1. www.coneval.gob.mx A methodology for the measurement of multidimensional poverty in Mexico August, 2010

3. Social Development Law (2004) Social Development Law (2004) Evaluation of Social Development Policy Multidimensional Poverty Measurement CONEVAL Public institution Academic researchers Technical autonomy CONEVAL Public institution Academic researchers Technical autonomy

5. Why? It is a mandate of the Social Development Law The Law stablishes the main characteristics poverty measurement should comply: –To make visible the link between social programs & the measurement of poverty, for public policy purposes. –It should be defined both in the space of social rights and economic wellbeing. –It includes eight dimensions: income, educational gap, access to health services, access to social security, quality of living spaces, housing access to basic services, access to food and the degree of social cohesion. –Measurement should be made for the whole country, states (2 years) and municipalities (5 years).

6. Rights to social development “..to guarantee the full exercise of the social rights set forth in the Political Constitution of the United Mexican States, ensuring access to social development to the population as a whole ” The Law was approved unanimously by the Chambers of Deputies and Senators This Law can be seen as the social consensus Mexico has achieved through Congress The Law was approved unanimously by the Chambers of Deputies and Senators This Law can be seen as the social consensus Mexico has achieved through Congress

7. Adventages of the social rights approach It aligns poverty measurement with the normative regulations of the Mexican goverment. It solves satisfactorilly problems of weights and thresholds: –Since human rights are indivisible & interdependent, they all have the same relative importance. That´s why all indicators of social deprivation have the same weight. –The Mexican regulation sets thresholds for several dimensions.

8. 2006 2007 2008 2009 Data delivery Data delivery Process Discussions, criteria & design of data sources Five Specific consultations Five Specific consultations Consultation with experts Consultation with experts Consultation about indicators, thresholds, questions with public inst. Consultation about indicators, thresholds, questions with public inst. Survey Design Survey Design National and international seminars National and international seminars Building the methodology Data Collection Data Collection Presentation (December) Presentation (December) Discussions of proposals Discussions of proposals Final discussions & results of studies Final discussions & results of studies Bourguignon,Thorbecke, Kakwani, Lustig,Skoufias, Walton, Khander, Reddy, Feres, López-Calva, … among others. Julio Boltvinik Satya Chakravarty James Foster, Sabine Alkire David Gordon Rubén Hernández and Humberto Soto

10. Methodological approach Poverty Measurement Social Rights Economic Wellbeing Constitutional guarantees Poverty associated with social deprivation Economic policy and income have an impact on social development

11. Degree of social cohesion Territorial What are the main features of the new methodology? Social Rights Deprivations Mexican Population Wellbeing Income Current income per capita Educational gap A to Health A to Social Security Housing Basic services A to Food Educational gap A to Health A to Social Security Housing Basic services A to Food 0 3 2 1 4 5 6

12. Social Rights Deprivations Main features (simple to understand) EWL Population with social deprivations Economic wellbeing line Without DeprivationsDeprivations 0 3 5 2 4 1 6 MULTIDIMENSIONAL POOR Vulnerable people by social deprivations Vulnerable people by income Population without deprivations and with an adequate level of economic wellbeing Public policy

13. Social Rights Deprivations Aggregation: the headcount ratio EWL Sin 0 3 5 2 4 1 6 H= q n _

14. Social Rights Deprivations Aggregation: Depth & intensity of poverty EWL Sin 0 3 5 2 4 1 6 1.3 5.7 Average number of deprivations

15. MODERATE POVERTY Social Rights Deprivations Wellbeing Income Vulnerable people by social deprivations Total population 2008 (106,680,526) 33.0% 35.2 millions 2.0 deprivations on average 0 3 2 1 4 5 6 EXTREME POVERTY Source: estimates of the CONEVAL based on the MCS-ENIGH 2008. Vulnerable people by income 4.5 % 4.8 millions 18.3% 19.5 millions MULTIDIMENSIONAL POVERTY 44.2% 47.2 millions 2.7 deprivations on average Population without deprivations and with an adequate level of economic wellbeing

16. Indigenous and non-indigenous population Percentage of population in multidimensional poverty depending on whether they speak an indigenous language or not Source: estimates of the CONEVAL based on the MCS-ENIGH 2008.

17. Children, elderly 2008 Percentage of population in multidimensional poverty by age group Source: estimates of the CONEVAL based on the MCS-ENIGH 2008.

18. CHIAPAS Multidimensional poverty by state Ranks Total of States Source: estimates of the CONEVAL based on the MCS-ENIGH 2008.

19. Percentage of population with social deprivations. Mexico, 2008 Social deprivationPercentage Access to social security 64.7 Access to health services 40.7 Educational gap 21.7 Access to food 21.6 Housing access to basic services 18.9 Quality of living spaces 17.5 Source: estimates of the CONEVAL based on the MCS-ENIGH 2008.

21. Moderate multidimensional poverty Social Rights Deprivations EWL EXTREME multidimensional poverty Minimum wellbeing line 0 3 Vulnerable people by social deprivations Vulnerable people by income 5 2 4 1 6 Population without deprivations and adequate level of economic wellbeing MWL Public policy Poverty identification

22. Indigenous and non-indigenous population Percentage of population in multidimensional poverty depending on whether they speak an indigenous language or not National Non-indigenous Indigenous Without deprivations, adequate level of wellbeing Vulnerable by income Vulnerable by social deprivation Moderate poverty Extreme poverty Source: estimates of the CONEVAL based on the MCS-ENIGH 2008. 44.2 42.0 75.7

23. Ranks Total of States CHIAPAS Multidimensional poverty by state Source: estimates of the CONEVAL based on the MCS-ENIGH 2008. NATIONAL

25. Social Rights Deprivations What policies should be carried out? EWL Sin 0 3 5 2 4 1 6 MWL Economic Policies: Economic growth Job creation

26. Social Rights Deprivations What policies should be carried out? EWL Sin 0 3 5 2 4 1 6 MWL Social Policies: Health Education Housing

27. Social Rights Deprivations What policies should be carried out? EWL Sin 0 3 5 2 4 1 6 MWL Targeted policies Social Programs for the population in poverty

28. Social Rights Deprivations What policies should be carried out? EWL Sin 0 3 5 2 4 1 6 MWL Universal policies Social Security Education for all Access to health services Economic growth

29. Percentage of population in poverty if there were universal coverage of health services and social security Source: estimates of the CONEVAL based on the MCS-ENIGH 2008.

30. Using the methodology Social programs are changing the way they identify their beneficiaries We’re starting to evaluate social programs (ex post and ex ante) using this approach. Other Ministries, besides the Ministry of Social Development, understand better their role in reducing poverty in Mexico The Strategy for poorer municipalities is using the methodology to target their programs

31. Using the methodology By linking social deprivations with poverty, policy recommendations are strengthened. There is a tendency to focus on cash transfers when poverty is measured only with income. Social policies for overcoming poverty should also pursue to universally guarantee social rights. It is now possible to evaluate the effect of social policy not only on income poverty but also on specific social deprivations.

32. Using the methodology Since income poverty is influenced by a number of circumstances that social policy cannot control (sometimes the country cannot control), relevant social achievements may remain undetected. Finally, a remarkable feature of the methodology is that it does not only identify poverty (priority), but also it identifies the whole population without access to social rights, which is a complete way of looking at public policy. LPTI ZAP

33. Institutionalization of the methodology Communicate to public, governmental officials and academics Income vs. Multidimensional Poverty. Parallel use. Needs time to adjust and put into practice for social programs Advice: people appropriates it Needs time to adjust and put into practice for social programs Advice: people appropriates it

34. www.coneval.gob.mx Targetting

35. Targetting with MDM Starting 2012 Priority zones are chosen using community level data not yet with MDM Programs are directed to these regions

37. Legal criteria Experts criteria Experts criteria How to determine thresholds? Social rights Consultation with specialists Use of legal norms, if they exist Use of legal norms, if they exist Public institutions Health, Housing, Social Security, Education Public institutions Health, Housing, Social Security, Education

38. Educational gap Educational gap Population aged 3-15 years Population aged 16 years or older Population aged 16 years or older She or he is not attending a formal educational center When someone was born before 1981 and lacks the mandatory basic education current at the time he or she should have completed it. Primary When someone was born before 1982 and lacks the mandatory basic education current at the time she should have completed it. Secondary How to determine thresholds of social deprivations?

39. When a person is not enrolled in or not entitled to receive medical services from: Popular Insurance A social security public institution A private medical service A private medical service Acces to health services Acces to health services How to determine thresholds of social deprivations?

40. Access to social security Access to social security If the worker does not receive medical services as a work benefit or through voluntary enrollment and a retirement investment plan Direct access Direct access Family nucleus Other family nucleus and voluntary enrollment If a person is not enrolled in an institution that provides medical services by voluntary enrollment. If the spouse,child, parent, -law of the head of household is not enrolled in an medical institution If the person does not have a relative who has access to social security If the person is not beneficiary of a social program of pensions for senior citizens How to determine thresholds of social deprivations?

41. Quality of living spaces When the material is cardboard sheets or residue material Roofs Walls Floors Overcrowding When the material is mud or daub&wattle; reed, bamboo or palm; cardboard, metal or asbestos sheets; residue material When the material of the floor is soil When the ratio of people per room is greater than 2.5 How to determine thresholds of social deprivations?

42. Housing access to basic services Housing access to basic services When it is obtained from a well, river, lake, stream, or truck. When piped water is carried from another dwelling or gotten at a public faucet or hydrant Water Drainage service Electricity No drainage service. When the drain is connected to pipes leading to a river, lake, sea, ravine or crack When there is no electricity How to determine thresholds of social deprivations?

43. Food security Food insecurity Acess to food Acess to food Deprivation due to lack of access to food Slight Moderate Severe How to determine thresholds of social deprivations?

44. Food basket Non food basket Minimum economic wellbeing line Changes on current consumption patterns Calorics requirements & micronutrients Calorics requirements & micronutrients Rural & urban settings Economic wellbeing How to determine thresholds? Economic Wellbeing Goods and services have an income elasticity<1 Necessary goods & services Necessary goods & services Rural & urban settings

46. Social Rights Deprivations EWL Sin 0 3 5 2 4 1 6 MWL Social Cohesion We can have this type of society:

47. Social Rights Deprivations Social dispersion: inequality, polarization EWL Sin 0 3 5 2 4 1 6 MWL …or one like this one:

48. Gini Index Ranks Total of States Source: estimates of the CONEVAL based on the MCS-ENIGH 2008.

50. Guidelines and criteria (G&C) for identifying poverty Mandatory application for public institutions Social programs should consider the indicators of multidimensional poverty G&C should be incorporated in social programs and evaluation Flexible G&C according to the programs final goals. Not all the indicators must be used in identifying targeted population. V.gr. Oportunidades Flexible G&C according to the programs final goals. Not all the indicators must be used in identifying targeted population. V.gr. Oportunidades

52. Consejo Nacional de Evaluación de la Política de Desarrollo Social (CONEVAL) Boulevard Adolfo López Mateos No.160 Col. San Ángel Inn, Delegación Álvaro Obregón, C.P. 01060, México, D.F. Contact information www.coneval.gob.mx Gonzalo Hernández Licona Executive Secretary E-mail: ghernandezl@coneval.gob.mx ghernandezl@coneval.gob.mx

54. Examples Manual worker House without tap water Income below the wellbeing line He just complete d primary school MODERATE POVERTY Social Rights Deprivations Wellbeing Income 0 3 2 1 4 5 6 EXTREME POVERTY MULTIDIMENSIONAL POVERTY

55. Examples She is 15 years old She quitted school to help her family She lives in a house with one bedroom for 8 people She completed the 1st year of secondary school and does not have social security Sometimes her family eats once a day due to lack of resources POBREZA EXTREMA POBREZA MODERADA Social Rights Deprivations Wellbeing Income 0 3 2 1 4 5 6 EXTREME POVERTY

56. Examples Self- employed Earns an average of 2,400 dlls monthly He does not have social security He will turn 62 years old Social Rights Deprivations Wellbeing Income Vulnerable by social deprivation 0 3 2 1 4 5 6

57. Examples Her sales fell She owns her home which has all services She pays voluntary social security. She finished high school For the last four months her company costs are larger than her income Vulnerable by income Social Rights Deprivations Wellbeing Income 0 3 2 1 4 5 6

59. Labor Poverty Trend Index (LPTI) 1 First trimester 2005 – Second trimester 2010 Source: estimates of the CONEVAL based on the ENOE, INEGI. 1. Base: first trimester of 2005.

60. Percentage of population with social deprivations in Poor Municipalities (ZAP). Mexico, 2008 & 2009 Social deprivations in ZAP 20082009 Percentage Access to health services 51.839.2 Educational gap38.033.7 Access to food34.236.9 Housing access to basic services 55.243.6 Quality of living spaces43.737.3 Source: estimates of the CONEVAL based on MCS-ENIGH 2008 and Monitoreo de ZAP 2009. More than 50% of municipalities in Mexico are ZAP. In those municipalities live 16% of Mexican population. More than 50% of municipalities in Mexico are ZAP. In those municipalities live 16% of Mexican population.

61. Principles of human rights Universal Inalienable Interdependent Indivisible Interrelated Absolute Inherent Inviolable Irreversible Progressive Universal Inalienable Interdependent Indivisible Interrelated Absolute Inherent Inviolable Irreversible Progressive Interdependent Unfulfillment of any right affects the others Interdependent Unfulfillment of any right affects the others Indivisible All rights have equal status and cannot be positioned in a hierarchical order Indivisible All rights have equal status and cannot be positioned in a hierarchical order Universal Everybody is entitled to them Universal Everybody is entitled to them