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The livelihood of many households and communities in the Central Zagros of Iran is strongly dependent on income from forests. While this has led to the widespread over-utilization of forests, poverty levels have remained high and rural development low. The objective of this study was to understand how households utilize forests and to what extent forests contribute to household income and alleviate poverty in order to develop strategies to raise families out of poverty and offer development perspectives to communities that avoid destructive forest utilization. To do so, semi-structured interviews were conducted in five rural communities, community poverty was quantified using several indices (e.g., the Census Ratio Index, Poverty Gap Index), the level of rural development was quantified using socio-economic indicators, and an inferential model was developed that combines household dependence on forests with the level of rural development to provide development perspectives. Local households earned income from nine livelihood strategies that involve forests. Forest-dependent strategies provided the second highest economic share (18.1%) of household income, averaging IRR 27.7 million (USD 657) annually, and moved 12% of households above the poverty line (76% still remained below). Without forest income, most indices of poverty decreased, income inequality increased by 11%, and poverty depth increased 1.54-fold. The low development index of most villages indicates that rural villagers are heavily dependent on forests to meet their livelihood. Our conceptual model indicates that communities should pursue different development strategies that consider whether households depend on forests to meet their livelihood or derive more supplemental income.

We study to what extent some functional form assumption on the Lorenz curve are amenable to calculating headcount poverty, or poverty threshold, the key concept to determine a poverty index. The difficulties in calculating it have been underestimated. We must choose some functional forms for the Lorenz concentration curve. We examine three families of one-parameter functional forms to estimate Lorenz curves: power (elementary and Pareto), exponential (elementary and Gupta) and fractional (Rohde). Computing these numerical functions may be difficult and impose some restrictions on their domain of definition, may impose to use some numerical approximation methods. The elementary power and exponential forms are not a problem. However, Pareto raises the problem of a restricted domain of definition for its parameters. The exponential form of Gupta leads to a Lambert function that poses multiple problems, including a restricted field of definition. The fractional form of Rohde has also a restricted domain of definition. It is probably time to choose functional forms not only according to their ability to fit the data, but also according to their ability to calculate poverty indices.

This paper reviews the debate opposing the absolute and relative approaches to monetary poverty measurement. The arguments for combining both approaches into a single “overall” monetary poverty measure are introduced. The most salient proposals of hybrid poverty lines are presented. Then, the reasons why specific poverty indices may be required when a hybrid line is used are discussed. The class of hierarchical poverty indices is described, focusing in particular on the hierarchical headcount ratio.

In the present study, nutritional status was assessed using dietary diversity of fish and non-fish farming households in Mymensingh district of Bangladesh. It has determined the incidence of poverty in fish and non-fish farm households through a comparative analysis of family profile, food consumption, calories, and protein intake. A total of 420 farms were selected for data collection using structured questionnaires with 210 fish and 210 non-fish farm families. The study using both descriptive and functional analysis revealed that the respondent age of both farms was 45.10 years, family size was 5.70, average education was 4.64 schooling years, and average farm size was 0.514 hectares. As a result, due to the increase in household income, fish farm families improved their food consumption, calories, and protein intake in comparison with non-fish farms. On a direct calorie intake (DCI) basis, the overall absolute and hardcore poverty levels of fish farm households were 32 percent and 18 percent, respectively, while those of non-fish farm households were 22 percent and 10 percent, respectively. Therefore, the incidence of poverty was higher in non-fish farming families than in fish farming families. In principle, provision of various forms of government assistance through the Department of Fisheries (DOF) will further intensify and strengthen fish farming, which will easily bring fallow and uncultivated lands of the area under fish farming. Moreover, it is possible to inspire the younger generation through this research that will help them to become a fish farm-based entrepreneur. The main conclusion of the present study is that fish farming is more positively related to household income, family food intake, and nutritional status than any other type of farming.

This survey paper reviews the recent Bayesian literature on poverty measurement. After introducing Bayesian statistics, we show how Bayesian model criticism could help to revise the international poverty line. Using mixtures of lognormals to model income, we derive the posterior distribution for the FGT, Watts and Sen poverty indices, then for TIP curves (with an illustration on child poverty in Germany) and finally for Growth Incidence Curves. The relation of restricted stochastic dominance with TIP and GIC dominance is detailed with an example on UK data. Using panel data, we show how to decompose poverty into total, chronic and transient poverty, comparing child and adult poverty in East Germany when redistribution is introduced. When a panel is not available, a Gibbs sampler is used to build a pseudo panel. We illustrate poverty dynamics by examining the consequences of the Wall on poverty entry and poverty persistence in occupied West Bank.

As a pillar of Islam and an instrument for poverty alleviation, zakat is perceived as aneffective tool for tackling the problem of poverty in the Muslim world. However,whether zakat is effective in improving indicators of both quantity and quality ofpoverty is still a question requiring empirical investigation. This study is aims toempirically investigate the role of impactful zakat in poverty alleviation as indicated bythe BAZNAS prosperity index (Indeks Kesejahteraan BAZNAS or IKB), at provinciallevel in Indonesia. This study covers annual data from 28 provinces in Indonesia forthe years 2017 and 2018. Data analysis uses a panel-data approach, with threeindicators of poverty – the poverty headcount ratio (P0), poverty gap index (P1), andpoverty severity index (P2) – as dependent variables. The study finds that higherBAZNAS IKB, used as a sign of impactful zakat, significantly reduces P0 but hasinsignificant effect on P1 and P2. The results of this study imply that zakat managersshould put emphasis on the poorest section of the poor population to enableimprovements in poverty indicators through zakat utilization.

International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies, 11, 13, 11A13R: 1-10

Composite indices have been prominently used in poverty research. However, validity of these indices remains subject to debate. This paper examines the validity of a common type of composite poverty indices using data from a cross-sectional survey of 2477 households in urban and rural KwaZulu-Natal, South Africa. Multiple-group comparisons in structural equation modelling were employed for testing differences in the measurement model across urban and rural groups. The analysis revealed substantial variations between urban and rural respondents both in the conceptualisation of poverty as well as in the weights and importance assigned to individual poverty indicators. The validity of a ‘one size fits all’ measurement model can therefore not be confirmed. In consequence, it becomes virtually impossible to determine a household’s poverty level relative to the full sample. Findings from our analysis have important practical implications in nuancing how we can sensitively use composite poverty indices to identify poor people. peerReviewed

In an economy with migration, poverty changes are composed of a number of forces, including the income gains and losses realized by the various migration streams. We present a simple but powerful decomposition methodology that uses panel data to measure the contributions of different migration streams to overall poverty change. An application to Tanzania shows the new insights that are provided in particular on the role of migration to secondary towns in poverty reduction.

The purpose of this study to analyze the role of BMT on MSMEs quality of life by taking a case study of BMT Bina Umat Sejahtera in Yogyakarta city. A survey on 53 respondents was conducted on September-November 2015. Non-parametric tests were applied in this study to analyze correlation between variables and CIBEST, MSMPI and IPI MODEL were employed as poverty measurement tools. This study found that financing through the entrepreneurs was effective to increase their income. Age, duration of installment, financing amount, household income and expenditure before financing found as significant factors affecting to household income after financing. Overall, BMT’s Performance was proven to be able change the quality of life of respondents in three models of poverty measurement positively. The results of this study are expected to BMT strategies so that financing customers can improve their standard of living as well as increase their level of spirituality

International audience; We derive an empirical poverty index containing most of those proposed in the literature. Then, we study its asymptotic behavior by using empirical processes theory. From the results obtained, we derive a Wald-type test for comparing a vector of theoretical poverty indices to a vector of reference indices. We study the test statistic under the null hypothesis of equality, fixed alternatives, and a sequence of local alternatives. A simulation experiment conducted shows that our test performs well for exponential and Pareto data.

There is no doubt that the poorest people are already and will continue to be most severely impacted by climatic changes, including shifting trends as well as more frequent and severe extreme events. Yet, new insights on the dynamics and distribution of poverty point to the need to comprehend where the poor and poorest are, how they are poor, and why their poverty constrains their abilities to cope with and adapt to occurring and predicted changes. This paper draws on a diverse and growing literature on climate change and poverty to argue that uneven power relations more so than exposure and sensitivity to climatic hazards make the poor and disadvantaged distinctly more vulnerable than more affluent, privileged, and powerful groups and individuals. Further, climatic stressors and climate change as well as climate policies, often entangled with social exclusion and institutional neglect, compound the issue of poverty and exacerbate human precariousness, hence acting as a threat multiplier. The paper compares different approaches to assessing poverty, and explores structural processes and power dynamics that drive or perpetuate inequalities. The paper also investigates how the currently nonpoor may become transient or chronic poor, how climate change may exacerbate poverty traps, and how interventions to curb emissions and multidimensional poverty may be tackled to pursue climate-resilient development pathways.

Iraq was plunged into two simultaneous crises in the second half of 2014, one driven by a sharp decline in oil prices, the other, by the war against the Islamic State in Iraq and Syria. The severity and recurrent nature of these crises demand a fast understanding and quantification of their welfare impact, which is critical for policy makers. This paper employs an innovative extension of the micro-simulation methodology to provide an ex ante estimate and analysis of the complex and dynamic poverty and distributional impact of the twin crises. The results show an almost complete erosion of the welfare gains of the past, with poverty falling back to 2007 levels and a 20 percent increase in the number of the poor. While the incidence of poverty is higher among internally displaced persons than the rest of the population (except in the Islamic State–affected governorates, where poverty is higher), internally displaced persons make up only a small proportion of Iraq's eight million poor in 2014. The rest comprise of households who already lived below the poverty line, or those who have fallen below the poverty line in the face of the massive economic disruptions the country is facing. The welfare impact of the crises varies widely across space, with the largest increases in poverty headcount rates in Kurdistan and the Islamic State–affected governorates. Yet, the poorest regions in the 2014 crisis scenario are the same as in 2012, the currently Islamic State–affected, and the South, with poverty rates of 40 and 30 percent, respectively. Although the simulated results are not strictly comparable to ex post micro data estimates, because of survey coverage constraints, overall the results are very much in line, particularly in Kurdistan and the South.

In the past decade, Turkey has experienced a notable level of poverty reduction at all levels (extreme poor, poor, and vulnerable). The steady decline in poverty was also resilient to the decline in gross domestic product per capita growth during the crisis. However, although poverty convergence was strong before the financial crisis, there was an absence of regional convergence afterward. This paper analyzes poverty trends, poverty convergence, economic mobility, and the determinants of poverty reduction at the regional level over the period 2006–13. The analysis finds that agricultural growth in the east was an important contributor to Turkey's regional poverty reduction. In additionally, employment growth in the services sectors boosted poverty reduction throughout the entire country. From a fiscal perspective, the amount of per capita central spending is also linked to poverty reduction, although more strongly for regions in the west.

Despite rapid economic growth, inequality is increasing in Indonesia. After recovering from the Asian financial crisis in 1997/98, Indonesias real GDP per capita grew at an annual average of 5.4 percent between 2000 and 2014. This robust rate of growth helped to halve the poverty rate from 23.4 percent during the crisis down to 11.2 percent by 2015. However, between 2003 and 2010, consumption per person for the richest 10 percent of Indonesians grew at over 6 percent per year after adjusting for inflation, while for the poorest 40 percent it grew by less than 2 percent per year. This disparity in consumption between different income levels has, in turn, given rise to a sharp increase in the Gini coefficient over the past 15 years, increasing from 30 in 2000 to 41 in 2013.

With 2015 marking the transition from the Millennium to the Sustainable Development Goals, the international community can celebrate many development successes since 2000. Three key challenges stand out: the depth of remaining poverty, the unevenness in shared prosperity, and the persistent disparities in non-income dimensions of development. First, the policy discourse needs to focus more directly on the poorest among the poor. While pockets of ultra-poverty exist around the world, Sub-Saharan Africa is home to most of the deeply poor. To make depth a more central element in policy formulation, easy-to-communicate measures are needed, and this note attempts a step in this direction with person-equivalent measures of poverty. Second, the eradication of poverty in all of its forms requires steady growth of the incomes of the bottom 40 percent. Yet, economic growth, a key driver of shared prosperity, may not be as buoyant as before the global financial crisis. Third, unequal progress in non-income dimensions of development requires addressing widespread inequality of opportunity, which transmits poverty across generations and erodes the pace and sustainability of progress for the bottom 40. To meet these challenges, three ingredients are core to the policy agenda: sustaining broad-based growth, investing in human development, and insuring the poor and vulnerable against emerging risks.

This paper quantifies the contributions to poverty reduction observed in Sri Lanka between 2002 and 2012/13. The methods adopted for the analysis generate entire counterfactual distributions to account for the contributions of demographics, labor, and non-labor incomes in explaining poverty reduction. The findings show that the most important contributor to poverty reduction was growth in labor income, stemming from an increase in the returns to salaried nonfarm workers and higher returns to self-employed farm workers. Although some of this increase in earnings may point to improvements in productivity, defined as higher units of output per worker, some of it may simply reflect increases in food and commodity prices, which have increased the marginal revenue product of labor. To the extent that there have been no increases in the volumes being produced, the observed changes in poverty are vulnerable to reversals if commodity prices were to decline significantly. Finally, although private transfers (domestic and foreign) helped to reduce poverty over the period, public transfers were not as effective. In particular, the reduction in the real value of transfers of the Samurdhi program during 2002 to 2012/13 slowed down poverty reduction.

Poverty estimates based on enumeration from a single point in time form the cornerstone for much of the literature on poverty. Households are typically interviewed once about their consumption or income, and their wellbeing is assessed from their responses. Global estimates of poverty that aggregate poverty counts from all countries implicitly assume that the counts are comparable. This paper illustrates that this assumption of comparability is potentially invalid when households are interviewed multiple times with repeat visits throughout the year. The paper provides an example from Jordan, where the internationally comparable approach of handling the data from repeat visits yields a poverty rate that is 26 percent greater than the rate that is currently reported as the official estimate. The paper also explores alternative definitions of poverty, informed in part by the psychological and biophysical literature on the long-run effects of short-term exposure to poverty or generally adverse environments. This alternative concept of poverty suggests that the prevalence of those who have been affected by poverty in Jordan during 2010 is more than twice as large as the official 2010 estimate of poverty.

The purpose of this note is to provide the monetary cost of various social safety net targeting schemes that can be deployed to reduce vulnerability and increase resilience. It is believed that gradually switching to the provision of social safety nets can reduce the chronic dependency on humanitarian (mainly food) aid. At the same time, it could help to alleviate reliance on patronage networks and switch a portion of the public spending from unproductive uses (e.g., military expenditure) toward strengthening the resilience and supporting the livelihoods of South Sudanese. In addition, a social safety net would address the fatigues of years of weak governance and ongoing efforts to find more direct, transparent ways to enable citizens to reap the benefits of independence and – once it materializes – peace.

Over the last decade, the Kyrgyz Republic experienced volatile but positive economic growth. Since the early 2000s, the share of working age population has been growing robustly and foreign labor markets have been an important source of employment. The Kyrgyz Republic has achieved large reductions in poverty over the past decade, but in recent years progress has diminished. During 2003-2012, the Kyrgyz Republic saw significant convergence between urban and rural poverty rates. Poverty reduction during 2003-2013 was driven mostly by growth rather than redistribution.

Consumption of food away from home is rapidly growing across the developing world. Surprisingly, the majority of household surveys around the world haven not kept up with its pace and still collect limited information on it. The implications for poverty and inequality measurement are far from clear, and the direction of the impact cannot be established a priori, since consumption of food away from home affects both food consumption and the poverty line. This paper exploits rich data on food away from home collected as part of the National Household Survey in Peru, shedding light to the extent to which welfare measures differ depending on whether they properly account for food away from home. Peru is a relevant context, with the average Peruvian household spending 28 percent of their food budget on food away from home by 2010. The analysis indicates that failure to account for the consumption of food away from home has important implications for poverty and inequality measures as well as the understanding of who the poor are. First, accounting for food away from home results in extreme poverty rates that are 18 percent higher and moderate poverty rates that are 16 percent lower. These results are also consistent, in fact more pronounced, with poverty gap and severity measures. Second, consumption inequality measured by the Gini coefficient decreases by 1.3 points when food away from home is included, a significant reduction. Finally, inclusion of food away from home results in a reclassification of households from poor to non-poor status and vice versa: 20 percent of the poor are different when the analysis includes consumption of food away from home. This effect is large enough that a standard poverty profile analysis results in significant differences between the poverty classification based on whether food away from home is included or not. The differences cover many dimensions, including demographics, education, and labor market characteristics. Taken together, the results indicate that a serious rethinking of how to deal with the consumption of food away from home in measuring well-being is urgently needed to properly estimate and understand poverty around the world.

This article reviews trends in poverty, economic policies, and growth in a sample of African countries during the 1990s, drawing on the better household data now available. Experiences have varied. Some countries have seen sharp drops in income poverty, whereas others have witnessed marked increases. In some countries overall economic growth has been pro-poor and in others not. But the aggregate numbers hide systematic distributional effects. Taking both macro and micro perspectives of growth and poverty in Africa, the article draws four key conclusions. First, economic policy reforms (improving macroeconomic balances and liberalizing markets) appear conducive to reducing poverty. Second, market connectedness is crucial to enable participation in the gains from economic growth. Some regions and households by virtue of their remoteness were left behind when growth picked up. Third, education and access to land emerge as key private endowments to help households benefit from new economic opportunities. Finally, rainfall variations and ill health have profound effects on poverty outcomes, underscoring the significance of social risk management in poverty reduction strategies in Africa.

Poverty reduction is one of the three key objectives of the Afghanistan national development strategy. The poverty profile is an important element in the information kit of the policymaker that helps focus policy to attain this objective. A poverty profile is standard methodology to describe the extent and nature of poverty in a country or region. It assesses the magnitude of poverty and its distribution across geographic and socioeconomic domains, provides information on the characteristics of the poor, illustrates the heterogeneity among the poor, and identifies correlates of poverty. The report describes the multidimensional nature of poverty by encompassing the nonmonetary dimensions of poverty, particularly education and health status, and vulnerability to shocks. Tables in the report are also disaggregated by region, income sources, gender, and many socioeconomic characteristics. In addition to providing a picture of the many dimensions of poverty, it is important to also recognize that the poverty estimates in this report are the first nationally representative, seasonally smoothed estimates of wellbeing for Afghanistan. Because previously no such existing estimates were available, the provision of these estimates in this report is new analysis that substantially fills key knowledge gaps in our understanding of the poverty situation in Afghanistan.

Using recent estimates of industry assistance rates, the effects of trade liberalization in the rest of the world and in Pakistan alone are analyzed using a global and a Pakistan computable general equilibrium (CGE) model under two tax replacement schemes: a direct income tax and an indirect tax replacement. The results indicate that the distributional and poverty effects in Pakistan of a unilateral liberalization of all traded goods are significantly greater than the effects of trade liberalization in the rest of the world. There is relatively higher increase in real income and larger decline in poverty incidence in poor households both in rural and urban areas. The effects of agricultural trade liberalization alone in both the rest of the world and in Pakistan are considerably smaller than those from trade liberalization involving all goods. In both the agricultural and all-goods trade liberalization scenarios involving direct income tax replacement, real household income is raised and the poverty incidence is lowered at varied rates across all household groups except for the urban non-poor. When an indirect tax replacement is used, where the burden of replacing tariff revenue is shared by all household groups depending on their consumption structure, there is reduction in household income for most of the groups and less reduction of poverty.

Small-scale fisheries are one of the key sectors in Vietnam economy. This has been explained by its noticeable contribution to GDP, sizable share in the total export value in addition to the significant role in employment generation and food security. Contrary to the promising signs of sectorial performance, most of fishermen are considered the poorest of the poor and poverty is dominantly characteristic in small-scale fisheries. Poverty alleviation has emerged as an urgent requirement to sustain fishing communities. Characteristics and causes of poverty in small-scale fisheries should be therefore carefully investigated before any policy decisions are made. The thesis presents findings based on primary data collected through from 60 samples of households in Bich Dam Island in Nha Trang Bay, Vietnam. The empirical results show that 18% of fishermen households are living below the poverty line which is still above the provincial average. Living conditions of islanders’ communities are far below the minimal threshold in the critical shortage of electricity; clean water supply and basic amenities. Regression outcomes in poverty, represented by consumption per capita, analysis indicate that the size and structure of fishing households have considerable effects on poverty. Fishing boat owners have higher expenditures per head as compared with others. Introducing alternative jobs should be implicated in poverty alleviation policy in the island.

In the last two decades, across a range of countries high growth rates have reduced poverty but have been accompanied by rising inequality. This paper is motivated by this stylized fact, and by the strong distributional concerns that persist among populations and policy makers alike, despite the poverty reduction observed in official statistics where growth has been sufficiently high. This seeming disconnects frames the questions posed in this paper. Why the disconnect, and what to do about it? It is argued that official poverty statistics may be missing key elements of the ground level reality of distributional evolution, of which rising inequality may be an indirect indicator. Heterogeneity of population means that there may be significant numbers of poor losers from technical change, economic reform and global integration, even when overall measured poverty falls. In terms of actions, attention is drawn to the role of safety nets as generalized compensation mechanisms, to address the ethical and political economy dimensions of such a pattern of distributional evolution. Addressing structural inequalities is also a long term answer with payoffs in terms of equitable growth. In terms of future analysis, diminishing returns have set in to the inequality-growth cross-country regressions literature. Further work to help policy makers should focus on: (i) new information to illuminate the disconnect; (ii) analysis and assessment of safety nets as generalized compensation mechanisms; and (iii) addressing specific forms of structural inequality related to assets, gender, and social groupings like caste or ethnicity.

When evaluating poverty, the relative poverty line may be considered as a percentage of the median income or it may be a percentage of the average income. It is proved that, with a poverty line relative to the median income, reducing poverty may become less costly in proportion to the total income as poverty increases (measured by the Sen, the Sen-Shorrocks-Thon or the Foster-Greer-Thorbecke poverty indexes) by passing from a Lorenz concentration curve to another curve associated with more poverty. This is obviously a paradox, although a largely overlooked one. However, it is shown that the paradox vanishes if the poverty line is relative to the average income. The demonstration is both experimental (algebraic or numeric where necessary) based on families of non-intersecting concentration curves produced by various algebraic functions (power function, exponential function or elliptic function but also produced by the Pareto distribution) and it is analytic. One concludes that the poverty line should be relative to the average income rather than to the median income.

Spatial poverty comparisons are investigated in three African countries using multidimensional indicators of well-being. The work is analogous to the univariate stochastic dominance literature in that it seeks poverty orderings that are robust to the choice of multidimensional poverty lines and indices. In addition, the study seeks to ensure that the comparisons are robust to aggregation procedures for multiple welfare variables. In contrast to earlier work, the methodology applies equally well to what can be defined as union, intersection, and intermediate approaches to dealing with multidimensional indicators of well-being. Furthermore, unlike much of the stochastic dominance literature, this work computes the sampling distributions of the poverty estimators to perform statistical tests of the difference in poverty measures. The methods are applied to two measures of well-being, the log of household expenditures per capita and children's height-forage z scores, using data from the 1988 Ghana Living Standards Study survey, the 1993 National Household Survey in Madagascar, and the 1999 National Household Survey in Uganda. Bivariate poverty comparisons are at odds with univariate comparisons in several interesting ways. Most important, it cannot always be concluded that poverty is lower in urban areas in one region compared with that in rural areas in another, even though univariate comparisons based on household expenditures per capita almost always lead to that conclusion.