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2016 | Buch

Introduction and Summary of Poverty and Well-Being in East Africa: A Multifaceted Economic Approach Kapitel lesen Erstes Kapitel lesen

Poverty and Well-Being in East Africa

A Multi-faceted Economic Approach

herausgegeben von: Almas Heshmati

Verlag: Springer International Publishing

Buchreihe : Economic Studies in Inequality, Social Exclusion and Well-Being

Enthalten in: Springer Professional "Wirtschaft+Technik" , Springer Professional "Wirtschaft"

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Über dieses Buch

This volume is a collection of selected studies on poverty and well-being in East Africa. Using a multidimensional approach, the authors hope to provide a broad view of poverty and a thorough account of the variables that contribute to it. As opposed to traditional studies of poverty, which focus mainly on material well-being, this volume includes criteria such as material standard of living, health, education, housing, personal security, access to information, freedom, participation in organization, corruption, trust, and employment. The studies highlighted in this volume are grouped into the following four research areas: child poverty and malnutrition, dynamics and determinants of poverty, multidimensional measures of poverty, and energy-environment-poverty relationships. Together, these studies provide a comprehensive picture of the state of multidimensional poverty, its measurement, causal factors, and policies and practices in Burundi, Cameron, Ethiopia, Kenya, Madagascar, Malawi, Mozambique, Nigeria, Rwanda and Tanzania. The methodology utilized in the studies is diverse as well, ranging from econometric analysis to decision theory, to neoclassical growth models. This book is geared towards students and researchers interested in economic development, welfare, and poverty in Africa as well as policy makers and members of NGOs and international aid agencies.

Inhaltsverzeichnis

Frontmatter
Chapter 1. Introduction and Summary of Poverty and Well-Being in East Africa: A Multifaceted Economic Approach
Abstract
This volume is a collection of selected studies on poverty and well-being in East Africa. Eleven authors agreed to have their papers included in this volume. The studies can be grouped into four domains: child poverty and malnutrition, dynamics and determinants of poverty, multidimensional measures of poverty, and energy-environment-poverty relationships. The core argument for use of multidimensional poverty and for bringing out this edited volume is the need to account for all dimensions of poverty in its measurement and classification of individuals and households as poor/nonpoor. Research on the use of a multidimensional measure of poverty has received much attention. Poverty dimensions include material standards of living, health, education, housing, personal security, access to information, freedom, participation in an organization, corruption, trust, and employment. The studies in this volume together provide a comprehensive picture of the state of multidimensional poverty, its measurement, causal factors and policies and practices in Burundi, Cameroon, Ethiopia, Kenya, Madagascar, Malawi, Mozambique, Nigeria, Rwanda, and Tanzania. In these countries poverty rates are high and multifaceted and these represent a major challenge to the governments and organizations which are aiming at alleviating poverty and promoting the well-being of the poor. By employing diverse up-to-date data and methods, the papers in this volume provide a wealth of empirical evidence and sound recommendations to researchers and policymakers in East Africa to design and implement effective and inclusive strategies and policies for promoting development and reducing poverty.
Almas Heshmati

Child Poverty and Malnutrition

Frontmatter
Chapter 2. Child Poverty and Household Poverty in Cameroon: A Multidimensional Approach
Abstract
This study investigates child multidimensional poverty in Cameroon. It finds out its determinants and its relationship with household multidimensional poverty by considering children aged less than five years. The study uses from the Third Multiple Indicators Clusters Survey. Five dimensions are taken into consideration in child multidimensional poverty: nutrition, accessibility to potable water, health, education, and lodgings. For households, the following dimensions are combined: accessibility to potable water, hygiene, patrimony, lodging, and the level of education of the head of the household. Multiple components analysis (MCA) and hierarchical classification methods are applied to appreciate both child and household poverty. The results show that 73 % children aged less than five years lived with multidimensional poverty line with 25 % being affected by extreme poverty. On the other hand, 61 % of Cameroonian households were poor. Multidimensional poverty significantly varied with household size, the milieu of the residence and the level of education of the head of the household. The results also reveal that the key determinants of child multidimensional poverty are the poverty status of the household, the level of education and the age of the child’s mother/caretaker, and the presence of the mother in the household. The study recommends the implementation of specific policies in favor of children and young girls and the implementation of a family code.
Pierre Nguetse Tegoum, Kodzo Dodzi Hevi
Chapter 3. The Impact of Child Malnutrition and Health on Cognitive Skills in Ethiopia: Using a Standard Panel Data Analysis
Abstract
Over the past two decades, Ethiopia has made significant progress in key human development indicators. Child mortality and nutrition have improved and primary school enrolments have increased. This study uses longitudinal data of 1813 strong young cohort and 443 of the old cohort—children in five regions in the country over two rounds from the Young Lives Survey. The purpose of this study is to explore the effects of child nutrition and health on their cognitive achievements measured by the Peabody Picture Vocabulary Test (PPVT) test score using a static panel model. The regression analysis shows that there is a positive association between child nutrition (measured by height-for-age WHO z-scores) and cognitive achievements in all age cohorts. This study also finds that, there are cognitive skill disparities among regions and between sexes and areas of residence. Therefore, the government must give due attention to the importance of nutrition for cognitive and educational development, and these must be integrated as a key component of early childhood care and development programs Since there are regional, residence, and gender disparities in the cognitive skills of the children in each cohort an appropriate nutritional strategy must be developed. In order to achieve long-run human capital development in Ethiopia, all domestic and international nongovernmental organizations have to support and finance the national plan to scale up the nutritional status of children in their early ages.
Kahsay Berhane Lemma
Chapter 4. Assessing MDG Achievements Through Under-5 Child Stunting in the East African Community: Some Insights from Urban Versus Rural Areas in Burundi and Rwanda Using DHS2010
Abstract
This paper assesses the prevalence of stunting and its potential determinants using data from the Demographic and Health Surveys (DHS) conducted in Rwanda and Burundi in 2010. Selected child, mother, and household characteristics are described for rural and urban areas in each country and the logistic regression model is constructed for each setting independently. The results show that male sex and increasing age are associated with stunting in rural and urban children in both the countries. The child’s size at birth is associated only in urban Rwanda and rural Burundi, and the fact that the child has not received vitamin A supplementation or vaccination only in rural settings (Rwanda and Burundi, respectively). Regarding mother’s characteristics, young age is a stunting potential risk factor in all settings except in urban Rwanda, and mother’s low educational levels in all settings except for rural Rwanda, although the mother’s working status has a significant impact on the child’s nutritional status only in this country. Finally, low socioeconomic status at the household level is associated with chronic malnutrition only in rural settings, and the mother’s partner’s education and no sanitation in rural Burundi and urban Rwanda, respectively. Nutrition programming should differentiate between urban and rural contexts within a country. The 1000 days approach that advocates interventions from conception to the second birthday of the child seems to be relevant as mother’s characteristics show a strong correlation with her child’s nutritional status. In rural areas in both countries, access to health services should be enhanced.
Tharcisse Nkunzimana, Estefania Custodio, Ana Pérez-Hoyos, Francois Kayitakire

Dynamics and Determinants of Poverty

Frontmatter
Chapter 5. Dynamics and Determinants of Poverty in Nigeria: Evidence from a Panel Survey
Abstract
This paper investigates the dynamics of poverty in Nigeria across two periods—post—planting and post—harvest seasons. Two poverty levels were used in analyzing the household survey data. The estimated results show that about 82.11 % of the population was categorized as living under US$2/day in the post—planting season and 83.32 % in the post—harvest season. However, 61.93 % of the population was said to be extremely poor during the post—planting season and 62.02 % in the post—harvest season. In actual sense, an increase of 0.09 % in poverty levels was noticed after the first visit for the extremely poor and an increase of 1.21 % in poverty levels was seen after the second visit for the merely poor. The study used the first field visit to represent the post—planting season and the second visit for the post—harvest season. The study also validates low education levels, religion, poor employment status, and marital status as the major determinants of poverty in Nigeria.
Chinasa Ikelu, Onyukwu E. Onyukwu
Chapter 6. The Impact of International Remittances on Expenditure Patterns of Urban Households in Ethiopia
Abstract
This study sheds light on the effect that international remittances have on expenditure patterns of urban households in Ethiopia. It makes use of primary household survey data collected in 2013 from four major urban areas—Addis Ababa, Gonder, Hawassa, and Mekelle. It uses the Working-Lesser model based on Engle’s curve to ascertain the objectives. The study finds that households which receive remittances from abroad spend, on average and ceteris paribus, a higher share of their budgets on investment-type goods such as education, health, and housing and a lower share of their budgets on food compared to households which do not receive remittances. Moreover, looking at the effect of international remittances on marginal spending behavior, households which receive no remittances have higher marginal propensity to consume food items but low marginal propensity to consume investment-type goods compared to those who receive international remittances. Thus, the evidence from this study suggests that the inflow of international remittances to Ethiopia is affecting household expenditure behavior across several consumption goods. Hence, to use these as a tool to fight poverty in Ethiopia remittances should be channeled toward investments rather than toward consumption.
Kokeb G. Gebregziabher
Chapter 7. Determinants of Consumption Expenditure and Poverty Dynamics in Urban Ethiopia: Evidence from Panel Data
Abstract
This study applies the fixed effect model to investigate determinants of consumption expenditure and the MNL model to identify determinants of chronic and transient poverty in urban Ethiopia using panel data. Descriptive results show that while a large number of households frequently moved in and out of poverty between the panel periods, many did not move far above the poverty line and remained vulnerable to falling back into poverty. The Spells approach decomposition indicates that around 7 % of the households appeared to be trapped in chronic poverty while 61 % were affected by transient poverty. Fixed effect estimations confirmed that family size, dependency ratio, and head’s completion of secondary and tertiary schooling impacted consumption expenditures significantly. MNL’s results reveal that completion of secondary and tertiary schooling by the head and remittances significantly reduced both chronic and transient poverty. Family size, dependency ratio, and female headed and casual employment activities significantly aggravated both poverty categories. Policies that aim at reducing family size, dependency ratio, and improving access to education will exert a positive effect on consumption expenditure and in reducing poverty. Because demographic, human capital, and socioeconomic characteristics are important determinants of poverty categories, poverty reduction strategies and targeting will be more effective if these households’ characteristics are taken into consideration while supporting the poor to tackle poverty.
Oumer Berisso
Chapter 8. Evaluation of Redistributive and Welfare Impacts of Indirect Taxes Reform in Rwanda
Abstract
This study evaluates the redistributive and welfare effects of reforms in indirect taxes in Rwanda. Specifically, its aim is to determine the effects of the 2002 reforms of the value added tax (VAT) rate on aggregate household welfare; assessing the impact of this reform on welfare distribution among Rwandan households; and evaluating the redistributive potential of differentiated indirect taxes in the country. A methodology based on two complementary approaches was used: a framework of the distributional characteristic of goods (Newberry 1995) and the framework of the marginal tax reforms (Ahmad and Stern 1984). Data used are from the second Integrated Survey on the Living Standards of Rwandan Households (EICV2) conducted by the government’s statistics office in 2005–06. The results show that: (1) the 2002 increase in the VAT rate slightly decreased aggregate household welfare; (2) the reforms further affected the welfare of households in the first three quintiles because they consumed relatively more of taxable necessities; and (3) differentiated indirect taxes could improve Rwandan household welfare without compromising on tax revenues.
Etienne Ndemezo, Francis Menjo Baye

Multidimensional Measures of Poverty

Frontmatter
Chapter 9. On the Measurement of Multidimensional Well-Being in Some Countries in Eastern and Southern Africa
Abstract
Using data from the AfroBarometer survey, this chapter derives measures of overall well-being for six Eastern African countries (Burundi, Madagascar, Kenya, Tanzania, Malawi, and Mozambique) for which enough data were available to take a broad enough view of well-being. Correspondence analysis is implemented to aggregate variables in each domain of well-being while overall well-being is derived through efficiency analysis. The chapter compares the findings concerning overall well-being with those based on its narrow view, one whose focus is only on material well-being. It appears that the two main determinants of material well-being are the educational level of the individual and his/her area of residence. For the measure of overall well-being the findings were less clear-cut.
Joseph Deutsch, Herman Musahara, Jacques Silber
Chapter 10. Multidimensional Measure of Poverty in Ethiopia: Factor and Stochastic Dominance Analysis
Abstract
This study did an in-depth analysis of multidimensional poverty in rural and small towns in Ethiopia. As social well-being or poverty is a multidimensional phenomenon, using a multidimensional measure of poverty helps circumvent problems surrounding the conventional measures of poverty and helps show clearly the realities of households. In this line, our analysis used six dimensions with 14 indicators to construct a multidimensional index of poverty using first rounds of Ethiopian Rural Households’ Socioeconomic Survey data set. The study also employed a factor analysis for determining relative weights in computing a multidimensional index and did an in-depth analysis of stochastic dominancy of poverty for different segments of society. Besides, a comparison of the extent of poverty using the conventional measure of poverty and the multidimensional approach was also done. The results reveal that intensity, severity, and depth of poverty vary considerably across the two measures. Moreover, demographic, regional, and household heads’ characteristics are major factors in determining poverty.
Mekonnen Bersisa, Almas Heshmati

Energy-Environment-Poverty Relationships

Frontmatter
Chapter 11. Biofuels, Poverty, Food Security and Growth in Ethiopia: A Computable General Equilibrium Microsimulation Analysis
Abstract
Investments in biofuels are booming globally in response to increasing costs of fuels and growing concern over climate change. The high and often fluctuating fuel prices have frustrated development efforts in Ethiopia. This has prompted policymakers to review energy development strategies and search for mechanisms that minimize dependence on high cost imported fossil oils. An important mechanism identified in this area is substituting fossil fuels with domestically produced biofuels. Currently, investments in biofuels with the aim of producing ethanol and biodiesel are underway in the country. This study investigates the impact of biofuel investments on growth, poverty, and food security in Ethiopia using a dynamic computable general equilibrium (CGE) model linked to the microsimulation (MS) model. The CGE model uses the 2005–06 social accounting matrix (SAM) while the MS model uses the 2004–05 Household Income, Consumption and Expenditure (HICE) survey. The simulation results for the before and after shock periods were fed into the household model using distribution analysis (DAD) software that yielded the FGT poverty indices. The results suggest that biofuel investments provide a new opportunity for enhancing economic growth and reducing poverty. Our results also show the complementarities between ‘biofuels’ and ‘food’ production.
Gemechis Mersha Debela, Seneshawu Tamiru
Chapter 12. Does Energy Resources Spending Mitigate Adverse Effects of CO2 Emissions from Oil Exploration in Africa?
Abstract
This paper examines the effects of energy resources and carbon emissions on human welfare in selected African countries. The study specifies a neoclassical growth model augmented with energy inputs and crude oil carbon monoxide emissions. The results indicate that changes in crude oil consumption (COC), crude oil revenues (CORs), and oil price depreciation exchange rates have significantly and positively affected the development of human welfare and that carbon monoxide emissions have a significantly negative effect on human welfare development in Africa. These have also significantly deteriorated income inequalities in the continent. However, the net effects of oil exploration are significantly higher which have overwhelmed the negative effects of crude oil gas emissions, thus suggesting that effective use of revenue from oil resources and productivity could help in mitigating the negative effects of oil carbon emissions on human development and welfare in Africa. In addition, the results support the argument of the negative relationship between CO2 emissions and human welfare development as against the Environmental Kuznet’s Curve (EKC) hypothesis.
Olufemi Muibi Saibu, Akinwande A. Atanda
Metadaten
Titel
Poverty and Well-Being in East Africa
herausgegeben von
Almas Heshmati
Copyright-Jahr
2016
Electronic ISBN
978-3-319-30981-1
Print ISBN
978-3-319-30980-4
DOI
https://doi.org/10.1007/978-3-319-30981-1

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