Multidimensional Poverty Mapping for Rural Pakistan

by

Abdul Hameed

Ihtsham ul Haq Padda

Shahid Karim

Introduction • Poverty is the key problem in the developing countries

• There are different forms of poverty like low level of

income, lack of living standard , insufficient food,

illiteracy, poor health, inadequate sanitation and lack

of clean drinking water etc.

• The effects of poverty are mostly interconnected to

each other.

• For example, inadequate sanitation, no access to clean

drinking water problem yield different types of

diseases.

Continued…

• 29.5 percent (60 million) people are living below

the poverty (poverty line Rs.3030 per month;

almost equal to $1 per day) (GoP, 2015-16)

• World Bank estimates (poverty line = $1.25 per

day) would suggest that 52 percent Pakistanis

living below the poverty line

• Overall, 39 percent of Pakistanis live in

multidimensional poverty (GoP, 2016)

• 54.6 percent of rural Pakistanis facing

multidimensional poverty (Gop, 2016)

Study objectives

Estimate deprivation in education, health, living standard and wealth at district level

Construct rural multidimensional poverty index

Geographically mapping the multidimensional poverty

To..

Data and Methodology

Pakistan Rural Household Survey (PRHS, 2013)

The survey was administered in 19 districts

Data from 1936 out of 2090 households

Alkire-Foster (2011) MPI methodology

Variables Description Dimensions Weight Poverty cutoff points Score

Education 0.25

No one has completed five years of schooling 0.125

At least one school-age child not enrolled in school (5 to 18 years) 0.125

Health 0.25

At least one member is malnourished (Calculated through Body Mass Index ) 0.125

One or more children have died under 0 to 5 years 0.125

Living Standard 0.25

No electricity 0.050

No access to clean drinking water 0.050

No access to adequate sanitation 0.050

The house has a dirt floor 0.050

Household uses “dirty” cooking fuel 0.050

Wealth 0.25

The household has no one household asset; air cooler,

Fridge, freezer, car, computer, tractor, thresher,

Generator and tube-well 0.125

Household has less than two acre agriculture land and no any commercial plot 0.125

Total 1 1

Results • 6.7 (almost 7) average household size

• 74% households, no one has completed five year

of schooling

• 50% households, school going age children (5 to

18 Years) are not going to school

• 29% households, at least one member is

malnourished (Body Mass Index)

• Only 3% households, one or more children have

died under 0 to 5 years

• 64% households have dirty dwelling material

(Mud)

• 40 % households don't have toilet facility

• 38% households don't have proper drainage system

• 43 % households throw garbage at the open place

• 14% households have piped/ bottle water for drinking purposes

• 22% households don't have electricity

• 77% have used dirty fuel (wood, dung cake, agriculture waste and coal) for cooking purposes

• 24% households have less than two acre agriculture land and no commercial plot

• Only 32% households have any one assets.

Results/

Poverty Cut-off

Source : Naveed & Islam, 2012

If the sum of individual person or

household deprived score is equal to

40 percent or more of possible

deprivation. The person or household

considered to be multidimensional

poor

Most poor rural area and indicator decomposition

Education Health Living Standard Wealth

% % % %

D G Khan 30 10 30 32

Hyderabad 28 10 27 34

Multan 28 7 28 38

Thatta 27 10 32 31

Poverty Estimate for Rural Pakistan Cutoff

Point Head Count Ratio H Adjusted Head Count Ratio M0 Average Poverty A=M0/H

0.00 1.00 0.50 0.50

0.10 0.99 0.50 0.51

0.20 0.96 0.50 0.52

0.30 0.87 0.48 0.55

0.40 0.73 0.43 0.59

0.50 0.52 0.34 0.65

0.60 0.33 0.24 0.71

0.70 0.11 0.09 0.80

0.80 0.05 0.05 0.85

Each indicator decomposition at rural Pakistan

18%

18%

17%

11%

8%

8%

7%

7%

4%

1%

1%

0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20%

Land

Assets

Education

Child Education

cooking fuel

BMI (Women)

Clean water

Dirt floor

Sanitation

Electricity

Mortality under (0-5 )

Conclusions • 73% rural population belongs to the poor household at 40% deprived score and 87% rural

population belongs to poor household at 30% deprived score

• Poverty depth, 43% household facing multidimentionally poor with respect to education,

health, living standard and wealth

• On-average 59% people of rural Pakistan below the poverty line

• The major causes of poverty in the study area are low household assets, less employment

opportunities, lack of education, lack of clean drinking water, poor sanitation facilities, and

health facility

• Rural Pakistan above than 30% household deprived in education, land, clean drinking water

household assets, sanitation and cooking fuel

• Improving education, health and employment opportunity policies to reduce rural multidimensional poverty

• Socioeconomic policies aimed at reducing poverty must focus on improving housing ,sanitation, drinking water and toilet facility and reducing regional level inequalities through pro-rural development

• Income of majority of rural population is based on agriculture. Pro-farmer agriculture policies leading to increased incomes are therefore crucial

• District level polices can help in reduction in multidimensional poverty

The way forward