Rural poverty in Peru

1. Instituto Nacional de Estadística e Informática Rural poverty in Peru Ursula Sánchez Instituto Nacional de Estadística e Informática

2. Structure • Introduction • The National Households Survey • Closing the gap:Rural poverty and Hunger • Poverty expressions in the rural areas • Final remarks

3. Rural poverty numbers Introduction • Represents 63% of the world poverty • 30% of the Peruvian population is rural, of those 74% are poor • Extreme cases: Huancavelica were 9 of every 10 households live in poverty conditions

4. 1995 1997 2003 First survey MECOVI Improved version Change in periodicity Monthly operation 20,000 16,000 12,000 8,000 4,000 0 1997 1998 1999 2000 2001 2002 2003 Urban Rural The National Households Survey • Interview average time : 3.5 hours Education, health, employment, income and expenditure, access to social programs, etc. Subjects covered • Sample – 20,000 households

5. Poverty incidence Poverty Severe Poverty 9 40 74 43 2003 2003 Total 21 52 0 10 20 30 40 50 0 10 20 30 40 50 60 70 80 42 77 % 10 % Rural 50 2002 2002 54 24 Urban 42 10 51 78 2001 2001 24 55 Closing the gap… • Rural area: most vulnerable in Peru • Poverty indicators: important differences between urban and rural areas

6. 50 45 40 % 35 30 25 20 2001 2002 2003 Rural caloric deficit Urban caloric deficit Closing the gap… Hunger • Hunger levels are still high • Important reduction over the last year for the rural areas

7. 6% 26% 17% 32% 77% Urban Rural 42% Severe Poor Poor Not poor Closing the gap… Unsatisfied basic needs • Rural areas unsatisfied basic needs persists: little reduction in poverty measured with this indicator

8. 50 40 30 20 …with inadequate …with ….without drainage ..with kids who 10 conditions overcrowded don´t attend conditions school 0 Households.... Urban Rural Closing the gap… Unsatisfied basic needs • Important deficiencies persists in the rural areas…

9. Closing the gap… Poverty by altitude • The Peruvian territory is divided by three natural regions, that form eight steps from the bases to the summits

10. Altitude Population Poverty incidence 2001 2002 Chala 0 - 500 mts 23% 47.3% 48.0% Yunga 501 - 2300 mts 13% 59.6% 59.2% Quechua 2301 - 3500 mts 15% 72.4% 67.9% Suni, Puna, Janca 3501 - >4800 mts 12% 79.8% 78.0% Rupa Rupa 400 - 1000 mts 4% 71.8% 69.5% Omagua 80 - 400 mts 7% 68.5% 65.8% Metropolitan Lima 26% 31.9% 34.7% Closing the gap… Poverty by altitude • Estimates demonstrated a positive correlation between altitude and poverty levels

11. Most vulnerables: Children Poverty expressions…. • Some indicators give us an idea of the precarious conditions of the rural areas: • 12% of the children under 5 had inadequate weight • 60 of every 1000 children born alive die before reaching 1 year • Only 20% of the children finish primary school on time

12. - 4.8 78.4% - 5.1 64.0% Rural 73.6% Provinces 58.9% Economic growth: 8.8% - 1.7 42.0% Urban +2.8 40.3% Poverty rates Lima 34.7% 31.9% Last few years: Poverty focalization 2001 2003 Final remarks • High poverty rates persists in rural areas • Over the last decades: socioeconomic policies increased the differences

13. Instituto Nacional de Estadística e Informática Rural poverty in Peru Ursula Sánchez Instituto Nacional de Estadística e Informática