Chris de Neubourg

Child Poverty in Vietnam: Providing Insights Using a Country-Specific and Multidimensional Model

Despite a wide under-prioritization, the issue of child poverty has received increasing attention worldwide over the last decade. The acknowledgement in Vietnam that child-specific poverty measurement is crucial for poverty efforts directed towards children, and the current lack thereof, instigated the development of a Vietnam child poverty approach. This paper proposes a country-specific, multidimensional and outcome-based approach for the measurement of the incidence, depth and severity of child poverty. It does so at the level of the individual child using household survey data. The development of such an approach at the level of the individual child presents an appropriate alternative for or supplement to the widely used monetary poverty approach, allowing for the use of compatible analytical methods. Findings suggest that 37% of all children in Vietnam live in poverty, with the most pressing areas of deprivation being water, sanitation and leisure. We do not find evidence for a gender bias but do observe a large urban–rural divide, regional disparities and large ethnic inequalities. We argue that this tailor-made approach is a valuable new tool for policy makers and analysts in Vietnam as it enables identification and analysis of poor children, their characteristics and most pressing areas of deprivation within the country’s specific social and cultural context.

The Importance of Choice and Definition for the Measurement of Child Poverty—the case of Vietnam

Increased attention to childrens’ special position within poverty measurement resulted in the development of various child poverty approaches in the last decade. Analysis shows that their development processes involve a similar set of steps and decisions, predominantly taken in the same sequence. However, it also becomes apparent that many of these decisions are made implicitly rather than explicitly, resulting in unclear and non-transparent underlying constructs. Consequently, child poverty approaches often lack a solid and robust foundation and are misinterpreted and misunderstood when used for analytical and policy purposes. This paper distills a generic construction process from the analysis of existing child poverty approaches, presenting a tool for clear and transparent development of such approaches. It is then applied to the case of Vietnam, using household survey data, to illustrate its practical use and develop a Vietnam-specific child poverty approach. Findings suggest that 37% of all children are poor, whilst observing a large rural-urban divide but no significant differences between boys and girls.

Relative or Absolute Poverty in the US and EU? The Battle of the Rates

US poverty is much higher than poverty in Europe when a relative poverty measure is used. Using an absolute poverty measurement method, the picture looks different: poverty in some European countries is higher. This paper estimates poverty rates for all the countries of the (old) EU and the USA applying the official measurement methods of the United States (absolute) and the European Union (relative) to all the countries. The differences in poverty levels, both in time and between the 16 countries are analysed, identifying the various sources for the variance in the figures. Using annual data of the EU and the US from 1994 to 2001, we illustrate how some differences in poverty levels are inherent to the choice for an absolute or a relative approach, while other differences are related to aspects common to both absolute and relative poverty measurement but working out differently depending on the estimation method used. The results of our analysis point out that using a single figure is often misleading.

The Policy Relevance of Absolute and Relative Poverty Headcounts: What's in a Number?

Financial poverty indicators still play an important role in policymaking and evaluation. Countries such as the USA and the EU member states use one or several ‘official’ poverty indicators on which success of poverty reduction policy is regularly monitored. Whereas the US poverty indicator is based on an absolute concept of poverty, the EU Laeken indicator is based on a relative concept. But the consequences of such a decision are considerable. As absolute and relative poverty indicators reflect related but conceptually distinct approaches to determining insufficient levels of well-being; they can yield very different poverty statistics, particularly over time. In this paper, we use the official EU and US poverty indicators to study the policy relevance of using either an absolute or a relative indicator. We find significant differences between the poverty estimates in poverty rates as well as in the poverty profiles. Benefit incidence- and adequacy rates are equally estimated and compared. The paper concludes that the differences between the two poverty concepts is more than important enough to support monitoring poverty and the related social and economic policies, using both relative and absolute poverty indicators.

Poverty in Europe and the USA: Exchanging official measurement methods

Official poverty methodologies differ from other poverty measurement methods in the sense that the official ones are more often used as a benchmark to develop new policies as well as to evaluate the performance of existing programs. Europe has the tradition and the practice to use relative poverty as “official” poverty estimates (Common Laeken indicators); the USA use an objective method to estimate official poverty (Orshansky indicator). Although related, each approach portrays different dimensions of poverty. In this study we compare the official poverty methodologies of the USA and EU by applying them on datasets of both countries. Using the harmonized European Community Household Panel (ECHP) for the EU and the Panel Study on Income Dynamics (PSID) for the USA, we compare poverty trends in the USA and EU in relative and absolute terms on a national level as well as for various subgroups of the populations. Additionally, we use the panel dimension of the data to analyze individual poverty dynamics. We find considerable differences between the estimates based on Laeken indicators and the estimates based on an Orshansky type of technology. It was expected that in general Orshansky generates lower poverty estimates than the Laeken indicators. However, it is puzzling to find that a.) these differences are less systematic than expected and b.) these differences are not constant over time and in some cases even have the reverse sign. These findings point to the desirability of involving both poverty concepts into (official) poverty assessments.

A Global Measurement Approach versus a Country-Specific Measurement Approach - Do They Draw the Same Picture of Child Poverty? The Case of Vietnam

Child poverty can be measured using approaches that aim to make cross-country comparisons on a regional or global scale or to capture a country’s specific poverty context. The first can be referred to as a global approach and the second as a country-specific approach. These underlying rationales for the design and use of a child poverty approach have great implications for their theoretical and conceptual frameworks. This paper investigates whether the conceptual differences between the global and country-specific approaches also draw a different empirical picture of child poverty when applied to a specific country. Vietnam is used as a case study for the application of both approaches and analysis of results. The methodology used identifies children at two different levels of poverty, namely severe deprivation and absolute poverty. Findings suggest that the country-specific approach is more inclusive than the global approach, identifying a larger percentage of children as poor and capturing the large majority of those children identified under the global approach. Poverty figures of both approaches further convey a varying picture of child poverty when considering the different dimensions of vulnerability. The demographic composition of the poverty groups by either one or both of the approaches does not display significant differences.

A Tale of Two Short Consumption Modules

Two short consumption modules were piloted in Bogra and Sirajganj (Bangladesh) in May-June 2012 as part of the Global MICS5 Pilot. This paper aims at validating this exercise and assessing the accuracy and reliability of the consumption estimates obtained. The use of a benchmark consumption module is essential in order to assess how well the two short options fare; the analysis therefore consists of a systematic comparison of both short modules with a benchmark. The attempt made is to isolate and test the impact of the length (degree of commodity) of the consumption questionnaire on the quality of consumption and poverty estimates as well as distributional measures obtained. We conclude that it is feasible to include a short consumption module in MICS (Multiple Indicator Cluster Surveys). The Bangladesh experience suggests that this module can give accurate predictions of aggregate consumption and poverty, allowing for the analysis of monetary and non-monetary dimensions of welfare together. However the module cannot be used to analyze individual consumption groups (like food, nonfoods, etc.) or consumption patterns.

The Effects of Malnutrition and Post Traumatic Stress Disorder on the Learning Capacity of Children

Financial crises and food crises can increase malnutrition considerably and malnutrition is accepted to have a negative impact on the school performance of children and adolescents. Malnutrition also has a negative impact on cognitive development and a potentially lasting effect on (some) cognitive functions. While recent findings seem to suggest that under certain conditions some of the cognitive impairments can be reinstalled, this paper focuses on the short term working memory effects of malnutrition. This is important since defective working memory capacities among young children limit their learning capacity and thus the success of their investments in human capital. This may jeopardize their ability to obtain socially and economically adequate schooling levels potentially depressing their earning possibilities at adulthood. The study is based on an empirical study among 80 children (boys and girls) aged between 9 and 13 years old in Banda Aceh Indonesia conducted in 2010 in cooperation with UNICEF. The study involved testing the children on a number of working memory tests (Digit Span, Coding and Bourbon-Vos) and the Raven SPM intelligence test. Malnutrition was measured as stunting. Because the population of children living in Banda Aceh had been exposed to severe stress during the Tsunami of December 2004 and its aftermath and during the long lasting violent conflict in the region, the study measured the degree of Post-Traumatic Stress Disorder (PTSD) using the Child PTSD Symptoms Scale (CPSS). PTSD is proved to have similar effects on brain development as malnutrition and thus the effects of malnutrition on the working memory of children have to be controlled for the potential effects of PTSD. According to the results of the study, malnutrition is associated with a decrease in performance on the working memory tasks. Intelligence measured by the Raven’s SPM was not associated with the decrease in performance on the working memory tasks, while it was found that a high score on the CPSS was indeed associated with a decrease in the performance on the three working memory tests. The study concludes with discussing the policy relevance of the results and sets out an agenda for further research.