Rethinking Dimensions: The South African Multidimensional Poverty Index

The growth of literature on multidimensional poverty measures generates an uncertainty about which dimensions best capture the extent of poverty. This paper applies multiple correspondence analysis in the context of multidimensional poverty in South Africa to identify statistically valid additional dimensions using National Income Dynamics Study data of 2012. The results confirm the argument that economic status (lack of employment) and financial commitment (over-indebtedness) can be regarded as important dimensions, as their occurrence constrains households from participating in the activities essential in modern society. It is therefore proposed that, in addition to health, education, and living standard dimensions, both economic status and financial commitments should be included in the framework for the South African multidimensional poverty analysis. A central contribution of this work is a proposal of a hybrid multidimensional measure which recommends a combination of both non-monetary and monetary indicators, in particular over-indebtedness.     

The Multidimensional Gender Inequalities Index (MGII): A Descriptive Analysis of Gender Inequalities Using MCA

This paper constructs a weighted measure of the multidimensional concept of gender inequality: the Multidimensional Gender Inequality Index (MGII). Multiple Correspondence Analysis is used to rank the separate forms in which gender inequality appears in developed and developing countries respectively. Eight dimensions were identified as relevant for economic purposes: identity, physical integrity, intra-family laws, political activity, education, health, access to economic resources, and economic activity. In the 109 developing countries considered, gender inequality in the identity and family dimensions are particularly severe for women: these dimensions hence have greater weight in the MGII. However, in OECD countries gender inequality occurs mainly in the political and family dimensions. Nevertheless, the family sphere remains particularly important for gender inequality, whatever the level of development. The MGII is a non-linear weighted composite indicator of gender inequality which yields a country ranking. The South-Asian region is calculated to be the most unequal.     

Multidimensional Measurement of Poverty Among Women in Sub-Saharan Africa

Since the seminal work of Sen, poverty has been recognized as a multidimensional phenomenon. The recent availability of relevant databases renewed the interest in this approach. This paper estimates multidimensional poverty among women in fourteen Sub-Saharan African countries using the Alkire and Foster multidimensional poverty measures, whose identification method is based on a counting approach. Four dimensions are considered: assets, health, schooling and empowerment. The results show important differences in poverty among the countries of the sample. The multidimensional poverty estimates are compared with some alternative measures such as the Human Development Index, income poverty, asset poverty and the Gender-related Development Index. It is found that including additional dimensions into the analysis leads to country rankings different from those obtained with the mentioned four measures. Decompositions by geographical area and dimension indicate that rural areas are significantly poorer than urban ones and that a lack of schooling is, in general, the highest contributor to poverty. The paper also conducts robustness and sensitivity analyses of the multidimensional estimates with respect to the number of dimensions in which deprivation is required in order to be considered poor, as well as to the poverty lines within each dimension. Several cases of dominance between countries are found in the first robustness test.     

Monitoring Perceptions of the Causes of Poverty in South Africa

This study explored how people perceive the causes of poverty. Literature revealed that there are three broad theoretical explanations of perceptions of the causes of poverty, namely individualistic explanations, where blame is placed squarely on the poor themselves; structural explanations, where poverty is blamed on external social and economic forces; and fatalistic explanations, which attribute poverty to factors such as bad luck or illness. To examine South Africans perceptions according to these dimensions secondary analysis was employed on one of the Human Sciences Research Council’s (HSRC) national representative client surveys. Approximately 3,498 respondents across South Africa were surveyed between 18 April and 30 May 2006. The bivariate analysis revealed that South Africans in general attribute poverty to structural over individualistic and fatalistic dimensions of poverty. Ordinary least square regressions revealed that these perceptions of poverty interacted with a host of socio-demographic and economic variables such as race and peoples’ lived experiences of poverty. In this regard, all three ordinary least square regressions showed that lived poverty had a significant impact in predicting respectively structural, individualistic and fatalistic perceptions of the causes of poverty. The second regression predicted individualistic perceptions and showed that being white was the most significant predictor. The third regression predicted fatalistic perceptions and established that being coloured was the most significant predictor.     

Economic Gender gap in the Global South: How Public Institutions Matter

One of the most challenging gender gaps in the Global South remains in the economic sphere. This paper examines how public institutions affect the gender gap in economic participation and opportunities in 74 developing and emerging countries during the period 2006–2016. We find that the public institutional environment is closely related to the economic gender gap. Specifically, the protection of property rights and guaranteeing security seem to be two key factors associated to lower economic gender inequality. Nevertheless, public institutions do not matter equally throughout economically backward countries. Whereas in emerging countries, particularly in Latin America and the Caribbean, a broad variety of institutional aspects, including undue influence on judicial and government decisions, are closely related to the economic gender gap, in low-income developing countries, such as Sub-Saharan countries, the problems of ethics and corruption stand out as a particularly remarkable element against economic gender equality. Some significant policy implications are derived from our findings regarding the potential of public institution reforms to reduce the economic gender gap.

     

Poverty,Inequality and Deprivation in South Africa: An Analysis of the 1993 SALDRU Survey

This paper analyses poverty and inequality in South Africa based on data from a comprehensive multi-purpose household survey undertaken in 1993 to provide baseline statistics on poverty and its determinants to the new government. The paper shows that South Africa has among the highest levels of income inequality in the world and compares poorly in most social indicators to countries with similar income levels. Much of the poverty in the country is a direct result of apartheid policies that denied equal access to education, employment, services, and resources to the black population of the country. As a result, poverty has a very strong racial dimension with poverty concentrated among the African population. In addition, poverty is much higher in rural areas, and particularly high in the former homelands. Poverty among female-headed households and among children is also higher than average. Moreover, poverty is closely related to poor education and lack of employment. The poor suffer from lack of access to education, quality health care, basic infrastructure, transport, are heavily indebted, have little access to productive resources, and are heavily dependent on remittances and social transfers, particularly social pensions and disability grants. The paper uses an income-based definition of poverty for most of the analysis. In addition, it develops a broad-based index of deprivation including income, employment, wealth, access to services, health, education, and perceptions of satisfaction as its components. While on average the two indicators correspond fairly closely, the income poverty measure misses a considerable number of people who are severely deprived in many of the non-income measures of well-being. This group of severely deprived not identified by the income poverty measure consists predominantly of Africans living in rural areas, concentrated particularly in the province of KwaZulu/Natal.     

Subjective Well-Being,Poverty and Ethnicity in South Africa: Insights from an Exploratory Analysis

South Africa has one of the highest inequality levels in the world. In 1993, nearly half of the population were considered poor. These poverty and inequality levels were and still are a legacy of South Africa’s colonial and apartheid past. Since the end of apartheid, there has been a strong governmental effort to combat poverty and in this light a ‘social indicators movement’ has emerged. The aim of this article is to contribute to the South African social indicators research in three ways: Firstly, this article introduces ethnicity as a unit of analysis in the context of poverty and well-being. It is argued that racial categorisations are not justifiable and in the case of South Africa hide valuable insights. The results of an exploratory analysis suggest that ethnicity allows a more insightful analysis of poverty and well-being than race. Secondly, this article introduces a multiple correspondence analysis (MCA) in the context of subjective well-being research. Many studies regarding subjective well-being in South Africa use ordered probit regression models. It is argued here that these models are based on false assumptions and that a MCA can be seen as a suitable alternative since it constitutes an assumption free model. Lastly, the insights gained from the exploratory analysis are discussed. The MCA seems to show that subjective well-being can be regarded as an outcome measure. Furthermore, it is argued that there are cultural differences (between the ethnic groups) regarding subjective well-being. It seems that the ethnic groups in South Africa have different conceptions of well-being and that different factors influence their subjective well-being assessments. This work is partly based on a Master thesis from 2004 at the Institute for Development Policy and Management at the University of Manchester. I am grateful for the intellectual guidance, the constant support and encouragement by Wendy Olsen and for the comments on earlier drafts from Peter Edward, David A. Clark and two anonymous reviewers.     

“a Difficult Life”: The Perceptions and Experience of Poverty in South Africa

The purpose of this article is to provide a fuller and more integrated understanding of poverty based on the results of a nation wide participatory study recently completed in South Africa. A surprisingly consistent view of poverty emerges from the study which includes social isolation, malnourished children, crowded homes, the use of basic energy sources, no employment, and fragmented households. A clear image of what results from extreme poverty also emerges comprising continuous ill health, arduous and often hazardous work for virtually no income, no power to influence change, and high levels of anxiety and stress. The article concludes that conventional definitions of poverty do not fully describe the experience of poverty as analysed by the poor themselves. Instead, the multidimensional nature of poverty suggests that three basic concepts would be useful in any analysis of extent, nature and persistence of poverty. These are sufficiency, access and vulnerability.     

Multidimensional Poverty in China: Findings Based on the CHNS

This paper estimates multidimensional poverty in China by applying the Alkire-Foster methodology to the China Health and Nutrition Survey 2000–2009 data. Five dimensions are included: income, living standard, education, health and social security. Results suggest that rapid economic growth has resulted not only in a reduction in income poverty but also in a reduction in multidimensional poverty in the last decade, both in terms of its prevalence and intensity. However, many challenges remain. There are wide disparities across provinces and between urban and rural areas, with poverty being 1.5 times higher in rural areas than in urban ones in 2009. Moreover, rising deprivation in education in rural and less developed provinces should also be a policymaking concern.     

Household Budgets as a Social Indicator of Poverty and Inequality in South Africa

In the absence of a universally accepted method of calculating poverty, household expenditure can be used to provide an indication of inequality of wealth and serve as an indicator of poverty. Household expenditure comprises expenditure of private households on goods and services, irrespective of their durability. The portion of household budgets allocated to different types of goods and services provides an indication of the material standard of living of a population. The article discusses different definitions of poverty and compares the state of poverty according to these definitions in selected countries. This is followed by an analysis of South Africa’s economic position in the world and a comparison of the household budgets and demographic profile of South African households that fall into different income groups in order to identify the differences between the poorest and the wealthiest households in South Africa. Income inequality in South Africa is further elucidated by means of the Gini coefficient. A comparison is also made between the household budgets of the poorest households with the minimum financial living level requirements in South Africa to maintain their health and have acceptable standards of hygiene and sufficient clothing for their needs.     

Multidimensional Poverty in Mountainous Regions: Shan and Chin in Myanmar

Poverty is complex and multidimensional. People living in mountainous regions are vulnerable and more likely to experience multiple deprivation. However, few studies have addressed multidimensional poverty in mountainous regions. Using data from 4290 households of poverty and vulnerability assessment survey and the Alkire–Foster methodology, this paper estimate and decompose multidimensional poverty in the states of Shan and Chin in Myanmar. The multidimensional poverty is measured in five dimensions and a set of twelve indicators. Nearly half of the population in Shan and three-quarters in Chin were multidimensionally poor. The average intensity of poverty was 44% in Chin and 38% in Shan. The multidimensional poverty index was 0.33 in Chin and 0.19 in Shan. The level of multidimensional poverty in Chin was similar to that in of Sub-Saharan Africa. In Chin, 60% of the population was both multidimensionally poor and consumption poor, but in Shan, it was 20%. About 28% of the population in Shan and 15% in Chin were multidimensionally poor but not consumption poor. Deprivation in education accounts for one-third of the multidimensional poverty in Shan; while deprivation in health accounts for one-third of the multidimensional poverty in Chin. A higher proportion of multidimensionally poor had experienced shocks such as the death of a household member, agricultural loss, or death of livestock compared to the multidimensional non-poor. Multidimensional poverty was significantly higher for rural household, households with lower educational attainment, consumption poor and among those who lived in Chin. Poverty reduction programs require a holistic understanding of poverty and its different dimensions as well as the main contributing factors for effective planning and program implementation. Geographical targeting of poverty reduction program and larger investment in food, health, water, energy and education can reduce the extent of multidimensional poverty in Shan and Chin.     

Measuring Child Poverty in South Africa: Sensitivity to the Choice of Equivalence Scale and an Updated Profile

This paper offers evidence on the sensitivity of child poverty in South Africa to changes in the adult equivalence scale (AES) and updates the child poverty profile based on the Income and Expenditure Survey 2005/06. Setting the poverty line at the 40th percentile of households calculated with different AESs the scope and composition of child poverty are found to be relatively insensitive to the scale used. The rankings of children of different ages, girls versus boys, racial groupings and children living in rural versus urban areas are unaffected by choice of AES, although some provincial rankings on the poverty headcount measure are. The proportions of children and households ‘correctly’ identified as poor for the full range of scales is extremely high. These findings support the argument that it may be appropriate for profiling poverty in South Africa to use a poverty line based on a per capita welfare measure. For the construction of the child poverty profile, per capita income is used as the welfare indicator with the poverty line set at the 40th percentile of household. The profile suggests that poverty amongst children is more extensive than amongst the population or adults even after the massive injection of transfers into households with poor children through the child support grant. The child poverty headcount, depth and severity are all highest amongst children age 0–4 and lowest amongst those aged 15–17, who are not yet beneficiaries of the grants. They are also highest amongst African and Coloured children. Large variations across provinces remain. The analysis underlines the importance of prioritising children in the fight against poverty, particularly in their earliest years.     

Considering the Extremely Poor: Multidimensional Poverty Measurement for Germany

This paper applies the Alkire and Foster (J Public Econ 95:476–487, 2011) index of multidimensional poverty to German data. This is done with respect to the politically most important dimensions of poverty mentioned in the German Federal Government’s report on poverty and wealth. Additionally, a modification of the identification step of the Alkire–Foster index is proposed to guarantee that individuals, who are extremely poor in only few dimensions, are not omitted by the index.     

Income and Beyond: Multidimensional Poverty in Six Latin American Countries

This paper studies multidimensional poverty for Argentina, Brazil, Chile, El Salvador, Mexico and Uruguay for the period 1992–2006. The approach overcomes the limitations of the two traditional methods of poverty analysis in Latin America (income-based and unmet basic needs) by combining income with five other dimensions: school attendance for children, education of the household head, sanitation, water and shelter. The results allow a fuller understanding of the evolution of poverty in the selected countries. Over the study period, El Salvador, Brazil, Mexico and Chile experienced significant reductions in multidimensional poverty. In contrast, in urban Uruguay there was a small reduction in multidimensional poverty, while in urban Argentina the estimates did not change significantly. El Salvador, Brazil and Mexico, and rural areas of Chile display significantly higher and more simultaneous deprivations than urban areas of Argentina, Chile and Uruguay. In all countries, deprivation in access to proper sanitation and education of the household head are the highest contributors to overall multidimensional poverty.     

Multidimensional Poverty in Paraguay: Trends from 2000 to 2015

The paper discusses Kenneth C. Land and Alex C. Michalos’ review and assessment of the evolution of research on social indicators, quality of life and well-being over the past fifty years. The contribution deals with the impacts of three major societal changes on the future research agenda of social indicators research: firstly, impacts of the changing class structure of post-industrial society, secondly, globalization impacts, including its economic, political, cultural and institutional dimensions, and thirdly, the impacts of an increasingly networked digitalization of production and consumption.     

Extreme Energy Poverty Incidence and Determinants in Nigeria: A Multidimensional Approach

Social Indicators Research - Energy poverty has emerged in recent times as a crucial aspect of poverty, afflicting the developing world in general and Nigeria in particular. Drawing from some of...     

The Measurement of Multidimensional Gender Inequality: Continuing the Debate

The measurement of multidimensional gender inequality is an increasingly important topic that has very relevant policy applications and implications but which has not received much attention from the academic literature. In this paper I make a comprehensive and critical review of the indices proposed in recent years in order to systematise the different underlying ideas. I also present new gender inequality indices that overcome some limitations of the preceding ones. Using United Nations data, empirical results for the new indicators are provided, suggesting that the choice of one indicator or another can make an important difference for the ranking of those countries that have achieved high levels of gender equality.     

Dynamics of Multidimensional Poverty and Uni-dimensional Income Poverty: An Evidence of Stability Analysis from China

Social Indicators Research - In this paper, we construct an illustrative multidimensional poverty index for China and compare it with income poverty using the panel data from multiple waves of the...     

Global Cybersecurity Index (GCI) and the Role of its 5 Pillars

Computer crime is a matter of increasing concern, and worldwide action is required if the proper responses to it are to be found. One of the tools that can be deployed here is the Global cybersecurity index (GCI), a control and feedback mechanism based on a composite indicator. The GCI is based on a hierarchy of sub-indicators. The indicators used for the final aggregation of the CGI are called pillars. Five pillars are applied to rank the eleven countries that are top of the rankings in a worldwide study. In this paper, our ranking is based on these pillars, and their role is investigated using partial order methodology. It turns out that the pillars “Technical (aspects)”, “Capacity building”, and “Cooperation” are of particular importance. In conclusion, a strategy is suggested for an “individualized ranking” that may be helpful for small and medium-sized enterprises (SMEs) or other institutions. Here, we apply the procedure for the project “Awareness Laboratory SME (ALARM) information security” and put our ideas up for discussion. In particular, the mathematical method will be transferred to SMEs as a means to support the effectiveness of awareness-raising measures and to improve the security behaviour of company employees.