Evaluation of changes in poverty in Bhutan since 2000 by Rinchen Tshering and Dorji Peljor

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Evaluation of poverty in Bhutan

since 2000

Faculty: Tanveer Reza Rouf

Module: ECO 242 (Bhutanese Economic - I)

Authors:

Dorji Peljor, (100933; [email protected])

Rinchen Tshering , (100901; [email protected])

B.A. Economics and Environmental studies

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IntroductionPoverty is deprivation from basic amenities and poverty is directly related to GNH

1. How has incidence of poverty changed from 2000 to 2012?

2. What is the difference in the incidence of urban and rural poverty?

3. What is the relationship between poverty incidences, calculated using

different methodologies such as SPI and MPI?

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Literature review Traditional perception of poverty in Bhutan Central Statistical Organization (2000): 36.3% National Statistics Bureau (2003,2007,2012)

31.7% 23.2% 12%

Santos & Ura (2008), Multidimensional Poverty Index

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Data and Methodology Variables:

Incidence of poverty (SPI) Urban poverty Rural poverty MPI

[N= 4] Graphs and tables are plotted to analyze the

trends in poverty and compare the poverty rate determined by different methodologies

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Poverty scenario in Bhutan

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Urban and Rural Poverty

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SPI and MPI

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Example of variables used in calculating MPIHealth

District Health Infrastructure Source

Thimphu 5 hospitals, 7 BHU and 19 ORC

SYB 2008Gasa No hospital, 4 BHU and 13 ORC

Tsirang 1 hospital, 4 BHU and 13 ORC

Zhemgang 1 hospital, 14 BHU and 38 ORC

Education and Improved water source

District Literacy rate Improved water source Source

Thimphu 72 percent 97.6 percent

BLSS 2007Gasa 40.3 percent 40.3 percent

Tsirang 54.0 percent 54.0 percent

Zhemgang 51.2 percent 51.2 percent

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Conclusion Poverty incidence is declining [ 36.3% to 12%] Rural-urban poverty is also declining

Rural- 41.31% to 16.7% [24.6% points] Urban- 6.4% to 1.8%[4.6% points] Urban-rural poverty gap is declining on an average by

5%

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contd. 30% of the districts show no difference 60% of the districts show slightly different 10% of the districts show significant difference

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Policy implication Focus on rural development Focus more on urban poverty

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Thank You