Case studies: National multidimensional poverty measures

Case Studies: National
Multidimensional Poverty
Measures
Mónica Pinilla
Barbados
Feb 2018

MPI: Two kinds ~ both useful
Internationally comparable – Global MPI
- Like $1.90/day and $2.50/day poverty measures
- Can compare regions, subnational groups, over time
- Could track SDG-1: poverty in its many dimensions
- Could measure both acute and moderate poverty
- Useful for policy analysis, but limited national ownership

MPI: Two kinds ~ both useful
Context specific – National MPIs:
- Reflects national contexts and priorities
- They guide policies – like targeting and allocation,
monitoring and coordination
- Useful for policy but can’t be compared internationally

MPI in Action
Official National MPIs
Colombia Mexico
Bhutan Chile
El Salvador Costa Rica
Ecuador Pakistan
Honduras Mozambique
Armenia HCMC (Vietnam)
Panama Dominican Republic

www.coneval.gob.mx
Multidimensional Poverty in Mexico
Adapted from Hernandez-Licona (2015)
and Enrique Gonzalez Tiburcio (2015)
available at the Coneval and MPPN
websites

Normative decisions
• Purpose: To implement the 2004 General Law
for Social Development  2009 first
multidimensional estimations.
• Dimensions and indicators established in the
2004 General Law.
• Individual as unit of analysis.
• Old survey (ENIGH) adapted with new module
for indicators.
• Launched: December 2009

MODERATE POVERTY
Social rights
Deprivations
Income
03 2 1456
EXTREME
POVERTY
Fuente: estimaciones del CONEVAL con base en el MCS-ENIGH 2008.
Population in extreme poverty are those with income
below the extreme monetary line AND experiencing 3
or more deprivations in social rights

45.5 46.2
30.0
46.1
40.0
50.0
60.0
2010 2012 2014
Porcentaje
Fuente: estimaciones del CONEVAL con base en el MCS-ENIGH de 2010 a 2014
Poverty (%)

52.0
51.6
53.2
40.0
60.0
2010 2012 2014
Porcentaje
Population with income below
extreme poverty line (%)

74.2 74.1
50.0
60.0
72.4
70.0
80.0
90.0
2010 2012 2014
Porcentaje
Population with 1 or more
social deprivations (%)

Slides used with permission…
The Multidimensional Poverty Index (MPI):
The Colombian Experience

Our starting point: Improving the instruments
and methodologies of poverty measurement
Motivation: Designing a strategy for the
reduction of poverty and inequality based on a
complete approach using income and
multidimensional measures

How do we calculate our MPI?
Low educational
achievement*
Illiteracy
School
absenteeism*
School
underachievement
*
Lack of access
to early
childhood care
services*
Child labour
Long – term
unemployment
Informal
employment
*
Lack of health
insurance*
Lack of access
to healthcare
service
Lack of access to
improved water sources*
Inadequate
sanitation*
Inadequate floor materials*
Inadequate wall
materials*
Critical
overcrowding*
* Variables related to Prosperidad Social interventions
Health (0.2)
Education
(0.2)
Employment
(0.2)
Childhood
and youth
(0.2)
Acccess to public
services and
household conditions
(0.2)
5

The number of MPI deprivations experienced by those who were income poor,
and those who perceived themselves to be poor, was compared with the number
of deprivations among the non-income and non-subjective poor.
Poverty Cutoff – Colombia.
Median Average
People who perceive themselves to be poor 5.0 5.0
Income poor people 5.1 5.2
Income poor people who perceive self as poor 5.4 5.6
Those who don’t perceive themselves as poor 3.0 3.2
Those who are not income poor 3.0 3.2
All people 3.8 4.1
Median and Average number of deprivations 2008
Fuente: Cálculos DNP-SPSCV, con datos de la ECV2008
A non-poor person on average has 3 deprivations, which suggests that a low value of k would capture
deprivations that were not related to or sufficient to identify poverty.

The National Department of
Statistics acquired the
responsibility of producing
the official poverty
measurements on a year basis
Technical and methodological
decisions are defined at the
experts-committee
(NPD, DSP, external experts)
Documento
Conpes
Social
Consejo Nacional de Política Económica y Social
República de Colombia
Departamento Nacional de Planeación
METODOLOGÍAS OFICIALES Y ARREGLOS INSTITUCIONALES PARA LA
MEDICIÓN DE LA POBREZA EN COLOMBIA
DNP – DDS
DANE
DPS
Versión aprobada
Bogotá, D.C., mayo 28 de 2012
150
Institutional agreement on
the measurement of
poverty

Since 2010 5 million colombians
overcame multidimensional
poverty
In the last five years multidimensional poverty has
decreased significantly
Source: “Quality if Life National Survey – DANE”.6
30,4 29,4
27,0
24,8
21,9
20,2
17,8
23,5 22,2
20,6
18,5
15,4 14,4
12,1
53,1 53,1
48,3
45,9
44,1
40,0
37,6
0,0
10,0
20,0
30,0
40,0
50,0
60,0
2010 2011 2012 2013 2014 2015 2016
Multidimensional Poverty in Colombia
2010-2016
Total Urban Rural

Multidimensional poverty levels have decreased in every
Colombian region
The Caribbean, Central and Pacific
regions achieve the most important
reductions in multidimensional
poverty
Source: “Quality of Life National Survey – DANE”7
42,7
33,2
45,5
26,4
31,2
18,0
28,6
16,8
27,8
15,1
24,1
12,0
12,1
5,9
0,0
5,0
10,0
15,0
20,0
25,0
30,0
35,0
40,0
45,0
50,0
2010 2011 2012 2013 2014 2015 2016
Multidimensional Poverty by Regions
Pacific
Caribbean
Central
Eastern
Antioquia
Valle del
Cauca
Bogotá

The indicators with the best performance are health insurance,
educational achievement and formal employment
Source: “Quality of Life National Survey – DANE”8
1
-1
-2
-2
-2
-2
-2
-3
-3
-4
-6
-7
-7
-9
-11
-12 -10 -8 -6 -4 -2 0 2
Change in proportion of households in deprivation by PMI variable. 2010-2016
Lack of health insurance
Low educational achievement
Informal employment
School underachievement
Critical overcrowding
Illiteracy
Lack of access to early chidlhood care services
Lack of access to healthcare services
Inadequate sanitation
Child labour
Inadequate floor materials
Lack of access to improved water sources
School absenteeism
Inadequate wall materials
Long-term unemployment

The MPI Colombia
and its application in
social policy

Design of Colombia’s MPI
based on the Alkire and
Foster Methodology in 2010
The Government made three crucial changes that
underpin the use of the MPI in social policy
The MPI was included as
a main target in the
National Development
Plan (2014 – 2018)
The goal is to reduce
multidimensional Poverty to
17,8% by 2018, which
implies 1,5 million fewer
people in this living in
poverty.
1
Creation of the Social
Inclusion Sector
2 3
10

Poverty
Rountdable
Colombia
We have new intersectoral articulations:
Social Inclusion and
Productive Table
To monitor the control
panel for each of the MPI
indicators
Design, identify and define
programs to meet the
objectives
9 Members
Different levels of articulation,
with meetings weekly,
fortnightly, and monthly
Specific Goals
Focus on double Inclusion
15 Members
Meet with the President
Review the control panel

Pobreza
Línea Base
PND 2008
Dato
2011
Dato
2012
Análisis Goal
MPI (Multidimensional Poverty) 34.7% 29.4% 27.0% 22.5%
 Educational achievement (≥15 yrs)
 Literacy (≥15 yrs)
58.8% 54.6% 53.1% 52.8%
14.2% 12.0% 12.1% 12.0%
 School attendance (6-16)
 No school lag (7-17)
 Access to child care services (0-5)
 Children not working (12-17)
5.4% 4.8% 4.1% 3.5%
33.4% 34.1% 33.3% 33.1%
12.1% 10.8% 9.4% 10.6%
5.5% 4.5% 3.7% 2.9%
 Long-term unemployment
 Formal employment
9.6% 9.1% 10.0% 9.3%
80.6% 80.4% 80.0% 74.7%
 Health insurance
 Access to health services
24.2% 19.0% 17.9% 0.5%
8.9% 8.2% 6.6% 2.4%
 Access to water source
 Adequate sewage system
 Adequate floors
 Adequate external walls
 No critical overcrowding
12.9% 12.0% 12.3% 10.9%
14.1% 14.5% 12.1% 11.3%
7.5% 6.3% 5.9% 5.6%
3.1% 3.2% 2.2% 2.1%
15.7% 14.2% 13.1% 8.4%
FUENTE: DANE
0%-10% avance 10%-25% avance >25% avance
A(1)
D(4)
B(2)
C(3)
E(5)
*** Change 2011-2012 est. significant
***
***
***
***
***
***
***
***
Colombia

Source: Social Prosperity based on “ENCV 2015 – DANE”
HealthEducation Employment
Childhood
and youth
Access to public
utilities and
household
conditions
• In 2015 we had 9,6 million people in
multidimensional poverty in 2,2
million households.
• To achieve our goal of 1,5 million
fewer people in multidimensional
poverty we have to work with 6
different governmental sectors.
• Directing our actions to this population
makes us more efficient. With the
same resources we can achieve
several goals simultaneously in a
austerity scenario.
Illiteracy
1 million
households
Low educational
achievement
2.1 million
households
School
underachieveme
nt 1.3 thousand
households
School
absenteeism
293 thousand
households
Lack of access
to early
childhood care
services
307 thousand
households
Child labour
290 thousand
households
Informal
employment
2.2 million
households
Long – term
unemployment
457 thousand
households
Lack of access
to healthcare
service
454 thousand
households
Lack of health
insurance
670 thousand
households
Inadequate
floor materials
408 thousand
households
Inadequate wall
materials
140 thousand
households
Lack of access
to improved
water sources
677 thousand
households
Critical
overcrowding
545 thousand
households
Inadequate
sanitation
714 thousand
households
This allows us to design an integral and intersectoral public policy

2010 20122011 20142013 2015 2016 2017
Public policy
• Free education (MinEducación)
• Integral strategy for early childhood
(ICBF)
“De Cero a Siempre”
Alerts:
-Educational
achievement
- Early childhood
Fuente: Prosperidad Social

2010 20122011 20142013 2015 2016 2017
Public policy
•Free housing
“100.000 Viviendas Gratis”
(Ministry of housing)
Alerts:
-Housing conditions
- Reduction in
multidimensional poverty
slows down
Fuente: Prosperidad Social

Targeting our institutional offer towards the poorest regions:
Caribbean and Pacific
Multidimensional poverty Social Prosperity targeting
Caribbean
Pacific
Central east
Central south
Eastern
Coffee Zone
32%
20%
17%
13%
12%
7%
2015-
2018
14

The MPI has allowed us to make agreements regarding institutional
coordination
• Use the SISBEN Score + MPI status in targeting processes
• Georreferentiation of the population
• Dynamic survey
• 4th version in 2017
• Achievements asociated to MPI
• Tracking of social programs
• Family and comunitary accompaniment
• Updated information in 2016
• Unique Beneficiaries Record that covers MP
• Identification of benefits that househols have received
• Updated information in 2016
• Violence victims
• Reintegrated ex-combatants.
17

The MPI allows us to indentify investment needs of the
municipalities and to improve the coordination between different
levels of government
Source: National Planning Department based on “Censo 2005- DANE”
In this case we identify the major
challenges in education achievement
and access to improved water
sources
19
-20 -10 0 10 20 30
Low educational achievement
Lack of access to improved water…
Informal employment
Economic dependancy rate
Critical overcrowding
School underachievement
Child labour
Lack of access to early childhood…
Lack of access to healthcare service
Inadequate sanitation
School absenteeism
Inadequate walls
Iliteracy
Inadequate floors
Lack of health insurance
Gap with the national average (percentual points) 2005
– Choachí

Purpose
“Identify and measure the incidence and intensity
of the main non-monetary deprivations that affect
the living conditions of Panamanians, and use this
as a complementary approach to the monetary
measurement of poverty to guide social policy,
in order to achieve a more effective and
coordinated strategy of poverty reduction”.

Background
• MPI as baseline for National Development Plan, Vision
2025, and tracking of SDGs
• Actors:
1. National Planning Commission
2. UNDP Pakistan
3. Technical assistance from OPHI
4. Public consultations to validate indicators

Measurement Design
Dimension Indicator Deprivation Cutoff Weights
Years of
schooling
Deprived if no man OR no woman in the household above 10 years of age has completed 5
years of schooling.
1/6 = 16.66%
Child school
attendance
Deprived if any school-aged child is not attending school (ages between 6-11). 1/8 = 12.5%
Educational
quality
Deprived if any child not going to school because of quality issues (not enough teachers, far
away, too costly, no male/female teacher, substandard school), or is attending but dissatisfied
with service.
1/24 = 4.17%
Health
Access to
clinic/BHU
Deprived if not using health facility at all, or only once in awhile, because of access constraints
(too far, too costly, does not suit, lack of tools/staff, not enough facility).
1/6 = 16.67%
Immunization
Deprived if any child under 5 is not fully immunized according to vaccinations calendar
(households with no children under 5 are considered non-deprived).
1/18 = 5.56%
Ante-natal care
Deprived if any woman that has given birth in the household in the last 3 years did not
received ante-natal check-ups (households with no woman that has given birth are considered
non-deprived).
1/18 = 5.56%
Assisted
delivery
Deprived if any woman has given birth in the household in the last 3 years with untrained
personnel (family member, friend, tba, etc.) or in inappropriate facility (home, other) -
households with no woman that has given birth are considered non-deprived.
1/18 = 5.56%
Education

Measurement Design
Standard
of Living
Water
Deprived if household has no access to improved source of water according to MDGs
standards, considering distance (less than 30 minutes for return trip): tap water, hand pump,
motor pump, protected well, mineral water.
1/21 = 4.76%
Sanitation
Deprived if household has no access to adequate sanitation according to MDGs standards:
flush system (sewerage, septic tank, drain), privy seat.
1/21 = 4.76%
Wall
Deprived if household has unimproved walls (mud, uncooked/mud bricks, wood/bamboo,
other).
1/42 = 2.38%
Overcrowding Deprived if household is overcrowded (4 or more people per room). 1/42 = 2.38%
Electricity Deprived if household has no access to electricity. 1/21 = 4.76%
Cooking fuel
Deprived if household uses solid cooking fuels for cooking (wood, dung cakes, crop residue,
coal/charcoal, other).
1/21 = 4.76%
Assets
A household is categorized as deprived if it doesn't have more than two small assets (radio,
TV, iron, telephone, fan, sewing machine, VCP, chair, watch, air cooler, bicycle) OR no large
asset (refrigerator, air conditioner, tractor, computer, motorcycle), AND has no car.
1/21 = 4.76%
Land and
livestock (only
for rural areas)
Deprived if hh is deprived in land AND deprived in livestock, meaning:
a) Deprived in land: hh has less than 2.25 acres of non-irrigated land AND less than 1.125
acres of irrigated land
b) Deprived in livestock: hh has less than 2 cattle, fewer than 3 sheep/goat, fewer than 5
chickens AND no animal for transportation.
[Urban households assumed non-deprived]
1/21 = 4.76%

Measurement design
• Unit of id: household
• Poverty cut-offs: k=1/3 (poor) and k=1/2
(intensely poor)

One method: different purposes
They:
• Draw on censored matrix
• Share a Alkire Foster class of measures, specifically, the M0, and
they fulfil the properties or axioms acknowledged.
• Some countries report H, A and M0, others show only H
• Decomposable by dimension/indicator, population groups and
changes in time.
• Mix continuous and ordinal data
• National scope, but subnational and group decomposition
• Unit of analysis: household
• Weights: different weights schemes, adapting them to national
needs.

Mexico Colombia Bhutan Chile
Dimensions Reflect social
rights and income
for food basket
Reflect goals of
the National
Development Plan
MPI dimensions +
access to food, roads,
wealth
Reflect goals of the National
Development Plan, Vision 25
Indicators Legal norms that
reflect rights
Literature; experts
and policy makers;
availability within
LSMS; precision
of measure
8 MPI indicators +
access to food, roads,
land, livestock and
housing
Adjustment in cutoffs and
additional indicators:
overcrowding, land and
livestock, vaccinations, ante-
natal care, institutional
delivery, school quality, etc.
Sources of
data
Existing income
survey with new
module
Existing LSMS Existing LSMS style
survey
Existing PSLM (hh survey at
representative at district level)
Thresholds Legal criteria
Expert criteria
Triangulation and
Robustness
MPI adapted to local
reality
Legal criteria, expert criteria,
consultations
Institutions
involved
Coneval+
Inclusive cabinet
+ monitoring
Poverty committee
+ monitoring
GNH Commission to
identify areas for
intervention
Planning Commission, UNDP
Pakistan

Case studies: National multidimensional poverty measures

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Case studies: National multidimensional poverty measures