Monitoring Poverty in Armenia using Multidimensional Poverty Indicators

Diana MartirosovaNational Statistical Service of the Republic of ArmeniaMoritz MeyerEconomist, Poverty GP, Europe and Central AsiaNistha Sinha Senior Economist, Poverty GP, Europe and Central Asia

UNECE conference in Geneva, 4-6 May 2015

Roadmap: Multidimensional poverty in Armenia

Our vision: Describe complexity, depth and persistence of poverty.

Concept: How do households experience poverty?

Poverty is characterized by whether an individuals experiences deprivations on aspects of welfare that are a development priority (such as being healthy or having

a job).

Benefit: Complement consumption poverty by multidimensional poverty.

Measure reflects aspects of quality of life which are not captured by consumption poverty (such as having access to good quality education and health

services and having adequate heating).

Policy: Monitor progress on development goals.

Multidimensional poverty can be based on government’s development priorities. Monitor progress on development goals.

This presentation: Focus on methodology, findings and policy.

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A pilot multidimensional poverty index for Armenia: Choice of unit of analysis, dimensions and indicators

Dimension Indicator: a household is defined as deprived if

Education at least one household member above the age of 15 years has less than 5 years of education

at least one child of compulsory schooling age between 6 and 14 years is not attending school

Health at least one household member reports poor or very poor health status

Labor at least one unemployed household member

  the household head is out of the labor force

Housing Housing: most informed household member evaluates housing conditions as bad or very bad

  Water: household does not have centralized water system and/ or hot water

  Garbage: household lacks a garbage disposal system

  Heating: household uses wood, carbon or other heating means

Extreme poverty consumption expenditures are below the national food poverty line

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Findings from pilot multidimensional poverty measure:Identify time trends, count and index (by region)

Share of population which is deprived in the indicator on heating (household dimension) –

breakdown by locations.

Share of population which experiences deprivations related to the dimension on

labor – breakdown by locations.

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Yerevan Yerevan

How do households experience poverty: Count number of deprivations, Armenia 2008 to 2013

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Share of population (in percent) which experiences “0” to “4 or more” deprivations.

Time trend for the multidimensional poverty index: Describe incidence and intensity, Armenia 2008 to 2013

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Incidence: Share of population which is classified as multidimensional poor.

Intensity: Share of deprivations where deprived households experience deprivations.

Regional variation of multidimensional poverty:Level and nature of deprivations, Armenia 2008 to 2013

 National level Rural areas

Other urban areas Yerevan

2008 20.4 27.2 21.9 11.4

2010 22.3 25.6 19.7 21.1

2012 19.0 20.0 15.6 21.2

2013 16.3 19.9 12.0 16.3

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Share of population (in percent) which is multidimensionally poor– breakdown by locations.

Policy: Drawing a full picture of poverty - multidimensional poverty complements consumption poverty, Armenia 2013

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Share of population (in percent) which is multidimensionally and consumption poor

(using the upper national poverty line).

Customize agenda of multidimensional poverty to the Armenian context: Which dimensions and indicators should be included?

Use Integrated Living Conditions Survey to complement existing tools to monitor poverty.

Consultations with different stakeholders in Armenia: How are the NSS RA, different line ministries and civil society going to use this measure for the policy design and coordination?

Ensure that dimensions and indicators of multidimensional poverty reflect development progress in the country.

Looking ahead – tailor a national measure of multidimensional poverty to the country context of Armenia

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