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Index of Multiple Deprivations as a Measure of Poverty in Karachi Research attention needs to be paid to those sectors that can create more jobs at a lower capital cost. 1. Discussion The new threshold has various attractive characteristics to analyze poverty. Because of the connection with the minimal needs of a household, there is a clear interpretation of the poverty threshold. One poverty line variant represents the basic needs of a household and the other variant also incorporates the minimal costs to participate in society. The indexation regime is quite easy to calculate, in contrast to an expert budget method. The quasi-relative trait of the new threshold is theoretically desirable and empirically demonstrated. Besides this, the two variants of the new poverty line seem to fit with the public opinion of poverty in the Netherlands. This concept can make the poverty clearer in terms of goals and evaluation of policies and gives a clearer view on the composition and the characteristics of poor households. Contrary to what might be expected, we have found that more deprived areas tend to be better served by health services see table 4. This suggests that general practices are generally located nearer to those people who need them most, e.g. socio-economically deprived communities. The relationship seen may also reflect the tendency for deprivation to concentrate in city centres – where services are also often concentrated. The indexation mechanism of the poverty line has a clear relation with the level of prosperity of a society. If the standard of living in a society increases, average expenses on basic items as housing, clothing and food also increase and consequently the poverty line. The key issue here is the pace at which the poverty line increases. It is at a faster rate than inflation indexed poverty line, but slower than a median income index poverty line. This characteristic is desirable as it has been shown that public perception of minimal needs increases at a lower pace than average income. PAKISTAN BUSINESS REVIEW JULY 2010 388
Research Index of Multiple Deprivations as a Measure of Poverty in Karachi Economic growth in the past has not automatically trickled down to benefit the poor. Pakistan’s growth performance over the last 3 years indicates that the stage is probably set for high growth, which can be made pro-poor by creating additional jobs for the poor as well as enhancing their education and skill levels. In addition to explicit actions to ensure that this occurs, efforts should be made to ensure that growth does not inadvertently increase inequality. More resources need to be diverted to the education and health sectors for the benefit of the poor, and the quality of public sector education, particularly in rural areas, also needs to be improved. 2. References Arif, G. M. 2002. Measuring of Poverty in Pakistan: A Critical Review of Recent Poverty Lines. In Pakistan Human Condition Report 2002. Islamabad: Centre for Research on Poverty Reduction and Income Distribution (CRPRID). ATKINSON, A. B. AND F. BOURGUIGNON (1982), “The Comparison of Multidimensional Distributions of Economic Status,” Review of Economic Studies, 49, 183–201. Bosch, K. van den (2001) Identifying the poor, using subjective and consensual measures. Aldershot: Ashgate Bradshaw J. and N. Finch (2003), “Overlaps in Dimensions of Poverty”, Journal of Social Policy, 32,4, Cambridge. Callan, T., Nolan, B., & Whelan, C. T. 1993, “Resources, Deprivation and the Measurement of Poverty”, Journal of Social Policy, vol. 22, no. 2, pp.141-172. Callan, T., Nolan, B., Whelan, B., Whelan, C. and Williams, J. (1996). Poverty in the1990s: Evidence from the Living in Ireland Survey. Oak Tree Press. 389 PAKISTAN BUSINESS REVIEW JULY 2010
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