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Poverty

Poverty. Ms. C. Rughoobur Africa Statistics Day 18 November 2013. Poverty measurement. Poverty is a multi dimensional phenomenon No single definition No single measurement Two approaches – Monetary & Non monetary. Poverty measurement. Monetary approach

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Poverty

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  1. Poverty Ms. C. Rughoobur Africa Statistics Day 18 November 2013

  2. Poverty measurement • Poverty is a multi dimensional phenomenon • No single definition • No single measurement • Two approaches – Monetary & Non monetary

  3. Poverty measurement Monetary approach • Absolute poverty line e.g ‘minimum vital’ • Relative poverty line (lower income group relative to higher income group)

  4. Absolute poverty World Bank $1.25 & $2 a day poverty linesVery few households below these lines in Mauritius $1 PPP ‘Purchasing Power Parity’ = Rs17.73 based on 2005 International Comparison Program

  5. $1.25 a day poverty line % poor persons, 2010-2011

  6. $2 a day poverty line % poor persons, 2009 - 2011

  7. Relative poverty Poverty line: Half median household income per adult equivalent, i.e. adjusted for household size, age composition and economies of scale

  8. How many are in relative poverty?

  9. Who are more likely to be poor? Households: • with 3 or more children • With one parent and unmarried children • With 1 person only & elderly living alone • headed by: women, divorced / separated persons, persons with low educational level, persons who are economically inactive

  10. Who are more likely to be poor By type of households

  11. Who are more likely to be poor?By profile of head

  12. Children are more likely to be in poverty

  13. Income Poor households are more dependent on transfers *Household resources include imputed rent, a rental value for non-renting households

  14. Expenditure Poor households spend a higher of share of their budget on food, clothing and housing * Figures on total consumption expenditure have not been adjusted for under reporting on items like alcoholic beverages and tobacco, etc..

  15. Basic pensions contribute to poverty reduction

  16. Government free services contribute to poverty reduction

  17. Relative poverty increases

  18. Has the poverty level increased?

  19. Relative poverty line (RPL) Uses • Provides a snapshot of the poor Who are they? What are their characteristics? Limitations • Poverty line not easily understood • Not relevant for measuring trends • Focus on income inequality

  20. Absolute poverty line Uses • Useful to track evolution of poverty • is fixed at a point in time, and is usually updated with price changes

  21. Relative poverty – limitatione.g.

  22. Trend in poverty Using 2012 RPL as a fixed threshold

  23. Trend in poverty Using 2001/02 RPL as a fixed threshold

  24. Trend in poverty Using 2006/07 RPL as a fixed threshold

  25. Other poverty related indicators Non monetary - Relative Development Index (RDI) • An adapted version of the UN HDI • A composite index for small areas based on • Housing and living conditions • Literacy and education • Employment • From 0 (low devpt.) to 1 (high devpt.)

  26. Relative Development Index (RDI) The level of development has improved Based on Housing and Population 2000 & 2011

  27. Relative Development Indices by Municipal Ward and Village Council Area – Censuses 2000 & 2011 CENSUS 2011 CENSUS 2000

  28. Quality of Life indicators 1. Economic sustainability and material living standards 2. Health 3. Education 4. Personal activities including work 5. Political voice and governance 6. Social connections and relationships 7.  Environment 8. Insecurity http://statsmauritius.gov.mu/English/StatsbySubj/Pages/quality-of-life.aspx

  29. What next? • Public consultation on the QOL indicators • Subjective indicators: well-being and happiness • Possibly a composite index

  30. How happy are Mauritians? UN World Happiness index 2013 Factors: GDP per capita, healthy life expectancy, having someone to count on, perceived freedom to make life choices, freedom from corruption, and generosity

  31. Thank you

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