Monitoring Poverty in Armenia using Multidimensional Poverty Indicators Diana Martirosova National Statistical Service of the Republic of Armenia Moritz Meyer Economist, Poverty GP, Europe and Central Asia Nistha Sinha Senior Economist, Poverty GP, Europe and Central Asia UNECE conference in Geneva, 4-6 May 2015

Roadmap: Multidimensional poverty in Armenia Our vision: Describe complexity, depth and persistence of poverty.  Concept: How do households experience poverty? Poverty is characterized by whether an individuals experiences deprivations on aspects of welfare that are a development priority (such as being healthy or having a job).  Benefit: Complement consumption poverty by multidimensional poverty. Measure reflects aspects of quality of life which are not captured by consumption poverty (such as having access to good quality education and health services and having adequate heating).  Policy: Monitor progress on development goals. Multidimensional poverty can be based on government’s development priorities. Monitor progress on development goals. This presentation: Focus on methodology, findings and policy. 2Martirosova, Meyer and Sinha (2015): Monitoring Poverty in Armenia using Multidimensional Poverty Indicators

A pilot multidimensional poverty index for Armenia: Choice of unit of analysis, dimensions and indicators DimensionIndicator: a household is defined as deprived if Education at least one household member above the age of 15 years has less than 5 years of education at least one child of compulsory schooling age between 6 and 14 years is not attending school Healthat least one household member reports poor or very poor health status Laborat least one unemployed household member the household head is out of the labor force Housing Housing: most informed household member evaluates housing conditions as bad or very bad Water: household does not have centralized water system and/ or hot water Garbage: household lacks a garbage disposal system Heating: household uses wood, carbon or other heating means Extreme povertyconsumption expenditures are below the national food poverty line 3Martirosova, Meyer and Sinha (2015): Monitoring Poverty in Armenia using Multidimensional Poverty Indicators

Findings from pilot multidimensional poverty measure: Identify time trends, count and index (by region) Share of population which is deprived in the indicator on heating (household dimension) – breakdown by locations. Share of population which experiences deprivations related to the dimension on labor – breakdown by locations. 4 Martirosova, Meyer and Sinha (2015): Monitoring Poverty in Armenia using Multidimensional Poverty Indicators Yerevan

How do households experience poverty: Count number of deprivations, Armenia 2008 to Martirosova, Meyer and Sinha (2015): Monitoring Poverty in Armenia using Multidimensional Poverty Indicators Share of population (in percent) which experiences “0” to “4 or more” deprivations.

Time trend for the multidimensional poverty index: Describe incidence and intensity, Armenia 2008 to Martirosova, Meyer and Sinha (2015): Monitoring Poverty in Armenia using Multidimensional Poverty Indicators Incidence: Share of population which is classified as multidimensional poor. Intensity: Share of deprivations where deprived households experience deprivations.

Regional variation of multidimensional poverty: Level and nature of deprivations, Armenia 2008 to 2013 National levelRural areas Other urban areasYerevan Martirosova, Meyer and Sinha (2015): Monitoring Poverty in Armenia using Multidimensional Poverty Indicators Share of population (in percent) which is multidimensionally poor– breakdown by locations.

Policy: Drawing a full picture of poverty - multidimensional poverty complements consumption poverty, Armenia Martirosova, Meyer and Sinha (2015): Monitoring Poverty in Armenia using Multidimensional Poverty Indicators Share of population (in percent) which is multidimensionally and consumption poor (using the upper national poverty line).

Customize agenda of multidimensional poverty to the Armenian context: Which dimensions and indicators should be included?  Use Integrated Living Conditions Survey to complement existing tools to monitor poverty. Consultations with different stakeholders in Armenia: How are the NSS RA, different line ministries and civil society going to use this measure for the policy design and coordination?  Ensure that dimensions and indicators of multidimensional poverty reflect development progress in the country. Looking ahead – tailor a national measure of multidimensional poverty to the country context of Armenia 9Martirosova, Meyer and Sinha (2015): Monitoring Poverty in Armenia using Multidimensional Poverty Indicators