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Samuel Freije Senior economsit poverty and gender unit LAC- PREM

How to help a developing country looking for a multidimensional measure of welfare/poverty The Case of Bolivia. Samuel Freije Senior economsit poverty and gender unit LAC- PREM. Background ( i ). There are several “political” arguments behind the idea of multidimensional measures…

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Samuel Freije Senior economsit poverty and gender unit LAC- PREM

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  1. How to help a developing country looking for a multidimensional measure of welfare/povertyThe Case of Bolivia Samuel Freije Senior economsit poverty and gender unit LAC-PREM

  2. Background (i) • There are several “political” arguments behind the idea of multidimensional measures… • The objective of the 2006 Bolivian National Development is... ”Vivir Bien” (Living well) • The new (2009) Constitution of the Plurinational State of Bolivia has in its preample: “Un Estado basado en el respeto e igualdad entre todos, con principios de soberanía, dignidad, complementariedad, solidaridad, armonía y equidad en la distribución y redistribución del producto social, donde predomine la búsqueda del vivir bien;… “ • The Andean Indigenous Peoples Bureau 2010 report on “Vivir Bien” (sumaqamaña , sumakwasay)

  3. Background (ii) • There are also “economic” reasons behind the search for multidimensional measures… • Monetary poverty rates have been unsensitive to large economic and political changes • There are several multidimensional measures of welfare/poverty produced during the last decade • HDI by UNDP in 2004, Child Poverty by UNICEF in 2009, NBI by Bolivian INE in 2001, Capacity Gaps Index by World Bank in 2006, …

  4. Challenges (i) • The authorities in the country may not be aware of the technical difficulties behind the production (and use) of multidimensional measures: • What is the purpose of the index? • Targeting beneficiaries of social programs? • Describe and profile poverty/welfare ? • Monitor and analyze social programs? • What is to be measured welfare or poverty?

  5. Challenges (ii) • How will the dimensions be chosen? • Rights approach (Constitution, National Laws, Human Rights Declaration, Millenium Goals…) • A priori (academic references Sen(1999), Nussbaum (1998)…etc) • How will the indicators be chosen? • Theory driven vs data driven ? • Inputs vs outputs vs outcomes • Short-term vs long-term • How and why the dimensions will be aggregated? • Aggregation vs dashboard

  6. Suggestion for Bank support • Currently the Bank is producing a review of existing multidimensional measures in Bolivia • It is also producing a Human Opportunities report for Bolivia • It will provide support for reviewing monetary measures of poverty • It can provide technical support regarding newer multidimensional measures discussed in the current international debate • Future Poverty Assessments need to be more comprehensive and have a multi-instrument approach to poverty/welfare measurement

  7. Thanks! Samuel Freije-Rodríguez

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