poverty ms. c. rughoobur africa statistics day 18 november 2013
TRANSCRIPT
Poverty
Ms. C. RughooburAfrica 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 linesVery 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
$2 a day poverty line % poor persons, 2009 - 2011
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
Number %
Poor households 33,900 9.4%
Poor persons 126,900 9.8%
How many are in relative poverty?
Who are more likely to be poor?
Households:with 3 or more childrenWith one parent and unmarried childrenWith 1 person only & elderly living aloneheaded 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
Who are more likely to be poor?By profile of head
Children are more likely to be in poverty
Income Poor households are more dependent on transfers
Poor households
All households
Average household size 3.7 3.5
Average number of income earner 1.5 2.0
Average monthly household resources* (Rs) 9,800 33,800
% of monthly employment income 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 households
All households
Average monthly household Consumption expenditure* (Rs) 8,300 21,200
of which
Average monthly consumption expenditure on food, clothing and housing (Rs)
5,400 9,700
% of food, clothing and housing 65% 45%
* Figures on total consumption expenditure have not been adjusted for under reporting on items like alcoholic beverages and tobacco, etc..
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%
Basic pensions 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)
10%
All Government transfers 20%
Government free services contribute to poverty reduction
Relative poverty increases2001/02 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
Proportion of poor households 7.7% 7.9% 9.4%
Estimated number of poor persons 93,200 104,200 126,900
Proportion of poor persons 7.8% 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 – limitatione.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
No. of poor households 2 2
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 conditionsLiteracy and educationEmployment• From 0 (low devpt.) to 1 (high devpt.)
Relative Development Index (RDI)
Based on Housing and Population 2000 & 2011
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
CENSUS 2011 CENSUS 2000
Relative Development Indices by Municipal Ward and Village Council Area – Censuses 2000 & 2011
Quality of Life indicators
1. Economic sustainability and material living standards 2. Health3. Education4. Personal activities including work 5. Political voice and governance6. Social connections and relationships7. Environment8. 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
How happy are Mauritians?
UN World Happiness index 2013
Factors: GDP per capita, healthy life expectancy, having someone to count on, perceived freedom to make life choices, freedom from corruption, and generosity
Country Rank Index (0-10)
Denmark 1st 7.7
Mauritius 67th 5.5
Togo 156th 2.9
Thank you