Nepal_MPI2021.micro powerpoint presentation

report on nepal poverty

8th Annual High-Level
Meeting of the Multidimensional Poverty Peer Network(MPPN)

4-5 October, 2021
Hosted by the Government of Chile

Presented by:
Dr. Ram Kumar Phuyal
Member
Government of Nepal
National Planning Commission
5th October, 2021
In simple terms Poverty is not having enough material possessions or income for a person's needs.

In other words poverty is the lack of resources to maintain the basic needs of the individuals. These basic needs are characterized as food, housing, non food, education, health, entertainment etc.

Poverty is a multifaceted concept, which may include social, economic, and political elements. Income Approach: this approach measures the poverty with the individual’s income in a reference period generally in a day. The world Bank measure: threshold of $1.9/person/day (this was $1/person/day in 1990s)

Consumption/Expenditure Approach: the first measure of poverty based on consumption approach was done by CBS in 1995/96 by Nepal Living Standard Survey (NLSS) which gave the prevalence of head count index as about 42%. The subsequent NLSS II and NLSS III gave about 32% and 25% respectively.

Multi Dimensional Approach

1. Synopsis of Nepal MPI 2021 8 th Annual High-Level Meeting of the Multidimensional Poverty Peer Network(MPPN) 4-5 October, 2021 Hosted by the Government of Chile Presented by: Dr. Ram Kumar Phuyal Member Government of Nepal National Planning Commission 5 th October , 2021

2. Poverty In simple terms Poverty  is not having enough material possessions or  income  for a person's needs. In other words poverty is the lack of resources to maintain the basic needs of the individuals. These basic needs are characterized as food, housing, non food, education, health, entertainment etc . Poverty is a multifaceted concept, which may include  social ,  economic , and  political  elements .

3. Poverty Measurement Techniques Income Approach: this approach measures the poverty with the individual’s income in a reference period generally in a day. The world Bank measure: threshold of $ 1.9/person/day (this was $ 1/person/day in 1990s ) Consumption/Expenditure Approach: the first measure of poverty based on consumption approach was done by CBS in 1995/96 by Nepal Living Standard Survey (NLSS) which gave the prevalence of head count index as about 42%. The subsequent NLSS II and NLSS III gave about 32% and 25% respectively. Multi Dimensional Approach:

4. Sector 1995/96 2003/04 2010/11 Nepal 41.76 30.85 25.16 Urban 21.55 9.55 15.46 Rural 43.27 34.62 27.43 Consumption Poverty in Nepal over the years

5. MPI is made up of 10 indicators based on 3 dimensions of deprivation 3 dimensions of deprivation are: Health Education and Living Standards Each dimension is given the same amount of weight i.e. 1/3 or 33.3%

6. MPI is made up of 10 indicators based on 3 dimensions of deprivation Dimension/Weight Indicator Household is deprived if… Weight Health (1/3) Nutrition Any child for whom there is nutritional information is undernourished in terms of weight for age ( underweight ) or height-for-age ( stunting ) 1/6 Child Mortality A child under 18 has died in the household in the five-year period preceding the survey 1/6 Education (1/3) Years of Schooling No household member aged 11 years or older has completed 6 years of schooling 1/6 School Attendance Any school-aged child is not attending school up to the age at which he /she would complete class 8 1/6

7. MPI is made up of 10 indicators based on 3 dimensions of deprivation Dimension/Weight Indicator Household is deprived if… Weight Living Standards (1/3) Cooking Fuel The household cooks with dung, wood, or charcoal 1/18 Improved Sanitation The household’s sanitation facility is not improved , or it is improved but shared with other households 1/18 Improved drinking water The household does not have access to improved drinking water or safe drinking water is at least a 30-minute walk from home, roundtrip 1/18 Electricity The household has no electricity 1/18 Housing The household has inadequate housing materials in any of the three components: floor, roof, or walls 1/18 Assets ownership The household does not own more than one of these assets : radio, TV, telephone, computer, animal cart, bicycle, motorbike, or refrigerator, and does not own a car or truck 1/18

8. Who is poor? Anyone deprived in 1/3 or more of the weighted 10 indicators is multidimensionally poor. Poverty Cutoff: 33.33%

9. MPI calculation The MPI uses the Alkire & Foster (2011) method: MPI = H x A H = Poverty Rate or Headcount ratio (percentage of people who are poor) A = Intensity of deprivation (Average deprivation score among poor people) Shows how intense poverty is!

10. MPI and other measures of poverty Unidimensional Vs multidimensional measurement of poverty The MPI complements monetary poverty The same people may not be identified as poor MPI also shows how people are poor – the composition of inter linked deprivations. So it guides multisectoral policy

11. Data source Nepal Multiple Indicator Cluster Survey (NMICS), CBS/UNICEF 2019 Two stage cluster sample design 53,815 people from 12,800 households Representative nationally as well as provincial and rural/urban areas All 10 indicators of MPI in one single data source

12. Key findings 17.4% of people are multidimensionally poor (Headcount ratio) Number of poor people: 4.98 million On average, each poor person suffers deprivations in 42.5% of dimensions (Intensity) The MPI for Nepal is 0.074

13. Deprivations in 10 indicators

14. Karnali has the highest poverty incidence followed by Sudurpaschim and Province 2 … 39.5 25.3 Lumbini 9.6 7.0 24.2 15.9 18.2

15. Province 2 has the highest number of poor people among 7 provinces (Number in thousand) Total NEPAL: 5000

16. Deprivation exists between rural and urban residence population (Incidence of poverty %)

17. Significant reduction in poverty headcount over 5 years period, National (%) 3.1 million people left poverty in five years!

18. Significant reduction in poverty headcount over 5 years period (2014-2019), Provincial (%)

19. Finally This report uses a 2019 Nepal MICS dataset. The survey was completed just before the Covid-19 pandemic in Nepal. So, the rate might have been changed in the Covid-19 pandemic context.

20. Further information are available in the report Poverty Headcount, Intensity and MPI: Level, Trends and Dimensions disaggregated by age, disability status, place of residence etc. Please visit the npc web page: www.npc.gov.np Thank you