Introduction

Why estimate poverty?

Poverty estimates are vital input to design, monitor and implement appropriate anti-poverty policies. Analysis of poverty profiles by regions, socio-economic groups Relative effects of factors affecting poverty Allocation of resources to different regions and to various poverty reduction programs Precise estimates of poverty neither easy nor universally acceptable. Yet, can act as a broad and reasonably policy guide.

A minimum level of living necessary for physical and social development of a person. Estimated as: total consumption expenditure level that meets energy (calorie) need of an average person.

PL comprises of both food and non-food components of consumption. Considers non-food expenditure actually incurred corresponding to this total expenditure. Difficult to consider minimum non-food needs entirely on an objective basis

% population below PL

20

25 Rural HCR Urban HCR

30

35

40

45

50

55

60

65

70

1960 1963 1966 1969 1972 1975 1978 1981 1984 1987 1990 1993 1996 1999 2002 2005

 According to a new study based on the multidimensional poverty index developed at the University of Oxford and used by the UN Development Programme (UNDP) in its Human Development Reports, Nepal and Bangladesh are reducing poverty faster compared to India. India also made significant progress in reducing poverty between 1999 and 2006, but at a rate that was less than one-third of the speed of its poorer neighbours, with a reduction in poverty rates of 1.2 percentage points per year [instead of 4.1% (Nepal) or 3.2% (Bangladesh)], the study found.