Approaching the Measurement of Multidimensional Poverty in Minas Gerais State Murilo Fahel - FJP Guilherme Paiva - FJP Leticia Telles – FJP

Out line  In this paper, there is an initial analysis of the Poverty and others social indicators in Brazil and Minas Gerais State indicating the relevant changes in the last decade. It is argued that in the case of Brazil and Minas Gerais these changes occur in a context of important restructuring of the social protection system. It presents a brief review of the conceptualization and methodology about the measuring of multidimensional poverty and an empirical analysis of a case study of the state of Minas Gerais. This study includes the modeling of an MPI for 11 administrative regions of the state. To achieve these goals, this study used the methodology for modelling of the global Multidimensional Poverty Index proposed by Alkire and Foster (2011) and data from the Household Sample Survey for the state of Minas Gerais of 2009 and 2011 (PAD-MG).

The relevant changes in the social protection system in Brazil  After the Constitution of 1988, Brazil adopted a new paradigm of social policies based on social rights. This meant a radical change in relation to the traditional view of social assistance used up to then and led to the implementation of several social programmes with challenging designs. Three decades later an important reduction of poverty and a positive impact on social inequalities was observed. Of course, it should also be emphasized that the results are associated with the effects of economic growth, which has mainly taken place in the last decade.

Brazil is changing this social situation with a systematic reduction of extreme poverty as shown in Figure 1. Figure 1. Percentage of population with per capita household income below the international poverty line of US$ 1.25 PPP / day Source: IPEA, 2011 ᵃ Millennium Developments Goals - MDGs Target ᵇ PNAD was not collected in 2010 due to the Census execution

Social indicators of Brazil, Southwest Region and Minas Gerais State Figure 2: Indicators in Brazil, Southwest Region and Minas Gerais, 2001 to 2009 Source: IPEA, 2012 ª For children under 1 year old Average Years of schooling Rate of Child Mortality ª

The concept of multidimensional poverty  The issue of poverty is a phenomenon widely discussed in the literature, but its recognition as a multidimensional phenomenon is counter-hegemonic and innovative. The multidimensional measurement expands the scope of poverty analysis and constitutes an advanced alternative measurement and explanation of poverty.  The strategy aims at the inclusion and social promotion of the poor, and the MPI has become an important instrument in the development of public policy targeted at reducing poverty in the country and state. The premise behind the use of an index to diagnose poverty is that it “is related to several other economic and social variables, and that by understanding these relationships and paths may be possible to formulate better policies to reduce the prevalence of poverty” (Foster, 2007, p. 3).

Measuring Multidimensional Poverty  To achieve the proposed goals we will use the know-how already developed and applied by the OPHI in the measurement of MPI in several countries, including Brazil. The aim of this paper will be to construct the MPI of Minas Gerais State for a more disaggregated comprehension of this index. The Alkire and Foster (2011) methodology and the data from the Minas Gerais Household Sample Survey by the João Pinheiro Foundation will be used. This paper will analyze the MPI disaggregated by administrative regions (Northwest, North, Rio Doce, Zona da Mata, Triângulo Mineiro, Alto Paranaíba, Midwest, Jequitinhonha/Mucuri, South, Central and Metropolitan Region of Belo Horizonte).  The geographical stratification adopted for PAD-MG 2011 is essentially the same as the 2009 edition. The metropolitan region of Belo Horizonte was included in the geographical classification of the ten administrative regions (making it eleven regions).

Computing the MPI

Dimensions and Indicators Figure 3. Dimensions, Indicators and Weight of MPI Source: Alkire, S. and Santos, M. (2011) Training Material For Producing National Human Development Reports The MPI is based on the vision of Amartya Sen (2000), which considers poverty as a multidimensional phenomenon that affects people in many ways; its measurement should investigate different deprivations experienced by individuals. Thus, the Global MPI measures the phenomenon of poverty from three dimensions – education, health and standard of living – and ten indicators, which are shown in Figure 3

Database and Variables  The data used for MPI modelling are from the FJP’s Household Sample Survey for the state of Minas Gerais, collected in 2009 and 2011 in partnership with the World Bank The research sample consisted of 18,000 households in 308 municipalities of Minas Gerais and is representative of the following extracts: Urban vs. rural; Belo Horizonte Metropolitan Region vs. N o of metropolitan areas; Belo Horizonte vs. Other municipalities; Administrative Regions and Mesoregions. The information was distributed in the full wing sections: Section A_ Household; Section B_ Resident profile; Section C_ Education; Section D_ Health; Session E_ Work; Section F _ Incomes; Section G_ Spending individuals; and Section K_ Youth. More information can be found at

Database and Variables  The definition of dimensions, indicators, criteria of deprivation and weights of the components of MPI for the state of Minas Gerais are similar to the methodology adopted by Alkire and Foster (2011). For this study, however, some adjustments in relation to the criteria and indicators of deprivation (e.g. proxies) were carried out due to specific characteristics of the database or the need for adaption to the current pattern of deprivation found in the Minas Gerais population (Table 1). Dimension, Indicators, Criteria of Deprivation and Weight DimensionIndicatorWho is Deprived?Weight Education Years of schoolingª Household (HH) where no member has completed elementary school (i.e. nine years of schooling) 16.7% School AttendenceªHH with at least one child between 6 and 17 not attending school16.7% HealthChild MortalityªHH with at least with one child up 5 years old who has deceased16.7% Access to Health CareªHH with at least one member who has needed medical attention and was not attended by 16.7% Standard of LivingCooking FuelHH that cooks with wood, charcoal or dung5.6% ElectricityHH without electricity5.6% WaterHH does not have running water in at least one room or the water does not come of cistern or nascent water. 5.6% Asset OwnershipªHH that owns three or fewer of the following assets – radio, TV, telephone, refrigerator, stove, computer, bicycle or motorcycle – and which does not own a car or tractor 5.6% SanitationªHH with toilet not connected to the sewage collection network (e.g. rudimentary sewage) or the toilet is shared. 5.6% Waste TreatmentªHH does not have waste treatment (e.g. garbage burned or thrown in the river)5,6% Source: Minas Gerais Household Sample Survey, 2009 ª Re-categorization of variables original to creation of proxies.

Results and discussion K =33%HAMPI 20098,33%38,94%3,24% 20116,06%37,37%2,26% *For 2011, the population resident of Minas was 19,962 million ( IBGE, 2014) **These changes in the incidence and intensity are both statistically significant at the 5% significance level.

Results and discussion Figure 5: Contributions of indicators for MPI  Source: PAD-MG, 2009 and