poverty line income: malaysia experience line...2 jabatan perangkaan malaysia department of...
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JABATAN PERANGKAAN MALAYSIA DEPARTMENT OF STATISTICS, MALAYSIA
POVERTY LINE INCOME:
MALAYSIA’s EXPERIENCES
BY
AZAHARI MOHD RASLAN
SENIOR DIRECTOR
PRICES INCOME AND EXPENDITURE STATISTICS DIVISION
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JABATAN PERANGKAAN MALAYSIA DEPARTMENT OF STATISTICS, MALAYSIA
Conclusion
Measuring Poverty
Comparison PLI 1977 & PLI 2005
Malaysia Poverty Line Income (PLI)
How to Define Poverty Line (PL)
Why Measure Poverty (P)
Introduction Scope of
Presentation
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JABATAN PERANGKAAN MALAYSIA DEPARTMENT OF STATISTICS, MALAYSIA
Poverty like beauty, lies in the eyes of the beholder
Orshansky 1969:
Lacking adequate money or means to live comfortably.
Concise Oxford Dictionary :
Poverty is easily to recognized but difficult to define.
INTRODUCTION
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JABATAN PERANGKAAN MALAYSIA DEPARTMENT OF STATISTICS, MALAYSIA
WHY MEASURE POVERTY?
Identify the poor and hardcore
poor
Make comparison
To help policy maker
Identify the determinants of
poverty
Help design
interventions
WHY MEASURE POVERTY?
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JABATAN PERANGKAAN MALAYSIA DEPARTMENT OF STATISTICS, MALAYSIA
HOW TO DEFINE PL?
Absolute Poverty Line
Set as an absolute level below which consumption is considered to be low to meet the minimum welfare level acceptable.
Not a survival line
Typically used in low or middle income countries
1
2
3
HOW TO DEFINE PL?
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JABATAN PERANGKAAN MALAYSIA DEPARTMENT OF STATISTICS, MALAYSIA
…Continue
Two major issues:
(ii) Identification
problem
(i) Referencing
Problem
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JABATAN PERANGKAAN MALAYSIA DEPARTMENT OF STATISTICS, MALAYSIA
…Continue
Method to develop PL
Direct Calorie Intake
Food-energy method
Cost of Basic Needs
Ravillion and Lockshin (2003) Ravillion and Lockshin (2003)
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JABATAN PERANGKAAN MALAYSIA DEPARTMENT OF STATISTICS, MALAYSIA
Step for Cost of Basic Needs approach:
Select nutrional requirement
Select a single food bundle for the entire population,
using prevailing
tastes
Set the non-food allowance in line with the consumption behavior of
those around the food poverty
line
Price this bundle at prevailing
price for each of the group
analyzed
Gram of Dietary Food per calorie
MOH,UPM & UKM
Gram of Dietary Food per calorie
MOH,UPM & UKM HES HES HES HES
Price of Food per unit-CPI
Price of Food per unit-CPI
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JABATAN PERANGKAAN MALAYSIA DEPARTMENT OF STATISTICS, MALAYSIA
MALAYSIA PLI
FOOD PLI
NON-FOOD PLI
DEMOGRAPHIC INFORMATION:
-SEX -AGE
- LOCATION
NOT POOR
POOR
HARDCORE POOR
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JABATAN PERANGKAAN MALAYSIA DEPARTMENT OF STATISTICS, MALAYSIA
Step to determine Food PLI
Calorie grams Price
Step to determine Non-Food PLI
Consists of:
clothing housing durables transport other non
foods
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JABATAN PERANGKAAN MALAYSIA DEPARTMENT OF STATISTICS, MALAYSIA
…Continue
Relative Non-Food prices by State and Stratum on each 6 digit Item
The price per 100 calories of a diet with less full-fat milk suitable for a household without children under 7
1 1
The price per 100 calories of a diet will full-fat milk suitable for a household with children aged 7 and under
2 2
3 3
Output:
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JABATAN PERANGKAAN MALAYSIA DEPARTMENT OF STATISTICS, MALAYSIA
Recommended Daily Energy Requirements for Malaysian
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JABATAN PERANGKAAN MALAYSIA DEPARTMENT OF STATISTICS, MALAYSIA
Recommended Daily Energy Requirements for Malaysian
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JABATAN PERANGKAAN MALAYSIA DEPARTMENT OF STATISTICS, MALAYSIA
Alternative Malaysian Food Baskets
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JABATAN PERANGKAAN MALAYSIA DEPARTMENT OF STATISTICS, MALAYSIA
Household Expenditure Survey: Selected Food Item
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JABATAN PERANGKAAN MALAYSIA DEPARTMENT OF STATISTICS, MALAYSIA
Price per 100 Calorie in 2004 (RM)
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JABATAN PERANGKAAN MALAYSIA DEPARTMENT OF STATISTICS, MALAYSIA
Relative non-Food Prices by State and Stratum, 2004
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JABATAN PERANGKAAN MALAYSIA DEPARTMENT OF STATISTICS, MALAYSIA
Relative non-Food Prices by State and Stratum, 2004, (cont…)
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JABATAN PERANGKAAN MALAYSIA DEPARTMENT OF STATISTICS, MALAYSIA
2005-based PLIs for the ‘Model Household’* by state and Stratum, 2004
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JABATAN PERANGKAAN MALAYSIA DEPARTMENT OF STATISTICS, MALAYSIA
COMPARISON PLI 1977 & PLI 2005
PLI 1977
• No spatial CPI differential
• Nutrition based on PLI
• The calorie requirement were not sex specific
• Changing by update of CPI
PLI 2005
• Spatial price difference
• Nutrition based on advice from nutritionist
• Calorie requirement differ by sex
• Change in basket of good
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JABATAN PERANGKAAN MALAYSIA DEPARTMENT OF STATISTICS, MALAYSIA
…Continue
HARDCORE POVERTY RATE
Methodology 1977 Methodology 2005
No. HH below than middle of PLI X 100
Total Household
No. HH below than Food PLI X 100
Total Household
POVERTY RATE
Methodology 1977 Methodology 2005
No. HH below than PLI X 100
Total Household
No. HH below than Total PLI X 100
Total Household
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JABATAN PERANGKAAN MALAYSIA DEPARTMENT OF STATISTICS, MALAYSIA
MEASURING POVERTY
Headcount Index
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JABATAN PERANGKAAN MALAYSIA DEPARTMENT OF STATISTICS, MALAYSIA
49.3
37.4
16.5
8.5
3.8 1.7 0
10
20
30
40
50
1970 1979 1989 1999 2009 2012
Poor
TIME SERIES-POVERTY %
Year
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JABATAN PERANGKAAN MALAYSIA DEPARTMENT OF STATISTICS, MALAYSIA
LOOKING FOWARD
Poverty Gap
Poverty Mapping
Bottom 40% i i
ii ii
iii iii
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JABATAN PERANGKAAN MALAYSIA DEPARTMENT OF STATISTICS, MALAYSIA
THANK YOU