1. Poverty Ms. C. Rughoobur Africa Statistics Day 18 November 2013

2. Poverty measurement  Poverty is a multi dimensional phenomenon  No single definition  No single measurement  Two approaches – Monetary & Non monetary

3. Poverty measurement Monetary approach Absolute poverty line e.g ‘minimum vital’ Relative poverty line (lower income group relative to higher income group)

4. Absolute poverty World Bank $1.25 & $2 a day poverty lines Very few households below these lines in Mauritius 2012 $1.25 (PPP) a day per person Monthly equivalent (Rs per person) 1,020 Proportion of poor persons <1% $2 (PPP) a day per person Monthly equivalent (Rs per person) 1,640 Proportion of poor persons < 2% $1 PPP ‘Purchasing Power Parity’ = Rs17.73 based on 2005 International Comparison Program

5. $1.25 a day poverty line % poor persons, 2010-2011

6. $2 a day poverty line % poor persons, 2009 - 2011

7. Relative poverty Poverty line: Half median household income per adult equivalent, i.e. adjusted for household size, age composition and economies of scale Poverty line2006/072012 1-person householdRs 3,821Rs 5,652 Average household (2 adults and 2 children) Rs 9,000Rs 13,300

8. Number% Poor households33,9009.4% Poor persons126,9009.8% How many are in relative poverty?

9. Who are more likely to be poor? Households:  with 3 or more children  With one parent and unmarried children  With 1 person only & elderly living alone  headed by: women, divorced / separated persons, persons with low educational level, persons who are economically inactive

10. Who are more likely to be poor By type of households

11. Who are more likely to be poor? By profile of head

12. Children are more likely to be in poverty

13. Income Poor households are more dependent on transfers Poor households All households Average household size3.73.5 Average number of income earner 1.52.0 Average monthly household resources* (Rs) 9,80033,800 % of monthly employment income 51%73% % of monthly transfer income29%13% *Household resources include imputed rent, a rental value for non-renting households

14. Expenditure Poor households spend a higher of share of their budget on food, clothing and housing Poor households All households Average monthly household Consumption expenditure* (Rs) 8,30021,200 of which Average monthly consumption expenditure on food, clothing and housing (Rs) 5,4009,700 % of food, clothing and housing65%45% * Figures on total consumption expenditure have not been adjusted for under reporting on items like alcoholic beverages and tobacco, etc..

15. With Government transfers, 9.4 % poor households in 2012 Without Government transfers % poor households Old age pension16% Widow’s pension10% Invalid pension11% Social Aid and other social security benefits11% All Government transfers19% Basic pensions contribute to poverty reduction

16. With Government free services, 9.4 % poor households in 2012 Without Government free services % poor households Free education (primary & secondary) 16% Free health services14% Free transport (elderly, students and disabled persons) 10% All Government transfers20% Government free services contribute to poverty reduction

17. Relative poverty increases 2001/022006/072012 Relative poverty line – RPL (Rs)2,8043,8215,652 Estimated number of poor households23,70026,40033,900 Proportion of poor households7.7%7.9%9.4% Estimated number of poor persons93,200104,200126,900 Proportion of poor persons7.8%8.5%9.8%

18. Has the poverty level increased?

19. Relative poverty line (RPL) Uses Provides a snapshot of the poor Who are they? What are their characteristics? Limitations Poverty line not easily understood Not relevant for measuring trends Focus on income inequality

20. Absolute poverty line Uses Useful to track evolution of poverty is fixed at a point in time, and is usually updated with price changes

21. Relative poverty – limitation e.g. Households Monthly income (Rs) Year 2013Year 2014 16,00060,000 29,00090,000 320,000200,000 425,000250,000 550,000500,000 Median20,000200,000 Half median (Relative poverty line)10,000100,000 No. of poor households22

22. Trend in poverty Using 2012 RPL as a fixed threshold 2001/022006/072012 Poverty line (Rs)3,1714,2505,652 Proportion of poor households11.7% 9.4% Proportion of poor persons11.8%12.3%9.8%

23. Trend in poverty Using 2001/02 RPL as a fixed threshold 2001/022006/072012 Poverty line (Rs)2,8043,7574,997 Proportion of poor households7.7%7.5%6.1% Proportion of poor persons7.8%8.2%6.5%

24. Trend in poverty Using 2006/07 RPL as a fixed threshold 2001/022006/072012 Poverty line (Rs)2,8513,8215,082 Proportion of poor households8.0%7.9%6.5% Proportion of poor persons8.1%8.5%7.0%

25. Other poverty related indicators Non monetary - Relative Development Index (RDI) An adapted version of the UN HDI A composite index for small areas based on Housing and living conditions Literacy and education Employment From 0 (low devpt.) to 1 (high devpt.)

26. Relative Development Index (RDI) Based on Housing and Population 2000 & 2011 The level of development has improved RDI 20002011 Republic of Mauritius0.570.77 Island of Mauritius0.680.77 Island of Rodrigues0.350.56

27. CENSUS 2011 CENSUS 2000 Relative Development Indices by Municipal Ward and Village Council Area – Censuses 2000 & 2011

28. Quality of Life indicators 1. Economic sustainability and material living standards 2. Health 3. Education 4. Personal activities including work 5. Political voice and governance 6. Social connections and relationships 7. Environment 8. Insecurity http://statsmauritius.gov.mu/English/StatsbySubj/Pages/quality-of-life.aspx

29. What next? Public consultation on the QOL indicators Subjective indicators: well-being and happiness Possibly a composite index

31. How happy are Mauritians? UN World Happiness index 2013 Factors: GDP per capita, healthy life expectancy, having someone to count on, perceived freedom to make life choices, freedom from corruption, and generosity CountryRankIndex (0-10) Denmark1 st 7.7 Mauritius67 th 5.5 Togo156 th 2.9

32. Thank you