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Poverty Reduction and Economic Management Network Poverty and Social Exclusion: What do we know, and what do we need to know? Luca Barbone Director, Poverty.

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Presentation on theme: "Poverty Reduction and Economic Management Network Poverty and Social Exclusion: What do we know, and what do we need to know? Luca Barbone Director, Poverty."— Presentation transcript:

1 Poverty Reduction and Economic Management Network Poverty and Social Exclusion: What do we know, and what do we need to know? Luca Barbone Director, Poverty Reduction and Development Effectiveness Department World Bank

2 Page 2 Outline 1. Why measure poverty and social exclusion 2. Developments ın poverty measurement and methodologıcal challenges 3. Problems in collecting data with regularity 4. Practical aspects of organizing monitoring at the national and local level s 5. Practical aspects of organizing monitoring at the local level

3 Page 3 1. Why measure poverty and social exclusion? The new aid architecture and country-based development model: goes beyond the purely economic model of poverty addresses the relationship between structural, institutional, human, & macroeconomic aspects of development emphasizes the links between objectives and the actions needed to reach them – and the importance of clear, monitorable indicators of progress

4 Page 4 The country-based development model Understanding the nature of poverty Monitoring outcomes and evaluating impact Choosing poverty reduction objectives Defining strategy for poverty reduction and growth including: - Macro and structural policies - Governance - Sectoral policies and programs - Realistic costing and funding Implementation of programs and policies Actors and participatory processes including: - Central government agencies and inter- ministerial groups - Parliaments and other representative structures - The public, including the poor - Civil society - External partners Poverty Reduction Strategy process

5 Page 5 Poverty Analysis Sector Diagnostics PRSP Policies and programs Link to the budget COUNTRY COUNTRY DONORSDONORS Support for analysis and consultations Consultations Monitoring Architecture to improve aid effectiveness Assistance Strategies Donor programs: Projects, including budget support Advisory and Analytical Work Feedback mechanisms

6 Page 6 Shared growth and equality of opportunity require a broader concept of poverty that encompasses non-economic dimensions such as: access to opportunities empowerment subjective well-being health, education, shelter gender equality participation and voice So what should be monitored?

7 Page 7 2. Developments in poverty measurement Despite consensus that poverty is multi-dimensional, the expanded definition is still moving from the periphery to the core: 1980s – inclusion of nutrition, education and health 1990s – Human Development Indicators Since 2000 – centrality of well-being and empowerment CWIQ – annual measure of access, usage, & satisfaction with services to give advance warning of future impact Poverty maps – address spatial correlates of poverty (isolation/accessibility, market access)

8 Page 8 But -- measuring non-economic dimensions involves methodological challenges Indicators should be: relevant to policy makers and decision makers cheap and easy to collect relevant to interventions unambiguous measures of progress Finding non-economic indicators is more complicated because they: may change more slowly than economic indicators can be more difficult to collect may require special surveys Are more context-specific and less universal may be less tangible and quantifiable …hence perceived as less objective and rigorous

9 Page 9 Examples of new approaches: poverty maps and policies Overlays used to identify correlates of poverty Sri Lanka: Poverty and isolation/accessibility South Africa: Containing a cholera epidemic Tanzania: Changes in poverty and market access Ecuador: Compare poverty maps at two points in time. … coordinate programs, and improve targeting Cambodia: WFP combined with maps of nutrition, infrastructure, and vulnerability to flooding & drought to identify potential areas for WFP programs. Morocco: Maps suggested different mechanism for urban vs. rural areas. Vietnam: Validated targeting approach of Program 135. Mexico: PROGRESA & Oportunidades South Africa: Municipal grant amounts based on estimated no. of poor

10 Page 10

11 Page 11 Tracking the impact of education of poverty and mobility Poverty and access to education: Importance of secondary education for poverty reduction grew in 1990s Access for poorer households remains low But education has potential to enlarge opportunities for mobility out of low paying agriculture sector.

12 Page 12 Tracking impact of secondary education on productivity and mobility

13 Page 13 Tracking inclusion in financial markets Systematic information on household financial assets in developing countries remains sparse To date, tracking access relies on combining data from HHS and data on penetration of financial institutions Findings: financial inclusion of the poor still a challenge

14 Page 14 Financial inclusion of the poor…still a challenge

15 Page 15 Selecting indicators to monitor empowerment Definitions focus on choice, participation, control and influence, ownership, voice and means of overcoming oppression Challenging to measure because: Not a unitary concept: intrinsic/ instrumental, universal/ context specific, individual/ collective, subjective/objective? multiple levels and dimensions not directly observable, but must be measured through proxies

16 Page 16 Monitoring the impact of reforms on empowerment and social inclusion Measuring Empowerment and Social Inclusion in Nepal tracked effects of decentralization policy and rural water supply and sanitation project on gender, caste and ethnic relations found that greater focus on livelihood interventions was called for to reduce influence of caste and ethnicity Impact Evaluation of Honduras Community-Based Education monitored impact of reforms on community empowerment with respect to influencing school management identified necessity of long-term government commitment to reducing power imbalances between elites and indigenous population within communities

17 Page Problems in collecting data with regularity Incomplete administrative data (electoral registers, identity cards) Selecting indicators reflects a long social process Under-representation of invisible populations Difficulties in coordination, duplication, redundancies Few incentives to participate or relinquish space Weak demand (interest?) from decision-makers Without common purpose, formal obligations dont work

18 Page Practical aspects of organizing monitoring at the national level Choice of institutional lead critical - more effective if a single agency close to center of government Champion important – but dangerous to tie system to a personality Coordination is the greatest challenge: process, advocacy, political leadership critical Promote monitoring within line ministries; change incentives and capacity National statistical agencies: ensure complementarity with existing systems and plans Increase dissemination, training/statistical literacy

19 Page 19 Practical aspects of monitoring at the local level Involve local governments: limit indicators to reduce burden and increase compliance Central quality control mechanism Support and capacity-building, provide feedback I mportant that those responsible for collecting data understand how they will be used Build on local civil society, encourage local accountability and dissemination

20 Page 20 Thank you!

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