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1. A methodology for the measurement of multidimensional poverty in Mexico August, 2010 www.coneval.gob.mx

2. CONEVAL

3. CONEVAL • CONEVAL • Publicinstitution • Academicresearchers • Technicalautonomy Social Development Law (2004) Multidimensional PovertyMeasurement Evaluation of Social Development Policy

4. BUILDING THE METHODOLOGY

5. Why? • It is a mandate of the Social Development Law • The Law stablishes the main characteristics poverty measurement should comply: • To make visible the link between social programs & the measurement of poverty, for public policy purposes. • It should be defined both in the space of social rights and economic wellbeing. • It includes eight dimensions: income, educational gap, access to health services, access to social security, quality of living spaces, housing access to basic services, access to food and the degree of social cohesion. • Measurement should be made for the whole country, states (2 years)and municipalities (5 years).

6. Rights to social development “..to guarantee the full exercise of the social rights set forth in the Political Constitution of the United Mexican States, ensuring access to social development to the population as a whole ” • TheLawwasapprovedunanimouslybytheChambers of Deputies • and Senators • ThisLaw can beseen as the social consensusMexico has achievedthroughCongress

7. Adventages of the social rights approach • It aligns poverty measurement with the normative regulations of the Mexican goverment. • It solves satisfactorilly problems of weights and thresholds: • Since human rights are indivisible & interdependent, they all have the same relative importance. That´s why all indicators of social deprivation have the same weight. • The Mexican regulation sets thresholds for several dimensions.

8. Process Discussions, criteria & design of data sources 2007 2009 • Julio Boltvinik • Satya Chakravarty • James Foster, Sabine Alkire • David Gordon • Rubén Hernández and Humberto Soto • Bourguignon,Thorbecke, Kakwani, Lustig,Skoufias, Walton, Khander, Reddy, Feres, López-Calva, … amongothers. 2006 Five Specific consultations 2008 Discussions of proposals Final discussions & results of studies Consultation aboutindicators, thresholds, questionswithpublicinst. Data Collection Data delivery Consultation with experts National and internationalseminars Survey Design Presentation (December) Building the methodology

9. Multidimensional poverty

10. Methodological approach Poverty Measurement Social Rights Economic Wellbeing • Constitutional guarantees • Economic policy and income have an impact on social development • Poverty associated with social deprivation

11. What are the main features of the new methodology? Current income per capita Mexican Population • Educational gap • A to Health • A to Social Security • Housing • Basic services • A to Food Wellbeing Income Territorial Degree of social cohesion Deprivations 4 3 6 5 2 1 0 Social Rights

12. Main features (simple to understand) Population without deprivations and with an adequate level of economic wellbeing Without Deprivations Vulnerable people by social deprivations Population with social deprivations Economic wellbeing line EWL Public policy MULTIDIMENSIONAL POOR Vulnerable people by income Deprivations 5 6 4 1 2 3 0 Social Rights

13. Aggregation: the headcount ratio Sin EWL q _ H= n Deprivations 5 6 4 1 2 3 0 Social Rights

14. Aggregation: Depth & intensity of poverty Sin EWL Average number of deprivations 1.3 5.7 Deprivations 5 6 4 1 2 3 0 Social Rights

15. Total population 2008 (106,680,526) Population without deprivations and with an adequate level of economic wellbeing Vulnerable people by social deprivations 33.0% 35.2 millions 2.0 deprivations on average 18.3% 19.5 millions Wellbeing Income MODERATE POVERTY MULTIDIMENSIONAL POVERTY Vulnerable people by income 44.2% 47.2 millions 2.7 deprivations on average EXTREME POVERTY Deprivations 4.5 % 4.8 millions 4 3 6 2 5 1 0 Social Rights Source: estimates of the CONEVAL based on the MCS-ENIGH 2008.

16. Indigenous and non-indigenous population Percentage of population in multidimensional poverty depending on whether they speak an indigenous language or not Source: estimates of the CONEVAL based on the MCS-ENIGH 2008.

17. Children, elderly 2008 Percentage of population in multidimensional poverty by age group Source: estimates of the CONEVAL based on the MCS-ENIGH 2008.

18. Multidimensional poverty by state Total of States CHIAPAS Ranks Source: estimates of the CONEVAL based on the MCS-ENIGH 2008.

19. Percentage of population with social deprivations. Mexico, 2008 Source: estimates of the CONEVAL based on the MCS-ENIGH 2008.

20. Extreme Multidimensional poverty

21. Moderate multidimensional poverty Poverty identification Population without deprivations and adequate level of economic wellbeing Vulnerable people by social deprivations EWL Public policy Minimum wellbeing line Vulnerable people by income MWL EXTREME multidimensional poverty Deprivations 5 6 4 1 2 3 0 Social Rights

22. Indigenous and non-indigenous population Percentage of population in multidimensional poverty depending on whether they speak an indigenous language or not Without deprivations, adequate level of wellbeing Vulnerable by income Vulnerable by social deprivation 75.7 Moderate poverty 44.2 Extreme poverty 42.0 Indigenous Non-indigenous National Source: estimates of the CONEVAL based on the MCS-ENIGH 2008.

23. NATIONAL Multidimensional poverty by state Total of States Ranks CHIAPAS Source: estimates of the CONEVAL based on the MCS-ENIGH 2008.

24. Usingthemethodology forpublicpolicy

25. What policies should be carried out? • Economic Policies: • Economic growth • Job creation Sin EWL MWL 3 0 Deprivations 5 6 4 1 2 Social Rights

26. What policies should be carried out? • Social Policies: • Health • Education • Housing Sin EWL MWL 3 0 Deprivations 5 6 4 1 2 Social Rights

27. What policies should be carried out? • Targeted policies • Social Programs for the population in poverty Sin EWL MWL 3 0 Deprivations 5 6 4 1 2 Social Rights

28. What policies should be carried out? • Universal policies • Social Security • Education for all • Access to health services • Economic growth Sin EWL MWL 3 0 Deprivations 5 6 4 1 2 Social Rights

29. Percentage of population in poverty if there were universal coverage of health services and social security Source: estimates of the CONEVAL based on the MCS-ENIGH 2008.

30. Using the methodology • Other Ministries, besides the Ministry of Social Development, understand better their role in reducing poverty in Mexico • Social programs are changing the way they identify their beneficiaries • We’re starting to evaluate social programs (ex post and ex ante) using this approach. • The Strategy for poorer municipalities is using the methodology to target their programs

31. Using the methodology • By linking social deprivations with poverty, policy recommendations are strengthened. • It is now possible to evaluate the effect of social policy not only on income poverty but also on specific social deprivations. • There is a tendency to focus on cash transfers when poverty is measured only with income. Social policies for overcoming poverty should also pursue to universally guarantee social rights.

32. Using the methodology • Since income poverty is influenced by a number of circumstances that social policy cannot control (sometimes the country cannot control), relevant social achievements may remain undetected. ZAP LPTI • Finally, a remarkable feature of the methodology is that it does not only identify poverty (priority), but also it identifies the whole population without access to social rights, which is a complete way of looking at public policy.

33. Institutionalization of the methodology Communicate to public, governmental officials and academics Income vs. Multidimensional Poverty. Parallel use. Needs time to adjust and put into practice for social programs Advice: people appropriates it

34. Targetting www.coneval.gob.mx

35. Targetting with MDM Starting 2012 Priority zones are chosen using community level data not yet with MDM Programs are directed to these regions

36. Thresholds

37. How to determine thresholds? Social rights Use of legal norms, if they exist Legal criteria Consultationwithspecialists Experts criteria Publicinstitutions Health, Housing, Social Security, Education

38. How to determine thresholds of social deprivations? She or he is not attending a formal educational center Populationaged 3-15 years Educational gap • When someone was born before • 1981 and lacks the mandatory • basic education current at the • time he or she should have • completed it. Primary • When someone was born • before 1982 and lacks the • mandatory basic education • current at the time she should • have completed it. Secondary Populationaged 16 yearsorolder

39. How to determine thresholds of social deprivations? When a personisnotenrolled in ornotentitledtoreceivemedicalservicesfrom: Popular Insurance A social securitypublicinstitution Accestohealth services A privatemedical service

40. How to determine thresholds of social deprivations? • If the worker does not receive medical services as a work benefit or through voluntary enrollment and a retirement investment plan Direct access • If a person is not enrolled in an institution that provides medical services by voluntary enrollment. • If the spouse,child, parent, -law of the head • of household is not enrolled in an medical institution Familynucleus Access to social security Otherfamilynucleus and voluntaryenrollment If the person does not have a relative who has access to social security If the person is not beneficiary of a social program of pensions for senior citizens

41. How to determine thresholds of social deprivations? When the material is cardboard sheets or residue material Roofs When the material is mud or daub&wattle; reed, bamboo or palm; cardboard, metal or asbestos sheets; residue material Quality of living spaces Walls When the material of the floor is soil Floors When the ratio of people per room is greater than 2.5 Overcrowding

42. How to determine thresholds of social deprivations? • When it is obtained from a well, river, lake, stream, or truck. • When piped water is carried from another dwelling or gotten at a public faucet or hydrant Water Housingaccess tobasicservices • No drainage service. • When the drain is connected to pipes leading to a river, lake, sea, ravine or crack Drainageservice Electricity When there is no electricity

43. How to determine thresholds of social deprivations? Food security Food insecurity Acessto food Slight Moderate Severe Deprivationduetolack of accesstofood

44. How to determine thresholds? Economic Wellbeing Foodbasket Non foodbasket Economicwellbeing Minimumeconomicwellbeing line Necessarygoods & services Changesoncurrent consumption patterns Caloricsrequirements & micronutrients Goods and services have an income elasticity<1 Rural & urbansettings Rural & urbansettings

45. social cohesion

46. Social Cohesion We can have this type of society: Sin EWL MWL 3 0 Deprivations 5 6 4 1 2 Social Rights

47. …or one like this one: Social dispersion: inequality, polarization Sin EWL MWL 3 0 Deprivations 5 6 4 1 2 Social Rights

48. Gini Index Total of States Ranks Source: estimates of the CONEVAL based on the MCS-ENIGH 2008.

49. Guidelines and Criteriaforidentifyingpoverty

50. Guidelines and criteria (G&C) for identifying poverty Social programsshouldconsidertheindicators of multidimensional poverty Mandatoryapplicationforpublicinstitutions G&C should be incorporated in social programs and evaluation Flexible G&C accordingtotheprograms final goals. Notalltheindicatorsmustbeused in identifyingtargetedpopulation. V.gr.Oportunidades