Ankara, Turkey 07-08 August 2014

1. Meeting of experts to strengthen the capacity of THE states member OF oic on poverty statistics Ankara, Turkey 07-08 August 2014

2. Outline • Introduction • Major statistical activities • Measurement methods (indicator of well- being, income poverty, regional deflators) • Main results (poverty rate, Gini index, inequality) • Conclusion (Perspectives)

3. 1. Introduction • Located in the western part of the African continent and in the tropics, Côte d'Ivoire covers an area of ​​322,462 km ². It is bordered to the South by the Atlantic Ocean, to the east by Ghana, to the north by Burkina Faso and Mali, and to the west by Guinea and Liberia. Yamoussoukro is the political capital of the country and Abidjan, the economic capital; • The population of Côte d'Ivoire is estimated at about 23 million inhabitants in 2014 with nearly 26% of immigrants mainly from countries of the sub region. The country has a sixty ethnic groups divided into four main groups: Voltaic, Mande, Akan and Kru. Côte d'Ivoire is a secular country: it is home to several denominations. Islam, Christianity and Animism are the most important;

4. 1. Introduction • Reducing poverty is one of the priority economic, social and cultural policies of the Government. Indeed, the Ivorian government realized early on the necessity to invest in the social sectors, including education, health and socio-economic infrastructure, to improve the quality of life and standard of living of households . This policy has led to the adoption of a national program to fight against poverty in 1997 and the PRSP (Poverty Reduction Strategy Paper Poverty) for 2000-2015 in accordance with the Millennium Development • In this strategy against poverty, INS, the State agency responsible for the production of statistics plays a central role of measuring poverty.

5. 2. Main statistical activities • In order to understand the manifestations and determinants of poverty, the government has funded major statistical operations with the support of technical and financial partners (World Bank, UNDP, AFRISTAT, UEMOA, etc.). These include: • Data from administrative sources produced by different sectors (education, health, employment, agriculture, etc.).

6. 2. . Main statistical activities • The household surveys: • EBC (Consumption Budget Survey) 1979; • EPAM (Permanent Household Survey): 1985, 1986, 1987, 1988; • ENV (Survey of Household Living Standard): 1993, 1995, 1998, 2002, 2008; • EDM (Household Expenditure Survey): 1996 and 2008 in the economic capital (Abidjan); • Other surveys: MICS; EDS / EIS, Employment

7. 3. Methods of measurement • Two-stage stratified sampling. The stratification criterion is the development center (usually the region); • Welfare indicator Poverty is a multidimensional and complex concept, generally represented in three dimensions: the monetary dimension, lack or unmet basic needs and the sociological and psychological dimension. Poverty is experienced both individually and collectively. The monetary approach is the one adopted by the INS. This measure is based on two elements: an indicator of well-being and a poverty line. • Well-being is measured by consumption expenditure of households. It seems more appropriate because of the difficulty of collecting reliable information on income;

8. 3. Methods of measurement • The poverty line is the amount of consumer spending, which allows to discriminate the population into two subgroups. Populations whose consumption expenditure is below the poverty line are the "poor" while those whose consumption is above the line are called "non-poor". To determine the poverty line, two approaches are possible: (i) the method of absolute poverty line corresponding to a minimum nutritional requirements to meet, to which is added a basket of essential non-food items; (ii) the method of relative poverty which is determined by the highest consumption expenditure made ​​by a proportion of the population, arbitrarily chosen amount.

9. 3 Methods of measurement • The analysis of poverty in Côte d'Ivoire is made from a relative poverty line. Based on data from the Permanent Household Survey 1985 (EPAM 85), this threshold was equal to 75 000 FCFA per head and per year. This amount was estimated based on the consumer price surveys in the markets of the city of Abidjan from February 1985 to January 1986. It corresponded to the highest amount of consumption expenditure made by the 10% poorest. Deflator is applied to consumer spending to reflect price differences between the other poles of development and the city of Abidjan. For each survey, the poverty line is reassessed according to the level of inflation. Thus, poverty lines are : 101,340 FCFA in 1993, 144,800 FCFA in 1995, 162,800 FCFA in 1998. 183 450 FCFA in 2002 and 241,145 FCFA in 2008;

10. 3 Methods of measurement • Treatment of certain types of expenditure: - Durable goods: it retains the principle of estimating the value of the depreciation corresponding to the actual consumption of the durable good question. Depreciation rates vary according to the nature of the property and the rates will be those of the general accounting - Imputed rent (rent charged to the household that are not leased): it is estimated from an econometric model that explains the logarithm of rent that should be paid by housing characteristics (wall, floor, roof, number of rooms bedroom, etc.). - Self consumption: for every self-consumed product, consumption frequency is variable and specified each time. This information is used to obtain a total annual value of food consumption;

11. 3 Methods of measurement • Estimating regional deflators of the cost of living: Prices vary from one region (development center) to another. The adjustment of the cost of living in reference to the city of Abidjan is then necessary. Table: Deflators by region and area of ​​residence (ENV2008)

12. 3 Methods of measurement •  FGT (Foster-Greer-Thorbecke) indices: They are used to characterize the profiles of poverty in Côte d'Ivoire. Theymeasure the incidence, depth and severity of poverty. Inset: the FGT poverty indices (Foster-Greer-Thorbecke) FGT indices not only make the number of poor, but also the distance from the poverty line and the dispersion of incomes of the poor (severity). They are decomposed by regions and social groups. The expression is: n: size of the total population q: size of the poor population z: poverty line yi: income or consumption of the ith poor person (or household) α: degree of aversion to poverty, with α ≥ 0

13. 4. Main results • A rising poverty since 1985. In Côte d'Ivoire, the number of poor has increased by 10 in the space of a generation. Today one in two is poor against one in ten in 1985 Indeed, the poverty rate increased from 10% in 1985 to 48.9% in 2008.; which corresponds to a number of poor estimated in 1985 to 974 000 and 10.174 million in 2008. Graph: Evolution of poverty rate (P0.)

14. 4. Main results • More rural than urban poverty Table: Comparative evolution of P0 poverty rate between 1985 and 2008

15. 4. Mains results • The poverty is unevenly distributed Table: Comparative evolution of the poverty rate between 2002 and 2008

16. 4. Main results • Probability of being poor increases with household size The average size of poor households is 6.3 against 3.9 persons in non-poor households. At the level of households with one person, the poverty rate is 10.7%. In households with 4; 6 and 10, this rate is respectively 34.8%; 51.7% and 66.4%. • Poverty is inversely related to education The poverty rate is 57.5% among uneducated populations. This rate falls to 6.6% in populations with a university level education. The positive impact of education on poverty status is confirmed by the fact that 38.35% of those who attended school are poor, while this proportion is 58.18% among those who never attended to school. In other words, investment in education is a key driver of poverty reduction.

17. 4. Main results • Housing and housing facilities are also determinants of urban poverty The proportion of poor households living in boxes (69.0%), barracks (64.2%), detached houses (50.3%) is high. At the level of households living in communes course, the poverty rate is 31.3%. households that do not have sanitation systems are among the poorest: the poverty rate is only 10.8% for those with a WC with flush, it is 44.8% among those who use pit latrines and 67.9% among households with no toilet

18. 4. Main results • The poor have inadequate access to health and education In the area of ​​health, 12% of the poor do not have access to a health center and 26% of the poor do not have access to a general hospital In case of illness, poor people first consult traditional healers or make self-medicate rather than seek modern health staff. Indeed, 52.0% of those who consult traditional healers first, in case of illness are poor against only 25% of those who prefer to consult a doctor Regarding education, 46% of the poor do not have access to universities and colleges, 34%to kindergarten and 26% to secondary school.

19. 4. Mains results • Income inequality and poverty In 2008, Côte d'Ivoire, the10% richest own 32.8% of the wealth against 30.4% for the 60% poorest. Table: Distribution of the average expenditure per capita and the share of consumption by decile

20. 4 Main results • The Gini index It shows that inequality decreased between 2002 and 2008, from 0,500 in 2002 to 0.4393 in 2008. This decrease was also observed in each region, but in different proportions from a region to another. Table : inde Gini index of per capita expenditure

21. 5. Conclusion • Beyond the poverty profile established in successive surveys, there are many information that can be exploited in the context of poverty analysis: - The analysis of non-monetary poverty (living conditions) - Econometric analysis of the determinants and dynamics of poverty; • After a decade of military-political crisis, a new poverty assessment is in preparation: ENV2014. In order to harmonize methods in member countries AFRISTAT, the determination of the poverty line by the CBN is considered • Technical and financial support of partners is desired

22. Thank you for your attention Department of Studies, Research and Engineering (DERI) 7 & 8 August 2014