multidimensional human poverty - new approaches in poverty measurement
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Multidimensional Human Poverty
“New Approaches in Poverty Measurement”, Ankara University, Ankara, Turkey, 20 February 2014
Mihail PeleahHuman Development Officer, UNDP BRC
http://fotky.sme.sk/fotka/299648/ciganska-osada-muranska-dlha-luka
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Going beyond monetary poverty: where?
• Multidimensional wellbeing
• Connecting data
• Qualitative and Quantitative data nexus
Alkire-Foster MethodGlobal MPI National MPIsSocial Exclusion Index
Secondary Sources Contextualization
‘Micronarratives’
ALKIRE-FOSTER MULTIDIMENSIONAL POVERTY METHOD
Poverty in one dimension
X%
X$
Y%
Y$
• Selection of welfare function
• Obtaining welfare function distribution
• Selecting poverty line• Calculating poverty
headcount (H)– plus poverty gap (FGT1),
poverty intensity (FGT2)– plus sensitivity analysis
Multidimensional poverty
Multidimensional poverty
Headcount H
Average Deprivation among Poor A
MPI = H x A
Multidimensional poverty:setting up
• Unit of analysis: individual? household?• Select dimensions• Select indicators for dimensions• Double poverty line method: first, deprivation in each
indicator; second, number of simultaneous deprivations for poverty status– ‘Deprivation line’ in each dimension– ‘Poverty line’ for multidimensional poverty
• Weighting– Within dimension– Between dimensions
OPHI: Missing Dimensions• Employment
– both formal and informal employment, with particular emphasis on quality of employment
• Empowerment or Agency– the ability to advance goals one values or has reason to value
• Physical safety– Security from violence to property and person, as well as perceived violence
• The ability to go about without shame– emphasize importance of dignity, respect and freedom from humilation
• Meaning and value– emphasize meaning, satisfaction and their determinants
http://www.ophi.org.uk
MPI: Data Source• Data hungry—all variables for one household / person• Existing Survey(s)
– Global MPI: Demographic and Health Surveys, Multiple Indicator Cluster Surveys, World Health Surveys and National Surveys.
• New Survey– Regional Social Exclusion Index: 6 countries
• Combination– Moldova HBS: Core Questionnaire plus Additional Module– Ukraine HBS: Additional Modules, once in 1-2 years
• Matching data
Multidimensional poverty:counting
• H – poverty headcount– Sensitive to frequencies– Not sensitive to breadth
• A – average share of deprivations– Sensitive to breadth
• M0=H•A – multidimensional poverty index– Sensitive to frequencies– Sensitive to breadth
Multiple deprivation• Unidimensional
– Variable – income
– Poverty line
– Deprivation vector– Gap vector– Headcount ratio – how many are
“poor”– Gap – how far from poverty line
• Multidimensional– Variables – income, employment, access to water, …
– Poverty lines – first cutoffs
– Deprivation matrix– Gap matrix– Second cut off k
• Deprived in one dimension• Deprived in all dimensions• Deprived in more than k dimensions
– H – headcount rate– A – average breath of deprivation– M0 – adjusted headcount rate
125500250100
y
190z 1235190z
12381252436500940250816100
y
GLOBAL MULTIDIMENSIONAL POVERTY INDEX
Dimensions and Indicators of MPI
MPI Poor and Income Poor
OPHI, Multidimensional Poverty Index 2013
Changes in MPI: Incidence and Intensity
OPHI, Multidimensional Poverty Index 2013
Turkey MPI: Deprivation in each Indicator
OPHI, Turkey Country Briefing, 2013
Turkey MPI: Urban – Rural disparities
OPHI, Turkey Country Briefing, 2013
MPI in Turkey Regions
Inequalities matter
Inequality of Opportunitiesmatters most
E. Molina et al. Outcomes, Opportunity and Development , WPS 6735
MULTIDIMENSIONAL WELLBEING:SOCIAL EXCLUSION INDEX
Why this index?
• Objective and multidimensional measure of social exclusion
• Measures status of exclusion or non-exclusion, rather than ‘perceptions’ or ‘risks’
• Applicable for Europe and Central Asia region• Useful for policymaking
Drivers of social exclusionSpecific local conditions
Social exclusion status
Individual characteristics
interact with
in context of
…and result inStructures and institutions; values and behavior patterns; policiesDrivers are external factors, influenced by legacies, that either speed up or slow down the process of individual vulnerabilities turning into social exclusion
(social exclusion risk factors), like poor education, disability, minority status
Predominant industry, single or multiple employment opportunities, local infrastructures, history of violent conflict or environmental disaster
of the individual in three dimensions—exclusion from economic life, social services, and civic and social participation
Social Exclusion Chain
Construction of index• Based on Alkire-Foster (2009)• Exclusion is overlapping deprivations• 3 areas of exclusion, 24 indicators, 8 per area
–Economic exclusion–Exclusion from social services–Exclusion from civic and political
participation• Threshold is 9 out of 24 possible deprivations, but other
possible thresholds tested
Profiles of exclusion
Different combinations of individual risks, drivers and local context produce different levels of social exclusion
If you are young person, with low education, living in village, with single company—you face high risk of exclusion
…and secondary education doesn’t help much in these conditions…
…while vibrant business environment makes a lot of difference
…economic centers offer more opportunities (even with low education)
…and much more if you are educated
++
++ + +
Source: RHDR “Beyond Transition: Toward Inclusive Societies”, 2011
Secondary Source Contextualization
Survey
Administrative datasets
Statistical databases
Local economy matters
Serbia: Social Exclusion andHealth
Serbia: Social Exclusion and Education
Serbia: Social Exclusion and Employment
QUALITATIVE AND QUANTITATIVE DATA NEXUS: ‘MICRONARRATIVES’
Why the ‘micronarratives’?
• QxQ—combine the best from Qualitative and Quantitative research
• Zoom in and Zoom out—see the pattern and investigate a
case study• Suitable for all stage of policy process:
– Understanding– Planning– Implementation– Monitoring and Evaluation
• Could be a tool of empowerment and trust building
Past
Present Future
How it works?
People tell stories about the topic and tag them against some questions
When we get more and more stories patterns start emerge• easy to catch by human eye, hard to compute• less sensitive to number of stories, more sensitive to topic
Patterns and stories help identify issues, solutions and actions
and create feedback loops, involving people in solutions and monitoring
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Issues
Solutions
Actions
Where we implement it?
• Montenegro — Environmentally protected areas
• Montenegro — Civil service and civilians
• Serbia — Roma people
• Belarus, Russia, Ukraine — Chernobyl-affected areas
• Belarus — people with disabilities
• Georgia, Kyrgyzstan — youth perception of development
• UNDP — internal business processes
Jeeps and Sheeps• Cluster of stories re:
– Communities– Revenues– Source of incomes– Limitations of income or business activities
• Dig into the stories– Jeep tours were organized to protected areas– …but they raise dust clouds– …which spoil milk, the raw material for cheese– …cheese is major local commodity and source of incomes
• Solution– Move jeep trail 500 m from village
Thanks to Borko Vulikic [email protected] for this case
Questions for discussion
• Do Turkey need national MPI?
• What are relevant dimensions and indicators?
• What could be a data source for index?
Mihail PeleahHuman Development Programme and Research OfficerUNDP Bratislava Regional [email protected]