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Are the Chronic Poor Happy about Pro-Poor Growth

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Presentation on theme: "Are the Chronic Poor Happy about Pro-Poor Growth"— Presentation transcript:

1 Are the Chronic Poor Happy about Pro-Poor Growth
Are the Chronic Poor Happy about Pro-Poor Growth? Q-squared Chronic Poverty Assessment in Cambodia AFD-IDS-JICA Workshop on Quality of Growth  Paris, 3 -4 February 2014 Ippei Tsuruga, Deputy Assistant Chief Research Programme Division, JICA Research Institute

2 Pro-poor Growth Growth with poverty reduction
Focus on how much poverty reduced. Does not matter whose poverty reduced.

3 Quality of Growth Growth with poverty & CP reduction
Poverty Reduction Chronic Poverty Reduction Quality of Growth Focus on how much poverty reduced. Matter the remaining populations. Including those who are unable to escape poverty even with growth.

4 Research Question Are the Chronic poor happy?
To what extent chronic poverty improves while growth pattern is pro-poor? What characteristics do the chronic poor have?

5 Pro-Poor Growth? (1) Macro economy
Indicators (annual average change %) GDP 8.47 GDP per capita 6.87 Sectoral Growth: Agriculture 5.97 Sectoral Growth: Manufacturing 6.24 Sectoral Growth: Industry 8.00 Sectoral Growth: Services 9.59 Inflation 7.79

6 Pro-Poor Growth? (2) Human development
Indicators 2004 2010 Net primary enrolment (ages 6‐11) 75.98% 85.60% Net lower secondary enrolment (ages 12-14) 16.37% 30.80% Net upper secondary enrolment (ages 15-17) 8.53% 17.50% Ever attended school (ages 5+) 75.92% 81.70% Adult literacy (ages 15+) 69.78% 76.28% Mortality rate, neonatal (per 1,000 live births) 27.2 19.7 Mortality rate, infant (per 1,000 live births) 56.6 37.3 Mortality rate, under-5 (per 1,000 live births) 70.3 43.8

7 Pro-Poor Growth? (3) Consumption poverty estimation

8 Pro-Poor Growth? (4) Consumption growth of the poor
Other Urban Rural Phnom Penh Growth rate in mean (%) 1.05 7.23 6.31 at median (%) 11.05 9.81 7.86 of the Poor (%) 11.66 10.34 9.11

9 Pro-Poor Growth? (5) Yes Growth Poverty Economy: Improved
Human Development: Improved Sectoral Growth: Equally grew Poverty Poverty headcount: Improved Poverty gap: Improved Poverty severity: Improved Poor Consumption: Improved

10 Methodology: CP Estimation Combining Qualitative & Quantitative
Howe & McKay (2007) Define CP by the poor through PPA Map onto nationally representative household survey data Assess robustness and sensitivity using other poverty related indicators

11 Qualitative Data Participatory Poverty Assessment
Period: October – December 2000 Participants: Poor people selected through geographical/community-based targeting Coverage: National 169 Focus group discussions, 154 villages in 70 communes in all 24 provinces and 15 urban areas Implementing Agency: Asian Development Bank

12 Quantitative Data Cambodia Socio-Economic Survey
Period: 2004 & 2010 Sample size: 12,000 HHs & 3,600 HHs Coverage: National Implementing Agency: Ministry of Planning

13 Defining Chronic Poverty (1) 5 Livelihood ranks by the poor (Agrarians)
# Local Language Description 1 Kror bamphot Toal Extremely poor No way out of their present situation 2 Kror Kror thomada Literally poor Typical poverty 3 Kror imom Kandal Reasonably poor Medium 4 Mathyum Average 5 Throuthear Neak leu Fully self-sufficient without any debts Living above poverty

14 Defining Chronic Poverty (2) CP characteristics identified by the poor
Little or no land (2-3 acres: ha) Perhaps 1 draft animal but no farming implements; Housing made of thatch in very poor condition; Few household utensils; Food shortages for up to 8 months; Reliance on natural resources for subsistence needs; Inability to repay or borrow additional amounts; No kinship support; and Large young families with 5-12 children.

15 Defining Chronic Poverty (3) Criteria selection to identify chronic poor
Selection Policy Take as many definitions as possible Balance inclusion / exclusion error Availability of translatable quantitative data Selected Criteria Household main economic activity is agriculture Household owns agricultural land of 1.0 hectare or less Household owns 1 draft animal or none Household owns no high value farm implement Housing material (wall/roof) is thatch.

16 Result Chronic Poverty Estimation in Cambodia
Domain 2004 2010 Other Urban 6.44% 1.98% Rural 11.53% 11.34% Phnom Penh 0.00% Cambodia 9.99% 9.27%

17 Robustness (1) Comparison of other indicators in 2004
CP Non-CP Difference Net enrolment ratio (ages 6‐11) 65.43 74.57 -9.14 Net enrolment ratio (ages 12-14) 4.52 10.56 -6.04 Net enrolment ratio (ages 15-17) 2.43 3.83 -1.40 Ever attended school (ages 5+) 61.33 72.69 -11.36 Adult literacy (ages 15+) 50.66 64.71 -14.05 Sick Frequency 2004 19.99 18.15 1.84 Seek care 2004 66.69 64.59 2.1 1st Quintile, Food, 2004 26.89 24.24 2.65 5th Quintile, Food, 2004 9.08 11.56 -2.48 1st Quintile, Total, 2004 33.77 24.15 9.62 5th Quintile, Total, 2004 6.01 9.94 -3.93

18 Robustness (2) Comparison of other indicators in 2010
CP Non-CP Difference Net enrolment ratio (ages 6‐11) 87.47 82.36 5.12 Net enrolment ratio (ages 12-14) 8.82 27.58 -18.76 Net enrolment ratio (ages 15-17) 2.69 12.19 -9.49 Ever attended school (ages 5+) 68.50 78.38 -9.88 Adult literacy (ages 15+) 56.93 71.77 -14.84 Sick Frequency 2004 23.26 18.5 4.76 Seek care 2004 85.59 87.44 -1.85 1st Quintile, Food, 2004 32.42 23.3 9.12 5th Quintile, Food, 2004 5.69 9.44 -3.75 1st Quintile, Total, 2004 38.45 22.97 15.48 5th Quintile, Total, 2004 3.13 8.95 -5.82

19 Sensitivity (1) There are some ambiguous criteria
Land Ownership: 0.8ha to 1.2 ha Perhaps 1 draft animal: One or None No farming implements: What types? Housing Materials are Thatch: Wall? Roof?

20 Sensitivity (2) National trend does not change
Alternative Criteria (%) 2004 2010 Estimation (National) 9.99 9.27 Land Ownership: 1.0 ha => 0.8 ha 8.31 8.49 Draft Animal: 1 or None => None 8.18 7.33 Farm Implement: Low value only => None 1.18 0.14 Housing: Wall or Roof => W & R 4.13 2.93

21 Characteristics (1) Female-headed, Young, Smaller family…
Indicators CP Non-CP Difference Household head: female (%) 31.96 17.72 14.24 Household head: elderly 65+ (%) 16.11 18.45 -2.34 Household head: ethnic minority (%) 4.10 4.78 -0.68 Household head: age 43.67 45.85 -2.18 Household member: age 24.55 26.84 -2.29 Household head: education year 3.05 4.03 -0.98 Household size 3.97 4.65

22 Characteristics (2) High child dependency, Labour constraint..
Indicators CP Non-CP Difference Dependency ratio (%) 85.29 73.48 11.81 Child dependency ratio 0-14 (%) 76.07 62.21 13.87 Aged dependency ratio 65+ (%) 9.22 11.27 -2.05 Household with 5 children+ (%) 2.27 1.54 0.73 No. of working age per households 2.91 -0.64 No. of children 0-14 per households 1.51 0.02 No. of elderly 65+ per households 0.16 0.22 -0.06

23 Conclusion / Limitation
CP little improved though pro-poor growth was achieved. Cambodia achieved pro-poor growth but not quality of growth. Limitation It is not clear whether it is a matter of measurement between monetary & local definition. Other activities (e.g. CP in Industry/Service) Urban poverty (e.g. workers with low wage)

24 Policy Questions Can growth policies benefit the chronic poor? If not
Do social policies support the chronic poor? Do targeted interventions properly capture them?


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