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OPHIOxford Poverty & Human Development InitiativeDepartment of International DevelopmentQueen Elizabeth House, University of Oxford www.ophi.org.uk
Multidimensional Measurement of Poverty
16 June 2008
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Bhutan: Overview
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Bhutan: Basic Facts• 17th Century: Emerged as a country.
• Monarchy until 2008 when the first elections were held, fostered by the last three kings. They have finally become a constitutional monarchy.
• Gross National Happiness vs. Gross National Product. However, it is a fast growing country: 2000: 7.2% and 2006: 8.5%.
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Bhutan: Dataset
• 2007 Bhutan Living Standard Survey
(National Statistics Bureau-NSB):
-9798 households, representing 125,491
-49165 people, representing 630,000
• Unit of Analysis: Household. All members of a household identified as poor are considered poor.
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Objective
• The NSB estimates income poverty (they use the FGT class: incidence (HCR), intensity (PGR) and severity (SPGR).
• Q/ How do figures change when we move from income poverty to multidimensional poverty?
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Selected Indicators & Deprivation Cutoffs
Indicator Deprivation Cutoff
INCOMEBhutan Food Poverty Line (Nu 407.98 pc p/month)Bhutan Poverty Line (Nu 1,096.94 pc p/month)
LITERACYNone of the household members is literate (Basu & Foster, 1998)
ROOM AVAILABILITY
More than 3 persons per room (MDG).
ELECTRICITY Not having access to electricity.
DRINKING WATER Not having any of these: pipe in dwelling, neighbour’s pipe, public outdoor tap or protected well. (MDG)
SANITATION Not having flush toilet or pit latrine. (MDG).
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Results with Equal Weights:
Each Indicator counts with wi=1
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% of People Deprived in Each Indicator
Indicator Number of
Deprived in…
H
Subsistence Income 37,329 5.9
Income 146,100 23.2
Literacy 53,803 8.5
Room Availability 302,803 48.1
Electricity 188,590 29.9
Drinking Water 57,457 9.1
Improved Sanitation
23,006 3.6
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Rural vs. Urban: Contribution to overall H
by each Indicator
Rural Pop. Share: 74% - Urban Pop. Share: 26%
0%10%20%30%40%50%60%70%80%90%
100%
Inco
me
Litera
cy
People
per
Room
Drinki
ng Wat
er
Elect
ricity
Santit
atio
n
Indicator
% C
on
trib
uti
on
UrbanRural
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H and Mo for different k values
k
Number of
HH Poor in
k or more…
H Mo A
On average
poor in…
1 409,585 0.65 0.20 0.31 1.8
2 224,033 0.36 0.15 0.42 2.5
3 105,417 0.17 0.09 0.53 3.2
4 28,237 0.04 0.03 0.75 4.5
5 4,290 0.007 0.006 0.86 5.2
6 197 0.0003 0.0003 1 6
Income H=23.2%
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Rural vs. Urban: Contribution to overall
Mo for different k
Rural Pop. Share: 74% - Urban Pop. Share: 26%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1 2 3 4 5 6
k
% C
on
trib
uti
on
Urban
Rural
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Bhutan’s 20 Districts
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Selected Rank Changes:Income Poverty vs.
Multidimensional PovertyDistrict Income
H
Income
Rank
(Ascending)
M0
k=2
M0
Rank
(Ascending)
Rank Change
(H Income- M0)
Thimpu 0.024 1 0.089 5 -4
Gasa 0.041 3 0.231 14 -11
Chhukha 0.203 11 0.142 6 5
Lhuntse 0.430 17 0.210 9 8
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Why the changes?
Gasa Lhuntse
Variable H by Indicator %Contrib H by Indicator %Contrib
Income 0.041 3% 0.478 23%
Literacy 0.138 10% 0.270 13%
Room Availability 0.339 25% 0.482 23%
Electricity 0.454 33% 0.485 23%
Drinking Water 0.411 30% 0.216 10%
Improved Sanitation 0.002 0 0.176 8%
M0 0.231 100 0.210 100
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Composition of Multidimensional Poverty in Two Districts - Mo with k=2
0%10%20%30%40%50%60%70%80%90%
100%
Gasa LhuntseDistrict
% C
on
trib
uti
on
of
Ea
ch
In
dic
ato
r
Income Literacy People per Room
Drinking Water Electricity Santitation
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Final Thoughts• Income deprivation does not tell the whole story
about deprivation in Bhutan. Ranking districts by income poverty can hide serious deprivation in many other indicators.
• Room Availability, Access to Electricity, Access to Drinking Water: high deprivation in many areas.
• Rural Areas are the ones that contribute most both to income and multidimensional poverty.
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Additional Slides (If required for the discussion)
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Rural vs. Urban: H by Indicator
Indicator H
Rural
%
Contrib
H
Urban
%
Contrib
H
Bhutan
Subsistence Income 8 100% 0.16 0% 5.9
Income 30.9 98% 1.7 2% 23.2
Literacy 10.3 90% 3.5 10% 8.5
Room Availability 52.5 81% 35.8 19% 48.1
Electricity 40.3 99% 1.15 1% 29.9
Drinking Water 12.2 99% 0.5 1% 9.1
Improved Sanitation
4.6 92% 1.1 8% 3.6
Rural Pop. Share=74% - Urban Pop. Share=26%
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Rural vs. Urban: M0 with different k
K M0
Rural
%
Contrib
M0
Urban
%
Contrib
M0
Bhutan
1 0.251 91% 0.07 9% 0.205
2 0.206 97.5% 0.015 2.5% 0.156
3 0.125 99.4% 0.002 0.6% 0.093
4 0.042 99.9% 0.0001 0.1% 0.031
5 0.008 100% 0 0 0.006
6 0.0004 100% 0 0 0.0003
Rural Pop Share=74% - Urban Pop Share=26%