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RETHINKING POVERTY AND
INEQUALITY MEASUREMENT IN
ARAB COUNTRIES

Khalid Abu-Ismail




Measurement and Policy Approaches to Enhance Equity for the New
Generations in the Middle East and North Africa, UNICEF,

Rabat 22 - 23 May                                                 1
Outline of
        Presentation
1. Rethinking Money Metric Poverty
   Measurement

2. The Paradox of Growth and Inequality
   in Arab countries

3. Other facets of inequality

4. Conclusions

                                          2
1. Money-
Metric Poverty
Stories

                 3
Typology of Poverty lines
                                   Money-Metric Poverty Lines


               National Poverty Lines                               International Poverty Lines
                 (Household Specific)                                    (Based on 2005 PPP)


Food Poverty       Lower Poverty          Upper               Fixed                       Variable
    Line               Line             Poverty Line    ($1.25, $2.00, etc)       (PL varies with income)

                                                                                                            4
Conventional storyline
on Arab poverty based
on $1.25 poverty line

Lowest poverty incidence world-wide

Fast poverty reduction since 1990 implying
 region is on track to halve extreme poverty
 by 2015.


                                               5
6
Population living below $1.25 (2005 PPP), Developing
Regions, 1990-2009 (%)

                        1990-2000                   2000-2009
   70
                                                     59
   60
                                             47        50
   50
              38                               40
   40                                                       35
   30                                                           24
   20           17
                                    9
   10   6 4                4 2          5
    0
                          CIS
        AC




                                                                DR
                                              SA
               EA & P

                          E&




                                                      SSA
                                    LA & C
Story changes with higher
       poverty lines

Arab region is most sensitive to choice
of PL among developing regions.




                                          7
Highest % change among Developing Regions when
moving from $1.25 to higher PLs (2000-2010)
        $1.25                                        $2
        $2.75                                        % Change from $1.25 to $2.00
        % Change from $2.25 to $2.75
                                                                        % Change in
   Poverty rate                                                           poverty
100                                                                                450%
 90                                                      87
                                                                   84               400%
 80                                                  74        74                   350%
 70
                                                                              60    300%
 60                    57
                                                              50                    250%
 50                                                                        46
             40    40                               40                              200%
 40
        19                                                                          150%
 30                                                                      24
                  17                           20                                   100%
 20                                          12
                                    12
 10    4                        6        5                                          50%
                            2
  0                                                                                 0%
                                                                                          8
           AC     EA & P    E & CIS      LA & C      SA        SSA         DR
Poverty rates for Arab Countries and Developing Regions across
a range of poverty lines (in 2005 PPP based on most recent
surveys)
          World                       East Asia & Pacific
P0 (%)    Europe & Central Asia       Latin America & Caribbean
          South Asia                  Sub-Saharan Africa
100       Arab Countries                                          100
 90                                                               90
 80                                                               80
 70                                                               70
 60                                                               60
 50                                                               50
 40                                                               40
 30                                                               30
 20                                                               20
 10                                                               10
  0                                                               0
       0.2
       0.6



       2.0
       2.4
       2.8
       3.2
       3.6
       4.0
       4.4
       4.8
       5.2
       5.6
       6.0
       6.4
       6.8
       7.2
       7.6

       8.4
       8.8
       9.2
       9.6
       1.6




       8.0
         1
      1.25




      10.0
                                                                       9
Problems with
       international PLs
Problems in equalizing purchasing parity
across countries.
IPLs are not household specific and don’t take
into account family
size, location, demographic composition or
local prices.



                                                 10
Why not resort to National Poverty Lines?
Headcount poverty rates (P0) based on NPLs for Developing
Regions, 1990-2000 and 2000-2009

                      1997        2008         % Change            Change
 45                                                                     50%
                                                   40
 40                                      37                             45%
                                                        36
 35                                                                     40%
       31                                     31                        35%
 30                                                          27
                                                                        30%
 25         23
                                                                  20    25%
 20              18
                                                                        20%
 15                          13
                                                                        15%
                      10          9
 10                                                                     10%
  5                                                                     5%
  0                                                                     0%
        AC       EAP         LAC         SAS       SSA        DR
                                                                             11
12

Problem: Countries set NPL
differently but most apply the LPL

Solution: Back to the stylized facts
on ratio of the NPL to PCE

In poorest countries it will be 0.8-1

In richest developing countries it will
be less than 0.2-0.4
13


Log PCE and actual ratio of NPL to PCE (A) and PCE and NPL/PCE
rearranged in descending order (from richest to poorest) (B)
             NPL to PCE and PCE                                  Rearranging countries according to their PCE

             Log pce                  PL/PCE                                    log PCE     PL/PCE
  3                                                              3

                                                                      BRA2009
        BRA2009
 2.5                               MEX2008
                                                                2.5                  JOR2006
               TUR2005                                                                               EGY2009
                                                                      MEX2008
       TUN2000 JOR2006
       CHN-MAR2007                                                                                  SYR2007
       U2005
                COM2004 SYR2007   EGY2009
                                       DJI2002                                        TUN2000             DJI2002
  2      CHN- IDN-U2009
                               IRQ2007
                         DZA1995            YEM2005              2                                       IRQ2007    CHN-R2005
                                                                                               MAR2007
        R2005                                         HTI2001                             CHN-
                                         IND-R2005
                                  IDN-R2009                                               U2005          MRT2000
                            IND-U2005
                                                                                                                        IND-R2005
 1.5                                                                                                       IDN-U2009
                                                                1.5

  1
                                                                 1

 0.5
                                                                0.5
  0
                                                                 0
14
If majority of countries get their NPLs
   right then a simple regression can
 overcome problems of overshooting
 (Brazil) and undershooting (China).
        Ln GDP versus Poverty Line per capita per month
6

5

4

3

2

1                                          y = -2E-05x2 + 0.010x + 3.067
                                                    R² = 0.741
0
    0        100       200       300       400         500          600
National poverty lines and UNDP estimated (RPL) poverty lines
  (2005 PPP per capita per day) for Developing countries by
        expenditure groups, 1990-2000 and 2000-2009


                      PCE per
                     capita per
                       month        NPL per day      RPL per day       NPL/PCE            RPL/PCE
           Low Income Countries (average per capita expenditure below 60 dollars per month)
   1990-1999             47             0.9             1.13              0.59              0.73
   2000-2009             49             1.1             1.15              0.65              0.71
    Lower Middle Income Countries (average per capita expenditure from 60 to 100 dollars per month)
   1990-1999           77.7             1.1              1.5              0.44              0.58
   2000-2009           70.2             0.9              1.4               0.4               0.6
       Middle Income Countries (average per capita expenditure from 100 to 150 dollars per month)
   1990-1999            114             2.3               2                0.6              0.52
   2000-2009           109.6            1.8              1.9              0.49              0.52
    Upper Middle Income Countries (average per capita expenditure from 150 to 200 dollars per month)
   1990-1999           165.8             3               2.7              0.55               0.5
   2000-2009           163.2            0.9              2.7              0.17               0.5
          High Income Countries (average per capita expenditure above 200 dollars per month)
   1990-1999           239.2            3.8              3.7              0.48              0.47
   2000-2009           308.2             4               4.1              0.39              0.41


                                                                                                       15
National poverty lines and UNDP estimated regression based
 poverty lines (RPL) (2005 PPP per capita per day) for Developing
    Regions and Arab Sub-regions, 1990-2000 and 2000-2009

            PCE per capita   NPL per day    RPL per day         NPL/PCE   RPL/PCE
              per month
                               Sub-Saharan Africa (11)
1990-1999        48              1.2              1.1            0.73      0.72
2000-2009       58.8             1.3              1.3            0.65      0.66
                                     South Asia (6)
1990-1999       48.9             1.1              1.2            0.69      0.71
2000-2009       55.2             1.1              1.2            0.59      0.67
                                East Asia and Pacific (9)
1990-1999        59.6            0.8              1.3             0.4      0.65
2000-2009       102.4            0.8              1.8            0.24      0.54
                                   Arab Countries (8)
1990-1999       117.9            1.9               2             0.49      0.52
2000-2009        130             2.1              2.2             0.5      0.51
                              Europe and Central Asia (9)
1990-1999        167             3.2              2.7            0.59       0.5
2000-2009       257.2            3.3              3.8            0.39      0.45
                         Latin America and the Caribbean (16)
1990-1999       254.3            3.9              3.9            0.47      0.46
2000-2009       323.2            4.3              4.2            0.41      0.39
                                Developing Regions (59)
1990-1999        87.1            1.5              1.6            0.52      0.57
2000-2009       121.1            1.5               2             0.39       0.5


                                                                                    16
National poverty lines and UNDP estimated poverty lines (2005
          PPP per capita per day) for Arab countries, 2000-2009


4.0                              NPL               UNDP RPL

3.5

3.0

2.5

2.0

1.5

1.0

0.5

0.0
        Djibouti   Mauritania   Yemen    Morocco   Tunisia   Egypt    Jordan    Syria
         (2002)     (2000)      (2005)    (2007)   (2000)    (2009)   (2006)   (2007)

                                                                                        17
Results: Arab Poverty still lower than
  expected for expenditure per capita
         UNDP Estimated Poverty rates and per capita Expenditure
         (in 2005 PPP based on most recent surveys)
   74      BDI                      Eastern Europe and CIS   Arab Countries
   64                            Latin America & Carib.
           MWI                                            East Asia &
             MDG
            ZMBNPL                  Sub-Saharan Africa    Pacific
   54        MOZ
          BFA UGA                                         South Asia
               SSA
            ETH KHM               COL
                            HND BOL
   44        BGD CMR      NIC
                    PHL
          SASINDGHA KEN               ECU
   34          LAO
             TJK MRT DR          SLVDOM PER
                   DJI
              IDN YEM LKA
                    VNM
                            GUY      VEN JAM LAC        BRA
                                                   MEX PAN
                       EAP         TUR
   24        PAK MNG CHN MAR TUN                           CRI
                        KAZ     JOR
                       EGY AZE BGR ECA RUS
                         AC
   14                         ROM
                       SYR
                                       UKR
                                                                              CHL
    4
                                                                   BLR
-50 -6     50           150           250              350         450              550

                                                                                          18
But far more than in the $1.25 and slow
poverty reduction since 1990s
                              Estimates Based on World Bank Poverty Lines        UNDP Estimates

                                $1.25         $2.00           $2.75          NPL         RPL
                                         Headcount Poverty Rate (%) in 2000-2009 and rank
  Arab Countries                 3.9     2      19       3       40       3 19.1 3 21.5           2
  East Asia & Pacific           16.9     4     39.5      4      57.1      4 5.6 1 28.1            3
  Europe & Central Asia          1.7     1      5.6      1      11.7      1 14.7 2 20.3           1
  Latin America & Caribbean      5.5     3     12.3      2      19.6      2 34.1 5 32.4           4
  South Asia                    40.3     5     73.9      6      87.5      6 28.4 4        37      5
  Sub-Saharan Africa            49.8     6     73.6      5      84.1      5 45.8 6 47.3           6
     Developing Regions         23.6           46.4             60.5         19.7        31.8
                                                Poverty Change (%) from 1990-1999
  Arab Countries                -35.7    4    -24.3      4     -12.4      4 -14.4 5       -8      5
  East Asia & Pacific           -55.1    1    -40.8      2      -30       3 -49.1 2 -21.8         2
  Europe & Central Asia         -50.5    2    -59.1      1     -56.1      1 -55.2 1 -11.1         4
  Latin America & Caribbean     -41.6    3    -39.5      3     -35.1      2 -20.4 4 -22.7         1
  South Asia                    -14.3    6     -7.1      6      -3.8      6 -23.1 3 -6.1          6
  Sub-Saharan Africa            -16.3    5     -7.7      5      -5.1      5 -13.5 6 -12.5         3
     Developing Regions         -32.3         -23.4            -17.9         -26.9      -14.4


                                                                                                      19
2. The Stable
Gini Paradox


                20
Inequality in expenditure for Developing Regions (Gini
coefficient), 1990-1999 and 2000-2009
60
                                1990s                          2000s
                                                 55.3
                                                        52.6

50

                                 43.4                                          42.9
                                                                                      42.2    41.6
                                                                                                     40.5
40
                         35.8           36.4
     35.2 34.7
                  32.5                                                 33.2
                                                                31.2
30



20



10



 0
       Arab      East Asia &     Eastern       Latin America   South Asia     Sub-Saharan    Developing
     Countries     Pacific      Europe and      & Caribbean                      Africa       Regions
                                   CIS

                                                                                                            21
Arab countries ranked according to level of income and
inequality in expenditure (Gini coefficient), 1990-2009
           Middle income/low inequality                       Low income/high inequality
Syria                         1997         34.0   Djibouti                   1996           36.8
                              2004         35.8                              2002           40.0
                              2007         32.0   Comoros                    2004           64.3
Egypt                         1991         32.0
                              2005         32.1
                              2009         30.1
         Middle income/medium inequality                    Low income/medium inequality
Jordan                        1992         43.4   Yemen                     1996            33.4
                              1997         36.4                             2006            37.7
                              2002         38.9   Mauritania                1995            37.3
                              2006         37.7                             2000            39.0
Lebanon                       2004         36.0
Algeria                       1998         40.0
                              1995         35.3
           Middle income/high inequality                     High income/medium inequality
Tunisia                       1995         41.7   UAE                         2007         38.8
                              2000         40.8   Kuwait                      1999         36.0
Morocco                       1991         39.2
                              1998         39.5
                              2007         40.9
      Arab Region            1990s         35.2               High income/high inequality
                             2000s         34.7   Oman                        2000          39.9
                                                                                               22
Story thus far:
1.High GDP growth driven by
Private Consumption on the
demand side and services sector.
2. Low poverty reduction and
3. Stagnating inequality.


Does this make sense ?
                                   23
Large and rising gap between Household Consumption
  Expenditure from household surveys (HCE) and national income
  accounts (HCE*) (in 2005 PPP), 1990-2000 and 2000-2009

                                                                                    ∆
                         HCE    HCE*                            ∆             ∆   HCE*/
                                     HCE* HCE/HC HCE/HC               ∆ HCE
             HCE 1990s   2000   1990                           Gini         HCE     ∆
                                     2000s E* 1990s E* 2000s           (%)
                           s     s                             (%)          * (%) HCE
                                                                                   (%)
Djibouti       150.5     93.5   90.6    119.5   1.66    0.78   0.01   -0.076   0.05   -0.62

Mauritania     78.7      88.3   98.8    97.3    0.80    0.91   0.01   0.029    0.00   -0.13

Yemen          82.6      84.0   128.5   110.1   0.64    0.76   0.02   0.002 -0.02     -8.89

Morocco        155.4     161.4 150.1 181.1      1.04    0.89   0.00   0.002    0.01   4.99

Tunisia        151.3     182.4 213.6 278.0      0.71    0.66   0.00   0.019    0.03   1.41

Egypt          100.9     121.1 219.2 312.8      0.46    0.39   0.00   0.010    0.02   1.96

Jordan         151.6     210.1 231.3 315.2      0.66    0.67   0.00   0.037    0.03   0.95

Syria          129.8     125.5 200.3 212.3      0.65    0.59 -0.01    -0.003   0.01   -1.73


                                                                                        24
This large and rising gap may partly
 explain slow poverty reduction in Arab
 countries and South Asia
         HCE   HCE HCE* HCE*            HCE/ HCE/ ∆ Gini        ∆        ∆       ∆
        1990s 2000s 1990s 2000s         HCE* HCE*   (%)        HCE     HCE*    HCE*/
                                        1990s 2000s            (%)      (%)      ∆
                                                                               HCE
                                                                                (%)
 AC     117.9   130.0   189.4   247.1    0.62   0.53   -0.01   0.102    0.30    2.99
EA&P    59.5    102.4   88.2    141.8    0.67   0.72   0.10    0.719    0.61    0.84
E&CIS
        167.0   257.2   280.7   440.6    0.59   0.58   0.00    0.540    0.57    1.05

LA&C    254.3   323.2   415.0   505.2    0.61   0.64   -0.05   0.271    0.22    0.80
 SA     48.9    55.2    77.4    110.0    0.63   0.50   0.06    0.130    0.42    3.25
SSA     48.0    58.8    52.4    61.3     0.91   0.96   -0.02   0.226    0.17    0.75
 DR     87.1    121.0   137.0   192.7    0.64   0.63   0.00    0.390    0.41    1.04
                                                                                       25
Conclusion:

 Relative to other regions,
inequality in expenditure is
      probably more
  underestimated in Acs:
 HIESs did not capture the
expenditure of the very rich
                               26
3. Other facets
of inequality in
Arab countries

                   27
Inequality in Human
    Development



                      28
Components of Human
Development Index




                      29
Disparities in HDI and HDI Progress 1970-2010
Using 1970 as the base year, the region appears to have done well in
human development but the rate of progress on human development
slowed down noticeably since 1990 and large disparities between
countries
      HDI                                       HDI
                            Non-      GDP                 Non-       GDP
    improve    Country                        Improve
                          Income     Growth             Income      Growth
      ment      Name                            ment
                          HDI rank    rank              HDI rank     rank
     Rank                                      Rank
                         1970-2010                      1990-2010
       1      Oman            1        19       15          7        40
       5      KSA             3       111       18          2        108
       7      Tunisia         6        20       14          12       21
       9      Algeria         5       100       30          19       98
       10     Morocco        14        42       12          10       43
       13     Libya           4       132       41          18       114
       17     Egypt          25        39       21          28       32
       19     UAE            24        38      103          88       118
       34     Bahrain        21       104       94          93       67
       43     Jordan         26        87       51          53       44
       58     Qatar          73       121      104         104       58
       67     Sudan         121        72       22         118        9
       68     Kuwait         48       131       61          59       50
       94     Lebanon        89        92       29          54        8
      122     Djibouti      117       133      100         109       130     30
HDI versus GNI per capita
• Despite differences in level of income and human development
  almost all Arab countries still lag behind other regions in terms of
  human development
 1.0 Hybrid HDI
 0.9
                                                           Kuwait
                                                    Bahrain
 0.8                                       LAC  Libya      UAEQatar
                                       Tunisia      KSA
                                  Jordan Algeria
 0.7                            EAP ECA
                                       Egypt AC
 0.6                                DR
                               SAS Morocco                            .
 0.5                       Sudan
 0.4                      SSA Djibouti

 0.3
 0.2
 0.1                                                    Log GNI per capita
       2.0    2.5   3.0       3.5       4.0       4.5       5.0       5.5


                                                                          31
HDI and IHDI




               32
• Under perfect equality     Computation of IHDI
  the IHDI is equal to the
  HDI, but falls below the
  HDI when inequality
  rises.
• In this sense, the IHDI
  is the actual level of
  human development
  (taking into account
  inequality), while the
  HDI can be viewed as
  an     index    of   the
  potential        human
  development         that
  could be achieved if
  there is no inequality.
                                                   33
HDI   IHDI   Overall loss in IHDI (%)
                                                    0.80           40.0
0.90                                           40
                                                    0.70           35.0
0.80                                           35

0.70
                                                    0.60           30.0
                                               30
0.60                                                0.50           25.0
                                               25
0.50                                                0.40           20.0
                                               20
0.40                                                0.30           15.0
                                               15
0.30                                                0.20           10.0
                                               10
0.20                                                0.10           5.0
0.10                                           5
                                                    0.00           0.0



                                                            SSA




                                                            ECA
                                                            EAP



                                                           World
                                                            LAC
                                                            SAS
                                                             AS
0.00                                           0
         Saudi…
         Leban…
          Moro…

           Opt.




         Libya
       Kuwait

       Bahrain

          UAE
       Djibouti




        Jordan




         Qatar
        Yemen



          Syria

         Egypt
       Algeria

       Tunisia
         Oman
        Sudan*



           Iraq
IHDI Components for Arab States vs. other regions
Arab States have considerable losses due to unequal
  distribution in education but problems with the
           income/expenditure estimates.
 Inequality-adjusted life          Inequality-adjusted                                       Inequality-adjusted
 expectancy index                  Education index                                           income index
          Value   Loss(%)                        Value              Loss (%)                               Value             Loss (%)
 0.800                      45.0   0.800                                              45.0   0.700                                              45.0

 0.700                      40.0                                                      40.0                                                      40.0
                                   0.700                                                     0.600
                            35.0                                                      35.0                                                      35.0
 0.600                             0.600
                                                                                             0.500
                            30.0                                                      30.0                                                      30.0
 0.500                             0.500
                            25.0                                                      25.0   0.400                                              25.0
 0.400                             0.400
                            20.0                                                      20.0                                                      20.0
                                                                                             0.300
 0.300                             0.300
                            15.0                                                      15.0                                                      15.0
 0.200                                                                                       0.200
                            10.0   0.200
                                                                                      10.0                                                      10.0
 0.100                      5.0    0.100                                                     0.100
                                                                                      5.0                                                       5.0

 0.000                      0.0    0.000                                              0.0    0.000                                              0.0
                                                             SSA


                                                                        SAS




                                                                                                     SAS




                                                                                                                            SSA
                                                       LAC


                                                                   AS




                                                                                                                 AS




                                                                                                                                  LAC
                                           ECA
                                                 EAP




                                                                              World




                                                                                                           ECA


                                                                                                                      EAP




                                                                                                                                        World
                                                                                                                                                       35
IHDI Components for Arab States
Within ACs losses in education are highest in
       Morocco, Djibouti and Yemen
Inequality-adjusted life            Inequality-adjusted            Inequality-adjusted
expectancy index                    Education index                income index
       Value   Loss(%)                   Value   Loss (%)                  Value   Loss (%)
0.90                       40   0.600                       60.0   0.600                      35.0

0.80                       35
                                                                   0.500                      30.0
                                0.500                       50.0
0.70
                           30
                                                                                              25.0
0.60                            0.400                       40.0   0.400
                           25
0.50                                                                                          20.0
                           20   0.300                       30.0   0.300
0.40
                           15                                                                 15.0
0.30                            0.200                       20.0   0.200
                           10                                                                 10.0
0.20
                           5
                                0.100                       10.0   0.100
0.10                                                                                          5.0
0.00                       0    0.000                       0.0
                                                                   0.000                      0.0
                                           Lebanon
                                               Syria



                                          Morocco
                                           Djibouti
                                            Yemen
                                             Jordan



                                            Tunisia
                                              Egypt




                                        Arab States




                                                                                                    36
Inequality between
regions and
income/wealth groups



                       37
High rural-urban disparities in money-
metric poverty- Egypt in particular
                         Urban                    Rural
                 Headcount Poverty       Headcount      Poverty   Ratio of Rural to Urban
                  Index (%}    Gap (%)    Index (%}     Gap (%)     Headcount Poverty

Egypt (2000)        9.2         1.7        22.1          3.9               2.4
Egypt (2009)       10.1                    28.9                            2.9
 Jordan (1997)      19.7        4.8         27.0          7.2              1.4
 Jordan (2002)      12.9        2.9         18.7          4.7              1.4
  Syria (1997)      12.6        2.3         16.0          3.5              1.3
  Syria (2004)      8.7         1.5         14.3          2.6              1.5
 Yemen (1998)       32.3        8.7         42.5         13.1              1.3
 Yemen (2006)       20.7        4.5         40.1         10.6              1.9
Algeria (1995)      9.0                     19.0                           2.1
Algeria (2000)      10.3                    14.7                           1.4
Tunisia (1990)      3.3         0.7         14.8         3.2               4.5
Tunisia (2000)      1.7                     8.3                            4.9
Morocco (1990)      7.6         1.5         18.0         3.8               2.4
Morocco (2007)      4.8                     14.5                           3.0
                                                                                            38
Rural-urban divide: HPI and P0
              Syria, Lebanon, Egypt and Yemen
     24                  National Average HPI 2007                                National Average HPI 1997

                 High P0 and Low HPI                                                                                                  High P0 and HPI                 UBN (%)                                       National Average
                                                                                                                      CnR
     22                                                                                                                                                              70                 High UBN and Low P0                                       High UBN and High P0
                                                                                                                                                                                                                                                                           Akkar/M inieh-
     20                                                                                                                                                                           Bent Jbeil/M arjaay oun/Hasbay y a                                                       Dennieh
                                                                                           T Cn                      NER*                                            60
                                                                                                                                                                                                                                                                      R2 = 0.42
     18

                                                                                                                                                                     50                       Nabatieh
                                                                                                                                                                                                                                                     Jezzine/Saida
                                                                                                           TR                                                                                                                                  S outh
     16
                                                                          T NER* T R*                                                                                                                                                        Sour                    North
                                                          SR                                                                                            NER
                                       CnU                                                                             T NER                                                                                                  Hermel/Baalbek
                                                                                                                                                                     40
P0




     14                                                                  NEU          T                   National Average P0 1997                                                 Nabatieh City                           Bekaa
                                                                                                                                                                                                     Shouf/Aley
                                                                          SR*                                                                                                                                                                                             Trip oly City
                                                TU
     12                                                  T*
                                                                                                          National Average P0 2007
                                                                                                                                                                     30                                    Baabda
                    CsU                          TS                       T S*                                                                                                                                                West Bekaa/Rashay y a                       National Average
                                               SU                         SU*
                  NEU*                                                                                                                                                                                                 Koura/Zgharta/Batroun/Bsharre
     10                         T U*            T Cs                                                                                                                                                 Zahle
                                                                    CsR                                                                                              20                                Mount Lebanon
                          CnR*
                                             CsR*
      8             T Cn*                                                                                                                                                                                Keserwan/Jbeil
          CnU*                     T Cs*                                                                                                                                  Beirut City
                                                                                                                                                                     10
                                                                                                                                                                                                M aten
      6
                 CsU*                                                                                                                                                                                                                                  Low UBN and High P0            P0 (%)
                                                                                                                                                                                        Low UBN and Low P0
                    Low P0 and HPI                                                                                                   High HPI and Low P0             0
      4
          4                 9                       14                           19               24            29              34          39             44
                                                                                                                                                                          0                10                20              30                   40            50             60              70

                                                                                                  HPI


40HPI
              Low P0 and                                                 High P0 and                                                        80
                                                                                                                                               HPI                                           Low P0 and                                                    High P0
35                                                                                                                                          75
                                                                                            Fayoum
                                                              National




                                                                                                                  Bani Suef                 70                                                                                Reymah                          Hajjah
                                                                                                                         Sohag
30                                                                                                Menia                                                                                                                                                         Al-Jawf




                                                                                                                                                                                                                                       National
                                        Kafr el                                   Beheira                                            Assiut 65                                                              Sa'adah
                                                                                                                                                                                                                               Al-Mahweet
                                                                                                                Qena                                                                                                      Dhamar                                                     Amran
                                        Sheikh                                                                                              60
25                                                                                                                                                                                                                                                 Laheg
                                               Sharkia                                                                                                                                                                                            Mareb Al-Baida
                                                 Total                                                                                      55                                                                                      Al-Hodeidah     Abyan
                                Dakahlia     luxor Giza                                                                          National                                                                                                  Taiz
20                        Matrouh
                                   QualiobiaMenoufia    Nort.                                                                               50                                                                                    Ibb All Yemen
                                                                                                                                                                                                                                                Al-Daleh   Shabwah
                               Garbeyya       Ismailia
                                                                                                                  Aswan                     45
15                    Alexandria
               Damietta                                                                                                                     40
                        Cairo                                                                                                                                                                   Al-Maharah
                Suez Said
                   Port                                                                                                                                                                                                                                                      National
10            South Sinai
                   Red Sea
                                                                                                                                            35
                      New Valley
                                                                                                                                            30                                                                                           Hadramout

 5                                                                                                                                          25
                                                                                                                                            20
 0 Low P0 and                                                            High P0 and                                         Income poverty                                                     Low P0 and                                                  High P0 and
                                                                                                                                            15                                                                                                                                              39
   0       10                                             20                              30              40                   50          60                   70            0             10              20          30     40                            50           60              70
                                                                                                                                                                                                                    Income Poverty (%)
MPI for rural and urban regions and highest and
lowest expenditure quintiles for :
Egypt, Morocco, Syria and Yemen (2006-2009)
                                        Region/      MPI     H      A
                                        quintile
                                          Total      0.05   0.11   0.41
       (2009) o (2007) (2007) (2006)
       Egypt Morocc Syria Yemen



                                       Rural/Urban    2.6   2.5     1
                                         Q1/Q5        3.9   3.3    1.2
                                          Total      0.04   0.1    0.4
                                       Rural/Urban    7.5   7.1    1.02
                                         Q1/Q5       12.2   12.2   0.96
                                          Total      0.03   0.07   0.38
                                       Rural/Urban    4.6   4.4    1.1
                                         Q1/Q5        1.7   1.6     1
                                          Total      0.27   0.54   0.51
                                       Rural/Urban    1.7   1.5    1.1
                                         Q1/Q5        1.9   1.7    1.2
                                                                          40
High inequality in Under Five Mortality Rates, Delivery
       Assistance by a Skilled Health Personnel and Antenatal
       Care Visits for Egypt and Yemen in particular
                             Under five mortality                                   Delivery by a Skilled
                                                                                                                                          Antenatal Care Visits
                                    rates                                            Health Personnel

                                  Poorest                  Richest                      Poorest   Richest                                      Poorest   Richest
                        140                                                       120
                                                                                                                       120
                        120
Rate per 1,000 live births




                                                                                                            % of ANC (1 or more visits)
                                                                                  100
                                                                                                                       100
                        100
                                                                                  80                                                      80
                             80
                                                                                  60                                                      60
                             60

                             40                                                   40                                                      40

                             20                                                   20                                                      20
                             0                                                     0                                                       0
                                                 Jordan
                                           OPT


                                                          Sudan
                                                                  Egypt
                                                                          Yemen
                                   Syria




                                                                                        Jordan

                                                                                        Algeria
                                                                                           OPT




                                                                                         Sudan
                                                                                        Tunisia
                                                                                         Djibuti




                                                                                        Yemen
                                                                                          Egypt
                                                                                          Syria
                                                                                           Iraq




                                                                                                                                               Tunisia

                                                                                                                                               Algeria
                                                                                                                                               Jordan
                                                                                                                                                  OPT




                                                                                                                                                   Iraq
                                                                                                                                               Djibouti




                                                                                                                                                Sudan
                                                                                                                                                  Syria




                                                                                                                                               Yemen
                                                                                                                                                 Egypt
                                                                                                                                                                   41
Concluding
 Remarks
             42
Measurement issues:
• At the international level, current poverty
  measurement is very misleading.
• At the national level, influenced by politics.
  Also there are good reasons why we should
  not rely on the actual food basket of the poor
  (Ravallion/WB method).
• Need to better harmonize surveys and
  improve methodology (even for NPL).
• Women and children not captured in HIES
  so focus on human deprivation indicators.
• Surveys excluding the rich.                 43
Observations from HIEs on
      Children in Poverty
• Little difference in poverty measures FHH and MHH
  but Households headed by divorced or separated
  women and widows with more than three children
  are over-represented among the poor.
• The risk to illiteracy of children, living in poor female
  headed households, is the highest.
• Poverty pushes children to work. Girls are kept at
  home to do domestic work, while boys go to work
  to help their poor families.
• Child labor in rural Yemen is worst at nearly 10
  percent of poor boys (aged 6-14 years).

                                                              44
Policy conclusions
• Target poor FHHs with children. FHHs are
  more vulnerable in Acs since they rely less
  on wages or own account production. Social
  protection programs and transfers are thus
  key to FHH.
• No doubt poverty and inequality need to be
  addressed within a broader set of
  influencing policies that aim to establish the
  Arab Developmental State Model.

                                               45

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Rethinking Poverty and Inequality Measurement in Arab Countries

  • 1. RETHINKING POVERTY AND INEQUALITY MEASUREMENT IN ARAB COUNTRIES Khalid Abu-Ismail Measurement and Policy Approaches to Enhance Equity for the New Generations in the Middle East and North Africa, UNICEF, Rabat 22 - 23 May 1
  • 2. Outline of Presentation 1. Rethinking Money Metric Poverty Measurement 2. The Paradox of Growth and Inequality in Arab countries 3. Other facets of inequality 4. Conclusions 2
  • 4. Typology of Poverty lines Money-Metric Poverty Lines National Poverty Lines International Poverty Lines (Household Specific) (Based on 2005 PPP) Food Poverty Lower Poverty Upper Fixed Variable Line Line Poverty Line ($1.25, $2.00, etc) (PL varies with income) 4
  • 5. Conventional storyline on Arab poverty based on $1.25 poverty line Lowest poverty incidence world-wide Fast poverty reduction since 1990 implying region is on track to halve extreme poverty by 2015. 5
  • 6. 6 Population living below $1.25 (2005 PPP), Developing Regions, 1990-2009 (%) 1990-2000 2000-2009 70 59 60 47 50 50 38 40 40 35 30 24 20 17 9 10 6 4 4 2 5 0 CIS AC DR SA EA & P E& SSA LA & C
  • 7. Story changes with higher poverty lines Arab region is most sensitive to choice of PL among developing regions. 7
  • 8. Highest % change among Developing Regions when moving from $1.25 to higher PLs (2000-2010) $1.25 $2 $2.75 % Change from $1.25 to $2.00 % Change from $2.25 to $2.75 % Change in Poverty rate poverty 100 450% 90 87 84 400% 80 74 74 350% 70 60 300% 60 57 50 250% 50 46 40 40 40 200% 40 19 150% 30 24 17 20 100% 20 12 12 10 4 6 5 50% 2 0 0% 8 AC EA & P E & CIS LA & C SA SSA DR
  • 9. Poverty rates for Arab Countries and Developing Regions across a range of poverty lines (in 2005 PPP based on most recent surveys) World East Asia & Pacific P0 (%) Europe & Central Asia Latin America & Caribbean South Asia Sub-Saharan Africa 100 Arab Countries 100 90 90 80 80 70 70 60 60 50 50 40 40 30 30 20 20 10 10 0 0 0.2 0.6 2.0 2.4 2.8 3.2 3.6 4.0 4.4 4.8 5.2 5.6 6.0 6.4 6.8 7.2 7.6 8.4 8.8 9.2 9.6 1.6 8.0 1 1.25 10.0 9
  • 10. Problems with international PLs Problems in equalizing purchasing parity across countries. IPLs are not household specific and don’t take into account family size, location, demographic composition or local prices. 10
  • 11. Why not resort to National Poverty Lines? Headcount poverty rates (P0) based on NPLs for Developing Regions, 1990-2000 and 2000-2009 1997 2008 % Change Change 45 50% 40 40 37 45% 36 35 40% 31 31 35% 30 27 30% 25 23 20 25% 20 18 20% 15 13 15% 10 9 10 10% 5 5% 0 0% AC EAP LAC SAS SSA DR 11
  • 12. 12 Problem: Countries set NPL differently but most apply the LPL Solution: Back to the stylized facts on ratio of the NPL to PCE In poorest countries it will be 0.8-1 In richest developing countries it will be less than 0.2-0.4
  • 13. 13 Log PCE and actual ratio of NPL to PCE (A) and PCE and NPL/PCE rearranged in descending order (from richest to poorest) (B) NPL to PCE and PCE Rearranging countries according to their PCE Log pce PL/PCE log PCE PL/PCE 3 3 BRA2009 BRA2009 2.5 MEX2008 2.5 JOR2006 TUR2005 EGY2009 MEX2008 TUN2000 JOR2006 CHN-MAR2007 SYR2007 U2005 COM2004 SYR2007 EGY2009 DJI2002 TUN2000 DJI2002 2 CHN- IDN-U2009 IRQ2007 DZA1995 YEM2005 2 IRQ2007 CHN-R2005 MAR2007 R2005 HTI2001 CHN- IND-R2005 IDN-R2009 U2005 MRT2000 IND-U2005 IND-R2005 1.5 IDN-U2009 1.5 1 1 0.5 0.5 0 0
  • 14. 14 If majority of countries get their NPLs right then a simple regression can overcome problems of overshooting (Brazil) and undershooting (China). Ln GDP versus Poverty Line per capita per month 6 5 4 3 2 1 y = -2E-05x2 + 0.010x + 3.067 R² = 0.741 0 0 100 200 300 400 500 600
  • 15. National poverty lines and UNDP estimated (RPL) poverty lines (2005 PPP per capita per day) for Developing countries by expenditure groups, 1990-2000 and 2000-2009 PCE per capita per month NPL per day RPL per day NPL/PCE RPL/PCE Low Income Countries (average per capita expenditure below 60 dollars per month) 1990-1999 47 0.9 1.13 0.59 0.73 2000-2009 49 1.1 1.15 0.65 0.71 Lower Middle Income Countries (average per capita expenditure from 60 to 100 dollars per month) 1990-1999 77.7 1.1 1.5 0.44 0.58 2000-2009 70.2 0.9 1.4 0.4 0.6 Middle Income Countries (average per capita expenditure from 100 to 150 dollars per month) 1990-1999 114 2.3 2 0.6 0.52 2000-2009 109.6 1.8 1.9 0.49 0.52 Upper Middle Income Countries (average per capita expenditure from 150 to 200 dollars per month) 1990-1999 165.8 3 2.7 0.55 0.5 2000-2009 163.2 0.9 2.7 0.17 0.5 High Income Countries (average per capita expenditure above 200 dollars per month) 1990-1999 239.2 3.8 3.7 0.48 0.47 2000-2009 308.2 4 4.1 0.39 0.41 15
  • 16. National poverty lines and UNDP estimated regression based poverty lines (RPL) (2005 PPP per capita per day) for Developing Regions and Arab Sub-regions, 1990-2000 and 2000-2009 PCE per capita NPL per day RPL per day NPL/PCE RPL/PCE per month Sub-Saharan Africa (11) 1990-1999 48 1.2 1.1 0.73 0.72 2000-2009 58.8 1.3 1.3 0.65 0.66 South Asia (6) 1990-1999 48.9 1.1 1.2 0.69 0.71 2000-2009 55.2 1.1 1.2 0.59 0.67 East Asia and Pacific (9) 1990-1999 59.6 0.8 1.3 0.4 0.65 2000-2009 102.4 0.8 1.8 0.24 0.54 Arab Countries (8) 1990-1999 117.9 1.9 2 0.49 0.52 2000-2009 130 2.1 2.2 0.5 0.51 Europe and Central Asia (9) 1990-1999 167 3.2 2.7 0.59 0.5 2000-2009 257.2 3.3 3.8 0.39 0.45 Latin America and the Caribbean (16) 1990-1999 254.3 3.9 3.9 0.47 0.46 2000-2009 323.2 4.3 4.2 0.41 0.39 Developing Regions (59) 1990-1999 87.1 1.5 1.6 0.52 0.57 2000-2009 121.1 1.5 2 0.39 0.5 16
  • 17. National poverty lines and UNDP estimated poverty lines (2005 PPP per capita per day) for Arab countries, 2000-2009 4.0 NPL UNDP RPL 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 Djibouti Mauritania Yemen Morocco Tunisia Egypt Jordan Syria (2002) (2000) (2005) (2007) (2000) (2009) (2006) (2007) 17
  • 18. Results: Arab Poverty still lower than expected for expenditure per capita UNDP Estimated Poverty rates and per capita Expenditure (in 2005 PPP based on most recent surveys) 74 BDI Eastern Europe and CIS Arab Countries 64 Latin America & Carib. MWI East Asia & MDG ZMBNPL Sub-Saharan Africa Pacific 54 MOZ BFA UGA South Asia SSA ETH KHM COL HND BOL 44 BGD CMR NIC PHL SASINDGHA KEN ECU 34 LAO TJK MRT DR SLVDOM PER DJI IDN YEM LKA VNM GUY VEN JAM LAC BRA MEX PAN EAP TUR 24 PAK MNG CHN MAR TUN CRI KAZ JOR EGY AZE BGR ECA RUS AC 14 ROM SYR UKR CHL 4 BLR -50 -6 50 150 250 350 450 550 18
  • 19. But far more than in the $1.25 and slow poverty reduction since 1990s Estimates Based on World Bank Poverty Lines UNDP Estimates $1.25 $2.00 $2.75 NPL RPL Headcount Poverty Rate (%) in 2000-2009 and rank Arab Countries 3.9 2 19 3 40 3 19.1 3 21.5 2 East Asia & Pacific 16.9 4 39.5 4 57.1 4 5.6 1 28.1 3 Europe & Central Asia 1.7 1 5.6 1 11.7 1 14.7 2 20.3 1 Latin America & Caribbean 5.5 3 12.3 2 19.6 2 34.1 5 32.4 4 South Asia 40.3 5 73.9 6 87.5 6 28.4 4 37 5 Sub-Saharan Africa 49.8 6 73.6 5 84.1 5 45.8 6 47.3 6 Developing Regions 23.6 46.4 60.5 19.7 31.8 Poverty Change (%) from 1990-1999 Arab Countries -35.7 4 -24.3 4 -12.4 4 -14.4 5 -8 5 East Asia & Pacific -55.1 1 -40.8 2 -30 3 -49.1 2 -21.8 2 Europe & Central Asia -50.5 2 -59.1 1 -56.1 1 -55.2 1 -11.1 4 Latin America & Caribbean -41.6 3 -39.5 3 -35.1 2 -20.4 4 -22.7 1 South Asia -14.3 6 -7.1 6 -3.8 6 -23.1 3 -6.1 6 Sub-Saharan Africa -16.3 5 -7.7 5 -5.1 5 -13.5 6 -12.5 3 Developing Regions -32.3 -23.4 -17.9 -26.9 -14.4 19
  • 20. 2. The Stable Gini Paradox 20
  • 21. Inequality in expenditure for Developing Regions (Gini coefficient), 1990-1999 and 2000-2009 60 1990s 2000s 55.3 52.6 50 43.4 42.9 42.2 41.6 40.5 40 35.8 36.4 35.2 34.7 32.5 33.2 31.2 30 20 10 0 Arab East Asia & Eastern Latin America South Asia Sub-Saharan Developing Countries Pacific Europe and & Caribbean Africa Regions CIS 21
  • 22. Arab countries ranked according to level of income and inequality in expenditure (Gini coefficient), 1990-2009 Middle income/low inequality Low income/high inequality Syria 1997 34.0 Djibouti 1996 36.8 2004 35.8 2002 40.0 2007 32.0 Comoros 2004 64.3 Egypt 1991 32.0 2005 32.1 2009 30.1 Middle income/medium inequality Low income/medium inequality Jordan 1992 43.4 Yemen 1996 33.4 1997 36.4 2006 37.7 2002 38.9 Mauritania 1995 37.3 2006 37.7 2000 39.0 Lebanon 2004 36.0 Algeria 1998 40.0 1995 35.3 Middle income/high inequality High income/medium inequality Tunisia 1995 41.7 UAE 2007 38.8 2000 40.8 Kuwait 1999 36.0 Morocco 1991 39.2 1998 39.5 2007 40.9 Arab Region 1990s 35.2 High income/high inequality 2000s 34.7 Oman 2000 39.9 22
  • 23. Story thus far: 1.High GDP growth driven by Private Consumption on the demand side and services sector. 2. Low poverty reduction and 3. Stagnating inequality. Does this make sense ? 23
  • 24. Large and rising gap between Household Consumption Expenditure from household surveys (HCE) and national income accounts (HCE*) (in 2005 PPP), 1990-2000 and 2000-2009 ∆ HCE HCE* ∆ ∆ HCE*/ HCE* HCE/HC HCE/HC ∆ HCE HCE 1990s 2000 1990 Gini HCE ∆ 2000s E* 1990s E* 2000s (%) s s (%) * (%) HCE (%) Djibouti 150.5 93.5 90.6 119.5 1.66 0.78 0.01 -0.076 0.05 -0.62 Mauritania 78.7 88.3 98.8 97.3 0.80 0.91 0.01 0.029 0.00 -0.13 Yemen 82.6 84.0 128.5 110.1 0.64 0.76 0.02 0.002 -0.02 -8.89 Morocco 155.4 161.4 150.1 181.1 1.04 0.89 0.00 0.002 0.01 4.99 Tunisia 151.3 182.4 213.6 278.0 0.71 0.66 0.00 0.019 0.03 1.41 Egypt 100.9 121.1 219.2 312.8 0.46 0.39 0.00 0.010 0.02 1.96 Jordan 151.6 210.1 231.3 315.2 0.66 0.67 0.00 0.037 0.03 0.95 Syria 129.8 125.5 200.3 212.3 0.65 0.59 -0.01 -0.003 0.01 -1.73 24
  • 25. This large and rising gap may partly explain slow poverty reduction in Arab countries and South Asia HCE HCE HCE* HCE* HCE/ HCE/ ∆ Gini ∆ ∆ ∆ 1990s 2000s 1990s 2000s HCE* HCE* (%) HCE HCE* HCE*/ 1990s 2000s (%) (%) ∆ HCE (%) AC 117.9 130.0 189.4 247.1 0.62 0.53 -0.01 0.102 0.30 2.99 EA&P 59.5 102.4 88.2 141.8 0.67 0.72 0.10 0.719 0.61 0.84 E&CIS 167.0 257.2 280.7 440.6 0.59 0.58 0.00 0.540 0.57 1.05 LA&C 254.3 323.2 415.0 505.2 0.61 0.64 -0.05 0.271 0.22 0.80 SA 48.9 55.2 77.4 110.0 0.63 0.50 0.06 0.130 0.42 3.25 SSA 48.0 58.8 52.4 61.3 0.91 0.96 -0.02 0.226 0.17 0.75 DR 87.1 121.0 137.0 192.7 0.64 0.63 0.00 0.390 0.41 1.04 25
  • 26. Conclusion: Relative to other regions, inequality in expenditure is probably more underestimated in Acs: HIESs did not capture the expenditure of the very rich 26
  • 27. 3. Other facets of inequality in Arab countries 27
  • 28. Inequality in Human Development 28
  • 30. Disparities in HDI and HDI Progress 1970-2010 Using 1970 as the base year, the region appears to have done well in human development but the rate of progress on human development slowed down noticeably since 1990 and large disparities between countries HDI HDI Non- GDP Non- GDP improve Country Improve Income Growth Income Growth ment Name ment HDI rank rank HDI rank rank Rank Rank 1970-2010 1990-2010 1 Oman 1 19 15 7 40 5 KSA 3 111 18 2 108 7 Tunisia 6 20 14 12 21 9 Algeria 5 100 30 19 98 10 Morocco 14 42 12 10 43 13 Libya 4 132 41 18 114 17 Egypt 25 39 21 28 32 19 UAE 24 38 103 88 118 34 Bahrain 21 104 94 93 67 43 Jordan 26 87 51 53 44 58 Qatar 73 121 104 104 58 67 Sudan 121 72 22 118 9 68 Kuwait 48 131 61 59 50 94 Lebanon 89 92 29 54 8 122 Djibouti 117 133 100 109 130 30
  • 31. HDI versus GNI per capita • Despite differences in level of income and human development almost all Arab countries still lag behind other regions in terms of human development 1.0 Hybrid HDI 0.9 Kuwait Bahrain 0.8 LAC Libya UAEQatar Tunisia KSA Jordan Algeria 0.7 EAP ECA Egypt AC 0.6 DR SAS Morocco . 0.5 Sudan 0.4 SSA Djibouti 0.3 0.2 0.1 Log GNI per capita 2.0 2.5 3.0 3.5 4.0 4.5 5.0 5.5 31
  • 33. • Under perfect equality Computation of IHDI the IHDI is equal to the HDI, but falls below the HDI when inequality rises. • In this sense, the IHDI is the actual level of human development (taking into account inequality), while the HDI can be viewed as an index of the potential human development that could be achieved if there is no inequality. 33
  • 34. HDI IHDI Overall loss in IHDI (%) 0.80 40.0 0.90 40 0.70 35.0 0.80 35 0.70 0.60 30.0 30 0.60 0.50 25.0 25 0.50 0.40 20.0 20 0.40 0.30 15.0 15 0.30 0.20 10.0 10 0.20 0.10 5.0 0.10 5 0.00 0.0 SSA ECA EAP World LAC SAS AS 0.00 0 Saudi… Leban… Moro… Opt. Libya Kuwait Bahrain UAE Djibouti Jordan Qatar Yemen Syria Egypt Algeria Tunisia Oman Sudan* Iraq
  • 35. IHDI Components for Arab States vs. other regions Arab States have considerable losses due to unequal distribution in education but problems with the income/expenditure estimates. Inequality-adjusted life Inequality-adjusted Inequality-adjusted expectancy index Education index income index Value Loss(%) Value Loss (%) Value Loss (%) 0.800 45.0 0.800 45.0 0.700 45.0 0.700 40.0 40.0 40.0 0.700 0.600 35.0 35.0 35.0 0.600 0.600 0.500 30.0 30.0 30.0 0.500 0.500 25.0 25.0 0.400 25.0 0.400 0.400 20.0 20.0 20.0 0.300 0.300 0.300 15.0 15.0 15.0 0.200 0.200 10.0 0.200 10.0 10.0 0.100 5.0 0.100 0.100 5.0 5.0 0.000 0.0 0.000 0.0 0.000 0.0 SSA SAS SAS SSA LAC AS AS LAC ECA EAP World ECA EAP World 35
  • 36. IHDI Components for Arab States Within ACs losses in education are highest in Morocco, Djibouti and Yemen Inequality-adjusted life Inequality-adjusted Inequality-adjusted expectancy index Education index income index Value Loss(%) Value Loss (%) Value Loss (%) 0.90 40 0.600 60.0 0.600 35.0 0.80 35 0.500 30.0 0.500 50.0 0.70 30 25.0 0.60 0.400 40.0 0.400 25 0.50 20.0 20 0.300 30.0 0.300 0.40 15 15.0 0.30 0.200 20.0 0.200 10 10.0 0.20 5 0.100 10.0 0.100 0.10 5.0 0.00 0 0.000 0.0 0.000 0.0 Lebanon Syria Morocco Djibouti Yemen Jordan Tunisia Egypt Arab States 36
  • 38. High rural-urban disparities in money- metric poverty- Egypt in particular Urban Rural Headcount Poverty Headcount Poverty Ratio of Rural to Urban Index (%} Gap (%) Index (%} Gap (%) Headcount Poverty Egypt (2000) 9.2 1.7 22.1 3.9 2.4 Egypt (2009) 10.1 28.9 2.9 Jordan (1997) 19.7 4.8 27.0 7.2 1.4 Jordan (2002) 12.9 2.9 18.7 4.7 1.4 Syria (1997) 12.6 2.3 16.0 3.5 1.3 Syria (2004) 8.7 1.5 14.3 2.6 1.5 Yemen (1998) 32.3 8.7 42.5 13.1 1.3 Yemen (2006) 20.7 4.5 40.1 10.6 1.9 Algeria (1995) 9.0 19.0 2.1 Algeria (2000) 10.3 14.7 1.4 Tunisia (1990) 3.3 0.7 14.8 3.2 4.5 Tunisia (2000) 1.7 8.3 4.9 Morocco (1990) 7.6 1.5 18.0 3.8 2.4 Morocco (2007) 4.8 14.5 3.0 38
  • 39. Rural-urban divide: HPI and P0 Syria, Lebanon, Egypt and Yemen 24 National Average HPI 2007 National Average HPI 1997 High P0 and Low HPI High P0 and HPI UBN (%) National Average CnR 22 70 High UBN and Low P0 High UBN and High P0 Akkar/M inieh- 20 Bent Jbeil/M arjaay oun/Hasbay y a Dennieh T Cn NER* 60 R2 = 0.42 18 50 Nabatieh Jezzine/Saida TR S outh 16 T NER* T R* Sour North SR NER CnU T NER Hermel/Baalbek 40 P0 14 NEU T National Average P0 1997 Nabatieh City Bekaa Shouf/Aley SR* Trip oly City TU 12 T* National Average P0 2007 30 Baabda CsU TS T S* West Bekaa/Rashay y a National Average SU SU* NEU* Koura/Zgharta/Batroun/Bsharre 10 T U* T Cs Zahle CsR 20 Mount Lebanon CnR* CsR* 8 T Cn* Keserwan/Jbeil CnU* T Cs* Beirut City 10 M aten 6 CsU* Low UBN and High P0 P0 (%) Low UBN and Low P0 Low P0 and HPI High HPI and Low P0 0 4 4 9 14 19 24 29 34 39 44 0 10 20 30 40 50 60 70 HPI 40HPI Low P0 and High P0 and 80 HPI Low P0 and High P0 35 75 Fayoum National Bani Suef 70 Reymah Hajjah Sohag 30 Menia Al-Jawf National Kafr el Beheira Assiut 65 Sa'adah Al-Mahweet Qena Dhamar Amran Sheikh 60 25 Laheg Sharkia Mareb Al-Baida Total 55 Al-Hodeidah Abyan Dakahlia luxor Giza National Taiz 20 Matrouh QualiobiaMenoufia Nort. 50 Ibb All Yemen Al-Daleh Shabwah Garbeyya Ismailia Aswan 45 15 Alexandria Damietta 40 Cairo Al-Maharah Suez Said Port National 10 South Sinai Red Sea 35 New Valley 30 Hadramout 5 25 20 0 Low P0 and High P0 and Income poverty Low P0 and High P0 and 15 39 0 10 20 30 40 50 60 70 0 10 20 30 40 50 60 70 Income Poverty (%)
  • 40. MPI for rural and urban regions and highest and lowest expenditure quintiles for : Egypt, Morocco, Syria and Yemen (2006-2009) Region/ MPI H A quintile Total 0.05 0.11 0.41 (2009) o (2007) (2007) (2006) Egypt Morocc Syria Yemen Rural/Urban 2.6 2.5 1 Q1/Q5 3.9 3.3 1.2 Total 0.04 0.1 0.4 Rural/Urban 7.5 7.1 1.02 Q1/Q5 12.2 12.2 0.96 Total 0.03 0.07 0.38 Rural/Urban 4.6 4.4 1.1 Q1/Q5 1.7 1.6 1 Total 0.27 0.54 0.51 Rural/Urban 1.7 1.5 1.1 Q1/Q5 1.9 1.7 1.2 40
  • 41. High inequality in Under Five Mortality Rates, Delivery Assistance by a Skilled Health Personnel and Antenatal Care Visits for Egypt and Yemen in particular Under five mortality Delivery by a Skilled Antenatal Care Visits rates Health Personnel Poorest Richest Poorest Richest Poorest Richest 140 120 120 120 Rate per 1,000 live births % of ANC (1 or more visits) 100 100 100 80 80 80 60 60 60 40 40 40 20 20 20 0 0 0 Jordan OPT Sudan Egypt Yemen Syria Jordan Algeria OPT Sudan Tunisia Djibuti Yemen Egypt Syria Iraq Tunisia Algeria Jordan OPT Iraq Djibouti Sudan Syria Yemen Egypt 41
  • 43. Measurement issues: • At the international level, current poverty measurement is very misleading. • At the national level, influenced by politics. Also there are good reasons why we should not rely on the actual food basket of the poor (Ravallion/WB method). • Need to better harmonize surveys and improve methodology (even for NPL). • Women and children not captured in HIES so focus on human deprivation indicators. • Surveys excluding the rich. 43
  • 44. Observations from HIEs on Children in Poverty • Little difference in poverty measures FHH and MHH but Households headed by divorced or separated women and widows with more than three children are over-represented among the poor. • The risk to illiteracy of children, living in poor female headed households, is the highest. • Poverty pushes children to work. Girls are kept at home to do domestic work, while boys go to work to help their poor families. • Child labor in rural Yemen is worst at nearly 10 percent of poor boys (aged 6-14 years). 44
  • 45. Policy conclusions • Target poor FHHs with children. FHHs are more vulnerable in Acs since they rely less on wages or own account production. Social protection programs and transfers are thus key to FHH. • No doubt poverty and inequality need to be addressed within a broader set of influencing policies that aim to establish the Arab Developmental State Model. 45

Notes de l'éditeur

  1. Human Development Index (HDI): A composite index measuring average achievement in three basic dimensions of human development—a long and healthy life, knowledge and a decent standard of living. See Technical note 1 for details on how the HDI is calculated.Inequality-adjusted HDI (IHDI): Human Development Index (HDI) value adjusted for inequalities in the three basic dimensions of human development. See Technical note 2 for details on how the IHDI is calculated.Overall loss: The loss in potential human development due to inequality, calculated as the percentage difference between the HDI and the IHDI.Sub-Saharan Africa suffers the highest inequality in health, while South Asia and Arab States have considerable losses due to unequal distribution in education. Latin America and the Caribbean suffers the largest loss of any region due to inequality in income (39.3%).
  2. Yemen is included in the regional averages starting 1989