative Reveal the contribution of different administrative by group by group • • units to national poverty Create measures that can be compared across time p • Comparable p Satisfy a set of axiomatic properties • Rigorous

Calculating the ‘intensity’ of poverty Example: Let’s say 40% of people are poor, and that in average E l L t’ 40% f l d th t i they are deprived in 3.25 out of the 6 social dimensions. M 0 is the grey shaded area = 0.40 x (3.25/6) = 0.22 M 0s is the grey shaded area 0.40 x (3.25/6) 0.22 =40% M 0s 0.40 x (3.25/6) M 0 = 0.40 x (3.25/6) H= 0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1

M 0 rises if a person becomes more deprived José Joaquín Su ingreso Trabaja T b j S Su casa no está por tá Terminó la como tiene agua debajo de primaria jornalero entubada la línea de bienestar POBREZA MODERADA POBREZA MODERADA Fuente: estimaciones del CONEVAL con base en el MCS-ENIGH 2008.

M 0 also rises if a person is more deprived José Joaquín No No I ncome I ncome Housing Housing Finished Finished Works as k piped is below now primary a water to poverty over- shepherd school crowded house line POBREZA MODERADA POBREZA MODERADA Fuente: estimaciones del CONEVAL con base en el MCS-ENIGH 2008.

Unlike Headcount, M 0 can be broken down by dimension Contribución de cada indicador de carencia social a la intensidad de la pobreza multidimensional, México, 2008 100 90 90 80 70 60 50 40 30 20 10 0 Aguascalientes Baja California Sur Chiapas Guanajuato Nacional Quintana Roo San Luis Potosí Zacatecas Baja California Campeche Coahuila Chihuahua Distrito Federal Durango Guerrero Hidalgo Jalisco México Michoacán Morelos Nayarit Nuevo León Oaxaca Puebla Querétaro Sinaloa Sonora Tabasco Tamaulipas Tlaxcala Veracruz Yucatán Colima B Rezago educativo Acceso a los servicios de salud Acceso a la seguridad social Calidad y espacios de la vivienda Servicios básicos en la vivienda Acceso a la alimentación Fuente: estimaciones del CONEVAL con base en el MCS-ENIGH 2008. Fuente: estimaciones del CONEVAL con base en el MCS 2008.