Presentation on theme: "1 Measurement and Analysis of Poverty in Jordan Joint Study by : Ministry of Social Development Department of Statistics Department for Int’l Development."— Presentation transcript:
1 Measurement and Analysis of Poverty in Jordan Joint Study by : Ministry of Social Development Department of Statistics Department for Int’l Development DFID United Nations Development Programme
2 Objective Assist policymakers design strategies and programmes for poverty alleviation and sustainable human development Data Source 1997 Household Income and Expenditure Survey by Department of Statistics
3 What is Poverty Line? Severe poverty: total cost of basic food needs. Absolute poverty: total cost of basic needs, food and non-food. Used to calculate other indicators: poverty incidence poverty gap poverty severity
4 How is Poverty Line Calculated? Actual food pattern method: average daily per capita calorie intake for each expenditure group.
5 Household expenditure includes: Cash expenditure on food, clothing, rent, education, health and all other consumption goods and services. Non cash expenditure: Imputed rent for households that do not pay rent, Value of goods consumed by the household from own production, Value of goods and services acquired by the household in kind.
6 Methodology Based on: –145 food items –actual consumption –actual prices –calorie intake –recommended calories: 2,440 per capita per day –1997 Household Income & Expenditure Survey
7 Calorie Intake and Per Capita Expenditure Poverty Line
8 Absolute Poverty Line Accordingly, poverty line for Jordan is estimated to be JD 468 per capita per year, or JD 39 per capita per month. This is 60 % of the average per capita annual expenditure of Jordan
9 Poverty Line: Comparison
10 Poverty Incidence
11 Poverty Gap
12 Poverty Severity Poverty severity: measure of both the size of the poverty gap and income disparity among the poor. The poverty severity for Jordan is estimated at 3.0%.
13 Lorenz Curve
14 Gini Index Gini index: measure of income inequality among the total population, poor and non-poor. The Gini index for Jordan is estimated to be 36%.
15 Poverty Indicators : Comparison
16 Geographic Breakdown Based on the accuracy and representativeness of the available data, the study divides Jordan into six areas: 1. Amman 2. Irbid 3. Jerash & Ajloun 4. Zarqa & Mafraq 5. Balqa & Madaba 6. South
17 Poverty Line: Geographic Breakdown
18 Poverty Lines Vs. Average Expenditure
19 Poverty Incidence: Geographic Breakdown By PopulationBy Household
20 Number of Poor by Area
21 Poverty Incidence: Geographic Breakdown
22 Poverty Gap: Geographic Breakdown
23 Poverty Gap: Geographic Breakdown
24 Poverty Severity: Geographic Breakdown
25 Gini Index: Geographic Breakdown
26 Key Findings (1997) Poverty line: JD 468 per capita per year Poverty incidence: 25% of households; 33% of population; 1.5 million Poverty gap: 6.8 % or JD 185 million Poverty severity index: 3.0% Gini index: 36%
27 Conclusions The number of Jordanians living in poverty has gone up. The gap between the income of the poor and the poverty line has increased. Income disparity of entire population (poor and non-poor) has decreased. There is an increasing trend towards urban poverty.
28 Features of the Study: 1. Poverty indicators are per capita and not per household. 2. Based on actual food consumption pattern 3. Deals with data problems. 4. Offers comparable poverty indicators for 1992 and 1997 estimated by the same methodology and source of data.