National Institute of Statistics of Rwanda (NISR) Multidimensional Poverty Index (MPI) and Multiple Overlapping Deprivation Analysis (MODA)Reports National Institute of Statistics of Rwanda (NISR)

Outline Why measure multidimensional poverty MPI and MODA: What do they measure? How are they constructed? Key findings MPI Overall By region Robustness MODA Overlaps Conclusions and Policy Issues

Why Multidimensional Poverty Index? Monetary poverty measures just one dimension of being poor. In Rwanda, based on whether expenditure per adult equivalent is below a poverty line. Other dimensions of poverty – e.g. education, health, housing – should be taken into account for a full understanding of the phenomenon. Can be quantified with a Multidimensional Poverty Index (MPI) United Nations Development Program Human Development Report Office (UNDP HDRO); Oxford Poverty and Human Development Initiative (OPHI).

What is MODA? Multiple Overlapping Deprivation Analysis (MODA) A measure of multidimensional child poverty: Tool to evaluate impact of poverty agenda; Analyzes dimensions of poverty across “lifecycle” and acknowledges different unique needs of children in their development; Developed by UNICEF; MODA differentiates 4 age-groups for children 0-17 years. For the EICV5 MODA report, 2 age-groups were analyzed: children ages 5-14 and youth ages 15 to 17 years.

Goals of MPI/MODA measures Monitor progress in social and standard of living indicators Help design programs that accurately target the poor Help evaluate projects designed to reduce poverty Compare areas in terms of poverty and progress.

See www.statistics.gov.rw for more information History of MPI and MODA 2010: First global MPI published 2012: Rwanda’s first MPI using Population Census data. 2018: Rwanda’s first MODA released using DHS -IV 2010 and DHS -V 2014/15 data. 2019: MPI/MODA now use EICV3,4,5 data. See www.statistics.gov.rw for more information

How to construct the MPI Pick dimensions of deprivation: 4 Education, housing, public services, social services, economic activities Identify indicators for each dimension: 14 in total E.g. Number of children aged 7-15 at school Set cutoffs (“poverty lines”) to measure deprivation E.g. At least once child aged 7-15 not at school Select weights for each dimension (and indicator) Count (weighted) deprivations per person Define the poor E.g. Deprived on at least 40% of the dimensions Measure poverty: MPI = H × A H is % who are poor (“headcount”); A is average proportion of deprivations per poor person.

Note on methodology MPI uses Alkire & Foster method Unit of identification is the household; all members get same score 4 dimensions, 14 indicators MODA tailors indicators to age Unit of identification is the child 5 dimensions, 11 indicators

Rwanda’s National MPI results 1/2

Rwanda’s National MPI results 2/2

MODA dimensions and indicators

Uncensored headcount ratio Proportion of people deprived in each indicator between 2010/11 and 2016/17 Source: EICV3, EICV4 and EICV5

MPI: Key Findings Multidimensionally poor if poor on at least 40% of dimensions. Poverty intensity measures average proportion of deprivations of the poor.

Incidence of multidimensional poverty by province

Intensity (A) of multidimensional poverty by province

Multidimensional Poverty Index: national, urban/rural and provincial

Percentage contribution of each indicator to the MPI by province

Headcount poverty rate for multidimensionally poor (%) with different “k-values” (i.e. proportions of deprivations needed to qualify as “poor”)

Intensity of multidimensional poverty (A) using different “k-values”

Multidimensional poverty rate (MPI = H × A) with different “k-values”

Overlaps of Multidimensional Poverty with Monetary Poverty in Rwanda

MODA: Key Findings

Overlaps for Children 5-14 years between monetary poverty, and the incidence of multidimensional poverty (EICV5: 2016/17) Children facing at least 3 deprivations are considered multi-dimensionally poor

Overlaps for Children 5-14 years using 3 of the 5 dimensions (EICV5: 2016/17) Data further shows that 5.0% of children 5-14 are deprived in at least 4 dimensions There are no significant differences by sex of the child, but level of education of head of household has significant influence on deprivation levels of the child NB: Missing education and sanitation dimensions, but similar diagrams could be constructed.

Trends in poverty indices for children Children 5 to 14 years Children 15 to 17 years Period Multi-dimensional deprivation Headcount (H), % Average intensity among deprived (A), % Adjusted multi-dimensional deprivation headcount (MO) EICV3 (2010/11) 39.3 66.0 0.26 EICV4 (2013/14) 29.2 64.8 0.19 EICV5 (2016/17) 25.3 64.3 0.16 Period Multi-dimensional deprivation Headcount (H), % Average intensity among deprived (A), % Adjusted multi-dimensional deprivation headcount (MO) EICV3 (2010/11) 60.2 71.5 0.431 EICV4 (2013/14) 44.2 69.2 0.306 EICV5 (2016/17) 40.1 68.2 0.274 Data further shows there are no significant sex differences in ages 4-15, but level of education of head of household has significant influence on deprivation level

Conclusions MPI complements the classic monetary poverty rate Similar trends Helps identify areas needing special attention E.g. Overcrowding, health insurance, in Kigali Regionally, between 2013/4 and 2016/17: Kigali: Low poverty; but monetary policy fell, MPI did not Eastern and Southern provinces: High MPI, not falling quickly EICV and other surveys provide viable data for measuring poverty, MPI, and MODA. Use these as benchmarks for monitoring the Sustainable Development Goals (SDG) through 2030.

Policy Issues Rwanda has: Young population Rapid GDP growth Opens possibility of prioritizing children: basic needs, protected rights Goal: break cycle of intergenerational poverty

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