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Working Group of Statistical, 12th Session
Bangkok, 27-30 November 2001

STAT/WGSE.12/2
13 November 2001
ENGLISH ONLY

ECONOMIC AND SOCIAL COMMISSION FOR ASIA AND THE PACIFIC
Working Group of Statistical Experts
Twelfth session
27-30 November 2001
Bangkok
Poverty Statistics: Recent Initiatives taken by ESCAP on Poverty Measurement
(Item 4 of the provisional agenda)
Note by the secretariat*

Summary

This paper is intended to inform the Working Group about the initiatives taken by ESCAP to contribute towards measuring progress in achieving the Millennium Declaration Goals set by the United Nations Millennium Summit of 2000.  It discusses the overall strategy of the United Nations system, and ESCAP's contribution as it relates to poverty statistics, including preparation of a Concept Paper on Reduction of Poverty and establishment of a Joint UNDP-ESCAP Poverty Centre/Unit.  The paper raises some issues on which the secretariat would like to seek the guidance of the Working Group.

Contents
  1. Introduction and background
  2. Overall strategy of the United Nations System
  3. ESCAP's response
    1. Concept paper on reduction of poverty
    2. Joint UNDP-ESCAP Poverty Centre/Unit
  4. Rio group
  5. Concluding remarks

* This document has been issued without formal editing.

I. INTRODUCTION AND BACKGROUND

1. This paper focuses on initiatives that the ESCAP secretariat has taken to contribute towards measuring progress in achieving the Millennium Declaration Goals (MDGs) set by the United Nations Millennium Summit of 2000, which called inter alia for the proportion of people living in extreme poverty to be halved by the year 2015 (using 1990 as the base year).  The discussion is centred on issues in compiling and reporting poverty statistics, as envisaged in the secretariat's 'Concept Paper on Reduction of Poverty' and in the activities of the joint UNDP-ESCAP Poverty Centre/Unit, which constitute part of the overall effort of the secretariat to assist countries in reducing poverty.  Annexed to the paper is the agenda for the Fourth Meeting of the Expert Group on Poverty Statistics (Rio Group), which was held in Rio de Janeiro from 15-17 October 2001.  The highlights of the recommendations made by the Rio Group will be provided to the Working Group when they become available.

2. This paper complements the contents of the paper on ' Issues and Recommendations for Improving Statistics on Poverty' (STAT/WGSE.12/3), which highlights the methodological and practical aspects of poverty measurement and offers some suggestions and recommendations for better measurement of poverty.  It is expected that the discussion on this paper would give guidance to the ESCAP secretariat about the direction its efforts towards compiling and reporting poverty statistics should take, and to the countries as to how concepts and methodologies might be improved and harmonized.

3. The United Nations Millennium Summit of September 2000 declared poverty in all forms as the greatest challenge for the international community.  At the Summit, leaders from over 180 countries pledged their commitment to halving world poverty by the year 2015.  This goal has been unanimously accepted in General Assembly Resolution A/RES/55/2.

4. Because of the measurement difficulties that statisticians are acutely aware of, the dimensions and characteristics of poverty are hard to quantify.  Yet there can be no disagreement that the poverty challenge is especially daunting in the Asia-Pacific region.  According to World Bank figures, approximately 800 million of the estimated 1.2 billion people in the world existing on less than $ 1 per day live in the ESCAP region.[1]  Of this two-thirds of the world's poor population, a majority are in South Asia.  The region includes 12 least developed countries (LDCs); in these LDCS, on average, 16 per cent of all children die before their fifth birthday, average life expectancy is 51 years, and average growth rate in GDP per capita was only 1.9 per cent between 1990 and 1999.[2]

II. OVERALL STRATEGY OF THE UNITED NATIONS SYSTEM

5. The ACC[3] High-Level Committee on Programmes (HLCP) is the body which gives overall direction to programmes of all organizations within the United Nations system.  In its meetings in Vienna, February 2001 and in Geneva, September 2001, it urged all United Nations agencies to make an effective and concerted impact on poverty eradication.  It was suggested that the Millennium Declaration Goals (MDGs) should become the driving force of the work of the United Nations system as a whole, and that United Nations country teams should provide status reports on progress made towards reaching the target of reducing poverty.  HLCP stated that since the campaign against poverty should have regional as well as global and national components, the contribution of the Regional Commissions will be crucial.


[1] Selected World Development Indicators, World Development Report 2000/2001, World Bank. As mentioned in the technical notes, full comparability of data can not be assured because of differences in the methods and conventions used by the primary data collectors. This gives rise to significant discrepancies over time both among and within countries. Hence, care must be taken in interpreting the indicators.
[2] The Least Developed Countries 2000 Report, UNCTAD, United Nations.
[3] Administrative Committee on Coordination, now renamed the United Nations System's Chief Executives Board (C.E.B.)

6. The HLCP further recommended a number of mutually reinforcing actions in the areas of policy analysis, monitoring and data collection.  It stressed that the poverty paradigm would need to be broadened beyond the numerical target of reducing the number of people living below $1 per day, to encompass social, educational, nutritional health, cultural and empowerment dimensions.  The Committee recommended that as an integral part of the global campaign, each organization should prepare an analysis of the contribution of its programmes to the Millennium Declaration's goal of reducing extreme poverty.  These analyses would enable each organization to internalize the poverty eradication goals embodied in the Millennium Declaration.  The HLCP stressed that the Regional Commissions should be key elements in the regional efforts.  The United Nations Development Programme (UNDP) was also invited to provide a first draft of a 'common advocacy campaign' with clearly identified goals. 

7. As a further integral part of the campaign, the HLCP recommended that the statistical capacities of the system should be mobilized for improving poverty-related data as well as indicators and means of measuring poverty, so as to provide a common basis for analysing poverty and for developing targeted interventions.

III. ESCAP'S RESPONSE

8. In line with the ACC HLCP's recommendation that each organization prepare an analysis of the contribution of its programmes towards the achievement of Millennium Declaration Goals, the Executive Secretary identified the following three thematic focus areas for ESCAP:  (a) poverty alleviation, (b) managing globalization, (c) emerging social issues.  The Commission at its fifty-seventh session in 2001 acknowledged that these three areas were pertinent.  For each of these areas, concept papers have been prepared in which the direction and focus of each of these priority areas is iterated, and an overall concept paper 'Focusing ESCAP's Programme' has been drafted.[4]


[4]
The latest version of the overall concept paper is available to the Working Group as STAT/WGSE.12/CRP.1.

9. In addition, a joint effort has been initiated by ESCAP and UNDP to establish a Poverty Centre/Unit to monitor the progress of the region in meeting the targets set by the Millennium Summit, and at the same time assist the countries in designing appropriate policies for reducing poverty.  Discussions between the two organizations are going on in order to determine the exact mechanism through which this major task is to be accomplished.

10. The summary of the concept paper on reduction of poverty and highlights of the project document on the Poverty Centre/Unit as they relate to statistical aspects of poverty measurement and reporting are discussed below.  It is hoped that the discussions in the Working Group will give direction and focus to the ESCAP secretariat's efforts to compile and report poverty statistics.

A. Concept Paper on Reduction of Poverty

11. As stated in the concept paper, a principal objective of ESCAP would be to assist and contribute to national efforts of poverty reduction.  In view of the multidimensional nature of poverty, ESCAP will adopt a multifaceted approach in supporting its developing member countries.  ESCAP will focus on two types of activities.  The first set of activities will be essentially analytical and policy-oriented in nature, while the second set will focus on the development of best practices in poverty reduction.

12. It is recognized that analysing and monitoring poverty are essential first steps in understanding its root causes and in developing policies and strategies aimed at reducing the number of people affected.

13. Effective monitoring of poverty calls for selecting poverty indicators and measuring their values, which requires coordinated effort between national governments and international organizations.  Since poverty is a complex phenomenon, its measurement involves a variety of areas and statistical techniques.  These include (a) improvement and harmonization of methodologies for income poverty measurement; (b) reconciliation of data from micro and macro-economic sources; (c) generation of more accurate purchasing power parities (PPPs) that more accurately reflect the expenditure pattern of the poor; (d) the development and refinement of poverty maps and other analytical tools; and (e) improved coverage and accuracy of poverty-related indicators.  With respect to the latter, there is a need to broaden poverty income related statistics to encompass economic, social, educational, nutritional health, environment and cultural dimensions.

14. The intended tangible outputs in the area of statistics are expected to be:

  1. Strengthened statistical capacity in constituent member and associate member countries to enable them to design appropriate poverty reduction strategies and measure their own progress towards the MDGs in a sustainable and accurate manner, and
  2. Cross-country data which are sufficiently comparable across time and space to permit the region's achievements as a whole to be reliably assessed.

15. Hence, the strategic thrust of the statistical programme is to develop common statistical methodologies for inter-country comparison of poverty levels as well as to strengthen the capacities of governments to collect, analyse and use data for measuring and monitoring poverty.  It is envisaged that this would facilitate the analysis of causes of poverty and of possible remedies.

16. ESCAP's comparative advantage in this area is that its statistical expertise is oriented not only towards direct measures of poverty and related indicators but also in the vital adjunct areas of national accounts and purchasing power parities.  This expertise could be utilized to improve the comparability of national poverty data and thus better track poverty incidence and severity for the region as a whole.

17. Expected results by the end of 2005 are to make available reasonably reliable estimates of poverty incidence and of poverty related development indicators for most countries in the region, and to enhance the comparability of these estimates.  As far as long-term results are concerned, it is expected that by the end of the decade, statistical capacity would have been created in most countries to monitor the Millennium Declaration Goals.

B. Joint UNDP-ESCAP Poverty Centre/Unit

18. This project is intended to enable ESCAP and UNDP to respond to the Millennium Declaration and fulfil their respective special responsibilities within the United Nations system for monitoring and assisting countries in achieving the Millennium Declaration Goals (MDGs).  The two organizations aim to meet this objective through the following:

  1. Based on available country MDG reports, the Poverty Centre/Unit will prepare a regionwide report provisionally entitled 'State of Progress Towards Achievement of Millennium Goals in Asia-Pacific'.  The report would undertake comparative analyses and identify certain common issues and obstacles faced by countries of the region in achieving MDG targets.  It is envisaged that the report would facilitate exchange of information and highlight best practices undertaken by countries in these efforts.  The first such regional report is scheduled to be completed by the latter part of 2002 to coincide with the first global report of the Secretary-General to the General Assembly on the Millennium Declaration.
  2. The Centre/Unit will also prepare documentation, and disseminate successful 'downstream' community development practices in poverty alleviation such as the Saemaul Undong (New Community Movement) of the Republic of Korea and Grameen Bank of Bangladesh.  This should be seen as part of a learning spiral in which lessons learned could be fed back into national efforts and strategies for poverty reduction.  The project will rely on cultivating a network of regional and subregional policy and statistical institutions that already or potentially could support ongoing poverty reduction strategies and processes.  It is expected that these institutions would be the backbone in the process of the development and strengthening of national and regional capacity to collect and analyse data and to monitor MDG reports.
19. The long-term output of the Poverty Centre/Unit would include:
  1. Two reports on the 'State of Progress toward Achievement of Millennium Goals in Asia-Pacific' (September 2002 and August 2004).
  2. At least three regional seminars/consultations on assessing progress towards MDGs including the launching of each report.
  3. Comparative study of successful 'downstream' community development practices such as the Saemaul Undong (New Community Movement) of the Republic of Korea and Grameen Bank of Bangladesh and others with a view to assessing their influence at the macro level.
The project is expected to get off the ground before the end of this year.

20. One responsibility of ESCAP Statistics Division is to assist the Poverty Centre/Unit in its work related to poverty and other relevant statistics.  In this connection, a P-4 statistician of the Statistics Development Section has been assigned to work at the Poverty Centre/Unit from November 2001.

IV. RIO GROUP

21. The Fourth Meeting of the Expert Group on Poverty Statistics (Rio Group) was held in Rio de Janeiro, 15-17 October 2001.  The agenda of the meeting is annexed for the Working Group's information.  The report and summary of discussions of the meeting are expected to be available shortly, and will be provided to participants as soon as possible.

V. CONCLUDING REMARKS

22. The purpose of this paper is to inform the Working Group about the initiatives taken by the ESCAP secretariat to contribute towards measuring progress in achieving the Millennium Declaration Goals (MDGs).  The Statistics Division would like to seek the opinion and advice of the Working Group on the following questions:

  1. How congruent is the ESCAP response with the overall strategy of the United Nations System?
  2. How realistic and achievable are the goals related to poverty statistics as stated in the Concept Paper on Reduction of Poverty?
  3. What is the best strategy to be adopted by the Statistics Division for achieving those goals?
  4. What is the best way for the Statistics Division to contribute to the work of the joint ESCAP-UNDP Poverty Centre/Unit?
  5. What (if anything) should Statistics Division do in the area of poverty statistics in addition to the work of the Poverty Centre/Unit?
  6. What approximate percentage of resources (both regular budget and extrabudgetary) should the Statistics Division devote to poverty statistics?


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