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1. Comparing Global Trends in Multidimensional and Income Poverty and Assessing Horizontal Inequalities

Author:
Francesco Burchi, Daniele Malerba, Nicole Rippin, and Claudio E. Montenegro
Publication Date:
01-2019
Content Type:
Special Report
Institution:
German Development Institute (DIE)
Abstract:
The 2030 Agenda has provided new impetus to two facets of the struggle for poverty alleviation, which is a central goal of the international development community. First, poverty is no longer viewed strictly in monetary terms, but rather as a multidimensional phenomenon. Second, the need to reduce poverty for different social groups and not just at the aggregate, national level is explicitly recognised. Against this background, this paper has three objectives: (1) to analyse the trends in multidimensional poverty in low- and middle-income countries, (2) to explore rural-urban differences in poverty over time, and (3) to assess the validity of the claim that there has been a feminisation of poverty. The analysis relies on a new indicator of multidimensional poverty, the Global Correlation Sensitive Poverty Index (G-CSPI), that incorporates three key components: education, employment and health. The G-CSPI has several methodological advantages over existing measures, including that it is an individual rather than a household-level measure of poverty, which is crucial for gender-disaggregated analysis. Regarding aggregate trends, this paper shows that both income poverty and multidimensional poverty fell between 2000 and 2012. However, the decline in (extreme) income poverty in percentage terms was twice as large as the decline in multidimensional poverty. There is significant heterogeneity in the results across regions. Multidimensional poverty declined the most in Asia, converging towards the relatively low levels of Latin America and Europe, while sub-Saharan Africa’s slow progress further distanced it from other regions. These findings point to the existence of poverty traps and indicate that more efforts are needed to eradicate poverty. Regarding the urban-rural comparison, our analysis shows that poverty is predominantly a rural phenomenon: the rural G-CSPI was more than four times the urban G-CSPI. This difference remained nearly constant over time. As for the third objective, we find no gender bias in 2000 at the global level. This contrasts with the claim made in 1995 in Beijing that 70 per cent of the poor were women. However, we find that multidimensional poverty declined more among men (-18.5 per cent from 2000) than women (-15 per cent), indicating a process of feminisation of poverty. This was triggered by the decline in employment poverty, which was much slower among women. As most existing studies conclude that there was no evidence of the feminisation of poverty, this finding is new to the literature.
Topic:
Gender Issues, Poverty, Inequality, Urban, and Rural
Political Geography:
Africa, Europe, Latin America, and Global Focus

2. Rural Electricity Supply: Commodity or Entitlement?

Author:
Johannes Urpelainen, Brian Blankenship, and Jason Wong
Publication Date:
06-2019
Content Type:
Working Paper
Institution:
Center on Global Energy Policy
Abstract:
Quality of electricity service remains poor in many developing countries. Reforms to distorted pricing mechanisms involving citizens increasing their payments in exchange for better service must be done carefully to avoid political backlash and persistent theft. Are people not willing to pay for better electricity quality because they feel entitled to electricity provision, or is it because they do not trust one another to also do their part? In a survey conducted in rural Uttar Pradesh, India, we examine factors that influence stated willingness to pay for better service (i.e., more hours of power per day) among rural households. Our results indicate that the general levels of trust are low, and that entitlement plays less of a role as to whether households are willing or not to contribute to improved electricity quality. Low willingness to pay remains a major obstacle to pricing reform. Generalized trust is strongly associated with higher willingness to pay for better electricity. Delays in service improvements and a lack of community support for pricing reform reduce willingness to pay for better quality. To better foster public support for increasing payments in return for better service, we provide three recommendations as follows. Building trust within the community, across agents, and with utilities could help achieve better rural electricity outcomes. Citizens are unlikely to be willing to contribute or make efforts to participate if the background level of trust remains low. Utilities can help by making credible promises and reducing service delay, or first deliver service improvements before collecting increased payments, as to build upon the trust with the community members, who will in turn be more willing to pay. Properly reducing incentives for theft is important for rural electricity reform. 76 percent of the respondents reported theft as an important obstacle to proper electricity supply, and based on what is observable and on the survey results, we estimate a lower-bound usage rate of illegal night lines to be 20 percent. While proper enforcement can be difficult, a potential solution is to focus on the katiyamen and on the officials who check the villages for theft activities. To disincentivize katiyamen, perhaps a training conversion into a utility company position can reduce katiya spread and actually help convince local residents to join the legal grid system. With officials who neglect theft through night lines or meter tampering, a proper incentive scheme should be in place to prevent accepting bribes. Currently, the incentive structures are set up such that the offending households have an incentive to bribe or bypass the proper process, creating these collected rents—the gap between the willingness to accept illegal payments and the punishment for the resident. Further policy should properly reduce incentives for theft, not only from the household perspective but also from a systems perspective. Poverty alleviation must be taken into account in electricity reform policies. The average willingness to pay for extra hours of electricity tends to be very low—at 40 rupees for four more hours, on average. Continued poverty remains a significant obstacle for proper electricity reform in rural India, and national policy should take into account the impact of income when designing policies to improve electricity outcomes.
Topic:
Poverty, Infrastructure, Rural, and Electricity
Political Geography:
Global Focus

3. Girls Leading: From Rural Economies to Global Solutions

Author:
Catherine Bertini
Publication Date:
10-2019
Content Type:
Special Report
Institution:
Chicago Council on Global Affairs
Abstract:
An estimated 3 billion of the world’s 6.9 billion people live in rural areas of the developing world. More than 60 percent of them live in poverty. Poverty affects women and girls disproportionately; rural girls face the triple challenges to their empowerment and well-being by virtue of their youth, gender, and location. Investing in rural girls’ health and safety, as well as their personal and professional development, has the potential to transform rural economies. Girls Leading: From Rural Economies to Global Solutions—available as both a fully online digital experience and as a PDF—is a collection of diverse perspectives from 20 authors around the world. The authors share their research and stories of personal struggle and triumph to highlight the needs of rural girls and solutions to the challenges they face. The report also includes recommendations, arranged by age group, for critical moments in a girl’s life where both small and large actions can make a huge difference. Many of the most pressing global issues—climate change, economic development, health, and education—demand that we consider rural girls. The world changes as their lives change. Join the conversation at #GirlsLeading.
Topic:
Climate Change, Development, Education, Gender Issues, Health, Poverty, Children, Women, Economy, Youth, and Rural
Political Geography:
Global Focus

4. Who Are the World’s Poor? A New Profile of Global Multidimensional Poverty

Author:
Gisela Robles Aguilar and Andy Sumner
Publication Date:
01-2019
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
Who are the world’s poor? This paper presents a new global profile of multidimensional poverty using three specifications of multidimensional poverty. The paper draws comparisons with the global monetary poverty profile and with the new World Bank measure of combined monetary and non-monetary poverty; discusses how global poverty differs by specification, the extent of multidimensionality, and presents a set of estimates of the disaggregated characteristics of global multidimensional poverty in 2015. We find the following: (i) at an aggregate level, the overall characteristics of global multidimensional poverty are similar to those of global monetary poverty at $1.90 per day; (ii) at a disaggregated level, we find that poverty in rural areas tends to be characterized by overlapping deprivations in education and access to decent infrastructure (water, sanitation, electricity, and housing) and counterintuitively, given the proximity, in principle, to better health care and economic opportunities, it is child mortality and malnutrition that is more frequently observed within urban poverty; and (iii) the extent of the multidimensionality of poverty differs substantially by region; moreover, some deprivations frequently overlap while others do not.
Topic:
Poverty, World Bank, Inequality, and Rural
Political Geography:
Global Focus

5. Where Do Internally Displaced People Live and What Does that Mean for Their Economic Integration?

Author:
Cindy Huang and Jimmy Graham
Publication Date:
05-2019
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
There are over 68.5 million forcibly displaced people in the world, including about 40 million Internally Displaced Persons (IDPs) who have moved because of conflict, including political, communal, and criminal violence.[i] There are millions more IDPs who have been displaced by other drivers, including disasters, economic instability, and development projects such as infrastructure construction. These IDPs, 99 percent of whom are in low- and middle-income countries (LMICs), face severe economic challenges as a result of displacement.[1] To help them overcome these challenges, policymakers should focus on helping IDPs achieve greater self-reliance. The best approach to doing so will depend in large part upon the context—particularly the extent to which IDP populations are based in urban or rural areas. Our analysis shows that about half of IDPs in LMICs are in urban areas, that the composition varies significantly across countries, and that there is a substantial lack of IDP location data.
Topic:
Displacement, Urban, Rural, Internal Displacement, and Economic Integration
Political Geography:
Global Focus