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Are the Chronic Poor Happy about Pro-Poor Growth
Are the Chronic Poor Happy about Pro-Poor Growth? Q-squared Chronic Poverty Assessment in Cambodia AFD-IDS-JICA Workshop on Quality of Growth Paris, 3 -4 February 2014 Ippei Tsuruga, Deputy Assistant Chief Research Programme Division, JICA Research Institute
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Pro-poor Growth Growth with poverty reduction
Focus on how much poverty reduced. Does not matter whose poverty reduced.
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Quality of Growth Growth with poverty & CP reduction
Poverty Reduction Chronic Poverty Reduction Quality of Growth Focus on how much poverty reduced. Matter the remaining populations. Including those who are unable to escape poverty even with growth.
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Research Question Are the Chronic poor happy?
To what extent chronic poverty improves while growth pattern is pro-poor? What characteristics do the chronic poor have?
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Pro-Poor Growth? (1) Macro economy
Indicators (annual average change %) GDP 8.47 GDP per capita 6.87 Sectoral Growth: Agriculture 5.97 Sectoral Growth: Manufacturing 6.24 Sectoral Growth: Industry 8.00 Sectoral Growth: Services 9.59 Inflation 7.79
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Pro-Poor Growth? (2) Human development
Indicators 2004 2010 Net primary enrolment (ages 6‐11) 75.98% 85.60% Net lower secondary enrolment (ages 12-14) 16.37% 30.80% Net upper secondary enrolment (ages 15-17) 8.53% 17.50% Ever attended school (ages 5+) 75.92% 81.70% Adult literacy (ages 15+) 69.78% 76.28% Mortality rate, neonatal (per 1,000 live births) 27.2 19.7 Mortality rate, infant (per 1,000 live births) 56.6 37.3 Mortality rate, under-5 (per 1,000 live births) 70.3 43.8
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Pro-Poor Growth? (3) Consumption poverty estimation
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Pro-Poor Growth? (4) Consumption growth of the poor
Other Urban Rural Phnom Penh Growth rate in mean (%) 1.05 7.23 6.31 at median (%) 11.05 9.81 7.86 of the Poor (%) 11.66 10.34 9.11
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Pro-Poor Growth? (5) Yes Growth Poverty Economy: Improved
Human Development: Improved Sectoral Growth: Equally grew Poverty Poverty headcount: Improved Poverty gap: Improved Poverty severity: Improved Poor Consumption: Improved
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Methodology: CP Estimation Combining Qualitative & Quantitative
Howe & McKay (2007) Define CP by the poor through PPA Map onto nationally representative household survey data Assess robustness and sensitivity using other poverty related indicators
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Qualitative Data Participatory Poverty Assessment
Period: October – December 2000 Participants: Poor people selected through geographical/community-based targeting Coverage: National 169 Focus group discussions, 154 villages in 70 communes in all 24 provinces and 15 urban areas Implementing Agency: Asian Development Bank
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Quantitative Data Cambodia Socio-Economic Survey
Period: 2004 & 2010 Sample size: 12,000 HHs & 3,600 HHs Coverage: National Implementing Agency: Ministry of Planning
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Defining Chronic Poverty (1) 5 Livelihood ranks by the poor (Agrarians)
# Local Language Description 1 Kror bamphot Toal Extremely poor No way out of their present situation 2 Kror Kror thomada Literally poor Typical poverty 3 Kror imom Kandal Reasonably poor Medium 4 Mathyum Average 5 Throuthear Neak leu Fully self-sufficient without any debts Living above poverty
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Defining Chronic Poverty (2) CP characteristics identified by the poor
Little or no land (2-3 acres: ha) Perhaps 1 draft animal but no farming implements; Housing made of thatch in very poor condition; Few household utensils; Food shortages for up to 8 months; Reliance on natural resources for subsistence needs; Inability to repay or borrow additional amounts; No kinship support; and Large young families with 5-12 children.
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Defining Chronic Poverty (3) Criteria selection to identify chronic poor
Selection Policy Take as many definitions as possible Balance inclusion / exclusion error Availability of translatable quantitative data Selected Criteria Household main economic activity is agriculture Household owns agricultural land of 1.0 hectare or less Household owns 1 draft animal or none Household owns no high value farm implement Housing material (wall/roof) is thatch.
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Result Chronic Poverty Estimation in Cambodia
Domain 2004 2010 Other Urban 6.44% 1.98% Rural 11.53% 11.34% Phnom Penh 0.00% Cambodia 9.99% 9.27%
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Robustness (1) Comparison of other indicators in 2004
CP Non-CP Difference Net enrolment ratio (ages 6‐11) 65.43 74.57 -9.14 Net enrolment ratio (ages 12-14) 4.52 10.56 -6.04 Net enrolment ratio (ages 15-17) 2.43 3.83 -1.40 Ever attended school (ages 5+) 61.33 72.69 -11.36 Adult literacy (ages 15+) 50.66 64.71 -14.05 Sick Frequency 2004 19.99 18.15 1.84 Seek care 2004 66.69 64.59 2.1 1st Quintile, Food, 2004 26.89 24.24 2.65 5th Quintile, Food, 2004 9.08 11.56 -2.48 1st Quintile, Total, 2004 33.77 24.15 9.62 5th Quintile, Total, 2004 6.01 9.94 -3.93
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Robustness (2) Comparison of other indicators in 2010
CP Non-CP Difference Net enrolment ratio (ages 6‐11) 87.47 82.36 5.12 Net enrolment ratio (ages 12-14) 8.82 27.58 -18.76 Net enrolment ratio (ages 15-17) 2.69 12.19 -9.49 Ever attended school (ages 5+) 68.50 78.38 -9.88 Adult literacy (ages 15+) 56.93 71.77 -14.84 Sick Frequency 2004 23.26 18.5 4.76 Seek care 2004 85.59 87.44 -1.85 1st Quintile, Food, 2004 32.42 23.3 9.12 5th Quintile, Food, 2004 5.69 9.44 -3.75 1st Quintile, Total, 2004 38.45 22.97 15.48 5th Quintile, Total, 2004 3.13 8.95 -5.82
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Sensitivity (1) There are some ambiguous criteria
Land Ownership: 0.8ha to 1.2 ha Perhaps 1 draft animal: One or None No farming implements: What types? Housing Materials are Thatch: Wall? Roof?
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Sensitivity (2) National trend does not change
Alternative Criteria (%) 2004 2010 Estimation (National) 9.99 9.27 Land Ownership: 1.0 ha => 0.8 ha 8.31 8.49 Draft Animal: 1 or None => None 8.18 7.33 Farm Implement: Low value only => None 1.18 0.14 Housing: Wall or Roof => W & R 4.13 2.93
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Characteristics (1) Female-headed, Young, Smaller family…
Indicators CP Non-CP Difference Household head: female (%) 31.96 17.72 14.24 Household head: elderly 65+ (%) 16.11 18.45 -2.34 Household head: ethnic minority (%) 4.10 4.78 -0.68 Household head: age 43.67 45.85 -2.18 Household member: age 24.55 26.84 -2.29 Household head: education year 3.05 4.03 -0.98 Household size 3.97 4.65
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Characteristics (2) High child dependency, Labour constraint..
Indicators CP Non-CP Difference Dependency ratio (%) 85.29 73.48 11.81 Child dependency ratio 0-14 (%) 76.07 62.21 13.87 Aged dependency ratio 65+ (%) 9.22 11.27 -2.05 Household with 5 children+ (%) 2.27 1.54 0.73 No. of working age per households 2.91 -0.64 No. of children 0-14 per households 1.51 0.02 No. of elderly 65+ per households 0.16 0.22 -0.06
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Conclusion / Limitation
CP little improved though pro-poor growth was achieved. Cambodia achieved pro-poor growth but not quality of growth. Limitation It is not clear whether it is a matter of measurement between monetary & local definition. Other activities (e.g. CP in Industry/Service) Urban poverty (e.g. workers with low wage)
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Policy Questions Can growth policies benefit the chronic poor? If not
Do social policies support the chronic poor? Do targeted interventions properly capture them?
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