Research Tasks Deliverables of Unit 4-Social Factors-Poverty

Professor:
Lic. Miguel Armando Paniagua

Subject:
Global Environment 0

Group and section:

2-1

Student:
Eva Sofía Díaz Villatoro

Antiguo Cuscatlán, April 14, 2020

 Short research deliverables

What’s the definition of poverty proposed by the World Bank?

Poverty does not only imply a lack of income and consumption: it also manifests
itself in the form of low educational levels, unsatisfactory results in health and
nutrition, lack of access to basic services and a dangerous environment. If we
want to “end poverty in all its forms and throughout the world”, as established in the
Sustainable Development Goals, we must understand and measure poverty in all its
manifestations.

Traditionally, poverty is measured at the household level. However, since there is

inequality within families, some people undoubtedly live in poverty within non-poor
households. Current data and methods do not allow us to take into account intra-family
inequality in most countries.

Consider two households that have the same level of consumption (or income) per
person but differ in the following ways. All the children in the first home go to school,
while the children in the second home work to support the family. The first household
obtains drinking water from a tap connected to the public distribution network, while the
second household obtains water from a nearby stream. At night, the first house is lit with
electricity, while the second house is dark. A lay person would easily recognize which of
these two families is better. However, traditional household welfare measures would put
the two households on a par because, conventionally, household welfare has been
measured using consumption (or income).

Recognizing the incompleteness of the so-called monetary measure of well-being, this

year's Poverty and Shared Prosperity Report proposes a multidimensional measure
of poverty. It adds deprivation in education (enrollment in nursery school and
achievement of adult school) and access to basic infrastructure (drinking water,
sanitation and electricity) to the measure of consumption to build a more
complete picture of poverty. With this broader definition of poverty, many more
people see themselves as poor.
The growing interest in the vulnerable and middle classes has led to the estimation of
two other types of lines. The vulnerable population is those who are not in poverty but
have a high probability of falling into poverty due to any unexpected change that affects
their income. These are defined as those who earn between $ 5.50 and $ 13 per day
(2011 PPA). The middle class are households that have a low probability of falling into
poverty but are not wealthy. Earnings have been defined as between $ 13 and $ 70 per
day (2011 PPA).

What was El Salvador’s 2018 reported poverty level?

Nationwide, 26.3% of households are in poverty; of these, 5.7% are in extreme

poverty; while 20.6% are in relative poverty.

According to the 2018 Multi-Purpose Household Survey (EHPM), prepared by the

General Directorate of Statistics and Censuses (Digestyc) of the Ministry of Economy, it
reveals that the indicator of monetary poverty, which is classified as extreme and
relative; and as a parameter the value of the Basic Food Basket (CBA) per capita is
used.
In extreme poverty are those households that with their per capita income are not
enough to cover the per capita cost of the Basic Food Basket (CBA) and in relative
poverty are the households that with their per capita income do not cover the cost of the
expanded CBA (twice the value of the CBA). The cost of the urban CBA per capita in
2018 was $ 53.40 and the rural one was $ 34.03, presenting increases with respect to
the value registered in 2017.

For the year 2018 the cost of the CBA, in the urban area, for a home average of 3.46
members is $ 184.76 and the expanded CBA is $ 369.53. The cost of the CBA in the
rural area, for an average household of 3.71 members, is $ 126.25 and for the
expanded CBA it is $ 252.50.
Nationwide, 26.3% of households are in poverty; of these, 5.7% are in extreme poverty;
while 20.6% are in relative poverty.
In rural areas, 30.0% of households are in poverty; of which 7.1% are in extreme
poverty and 22.9% in relative poverty.
In the urban area, 24.1% of households live in poverty, 4.9% are in extreme poverty and
19.2% in relative poverty.
The AMSS has the fewest number of poor, 17.8% of households are in this situation;
3.0% are in extreme poverty; 14.8% are in relative poverty.