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Multidimensional Measurement of Poverty 16 June 2008

OPHI Oxford Poverty & Human Development Initiative Department of International Development Queen Elizabeth House, University of Oxford www.ophi.org.uk. Multidimensional Measurement of Poverty 16 June 2008. Bhutan: Overview. Bhutan: Basic Facts. 17 th Century: Emerged as a country.

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Multidimensional Measurement of Poverty 16 June 2008

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  1. OPHIOxford Poverty & Human Development InitiativeDepartment of International DevelopmentQueen Elizabeth House, University of Oxfordwww.ophi.org.uk Multidimensional Measurement of Poverty 16 June 2008

  2. Bhutan: Overview

  3. Bhutan: Basic Facts • 17th Century: Emerged as a country. • Monarchy until 2008 when the first elections were held, fostered by the last three kings. They have finally become a constitutional monarchy. • Gross National Happiness vs. Gross National Product. However, it is a fast growing country: 2000: 7.2% and 2006: 8.5%.

  4. Bhutan: Dataset • 2007 Bhutan Living Standard Survey (National Statistics Bureau-NSB): -9798 households, representing 125,491 -49165 people, representing 630,000 • Unit of Analysis: Household. All members of a household identified as poor are considered poor.

  5. Objective • The NSB estimates income poverty (they use the FGT class: incidence (HCR), intensity (PGR) and severity (SPGR). • Q/ How do figures change when we move from income poverty to multidimensional poverty?

  6. Selected Indicators & Deprivation Cutoffs

  7. Results with Equal Weights: Each Indicator counts with wi=1

  8. % of People Deprived in Each Indicator

  9. Rural vs. Urban: Contribution to overall H by each Indicator Rural Pop. Share: 74% - Urban Pop. Share: 26%

  10. H and Mo for different k values Income H=23.2%

  11. Rural vs. Urban: Contribution to overall Mo for different k Rural Pop. Share: 74% - Urban Pop. Share: 26%

  12. Bhutan’s 20 Districts

  13. Selected Rank Changes:Income Poverty vs. Multidimensional Poverty

  14. Why the changes?

  15. Final Thoughts • Income deprivation does not tell the whole story about deprivation in Bhutan. Ranking districts by income poverty can hide serious deprivation in many other indicators. • Room Availability, Access to Electricity, Access to Drinking Water: high deprivation in many areas. • Rural Areas are the ones that contribute most both to income and multidimensional poverty.

  16. Additional Slides (If required for the discussion)

  17. Rural vs. Urban: H by Indicator

  18. Rural vs. Urban: M0 with different k

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