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Child Poverty in Mozambique. A Situation and Trend ... - Unicef

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Box 2.1: Methodological note on measur<strong>in</strong>g official<br />

poverty – the consumption approach<br />

The consumption based measure, from which the national poverty l<strong>in</strong>e is derived,<br />

is based on the Household Income <strong>and</strong> Expenditure Survey (IAF), which is<br />

conducted by INE every six years. It was first conducted <strong>in</strong> 1996/97, followed by<br />

a second survey <strong>in</strong> 2002/03. The latter comprised week-long <strong>in</strong>terviews with a<br />

r<strong>and</strong>om sample of 8,700 households, <strong>in</strong>clud<strong>in</strong>g detailed questions on expenditure.<br />

It is representative both <strong>in</strong> terms of space <strong>and</strong> time, with <strong>in</strong>terviews for each subgroup<br />

of the population represented spread evenly throughout the survey year so<br />

as to capture seasonality <strong>in</strong> prices <strong>and</strong> consumption. The data is then analysed<br />

by the M<strong>in</strong>istry of Plann<strong>in</strong>g <strong>and</strong> Development to determ<strong>in</strong>e the national poverty<br />

situation through the <strong>Poverty</strong> <strong>and</strong> Well-Be<strong>in</strong>g National Assessment (GoM, 1998<br />

<strong>and</strong> 2004).<br />

“Consumption” <strong>in</strong>cludes both food <strong>and</strong> non-food items <strong>and</strong> is adjusted for<br />

seasonality of the former, but omits public services <strong>and</strong> home produced services.<br />

A Cost of Basic Needs (CBN) methodology is then applied. This approach consists<br />

of the development of a basket of food items consumed by the poor that is judged<br />

sufficient for basic calorie needs (the calorie content of each basket depends<br />

upon the demographic composition of the region, averag<strong>in</strong>g approximately 2,100<br />

calorie/day). The cost of this basket makes up the food poverty l<strong>in</strong>e. A non-food<br />

poverty l<strong>in</strong>e is obta<strong>in</strong>ed by exam<strong>in</strong><strong>in</strong>g the share of total expenditure allocated to<br />

non-food by households liv<strong>in</strong>g near the food poverty l<strong>in</strong>e. The overall poverty l<strong>in</strong>e<br />

is then calculated as the sum of the food <strong>and</strong> non-food poverty l<strong>in</strong>es. It must be<br />

stressed that the poverty l<strong>in</strong>e represents an extremely basic st<strong>and</strong>ard of liv<strong>in</strong>g.<br />

The consumption-based measure, however, has important limitations. It<br />

produces a measure of ability to satisfy basic needs rather than actual household<br />

consumption – to say a household can satisfy its basic needs is not to show<br />

that it actually does so. Due to data restrictions, the measure also provides<br />

a household average consumption measure <strong>and</strong> thus does not capture <strong>in</strong>trahousehold<br />

allocations, so that some members of a non-poor household may<br />

<strong>in</strong> fact be consumption-poor <strong>and</strong> vice-versa. F<strong>in</strong>ally, <strong>in</strong> <strong>Mozambique</strong>, the f<strong>in</strong>al<br />

consumption measure is produced on a per capita basis, with no compensation<br />

made for differences between child <strong>and</strong> adult expenditure requirements through<br />

the use of adult-equivalence weight<strong>in</strong>gs (i.e. the average of 2,100 calorie/day to<br />

satisfy m<strong>in</strong>imum needs applies equally to both adults <strong>and</strong> children). At first sight,<br />

this implies that the poverty situation for children may be a little better than that<br />

portrayed, as a work<strong>in</strong>g adult for example requires a higher amount of calories/day,<br />

<strong>and</strong> hence greater expenditure, than a non-work<strong>in</strong>g child. However, s<strong>in</strong>ce children<br />

require a higher <strong>in</strong>take of micronutrients than adults, ma<strong>in</strong>ta<strong>in</strong><strong>in</strong>g the adult calorific<br />

requirement may be a reasonable proxy for measur<strong>in</strong>g a child poverty l<strong>in</strong>e us<strong>in</strong>g<br />

the consumption-based measure. In addition, the proportion of children who work<br />

is high. As the Second National Assessment observes, “these issues highlight the<br />

need for a variety of poverty <strong>in</strong>dicators taken from a variety of perspectives.”<br />

The <strong>in</strong>dicator measur<strong>in</strong>g the percentage of people liv<strong>in</strong>g below the poverty l<strong>in</strong>e<br />

is known as the “poverty headcount”. The headcount measure does not convey<br />

<strong>in</strong>formation regard<strong>in</strong>g improvements <strong>in</strong> the well-be<strong>in</strong>g of those below the poverty<br />

l<strong>in</strong>e. In order to measure the depth of poverty – how poor the poor are – the<br />

“poverty gap <strong>in</strong>dex” is used. This <strong>in</strong>dicator is an average percentage distance<br />

that exam<strong>in</strong>es how far the average poor household is from escap<strong>in</strong>g poverty or<br />

ris<strong>in</strong>g above the poverty l<strong>in</strong>e. In order to measure <strong>in</strong>equality amongst the poor, the<br />

<strong>in</strong>dicator known as the “squared poverty gap <strong>in</strong>dex” is also used. This <strong>in</strong>dicator<br />

averages the square of the poverty gaps, thereby giv<strong>in</strong>g weight to ga<strong>in</strong>s made by<br />

the poorest of the poor.<br />

CHILDHOOD POVERTY IN MOZAMBIQUE: A SITUATION AND TRENDS ANALYSIS<br />

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