Measuring Poverty: the Methodological Debate

Abstract

The focus of the international community on poverty reduction has been gaining momentum since the early1990s. The World Summit for Social Development in Copenhagen (2005) and the subsequent MillenniumSummit in New York (2000) provided considerable political will for the reduction of poverty. The debate hasbeen how a multi-dimensional subject like poverty can be measured statistically. Should we continue the singlemeasure using consumption or accept a composite measure; and how would this measure be amenable toquantitative manipulation. This paper traced this methodological debate and offers the contribution that theintensity of poverty can be better measured using a composite income or expenditure metrics that capturesexpenditure on the individual’s basic necessities of life such as food, health, clothing shelter, education etc. Thisis because changes in income or expenditure have multiplier effects that influence all aspects of the quality ofhuman life, both at the micro and macro levels. Many of the known indices of poverty, such as those mentionedabove, are directly or indirectly dependent on income. Even qualitative indicators such as dignity, power andsecurity are better assured to people with higher income to spare.Keywords: Poverty, Methodological industry, metrics, qualitative, quantitative