Poverty Ms. C. Rughoobur Africa Statistics Day 18 November 2013.
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Transcript of Poverty Ms. C. Rughoobur Africa Statistics Day 18 November 2013.
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Poverty
Ms. C. RughooburAfrica Statistics Day 18 November 2013
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Poverty measurement
Poverty is a multi dimensional phenomenon
No single definition
No single measurement
Two approaches – Monetary & Non monetary
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Poverty measurement
Monetary approach
• Absolute poverty line e.g ‘minimum vital’
• Relative poverty line (lower income group relative to higher income group)
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Absolute poverty World Bank $1.25 & $2 a day poverty linesVery few households below these lines in Mauritius
2012
$1.25 (PPP) a day per person
Monthly equivalent (Rs per person) 1,020
Proportion of poor persons <1%
$2 (PPP) a day per person
Monthly equivalent (Rs per person) 1,640
Proportion of poor persons < 2%$1 PPP ‘Purchasing Power Parity’ = Rs17.73 based on 2005 International Comparison Program
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$1.25 a day poverty line % poor persons, 2010-2011
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$2 a day poverty line % poor persons, 2009 - 2011
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Relative poverty
Poverty line: Half median household income per adult equivalent, i.e. adjusted for household size, age composition and economies of scale
Poverty line 2006/07 2012
1-person household Rs 3,821 Rs 5,652
Average household (2 adults and 2 children) Rs 9,000 Rs 13,300
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Number %
Poor households 33,900 9.4%
Poor persons 126,900 9.8%
How many are in relative poverty?
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Who are more likely to be poor?
Households:with 3 or more childrenWith one parent and unmarried childrenWith 1 person only & elderly living aloneheaded by: women, divorced / separated
persons, persons with low educational level, persons who are economically inactive
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Who are more likely to be poor By type of households
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Who are more likely to be poor?By profile of head
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Children are more likely to be in poverty
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Income Poor households are more dependent on transfers
Poor households
All households
Average household size 3.7 3.5
Average number of income earner 1.5 2.0
Average monthly household resources* (Rs) 9,800 33,800
% of monthly employment income 51% 73%
% of monthly transfer income 29% 13%*Household resources include imputed rent, a rental value for non-renting households
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Expenditure Poor households spend a higher of share of their budget on food, clothing and housing
Poor households
All households
Average monthly household Consumption expenditure* (Rs) 8,300 21,200
of which
Average monthly consumption expenditure on food, clothing and housing (Rs)
5,400 9,700
% of food, clothing and housing 65% 45%
* Figures on total consumption expenditure have not been adjusted for under reporting on items like alcoholic beverages and tobacco, etc..
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With Government transfers, 9.4 % poor households in 2012
Without Government transfers % poor households
Old age pension 16%
Widow’s pension 10%
Invalid pension 11%
Social Aid and other social security benefits 11%
All Government transfers 19%
Basic pensions contribute to poverty reduction
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With Government free services, 9.4 % poor households in 2012
Without Government free services % poor households
Free education (primary & secondary) 16%
Free health services 14%
Free transport (elderly, students and disabled persons)
10%
All Government transfers 20%
Government free services contribute to poverty reduction
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Relative poverty increases2001/02 2006/07 2012
Relative poverty line – RPL (Rs) 2,804 3,821 5,652
Estimated number of poor households 23,700 26,400 33,900
Proportion of poor households 7.7% 7.9% 9.4%
Estimated number of poor persons 93,200 104,200 126,900
Proportion of poor persons 7.8% 8.5% 9.8%
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Has the poverty level increased?
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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
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Absolute poverty line
Uses• Useful to track evolution of poverty • is fixed at a point in time, and is usually
updated with price changes
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Relative poverty – limitatione.g.
Households Monthly income (Rs)
Year 2013 Year 2014
1 6,000 60,000
2 9,000 90,000
3 20,000 200,000
4 25,000 250,000
5 50,000 500,000
Median 20,000 200,000
Half median (Relative poverty line) 10,000 100,000
No. of poor households 2 2
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Trend in poverty Using 2012 RPL as a fixed threshold
2001/02 2006/07 2012
Poverty line (Rs) 3,171 4,250 5,652
Proportion of poor households 11.7% 11.7% 9.4%
Proportion of poor persons 11.8% 12.3% 9.8%
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Trend in poverty Using 2001/02 RPL as a fixed threshold
2001/02 2006/07 2012
Poverty line (Rs) 2,804 3,757 4,997
Proportion of poor households 7.7% 7.5% 6.1%
Proportion of poor persons 7.8% 8.2% 6.5%
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Trend in poverty Using 2006/07 RPL as a fixed threshold
2001/02 2006/07 2012
Poverty line (Rs) 2,851 3,821 5,082
Proportion of poor households 8.0% 7.9% 6.5%
Proportion of poor persons 8.1% 8.5% 7.0%
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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 conditionsLiteracy and educationEmployment• From 0 (low devpt.) to 1 (high devpt.)
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Relative Development Index (RDI)
Based on Housing and Population 2000 & 2011
The level of development has improved
RDI
2000 2011
Republic of Mauritius 0.57 0.77
Island of Mauritius 0.68 0.77
Island of Rodrigues 0.35 0.56
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CENSUS 2011 CENSUS 2000
Relative Development Indices by Municipal Ward and Village Council Area – Censuses 2000 & 2011
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Quality of Life indicators
1. Economic sustainability and material living standards 2. Health3. Education4. Personal activities including work 5. Political voice and governance6. Social connections and relationships7. Environment8. Insecurity http://statsmauritius.gov.mu/English/StatsbySubj/Pages/quality-of-life.aspx
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What next?
• Public consultation on the QOL indicators• Subjective indicators: well-being and
happiness• Possibly a composite index
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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
Country Rank Index (0-10)
Denmark 1st 7.7
Mauritius 67th 5.5
Togo 156th 2.9
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Thank you