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Multidimensional Poverty Mapping
for Rural Pakistan
by
Abdul Hameed
Ihtsham ul Haq Padda
Shahid Karim
Introduction
• Poverty is the key problem in the developing countries
• There are different forms of poverty like low level of
income, lack of living standard , insufficient food,
illiteracy, poor health, inadequate sanitation and lack
of clean drinking water etc.
• The effects of poverty are mostly interconnected to
each other.
• For example, inadequate sanitation, no access to clean
drinking water problem yield different types of
diseases.
Continued…
• 29.5percent (60 million) people are living below
the poverty (poverty line Rs.3030 per month;
almost equal to $1 per day) (GoP, 2015-16)
• World Bank estimates (poverty line = $1.25 per
day) would suggest that 52 percent Pakistanis
living below the poverty line
• Overall, 39 percent of Pakistanis live in
multidimensional poverty (GoP, 2016)
• 54.6 percent of rural Pakistanis facing
multidimensional poverty (Gop, 2016)
Study objectives
Estimate deprivation in education, health, living
standard and wealth at district level
Construct rural multidimensional poverty index
Geographically mapping the multidimensional
poverty
To..
Data and Methodology
Pakistan Rural Household Survey (PRHS, 2013)
The survey was administered in 19 districts
Data from 1936 out of 2090 households
Alkire-Foster (2011) MPI methodology
Variables Description
Dimensions Weight Poverty cutoff points Score
Education 0.25
No one has completed five years of schooling 0.125
At least one school-age child not enrolled in school (5 to 18 years)
0.125
Health 0.25
At least one member is malnourished (Calculated through Body Mass Index )
0.125
One or more children have died under 0 to 5 years 0.125
Living Standard 0.25
No electricity 0.050
No access to clean drinking water 0.050
No access to adequate sanitation 0.050
The house has a dirt floor 0.050
Household uses “dirty” cooking fuel 0.050
Wealth 0.25
The household has no one household asset; air cooler,
Fridge, freezer, car, computer, tractor, thresher,
Generator and tube-well
0.125
Household has less than two acre agriculture land and no any commercial plot
0.125
Total 1 1
Results
•6.7 (almost 7) average household size
•74% households, no one has completed five year
of schooling
•50% households, school going age children (5 to
18 Years) are not going to school
•29% households, at least one member is
malnourished (Body Mass Index)
•Only 3% households, one or more children have
died under 0 to 5 years
•64% households have dirty dwelling material
(Mud)
• 40 % households don't have toilet facility
• 38% households don't have proper drainage system
• 43 % households throw garbage at the open place
• 14% households have piped/ bottle water for drinking purposes
• 22% households don't have electricity
• 77% have used dirty fuel (wood, dung cake, agriculture waste and
coal) for cooking purposes
• 24% households have less than two acre agriculture land and no
commercial plot
• Only 32% households have any one assets.
Results/
Poverty Cut-off
Source : Naveed & Islam, 2012
If the sum of individual person or
household deprived score is equal to
40 percent or more of possible
deprivation. The person or household
considered to be multidimensional
poor
Most poor rural area and indicator decomposition
Education Health Living Standard Wealth
% % % %
D G Khan 30 10 30 32
Hyderabad 28 10 27 34
Multan 28 7 28 38
Thatta 27 10 32 31
Poverty Estimate for Rural Pakistan
Cutoff
Point Head Count Ratio H Adjusted Head Count Ratio M0 Average Poverty A=M0/H
0.00 1.00 0.50 0.50
0.10 0.99 0.50 0.51
0.20 0.96 0.50 0.52
0.30 0.87 0.48 0.55
0.40 0.73 0.43 0.59
0.50 0.52 0.34 0.65
0.60 0.33 0.24 0.71
0.70 0.11 0.09 0.80
0.80 0.05 0.05 0.85
Each indicator decomposition at rural Pakistan
18%
18%
17%
11%
8%
8%
7%
7%
4%
1%
1%
0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20%
Land
Assets
Education
Child Education
cooking fuel
BMI (Women)
Clean water
Dirt floor
Sanitation
Electricity
Mortality under (0-5 )
Conclusions
• 73% rural population belongs to the poor household at 40% deprived score and 87% rural
population belongs to poor household at 30% deprived score
• Poverty depth, 43% household facing multidimentionally poor with respect to education,
health, living standard and wealth
• On-average 59% people of rural Pakistan below the poverty line
• The major causes of poverty in the study area are low household assets, less employment
opportunities, lack of education, lack of clean drinking water, poor sanitation facilities, and
health facility
• Rural Pakistan above than 30% household deprived in education, land, clean drinking water
household assets, sanitation and cooking fuel
• Improving education, health and employment opportunity policies to reduce rural
multidimensional poverty
• Socioeconomic policies aimed at reducing poverty must focus on improving housing
,sanitation, drinking water and toilet facility and reducing regional level inequalities through
pro-rural development
• Income of majority of rural population is based on agriculture. Pro-farmer agriculture
policies leading to increased incomes are therefore crucial
• District level polices can help in reduction in multidimensional poverty
The way forward
MPI_Abdul Hameed

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MPI_Abdul Hameed

  • 1. Multidimensional Poverty Mapping for Rural Pakistan by Abdul Hameed Ihtsham ul Haq Padda Shahid Karim
  • 2. Introduction • Poverty is the key problem in the developing countries • There are different forms of poverty like low level of income, lack of living standard , insufficient food, illiteracy, poor health, inadequate sanitation and lack of clean drinking water etc. • The effects of poverty are mostly interconnected to each other. • For example, inadequate sanitation, no access to clean drinking water problem yield different types of diseases.
  • 3. Continued… • 29.5percent (60 million) people are living below the poverty (poverty line Rs.3030 per month; almost equal to $1 per day) (GoP, 2015-16) • World Bank estimates (poverty line = $1.25 per day) would suggest that 52 percent Pakistanis living below the poverty line • Overall, 39 percent of Pakistanis live in multidimensional poverty (GoP, 2016) • 54.6 percent of rural Pakistanis facing multidimensional poverty (Gop, 2016)
  • 4. Study objectives Estimate deprivation in education, health, living standard and wealth at district level Construct rural multidimensional poverty index Geographically mapping the multidimensional poverty To..
  • 5. Data and Methodology Pakistan Rural Household Survey (PRHS, 2013) The survey was administered in 19 districts Data from 1936 out of 2090 households Alkire-Foster (2011) MPI methodology
  • 6. Variables Description Dimensions Weight Poverty cutoff points Score Education 0.25 No one has completed five years of schooling 0.125 At least one school-age child not enrolled in school (5 to 18 years) 0.125 Health 0.25 At least one member is malnourished (Calculated through Body Mass Index ) 0.125 One or more children have died under 0 to 5 years 0.125 Living Standard 0.25 No electricity 0.050 No access to clean drinking water 0.050 No access to adequate sanitation 0.050 The house has a dirt floor 0.050 Household uses “dirty” cooking fuel 0.050 Wealth 0.25 The household has no one household asset; air cooler, Fridge, freezer, car, computer, tractor, thresher, Generator and tube-well 0.125 Household has less than two acre agriculture land and no any commercial plot 0.125 Total 1 1
  • 7. Results •6.7 (almost 7) average household size •74% households, no one has completed five year of schooling •50% households, school going age children (5 to 18 Years) are not going to school •29% households, at least one member is malnourished (Body Mass Index) •Only 3% households, one or more children have died under 0 to 5 years •64% households have dirty dwelling material (Mud)
  • 8. • 40 % households don't have toilet facility • 38% households don't have proper drainage system • 43 % households throw garbage at the open place • 14% households have piped/ bottle water for drinking purposes • 22% households don't have electricity • 77% have used dirty fuel (wood, dung cake, agriculture waste and coal) for cooking purposes • 24% households have less than two acre agriculture land and no commercial plot • Only 32% households have any one assets. Results/
  • 9. Poverty Cut-off Source : Naveed & Islam, 2012 If the sum of individual person or household deprived score is equal to 40 percent or more of possible deprivation. The person or household considered to be multidimensional poor
  • 10.
  • 11. Most poor rural area and indicator decomposition Education Health Living Standard Wealth % % % % D G Khan 30 10 30 32 Hyderabad 28 10 27 34 Multan 28 7 28 38 Thatta 27 10 32 31
  • 12. Poverty Estimate for Rural Pakistan Cutoff Point Head Count Ratio H Adjusted Head Count Ratio M0 Average Poverty A=M0/H 0.00 1.00 0.50 0.50 0.10 0.99 0.50 0.51 0.20 0.96 0.50 0.52 0.30 0.87 0.48 0.55 0.40 0.73 0.43 0.59 0.50 0.52 0.34 0.65 0.60 0.33 0.24 0.71 0.70 0.11 0.09 0.80 0.80 0.05 0.05 0.85
  • 13. Each indicator decomposition at rural Pakistan 18% 18% 17% 11% 8% 8% 7% 7% 4% 1% 1% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% Land Assets Education Child Education cooking fuel BMI (Women) Clean water Dirt floor Sanitation Electricity Mortality under (0-5 )
  • 14. Conclusions • 73% rural population belongs to the poor household at 40% deprived score and 87% rural population belongs to poor household at 30% deprived score • Poverty depth, 43% household facing multidimentionally poor with respect to education, health, living standard and wealth • On-average 59% people of rural Pakistan below the poverty line • The major causes of poverty in the study area are low household assets, less employment opportunities, lack of education, lack of clean drinking water, poor sanitation facilities, and health facility • Rural Pakistan above than 30% household deprived in education, land, clean drinking water household assets, sanitation and cooking fuel
  • 15. • Improving education, health and employment opportunity policies to reduce rural multidimensional poverty • Socioeconomic policies aimed at reducing poverty must focus on improving housing ,sanitation, drinking water and toilet facility and reducing regional level inequalities through pro-rural development • Income of majority of rural population is based on agriculture. Pro-farmer agriculture policies leading to increased incomes are therefore crucial • District level polices can help in reduction in multidimensional poverty The way forward