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Working Group of Statistical Experts, 11th Session
Bangkok, 23-26 November 1999

STAT/WGSE.11/6
4 November 1999
ENGLISH ONLY

ECONOMIC AND SOCIAL COMMISSION FOR ASIA AND THE PACIFIC

Working Group of Statistical Experts
Eleventh session
23-26 November 1999
Bangkok

Report of the Seminar on Poverty Statistics
Contents
  1. Organization of the seminar
  2. Review of Poverty Concepts and Measurement
  3. Poverty Measurement in the context of policy, plan and programme formulation at the national and subnational levels in ESCAP region
  4. Data requirements for formulating Poverty Alleviation Programmes and for monitoring their implementation
  5. Strengthening Statistics on Poverty
  6. Conclusions and Recommendations

Annex: List of Documents


I. ORGANIZATION OF THE SEMINAR
1. The Seminar on Poverty Statistics, organized by the secretariat of the Economic and Social Commission for Asia and the Pacific (ESCAP), was held from 21 to 23 June 1999 in Bangkok. Financial support for the Seminar was provided by the Government of the Netherlands, while the United Nations Development Programme, through its country offices, provided support for the attendance of several participants.
A. Attendance
2. The Seminar was attended by 30 participants from the following 18 members of ESCAP: Bangladesh, Cambodia, China, Fiji, India, Indonesia, Kazakhstan, Lao People=s Democratic Republic, Malaysia, Mongolia, Myanmar, Nepal, Pakistan, Philippines, Singapore, Sri Lanka, Thailand, and Viet Nam.
3. The Seminar was also attended by representatives of the United Nations Development Programme (UNDP), United Nations Population Fund (UNFPA), United Nations Children=s Fund (UNICEF), Food and Agriculture Organization of the United Nations (FAO), International Labour Organization (ILO), Asian Development Bank (ADB), International Council on Social Welfare (ICSW), and the Statistical Institute for Asia and the Pacific (SIAP).
B. Opening of the Seminar
4. The Seminar was inaugurated by Mr Adrianus Mooy, Executive Secretary of ESCAP. In his opening statement, the Executive Secretary expressed his gratitude to the Government of the Netherlands for its generous financial support which enabled the secretariat to organize the Seminar and to the United Nations Development Programme (UNDP) for providing financial support for several of the participants. He also acknowledged the excellent cooperation of the United Nations Economic Commission for Latin America and the Caribbean (ECLAC), ADB, FAO and the ILO in providing technical papers and reference material for the Seminar.
5. The Executive Secretary noted that over the years the number of poor persons had been increasing steadily, particularly in the developing countries throughout the world. The largest proportion of the world=s poor was concentrated in the ESCAP region where the recent economic crisis in Asia had resulted in deterioration of the poverty situation.
6. During the past several decades, governments had been according high priority to alleviating poverty and had therefore been allocating more resources for that purpose. However, in many countries the formulation and implementation of appropriate poverty alleviation programmes had to a large extent been hampered by the lack of reliable relevant data. The inadequate database had also inhibited the development of appropriate methodologies for obtaining reasonable estimates of poverty incidence.
7. The Executive Secretary noted that with increasing demand for quality data and information the statistical systems in most countries had come under growing pressure to generate more reliable and up-to-date information for accurately measuring the incidence of poverty and for formulating and monitoring poverty alleviation programmes. He emphasized that in order to respond to those needs the national statistical offices should focus on, among other things, improving the scope and content of existing data sources and tapping potential sources to obtain more direct data in sufficient detail. He also highlighted the need for a continuing dialogue between data producers and data users to strengthen national poverty databases. In that connection, the Executive Secretary also referred to the growing involvement of the international community in the realm of poverty statistics, notably in regard to poverty concepts and measures.
C. Election of officers
8. The Seminar elected Mr Faizullah Khilji (Pakistan) as Chairperson, Mr P.V. Thomas (India) as Vice-Chairperson, and Ms Carmelita Ericta (Philippines) as Rapporteur.
D. Adoption of the agenda
9. The Seminar adopted the following agenda:
  1. Opening of the Seminar.
  2. Election of officers.
  3. Adoption of the agenda.
  4. Review of poverty concepts and measurement.
  5. Poverty measurement in the context of policy, plan and programme formulation at the national and subnational levels in ESCAP region.
  6. Data requirements for formulating poverty alleviation programmes and for monitoring their implementation.
  7. Strengthening statistics on poverty.
  8. Recommendations.
  9. Adoption of the recommendations.
E. Documentation
10. The documents presented at the Seminar are listed in the Annex to the report.
II. REVIEW OF POVERTY CONCEPTS AND MEASUREMENT
11. The Seminar had before it the following documents: "Evolution in the Nineties and Structural Factors Behind Poverty and Income Distribution in Latin America" (STAT/POV/1) prepared by ECLAC, a secretariat note entitled "Poverty Concepts and Measurement in Developing ESCAP Countries" (STAT/POV/2), and documents submitted by FAO entitled "Note on FAO=s Work Relating to the Measurement of Poverty" (STAT/POV/3); and "Guidelines on Socio-Economic Indicators for Monitoring and Evaluating Agrarian Reform and Rural Development" (STAT/POV/4). Presentations were also made based on 20 country papers as listed in the annex.
12. The Seminar noted the remarkable homogeneity across most countries of ESCAP region in the conceptualization of poverty as a state of deprivation with reference to socially accepted norms of basic human needs. Practically all developing countries in the region had adopted absolute poverty as the relevant poverty measure, with a poverty line based on the basket of goods and services approach being the most widely used measurement indicator of poverty.
13. Legal recognition was also accorded to the definition of the poor. For example, in the Philippines through a Republic Act known as the Social Reform and Poverty Alleviation Act, the poor had been defined as those individuals and families whose incomes fell below the poverty threshold as defined by the National Economic and Development Authority and/or those who could not afford in sustained manner to provide their minimum basic needs of food, health, education, housing and other essential amenities of life.
14. The Seminar noted that although there was general agreement on conceptual definition, there was less agreement on the statistical measurement of poverty. The diversity in measurement methodologies between as well as within countries had largely resulted from difficulties in specifying the basket of minimum needs (food and non-food) and from lack of relevant data and limitations of available data and information.
15. While the minimum food needs had in most cases been determined on the basis of a recommended minimum nutritionally adequate diet, the Seminar noted that the per capita food intake for survival assumed for deriving the food poverty line varied across countries as well as within countries from 2100 calories to 2750 calories per capita per day. There were also problems in determining the items that constituted the basket of non-food needs because those needs varied not only across countries but also between regions and population groups within the same country. Whereas there was a scientific basis for determining an individual=s minimum need for food, there was hardly any method to determine accurately the norms for non-food items. Consequently, researchers had perforce to adopt tailor-made but crude techniques for estimating the non-food component of the poverty line. The Seminar, therefore, underscored the importance of developing normative yardsticks for measuring not only the nutritional requirements but also other basic needs such as housing, clothing, education, and transport to obtain reliable estimates of poverty incidence.
16. The Seminar also highlighted the need for establishing separate poverty lines to allow for significant variations in the minimum needs baskets, the consumption patterns, and in prices of goods and services between various areas within a country. In that connection, the Seminar noted that in large countries, poverty lines were being derived separately in respect of each geographically/administratively distinct region and for each socio-economically divergent population group. In Thailand, for example, separate poverty lines had been established for urban and rural areas in four administrative regions and for Metropolitan Bangkok region. In India, separate poverty lines had been derived for each of the constituent States and for urban and rural areas within each State.
17. The Seminar was of the view that poverty measures should go beyond the traditional income/expenditure - based assessments to capture other dimensions of the poor. The choice of the right tools was considered to be critical not only for determining the number of poor people but also for understanding the causes and correlates of poverty. The Seminar noted the efforts made in many countries of the region to expand the analysis of poverty in a multi-dimensional manner and additionally to examine the welfare aspects of the poor including their access to specific goods, services and functions on the basis of carefully selected indicators.
18.

The Seminar was also briefed on the activities of the Expert Group on Poverty Statistics (also known as the Rio Group) established by the United Nations Statistical Commission. The attention of the Seminar was particularly drawn to three basic considerations which had influenced the activities of the Rio Group:

  1. Poverty being a multi-dimensional social phenomenon, data and information needed for its analysis should be developed and used on the premises that the meaning of indicators and their value would always be conditioned to a particular social and political phenomenon. Hence, attempts to give a world-wide meaning to poverty indicators were unlikely to succeed;
  2. In the area of poverty, as in many other areas, statistics served at least two different objectives: to meet the demands of the political system for synthetic indicators, and often for one synthetic indicator; and to satisfy the information needs of planners and policy-makers, for comprehensive data on the different socio-economic groups affected by poverty, to enable them to determine the interventions best suited to the problems specific to each group;
  3. Given the current inchoate stage in the development of poverty statistics, it would be more practical to identify and adopt best practices than to indulge in prolonged discussions aimed at deriving one or more standards related to poverty indicators. In the same vein, it would be perfectly possible to define different indicators of poverty and to use them in a complementary fashion instead of starting arguments about the supremacy of any one of them. In practice, at least in Latin America, a good combination of a well defined indicator and the possibilities of measuring it systematically and frequently had proved more important than going in depth into the definition of indicators that had little chance of being estimated.
19. The Seminar was also informed that the concept of absolute poverty had been adopted as the relevant poverty measure in developing Latin American countries. The two most frequently used methods to measure absolute poverty were: (i) income or consumption insufficiency method (poverty income lines), and (ii) unmet basic needs method. Since most of the calculations of unmet basic needs were based on data from the decennial population and housing censuses, poverty lines could in most cases be constructed only once in ten years.
20. The Seminar also noted that governments that had adopted an official measurement of poverty or were working towards that goal normally had an objective closely related to policy. In most of those cases, there was a prior decision about the range of resources that would be made available to establish policies in that field. In such situations, the estimates needed to be viewed from an empirical approach and not on the basis of any theoretical background.
 
III. POVERTY MEASUREMENT IN THE CONTEXT OF POLICY, PLAN AND PROGRAMME FORMULATION AT THE NATIONAL AND SUBNATIONAL LEVELS IN ESCAP REGION
21. For discussions under the agenda item, the Seminar had before it documents STAT/POV/5, entitled "Conceptual and Estimation Issues in the Incidence and Alleviation of Poverty", prepared by a consultant to the secretariat, and STAT/POV/INF.6, entitled "Poverty Incidence in the Asia-Pacific Region: Data Situation and Measurement Issues" submitted by ADB. The Seminar also considered relevant sections of the country papers.
22. The Seminar was provided with a historical perspective to the concerns about poverty measurement and poverty alleviation in developing countries. The government in many of those countries had, over the years, promised to reduce or even eradicate poverty, malnutrition, diseases and illiteracy upon gaining political independence from colonial powers. However, in most countries, those promises remained unfulfilled, and in some the poverty situation had deteriorated after independence. Although the benefits of the growth-oriented development strategies of the 1960s were expected to trickle down to the vulnerable and poorer sections of the population, that hope had seldom been realized.
23. The disillusionment with "growthmanship" and failure of accompanying foreign aid policies led to a shifting of focus towards poverty at the national and international levels during the subsequent decades. The impact of the "oil crisis" of the 1970s on the political economy of international economic cooperation resulted in a demand for a New International Economic Order by the developing countries and in an emphasis on the importance of domestic policy reforms by developed countries. Those developments culminated not only in the emergence of poverty as a prominent agenda item on the international development scene, but also in efforts to bring poverty measurement and poverty alleviation into the mainstream of policy planning and programme formulation in many of the developing countries.
24. The Seminar also noted that in recent decades the concept of income poverty had been broadened to embrace a wider set of basic needs including those in the social sphere. Thus, poverty had come to be defined not just as lack of income but also as lack of access to health, education, and other services. The concept of basic needs had spawned a number of policy initiatives such as integrated rural development, basic health services, universal literacy, and access to clean water and housing.
25. The Seminar agreed that given the broader perception of poverty and the commitments of national governments to poverty alleviation, measurements of poverty needed to be expanded to provide not only reliable estimates of poverty incidence, but also comprehensive data on the causes and correlates of poverty. While information regarding the number of poor persons was no doubt of political and administrative interest, the Seminar underscored the importance of providing planners and policy-makers with up-to-date information on the basic characteristics of the poor in terms of their geographic distribution, socio-economic grouping, household size and demographic composition, employment, occupation and living conditions of household members as well as their access to and control over resources. Besides improving the understanding of the complex combination of factors responsible for the incidence of poverty, such information would enable the formulation and implementation of the types of interventions best suited to the various poverty groups.
26.  While acknowledging that the desired information on the basic characteristics of the poor was not readily available in most developing countries, the Seminar noted the efforts made in several of those countries to gather the required data for assembling profiles of the poor in terms of their dominant characteristics. For example, the Seminar was informed that in India a Below Poverty Line (BPL) census was being regularly undertaken by various state governments to identify the poor households and the causes of their impoverishment so as to design anti-poverty programmes specific to their needs. In Cambodia, data collected through the Socio-Economic Survey had been used to compile poverty profiles along a variety of descriptive characteristics of the poor.
27. In underscoring the importance of expanding the analysis of poverty in a multi-dimensional manner, the Seminar emphasized the need for developing a minimum set of social indicators to obtain a clear picture of the various dimensions of poverty. It noted that social indicators served as potentially important tools for creating wider public and political awareness of the poverty syndrome and for helping national planners and international donors in redirecting efforts towards enabling of the poor to meet their own essential needs.
28. The Seminar also discussed the question of national versus international requirements of poverty estimates and measures. It agreed that the first priority in the collection and processing of data was to meet the demands of national planners and policy-makers for reliable information and measures on the incidence, causes and consequences of poverty at the national and sub-national levels. However, it was necessary to develop an objective basis and mechanism to comply with some unavoidable international needs. The Seminar emphasized the importance of balancing the information needs of donors for making inter-country comparisons and those of the national governments that had to follow several diverse, often conflicting, national objectives.
29. The Seminar also noted that in addition to the baseline information needed for programme formulation, data collection and analysis on a continuing basis was essential for assessing the efficiency of programme implementation and for evaluating the programmes' impact on the poverty situation. The data and indicators required for those purposes would relate to changes in poverty incidence and in the basic characteristics of the poor and were usually obtained as a by-product of programme implementation or through special surveys. They would help to determine the appropriateness of the poverty alleviation programmes to the intended beneficiaries, the problems encountered in the implementation process, and to ascertain the extent to which the programmes had contributed to improve the conditions of the beneficiaries. The Seminar also acknowledged that those data and indicators would be needed not only by national authorities but also by international donors to assess the impact of their interventions on the poor.
30. The Seminar agreed that the strategy to address poverty data requirements should aim at meeting the needs of national authorities for adequate information for formulation and implementation of effective poverty alleviation programmes as well the reasonable demands of donors for comparable data and indicators for inter-country comparisons. The Seminar therefore underscored the importance of a programme of synchronized poverty measurement activities with national authorities assuming responsibility for the collection and analysis of primary data and with donors providing assistance to build and/or strengthen national capacities and to support studies for enhancing the understanding of the poverty syndrome.
31. The Seminar also discussed the frequency at which data needed to be collected and analysed and measurements undertaken to monitor poverty reduction programmes. It agreed that most national statistical systems would find it expensive to carry out annual poverty measurements, especially in times of severe economic crisis when, ironically, rapid assessments would be most needed. It therefore suggested that updating of poverty data and indicators for smaller areas within countries could be undertaken at longer intervals of five or more years, and that depending on individual country situations, monitoring in between quinquennial large-scale synchronized surveys should be carried out at least once in respect of larger subnational areas and for the country as a whole.
IV. DATA REQUIREMENTS FOR FORMULATING POVERTY ALLEVIATION PROGRAMMES AND FOR MONITORING THEIR IMPLEMENTATION
32. The Seminar discussed the topic on the basis of documents STAT/POV/5, STAT/POV/8 entitled "Poverty Data Requirements" prepared by the secretariat, and relevant sections of the country papers.
33. The Seminar noted that in addition to continuing national political commitment to reduce poverty, the emphasis on human development placed by various international summits had brought into focus the need for accurate, consistent and timely statistics on the incidence of poverty as well as on the socio-economic characteristics of the poor. Further, the recent economic crisis and the resultant heightened priority accorded to poverty reduction had also drawn attention to the need for improving the understanding of the inter-relationships of economic events, good governance, and the dynamics between the poor and the non-poor.
34. However, the Seminar noted that most developing ESCAP countries lacked the knowledge base essential for adequately addressing poverty issues and for formulating and monitoring effective poverty alleviation programmes. That situation had largely been due to the fact that measurement of poverty had been overly preoccupied with the estimation of poverty incidence while other important dimensions such as understanding of the deprivation of the poor, the causes and consequences of poverty, and the monitoring of poverty alleviation programmes had received less attention. The Seminar stressed the need for redressing that imbalance.
35. The Seminar also noted that the substantial gaps and serious defects in available poverty-related statistics had led to compromises in the use of data and rendered the task of poverty analysis more arduous. It observed that poverty studies undertaken in respect of most developing countries lacked the depth that a historical wealth of information could provide. In order to bridge the increasing gulf between the development of conceptual analysis and statistical implementation of poverty-related issues, the Seminar underscored the urgent need for a poverty statistics information policy or strategy to address the inadequacies and limitations of statistical data on poverty.
36. The Seminar observed that the first logical step in designing poverty alleviation strategies was the undertaking of a situation analysis to determine the extent of poverty, its possible causes, and the characteristics of the poverty groups. That analysis, based on available data and studies, would help in understanding the problems and needs specific to various poverty groups and to formulate the interventions best suited to each of those groups. The Seminar agreed that the minimum statistical data required for the situation analysis should cover such areas as demographic composition, socio-economic characteristics of the population (e.g., education, health and nutrition, housing, employment, occupation, income) and access to and control of resources including land, credit facilities etc., with disaggregation at subnational levels.
37. The Seminar also agreed that the planning and formulation of effective anti-poverty programmes required the use of a range of statistical indicators to ascertain who the poor were, where they lived, the social groups for which special alleviation programmes would be implemented, and households and individuals that needed to be assisted. Such indicators would help to identify the prospective target groups for programme intervention, to understand the conditions of poverty that needed to be changed, and to determine the most appropriate interventions. Those indicators, which should be measurable, factual, valid, verifiable and sensitive, could be based on micro-level statistics from household surveys and special case studies. However, the Seminar noted that in most countries of the region, very little effort had been made to measure poverty at the micro-level to identify the target beneficiaries.
V. STRENGTHENING STATISTICS ON POVERTY
38. The Seminar had before it secretariat documents STAT/POV/9, entitled "Sources and Limitations of Poverty Statistics in Developing ESCAP countries" and STAT/POV/10, entitled "Improvement of Household Incomes and Expenditure Surveys for Collecting Data for Poverty Measurement", and background information presented to the Seminar through country reports.
39. The Seminar noted the great diversity among developing countries of the region in regard to the availability of poverty-related statistics. In several of those countries, the available data were considered to be inadequate for accurately estimating the incidence of poverty and for comprehensively analysing the socio-economic characteristics of the poor. Further, the practice in poverty analysis of utilizing data obtained for other purposes had restricted the choice of statistical indicators and given rise to misleading interpretations.
40.

The Seminar also noted that data on income, expenditure and other aspects gathered through household sample surveys had mostly been used to derive poverty lines and to address public concerns about poverty in developing countries of the region. However, the Seminar observed that as a main source of statistical information for poverty analysis, those surveys were of questionable reliability for various reasons:

  • The surveys might not be frequent enough, being carried out at intervals of five years in some countries and three years in several others;
  • Generally the samples were not large enough to obtain reasonably valid estimates of poverty incidence in respect of small regions and socio-economic groups;
  • Since those surveys were not specifically designed to collect poverty data, information available for poverty analysis was usually limited, thus necessitating the combination of information from one survey with that from another which might differ in several respects including sample coverage and timing;
  • The quality and reliability of the data gathered were, in many instances, considered to be doubtful due to non-sampling errors such as timing of the survey, duration of field investigations, and mis-reporting of income and consumption by respondents. It was generally acknowledged that there were serious errors in survey data on incomes arising from tendencies to deliberately under-report incomes, and non-reporting of income in kind and transfer incomes. Often surveys did not contain sufficient data on expenditure on individual food items, quantities of different items consumed and food consumed outside the household.
41. While the Seminar noted that the quality of household surveys had improved markedly in recent years, it nevertheless felt that there were still serious problems of standardization which needed to be resolved in order to render the comparability of the data collected over time and across countries reliable with a high degree of confidence. The Seminar also noted that in most countries the results of even officially conducted surveys were seldom used for building up macro-economic aggregates, a large part of which continued to rely on dubious interpolation or time trends for intercensal or inter-survey years. Consequently, macro-economic analysis in many countries was often confronted with reconciling trends on poverty based on household survey (cross-section) data and growth based on national income (time series) data generated by different agencies. The Seminar underscored the need for creating institutional mechanisms for reconciling such conflicting evidence through transparent research and discussions to make optimum use of available data and information.
42. The Seminar also noted that population and housing censuses constituted another important source of data for constructing a number of poverty-related indicators such as family size, literacy, educational participation and attainment levels, employment and occupation etc. In some countries, census data on income and consumption were utilized to derive poverty lines. By providing detailed data and information for smaller areas and population groups, censuses also promoted development of analytical studies of greater geographical disaggregation.
43. However, the Seminar observed that since censuses were conducted at ten year intervals in most developing countries, census data were not useful for frequent assessment and monitoring of the socio-economic characteristics of the poor.
44. The Seminar also noted that, although a considerable amount of statistical information continued to be gathered routinely as part of the administrative process, very few countries in the region used administrative records for analysing the incidence of poverty and the characteristics of the poor.
45. The Seminar recognized that with increasing commitments of governments to poverty alleviation, there was a growing demand for more relevant and reliable data to derive meaningful estimates of poverty as well as to design appropriate poverty alleviation strategies and to evaluate the impact of those strategies. Consequently, the national statistical systems were under heavy pressure to improve the poverty databases in terms of their scope, coverage, reliability, and, more importantly, relevance for policy-making.
46. The Seminar was of the view that national poverty databases could be adequately strengthened by adopting two broad, but complementary, measures. The first measure involved improving the scope and content of existing data sources such as surveys and censuses to obtain more direct data in sufficient detail needed for development of statistics and indicators relevant to a comprehensive understanding of the poverty situation at the national and sub-national levels. Those efforts included expanding the content of the questionnaires to elicit detailed data on the composition of consumer expenditure in terms of those goods and services that constituted the basis for deriving poverty lines, and on the household characteristics considered to be correlates of the poor households.
47. Since sample household surveys were the most frequently used sources of income and expenditure data used for deriving the poverty line, the Seminar emphasized that improving the quality and reliability of income and consumption data should be a major goal for those in charge of such surveys. In that connection, the Seminar recognized that incorporating social transfers in kind would improve household surveys as an instrument to measure poverty and monitor poverty alleviation interventions, and would harmonize the concepts and practice at the micro and macro level statistics. However, the Seminar was conscious of the enormous problems in imputing the value of the services, particularly in the health sector where there was a wide variation in the quantity and type of services availed of by the households.
48. The Seminar noted that although a considerable amount of statistical data and information relevant to poverty analysis was being collected routinely by various agencies in many countries, efforts were not being made to exploit those data in a systematic manner to obtain quantitative information on a wide range of social, demographic and economic aspects relating to the poor. The Seminar underscored the need to process those data on a continuing basis to provide much needed additional information for estimating poverty incidence and for the formulation and monitoring of poverty alleviation programmes.
49. The Seminar recognized that the types of data employed in poverty measurements were not only closely related to the statistical capabilities of each country but also depended on the needs voiced by the main users of such data. It therefore underscored the importance of a continuous dialogue between data producers and data users to identify data-cum-conceptual gaps.
VI. CONCLUSIONS AND RECOMMENDATIONS
50. The Seminar on Poverty Statistics reviewed the current situation relating to the incidence and alleviation of poverty in the ESCAP region in the context of the prevailing global economic situation and domestic policy environment. The main concern of the Seminar centered on the availability and development of statistical data and methodology for the understanding and measurement of poverty. In making that review the Seminar was guided by the opening statement of the Executive Secretary of ESCAP and the rich and varied documentation presented by the country participants and the ESCAP secretariat and its consultant, along with that contributed by other international agencies and organizations, especially the Asian Development Bank, ECLAC, FAO, and ILO.
51. The Seminar noted with satisfaction that the overall poverty situation as indicated by the number of poor as a proportion of the total population in the developing ESCAP region had shown steady, if slow, improvement over the past few decades. However, the total number of poor people remained disquietingly high in view of the high rates of population growth still prevailing in many of the developing countries of the ESCAP region. It was also noted that much of the improvement in the poverty situation of the region in the last two decades in quantitative terms was attributable to significantly lower poverty incidence in the most populous country of the region, China. The Seminar also noted with concern the reverses in the poverty situation in the East Asian economies, which had previously succeeded in reducing the high rates of poverty incidence during the last two decades through their successful export-led development strategy, as a result of the East Asian financial crisis, which coincided in some of those countries with the El Nino phenomenon. Although precise statistical evidence was lacking, the poverty situation in the transition economies of the Central Asian republics was presumed to have worsened severely in the 1990s in view of the continued declines in per capita incomes and the withdrawal of access to a variety of goods and services previously available at subsidized rates.
52. The country papers presented at the Seminar gave a vivid account of the efforts being made by the governments and statistical authorities to quantify the poverty situation and to provide assistance in the implementation of the poverty alleviation programmes being launched by those countries. The country papers reflected the diversity of the situation both in terms of the objective reality and the extent to which it had been possible to capture it through various statistical measures . Some countries had been monitoring the poverty situation in a systematic manner, but many others, especially the least developed and transition economies, had launched those efforts only recently. While most countries of the region had received technical and financial assistance from donor agencies, especially the World Bank and UNDP, the overall financial situation in the face of the need for structural adjustment and reduction in government budgets had in many instances seriously constrained such efforts from becoming institutionalized on a sustainable basis.
53. The Seminar also devoted considerable attention to the objectives of poverty studies and the complexity of the concepts which had emerged in recent research. While the initial interest in poverty research was focused on the proportion of people falling below the poverty line, more recent work had stressed the need for treating poverty as a complex issue which could not be captured by a single statistic, notwithstanding the usefulness of such a summary measure for purposes of arousing public concern and cultivating donor support for alleviating poverty. In that context the Seminar also considered the competing demands on poverty research made, on the one hand, by national planners and policy makers for the purpose of formulating, implementing and innovating strategies for the country=s long-term development and, on the other, by the pressures for inter-country comparability of poverty statistics for the purpose of mobilizing donor support. The Seminar felt that since the primary responsibility for poverty alleviation was that of the national governments, the former consideration should receive precedence, given the restricted availability of resources. Nevertheless, the Seminar fully appreciated and endorsed the need for continued efforts for meaningful comparisons of the poverty situation among different countries, especially on a regional basis. In that context, the Seminar noted with great appreciation the studies undertaken by ECLAC for comparative inter-country research on the poverty situation in that region. The Seminar expressed the need to launch similar research studies in the ESCAP region, subject to the availability of funds and in cooperation with other agencies and institutions, especially the ADB and the World Bank.
54.

As a result of the discussions held during its deliberations, the main features of which have been highlighted above, the following principal operational recommendations emerged from the Seminar.

  1. The Seminar endorsed the need for continuing and accelerated in-depth research on the poverty situation at the national, regional and international levels. It was recognized that poverty alleviation was increasingly regarded as a principal objective of development policy. In that regard, the Seminar stressed the need for greater clarity and objectivity in specifying the goals of poverty alleviation and its time frame in order to lend credibility to the objective and dispel cynicism about the possibility of its achievement among the public at large, especially the poor.
  2. In view of the complex and intransigent nature of the poverty problem, the Seminar endorsed the need for a differentiated approach to its study, measurement and formulation of strategies in the context of a country=s specific situation, development stage and medium-term objective, national capability and available resources. The Seminar stressed the need to consider the goal of poverty alleviation as part of a strategy of equitable growth, rather than in either a static or inequitable growth setting. The Seminar considered that the essential objective of poverty research should be to provide a deeper understanding of the extent and nature of deprivation and the causes and consequences of poverty in the countries of the region. In that regard national statistical offices should accommodate in their collection and dissemination the need to develop social indicators to complement income-based monitoring.
  3. The Seminar recommended that while maximum efforts should be made to choose indicators of poverty and its correlates on a broadly comparable basis, the countries should make the choice that best suits their national needs at the given time. While most medium-sized countries with broadly homogeneous population and regional characteristics might choose a single, national poverty line, it was felt that more disaggregated poverty lines would be required for most countries with heterogeneous population groups and ecological differences. There was a need to focus attention on the problems of Ahard core@ or Aacute poverty@ situations. Studies also needed to be conducted on the seasonal and cyclical aspects of the poverty problem.
  4. There was a need for a participatory approach in the choice of methodology and data; the methodology chosen should be fully documented and disseminated. That approach would also help in reducing the confusion that often accompanied the multiplicity of poverty estimates. Expert groups, NGOs and other relevant groups should openly debate and discuss the appropriateness of each methodology.
  5. There was a need for more concerted, well thought out and better designed methods for inter-country comparison of poverty estimates. The existing methods such as those using the World Bank-sponsored $1 a day poverty line needed to be viewed with scepticism and should be employed with caution. Nevertheless, the search for more appropriate methodologies or international comparisons should continue with greater transparency, debate and additional resources.
  6. The exchange of experience and expertise at the regional level for both estimation and alleviation of poverty should be promoted. ESCAP might consider mobilizing donor support to launch such a regional project and convene a regional expert group meeting for that purpose. Such a meeting could also discuss the possibility of adopting more comparable definitions, procedures and methodologies for poverty measurement.
  7. The Seminar emphasized that the burden of poverty measurement could not be carried by statisticians alone and required the active collaboration not only of economists, development planners, and policy makers, but also of those engaged in related disciplines such as anthropologists and sociologists. In addition, the NGOs active in the field of poverty alleviation, many of which were stakeholders and produced poverty related statistics, could provide useful insights into the underlying nature and dimensions of the poverty problem, and play a catalytic role in the design of statistical indicators. The Seminar recommended that statisticians and researchers consult those diverse groups actively and involve them as appropriate in the various stages of poverty measurement and of the monitoring and evaluation of poverty alleviation programmes.
  8. If poverty alleviation as a major objective of development policy of the government was to be realized, considerably larger resources would have to be devoted to the task of building and strengthening adequate national capacity for the development of statistical methodologies and databases for the measurement of poverty and the monitoring of the performance of poverty alleviation programmes. The resources available at present for undertaking those tasks had largely been provided by donor agencies on an ad hoc basis, sometimes with little regard for the sustainability of those efforts. The Seminar recommended that donor assistance for poverty research should contribute towards the building of such a sustained capability and the institutionalization of the needed research and data collection. The Seminar recognized that it included the use of information technology in data processing and dissemination, as well as specialized training on monitoring and evaluation.
  9. The tasks of poverty measurement and monitoring had grown in complexity and scope in recent years due to the increasing integration of developing economies with the global economy and their increased vulnerability to external shocks. That required that the statistical systems of the countries should stand ready to undertake ad hoc studies, with the help of truncated surveys, panel data, modelling and other methods to provide policy makers with the required information. Similar efforts might be required in the event of natural disasters such as floods, earthquakes, crop failure and other serious disruption of economic activities.
  10. The Seminar recommended that countries might consider undertaking more frequent household income and expenditure surveys where required, preferably with larger samples and more intensive coverage of the vulnerable groups of the population. In that regard, the Seminar felt that the activities of the informal sector needed to be covered as adequately as possible by suitable changes in the design of the present surveys or by undertaking separate surveys for the informal sector. It was also recommended that suitable modifications be made in other data collection instruments such as censuses and administrative reporting systems. The Seminar also emphasized the need to exploit and utilize data already available in relevant administrative records.
Annex
LIST OF DOCUMENTS

Symbol Title of document
Relevant agenda item(s)
 
STAT/POV/L.1 Provisional Agenda
3
STAT/POV/L.2 Annotated Provisional Agenda
3
Seminar documents
STAT/POV/1 Evolution in the Nineties and Structural Factors Behind Poverty and Income Distribution in Latin America
4
STAT/POV/2 Poverty Concepts and Measurement in Developing ESCAP Countries
4
STAT/POV/3 Note on FAO=s Work Relating to the Measurement of Poverty
4
STAT/POV/4 Guidelines on Socio-Economic Indicators for Monitoring and Evaluating Agrarian Reform and Rural Development
4
STAT/POV/5 Conceptual and Estimation Issues in the Incidence and Alleviation of Poverty
5, 6
STAT/POV/8 Poverty Data Requirements
6
STAT/POV/9 Sources and Limitations of Poverty Statistics in Developing ESCAP Countries
7
STAT/POV/10 Improvement of Household Income and Expenditure Survey for Collecting Data on Poverty Measurement
7
STAT/POV/CRP.1 Recommendations
8, 9
Country papers  
STAT/POV/7[Bangladesh] Country paper
4,5,6,7
STAT/POV/7[Cambodia] Poverty Measurement in Cambodia
STAT/POV/7[China] Poverty Statistics in China  
STAT/POV/7[Fiji] Poverty Measurement Discuss  
STAT/POV/7[India] India Country Paper on Poverty Measurement  
STAT/POV/7[Indonesia] Poverty Measurement, the Case of Indonesia  
STAT/POV/7[Kazakhstan] Measurement of Poverty in Kazakhstan  
STAT/POV/7
[Kazakhstan]Add.1
Country Paper, Kazakhstan  
STAT/POV/7[Lao PDR] Poverty Measurement in Lao People's Democratic Republic  
STAT/POV/7[Malaysia] Malaysia: Poverty  
STAT/POV/7[Mongolia] Mongolia: Poverty  
STAT/POV/7[Myanmar] Country Paper, Myanmar  
STAT/POV/7[Nepal] Country Paper: Nepal  
STAT/POV/7[Pakistan] Pakistan Country Paper  
STAT/POV/7[Philippines] Country Paper, Philippines  
STAT/POV/7[Singapore] Country Paper, Singapore  
STAT/POV/7[Sri Lanka] Measurement of Poverty in Sri Lanka  
STAT/POV/7[Thailand] Poverty Measurement in Thailand
 
STAT/POV/7[Viet Nam]A Concepts, Contents and Measurement of Poverty in Viet Nam
STAT/POV/7[Viet Nam]B Concepts, Contents and Measurement of Poverty in Viet Nam
Background documents
STAT/POV/INF.1 Poverty Measurement=s Present Status of Concepts and Methods
4
STAT/POV/INF.2 Summary of the Debates
4
STAT/POV/INF.3 Role of SIAP in Providing Training on Poverty Statistics
4, 5, 6, 7
STAT/POV/INF.4 The Statistical Measurement of Poverty
4
STAT/POV/INF.5 Poverty Statistics - Some Useful References
7
STAT/POV/INF.6 Poverty Incidence in the Asia - Pacific Region: data situation and measurement issues
5, 7


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