Revista Latinoamericana de Desarrollo Económico

Presentación

The Evolution of Poverty in Bolivia: A Multidimensional Approach

Este documento construye una medida de pobreza multidimensional para Bolivia, basado en todos los derechos fundamentales establecidos en la Constitución de 2008 que pueden ser medidos en las encuestas de hogares; y documenta los cambios de pobreza observados en Bolivia durante la última década utilizando un enfoque multidimensional. En particular, extendemos el análisis de Hernani-Limarino (2010) de la evolución de la pobreza monetaria con nuevas mediciones de líneas de pobreza desarrollados por Hernani y Eid (2013) y un análisis que incorpora cinco dimensiones no monetarias: acceso a educación, seguridad social de corto plazo (salud), seguridad social de largo plazo (pensiones), vivienda adecuada, y servicios básicos de la vivienda (electricidad, agua, saneamiento básico y telecomunicaciones). El análisis muestra que, durante el periodo 1999-2011, la pobreza monetaria ha mostrado una tendencia decreciente acelerada a partir del año 2005, con una tasa de reducción promedio de 4.5% anual, que representa 253,364 personas por año. Por otra parte, se han observado ligeros avances en el acceso a dimensiones sociales durante el periodo 1999-2005 en el área urbana, mientras que en el área rural se han mantenido niveles altos de privación. Estos resultados han generado que la pobreza multidimensional se haya reducido en 24 puntos porcentuales durante el periodo 1999-2011 pero también un aumento de las personas con vulnerabilidad social por el comportamiento elusivo de la pobreza no monetaria en el país.

This paper constructs a multidimensional poverty measurement for Bolivia based on all fundamental rights establish inits 2008 Constitution than can be measured in the surveys; and documents the observed poverty changes in Bolivia during the last decade using this multidimensional approach. In particular, we extent Hernani-Limarino (2010) analysis of the evolution of income poverty with an analysis that incorporares five non-income dimensions: access to education, short term social security (health), long term social security (pensions), adequate dwelling, and basic dwelling services (electricity, water, basic sanitation and telecommunications). Our analysis shows that, during 1999-2011 income poverty has shown a downward trend accelerated from the year 2005 with an average reduction rate of 4.5% per year, representing 253,364 people per year. On the otherhand, slight increases were observed in access to social dimensions during 1999-2005 in urban areas, while in rural areas have maintained high levels of deprivation. These results have reduced multidimensional poverty by 24 percentage points during the period from 1999 to 2011 but also an increase of people with social vulnerability due to elusive behavior of non-monetary poverty in the country.

Trends in Income and Consumption Inequality in Bolivia: **a Fairy Tale of Growing Dwarfs and Shrinking Giants**

This paper documents and describes the evolution of income and consumption inequality in Bolivia between 1999 and 2011. We find that income and consumption inequality measured by the Gini index both dropped 22% during the period we analyze, making Bolivia the top performer in the Latin American region regarding income inequality reduction. To make a more complete description of this trend, we make separate analysis for the urban and rural area. Changes in urban inequality are driven by changes in the upper part of the distribution, as the 90-50 income and consumption percentile ratios fell 24%, as opposed to a 8% fall in the 50-10 ratio, for the subperiod 2005-2011. Changes in rural inequality occur through the entire distribution in similar fashion, but are more intense before 2005, when the 90-50 and 50-10 ratios fell 30 and 26% respectively.

Este trabajo documenta y describe la evolución de la desigualdad de ingreso y de consumo en Bolivia entre 1999 y 2011. Hemos podido encontrar que la desigualdad tanto en ingreso como en consumo, medida por el índice de Gini, cayó en 22% durante el periodo de análisis, convirtiendo a Bolivia en el país mas destacado de América Latina en lo que respecta a reducción de la desigualdad. Para hacer una descripción más completa de esta tendencia, hacemos análisis separados para el área urbana y para el área rural. Los cambios en la desigualdad urbana son conducidos por cambios en la parte mas alta de la distribución, tal que las ratios percentiles 90-50 de ingreso y de consumo cayeron 24%, en contra a una caída de 8% en la ratio 50-10, para el subperiodo 2005-2011. Los cambios en desigualdad rural ocurren a través de toda la distribución de un modo similar, pero son más intensos antes de 2005, cuando las ratios 90-50 y 50-10 cayeron 30 y 26% respectivamente.

Drawing the line: Estimating the basic food basket and poverty lines in Bolivia during the 1999 - 2012 period

La construcción de la línea de pobreza es el paso más crítico y difícil en la medición de la pobreza, pues establece el umbral que define quién es o no es pobre. En el presente documento se establecen los criterios y se utiliza la información disponible para construir Canastas Básicas Alimentarias a partir de la Encuesta Continua de Hogares 2003-2004, y se obtiene una valoración de dichas canastas con los precios del IPC base 2007. A partir de las Canastas Básicas Alimentarias se estimaron las líneas de pobreza extrema y moderada para las ciudades de Santa Cruz, La Paz y Cochabamba, así como para el resto urbano y el área rural de Bolivia para el periodo 1999-2012. Las actuales estimaciones de pobreza monetaria en Bolivia aún tienen como referencia la canasta básica de alimentos construida en 1995, bajo un contexto de mayor restricción y escasez de información acerca de patrones de consumo, una estructura demográfica de hace dos décadas y criterios desactualizados sobre las necesidades nutricionales.

To establish poverty line(s) is the most critical and hardest step in the measurement of poverty because it defines who is and is not poor. Bolivias official estimates are based on an outdated household survey which was constrained to the urban area only. In this paper we outline the assumptions made to construct basic food baskets for 5 domains and present results from the 2003-2004 expenditure income household survey based on the food energy intake methodology. Then we update the results for the 1999-2012 period using the prices from the Consumer Price Index survey and show the significant differences between the estimations for the urban and rural area as well as the differences with the international poverty line that is the reference for international poverty comparisons.

Monetary Poverty. Growth and Redistribution

This paper documents and explains the evolution of monetary poverty in Bolivia during the period 1999-2011. First, we find a significant reduction in both, extreme and moderate, poverty. During the period under analysis, extreme poverty headcount, gap and severity have reduced in 55,67 and 73%; while moderate poverty headcount, gap and severity have reduced in 32,50 and 60%, respectively. The speed of poverty reduction was greater in extreme poverty than in moderate poverty, with significant differences by poverty measures, areas, and time periods. On the one hand, the average reduction rate in extreme poverty headcount in urban areas was 10.4% per year in the 2005-2011 period and 3.5% per year in the 1999-2005 period; while in rural areas was 7.2% per year in the 2005-2011 period and 3.9% per year in the 1999-2005 period. On the otherhand, the average reduction rate in moderate poverty headcount in urban areas was 3.7% per year in the 2005-2011 period and 1.9% per year in the 1999-2005 period; while in rural areas was 4.4% per year in the 2005-2011 period and 2.4% per year in the 1999-2005 period. Second, we find that growth of and redistribution in per capita household income have played different roles in poverty reductions by are and time period. On the one hand, poverty changes in urban areas during the 1999-2005 period are mainly explained by the growth in per capita income -which was enough to compensate for the increase on income inequality; while poverty changes during the 2005-2011 period was the result of both, growth in and redistribution of per capita income. On the other hand, poverty reductions in rural areas are mainly explained by the sustained growth of per capita household income, more intense during the last than during the first period.

To Live Well and Multidimensional Poverty. Is a conceptual conciliation possible?

Este documento explica cómo el concepto de Vivir Bien constituye un paradigma prevalente, no estructurado en todos los niveles paradigmáticos, lo que hace que no pueda considerarse como un paradigma de desarrollo sincrético y global. Además, los autores encuentran que si bien existe un vínculo entre el enfoque de capacidades y el concepto de Vivir Bien, una medición de éste, via un indicador de pobreza multidimensional, no es posible, dadas las complejidades intrínsecas en la postulación de umbrales para cada dimensión y la ausencia de datos adecuados.

This document explains how the Live well concept is a prevalent paradigm, unstructured at all levels, thus making it invalid as a global and syncretic development paradigm. The authors find that while there is a link between the capabilities approach and the live well concept, a direct measurement of the latter via a multidimensional poverty indicator is not possible, given its intrinsec complexities and the current absence of adequate data.