1 Measurement and Analysis of Poverty in Jordan Joint Study by :  Ministry of Social Development  Department of Statistics  Department for Int’l Development DFID  United Nations Development Programme

2 Objective  Assist policymakers design strategies and programmes for poverty alleviation and sustainable human development Data Source  1997 Household Income and Expenditure Survey by Department of Statistics

3 What is Poverty Line?  Severe poverty: total cost of basic food needs.  Absolute poverty: total cost of basic needs, food and non-food.  Used to calculate other indicators:  poverty incidence  poverty gap  poverty severity

4 How is Poverty Line Calculated?  Actual food pattern method: average daily per capita calorie intake for each expenditure group.

5 Household expenditure includes:  Cash expenditure on food, clothing, rent, education, health and all other consumption goods and services.  Non cash expenditure:  Imputed rent for households that do not pay rent,  Value of goods consumed by the household from own production,  Value of goods and services acquired by the household in kind.

6 Methodology  Based on: –145 food items –actual consumption –actual prices –calorie intake –recommended calories: 2,440 per capita per day –1997 Household Income & Expenditure Survey

7 Calorie Intake and Per Capita Expenditure Poverty Line

8 Absolute Poverty Line  Accordingly, poverty line for Jordan is estimated to be JD 468 per capita per year, or JD 39 per capita per month.  This is 60 % of the average per capita annual expenditure of Jordan

9 Poverty Line: Comparison

10 Poverty Incidence

11 Poverty Gap

12 Poverty Severity  Poverty severity: measure of both the size of the poverty gap and income disparity among the poor.  The poverty severity for Jordan is estimated at 3.0%.

13 Lorenz Curve

14 Gini Index  Gini index: measure of income inequality among the total population, poor and non-poor.  The Gini index for Jordan is estimated to be 36%.

15 Poverty Indicators : Comparison

16 Geographic Breakdown Based on the accuracy and representativeness of the available data, the study divides Jordan into six areas: 1. Amman 2. Irbid 3. Jerash & Ajloun 4. Zarqa & Mafraq 5. Balqa & Madaba 6. South

17 Poverty Line: Geographic Breakdown

18 Poverty Lines Vs. Average Expenditure

19 Poverty Incidence: Geographic Breakdown By PopulationBy Household

20 Number of Poor by Area

21 Poverty Incidence: Geographic Breakdown

22 Poverty Gap: Geographic Breakdown

23 Poverty Gap: Geographic Breakdown

24 Poverty Severity: Geographic Breakdown

25 Gini Index: Geographic Breakdown

26 Key Findings (1997)  Poverty line: JD 468 per capita per year  Poverty incidence: 25% of households; 33% of population; 1.5 million  Poverty gap: 6.8 % or JD 185 million  Poverty severity index: 3.0%  Gini index: 36%

27 Conclusions  The number of Jordanians living in poverty has gone up.  The gap between the income of the poor and the poverty line has increased.  Income disparity of entire population (poor and non-poor) has decreased.  There is an increasing trend towards urban poverty.

28 Features of the Study: 1. Poverty indicators are per capita and not per household. 2. Based on actual food consumption pattern 3. Deals with data problems. 4. Offers comparable poverty indicators for 1992 and 1997 estimated by the same methodology and source of data.

29 Poverty Study: Next Steps 1. Poverty Profile Report 2. Poverty Map Report

30 Poverty Profile Report Poverty profile describes:  Who are the poor?  Where do they live?  What are the characteristics of their poverty?  Why are they poor?

31 Poverty Profile Report Poverty profile is used to design, target and monitor economic policies such as:  Poverty alleviation  Unemployment  Social assistance  Wages  Prices and taxes

32 Poverty Map Report Poverty map indicates % of population and households deprived of basic needs like:  Housing  Education  Health  Water and sanitation

33 Poverty Map Report Poverty map is used to design, target and monitor social policies on:  Housing  Education  Health  Water and sanitation