| Presentation on Quantitative Research
Methodologies in Monitoring Povert
Dr. Servus Likwelile the Head of the Department of Economic University of Dar es Salaam
started the presentation with the definition of key research methodologies used in poverty
monitoring. Poverty monitoring is both a process and method of data collection, which
involves information gathering, storage, analysis and dissemination. It was pointed out
that poverty monitoring is aimed to achieve the following:
 | Informing policy/decision makers on prevailing poverty trends/situation |
| Enhancing the implementation of a particular poverty reduction strategy |
| To undertake evaluation or impact assessment of anti-poverty strategies |
8.1 Poverty Monitoring Methodologies
Poverty analysis depends on the availability of certain types of information. The
purpose of quantitative research on poverty is to generate data and information on income
and expenditure aggregates for analysis of trends and distribution of poverty. This
information can be obtained from the following sources:
- Household Budget Survey (HBS)
The National Bureau of Statistics (NBS) uses this method, which comprises of an 80-page
questionnaire and seeks information on demographic characteristics, incomes and social
status. The HBS information is obtained from a nationally representative sample located in
various areas of the country.
- Community Surveys
Community Surveys are used to analyse community wide facilities and services, and not
individual households. Community surveys offer a logical starting point for analysing
community-level poverty. Community surveys produce a more in-depth context specific
analysis of poverty, therefore complementing household surveys.
- Eclectic Surveys
This is obtained through analysis of existing and readily available data from different
sources, in order to understand the poverty profile of a given area/sector, i.e. health,
agriculture, education, industry, market, etc. These sources may include partial data such
as existing ad hoc micro-surveys, PPAs, administrative data records, and Core Welfare
Indicators Questionnaire (CWIQ)
- Social indicator surveys
These are gathered and generated by sectoral surveys which are either generated by line
ministries responsible for the sectors under question or other stakeholders within the
sector.
It was pointed out that poverty is a complex and multi-dimensional phenomenon, as such
it is very difficult to define and measure. Certain indicators have been used to explain
the phenomenon of poverty i.e. income, education, lifestyles, accessibility to services
etc. All these have been used as "proxy" indicators of poverty in various
surveys. For example, since poverty is complex and difficult to measure, one may take
school enrolment in village "X" as an indicator that shows whether poverty is
increasing or declining. In its totality, poverty is both a complex issue as well as a
multi-disciplinary and multi-dimensional issue, which means it cannot be measured by one
dimension. However, in general terms, poverty is defined as a situation where an
individual is unable to attain a minimum standard of living. Poverty can also be assessed
through the income poverty or human poverty assessment approach. The income poverty
estimates look at income and expenditure data while the human poverty estimates take into
account basic human needs and other narrative manifestations of poverty such as
participation, empowerment, lifestyles etc.
In accessing poverty, it is important to determine the cut-off-points or poverty line,
which provides a borderline that separates the poor and non-poor. The poverty line is
determined by the following methods:
- Cost of Basic Need Approach (CBNA)
· This method determines basic consumption needs which are necessary
for decent human survival. The calculations for the CBNA are normally anchored on
nutritional requirements for good health.
- Consumer Price Index (CPI)
· This includes assessing the household food budget, consumption and
minimum calorific values at 2,500 calories per person per day. The poverty line is
computed against the ability of a household to purchase the required calories for
household members. Households which cannot purchase the computed "food budget"
are categorised as poor.
Although disputed, calculations by the Tanzania Food and Nutrition Centre point out
that the poverty line in Tanzania is approximately Tshillings 5,000/= per day, while the
international poverty line is one US Dollar (equivalent to Tshillings 800/=) per day!!
There are two types of poverty:
| Absolute poverty - where one lives below the poverty line |
| Relative poverty - in cases where people are located above or on the
borderline of the poverty line, but there is a variation in their location relative to
each other. Some are located further above relative to others while others are nearer the
borderline to poverty. |
There are various indices, which are used to determine poverty. The most commonly used
poverty indices are the following:
- Headcount Index
The headcount index shows the proportion of the population defined as poor. It
provides information on the number of people (as a percentage of the total population) who
live below the poverty line (e.g. 50% of Tanzanians live below the poverty line). The
index has one limitation. It only provides information on the extent, and not depth (or
severity) of poverty. There are other indices that address this question.
- Poverty Gap Index
This index measures the depth of poverty. It shows the proportion which individuals fall
below the poverty line. For example, of the 52 percent of the Tanzanians that are below
the poverty line, 20 percent are at P1, 30 percent at P2 and 50 percent at P3 index. This
information allows planners to determine the poverty gap, and therefore the effort
required to alleviate poverty from P3 to P2, P2 to P1 and P1 to P0, P0 being the poverty
borderline.
- Severity Index
Severity index gives indications of the distribution of poverty. Individuals who are
further away from the poverty line contribute less to the index.
- Human Development Index (HDI)
This is developed by UNDP. It focuses on income per capita, life expectancy and education
attainment. UNDP's HDI therefore provides data that goes beyond income poverty. It also
takes into account human capabilities and quality of life.
Poverty indicators include:
| Poverty lines - higher or lower poverty lines |
| Income indicators - income earning/expenditure opportunities of the poor and subsequent
living standards. |
| Social indicators - access to quality levels of basic social services. |
| Children in Development (CID) - CID indicators capture children's health and nutritional
status. |
| Women in Development (WID) - WID indicators show women's disadvantaged status in the
society and their survival strategies. |
| In the course of assessing poverty, one should take caution that income levels are not
sufficient in themselves, but income distribution is also a critical indicator of
poverty/poverty reduction. |
| Poverty should be assessed and measured by clear measurable indicators which show the
incidence of poverty in the population. The incidence of poverty should show the number of
people who are poor and their characteristics. It should also take into account prevailing
situations and material conditions such as the consumption index and minimal standards of
living index. |
| Poverty monitoring methodologies are crucial for CSOs to understand and to make use of
them for more effective participation in monitoring PRSP activities. |
| CSOs need increased knowledge and skills on poverty monitoring. Deliberate effort to
enhance the capacities of CSOs to do these kind of activities more effectively should be
made.
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