1. www.coneval.gob.mx Multidmensional Poverty Measurement: The Mexican Wave Gonzalo Hernández Licona March, 2014

2. Measuring poverty according to the Social Development Law (2005) Dimensions for poverty measurement Current income per capita Educational gap Access to health services Access to social security Quality of dwelling Dwellings basic services Access to food National, State and Municipality level Social rights approach

3. Advantages of the social rights approach It solves problems of weights and thresholds: –Since human rights are indivisible & interdependent, they all have the same relative importance. They have the same weight. –The Mexican regulation sets thresholds for several dimensions. The poverty measurement has a normative approach.

4. Social Rights Deprivations Main features Income cut-off Without DeprivationsDeprivations 0 3 5 2 4 1 6 Poor Income Education Health services Social security Quality dwelling Dwelling´s services Access to food

5. Moderate poor Social Rights Deprivations Income cut-off Extreme poor 0 3 Vulnerable people by social deprivations Vulnerable people by income 5 2 4 1 6 Not poor and not vulnerable Minimum Income Cut-off Public policy Poverty identification Income

6. Social Rights Deprivations EWL 0 3 5 2 4 1 6 Not poor and not vulnerable 21.8 million 19.3% MWL Income Total population 2010 (112.6 millions) Urban = $2,114 Rural = $1,329 Source: estimates by CONEVAL based on MCS-ENIGH 2010. Extreme poor 10.4% (11.7 million) 3.7 deprivations on average 35.8% (40.3 million) 2.1 deprivations on average Moderate poor Urban = $978 Rural = $684 46.2 % 52.0 millions 2.5 deprivations on average Poverty

7. Fuente: estimaciones del CONEVAL con base en el MCS-ENIGH 2008 y 2010 Poverty Nr of people with low income Access to food Basic services in the house Quality of housing Access to social security Access to health services Educational gap Deprivations Millions of People

8. Using the multidimensional approach for policy purposes It is now possible to evaluate the effect of social policy not only on income poverty but also on specific social deprivations. Measuring poverty in a multidimensional way helps governments to do better in terms of policy Poverty is a multidimensional phenomenon and must be tackled and measured in a multidimensional way

10. Social Rights Deprivations LBE 0 3 Vulnerable people by social deprivation 32.3 million 28.7% 1.9 deprivations on average Vulnerable people by income 6.5 million 5.8% 5 2 4 1 6 Not poor and not vulnerable 21.8 million 19.3% LBM Wellbeing Income Total population 2010 (112.6 millions) Urban = $2,114 Rural = $1,329 Source: estimates by CONEVAL based on MCS-ENIGH 2010. Extreme poor 10.4% (11.7 million) 3.7 deprivation on average 35.8% (40.3 million) 2.1 deprivations on average Moderate poor Urban = $978 Rural = $684 46.2 % 52.0 millions 2.5 deprivations on average Poverty

11. Educational gap[20.6%] Social Deprivations Access to health services[31.8%] Access to social security [60.7%] Quality of dwelling [15.2%] Access to housing basic services [16.5%] Access to food[24.9%] Source: estimations of CONEVAL based on MCS-ENIGH 2010.

12. Economic wellbeing Incomes below EWL [52.0%] Incomes below EMWL [19.4%] Source: estimations of CONEVAL based on MCS-ENIGH 2010.

14. Legal criteria Experts criteria Experts criteria How to determine thresholds? Social rights Consultation with specialists Use of legal norms, if they exist Use of legal norms, if they exist Public institutions Health, Housing, Social Security, Education Public institutions Health, Housing, Social Security, Education

15. Educational gap Educational gap Population aged 3-15 years Population aged 16 years or older Population aged 16 years or older She or he is not attending a formal educational center When someone was born before 1981 and lacks the mandatory basic education current at the time he or she should have completed it. Primary When someone was born before 1982 and lacks the mandatory basic education current at the time she should have completed it. Secondary How to determine thresholds of social deprivations?

16. When a person is not enrolled in or not entitled to receive medical services from: Popular Insurance A social security public institution A private medical service A private medical service Acces to health services Acces to health services How to determine thresholds of social deprivations?

17. Access to social security Access to social security If the worker does not receive medical services as a work benefit or through voluntary enrollment and a retirement investment plan Direct access Direct access Family nucleus Other family nucleus and voluntary enrollment If a person is not enrolled in an institution that provides medical services by voluntary enrollment. If the spouse,child, parent, -law of the head of household is not enrolled in an medical institution If the person does not have a relative who has access to social security If the person is not beneficiary of a social program of pensions for senior citizens How to determine thresholds of social deprivations?

18. Quality of living spaces When the material is cardboard sheets or residue material Roofs Walls Floors Overcrowding When the material is mud or daub&wattle; reed, bamboo or palm; cardboard, metal or asbestos sheets; residue material When the material of the floor is soil When the ratio of people per room is greater than 2.5 How to determine thresholds of social deprivations?

19. Housing access to basic services Housing access to basic services When it is obtained from a well, river, lake, stream, or truck. When piped water is carried from another dwelling or gotten at a public faucet or hydrant Water Drainage service Electricity No drainage service. When the drain is connected to pipes leading to a river, lake, sea, ravine or crack When there is no electricity How to determine thresholds of social deprivations?

20. Food security Food insecurity Acess to food Acess to food Deprivation due to lack of access to food Slight Moderate Severe How to determine thresholds of social deprivations?

21. Food basket Non food basket Minimum economic wellbeing line Changes on current consumption patterns Calorics requirements & micronutrients Calorics requirements & micronutrients Rural & urban settings Economic wellbeing How to determine thresholds? Economic Wellbeing Goods and services have an income elasticity<1 Necessary goods & services Necessary goods & services Rural & urban settings

22. Estimates for incidence, depth and intensity (average number of deprivations) Population groups decomposable Dimension decomposable Comparability across time In the space of social rights, equivalent to M 0 =H·A P ROPERTIES Rigorous Social Deprivation Index (SDI) and MP measures: satisfy a set of axiomatic properties (Alkire y Foster, 2007) the SDI also satisfies the validity, reliability and additivity properties (Gordon; 2007,2010)