Measuring poverty in Mongolia
The unwritten law that the poverty is reduced if the economy grows does not seem to hold true in Mongolia. Why is this so? A World Bank report on the puzzle was yesterday released by the Bank’s economists Andrew D Meson and Tran B Nguen at a ceremony attended by representatives of the National Development and Innovation Committee, the National Statistics Office, the President’s advisers, some Ambassadors and media.
The report says poor households were 61.1% of the nation’s total in 2002-2003 and 35.2% in 2007-2008. The number of people under the poverty level fell from 69.7% to 46.6% in the period covered. In Ulaanbaatar it dropped from 54.1% to 26.9%.
What is the situation in 2010? Poverty has increased with the economic downturn in the world and following the dzud disaster last year. Loss of livelihood has led to loss of household income, and the low-income households have been hit most. Economic growth has led to more disparity of income and inequitable distribution of wealth.
The World Bank methodology to measure poverty is not the same as used by the NSC so some of their figures do not agree. The Deputy Chief of the NSC, L.Erdenesuren, explained these differences. The number of livestock has increased and so has the amount saved by citizens. Several improvements have taken place in the education and health sectors and it is also significant that the use of solar energy devices and mobile phones has risen much.
The report says poor households were 61.1% of the nation’s total in 2002-2003 and 35.2% in 2007-2008. The number of people under the poverty level fell from 69.7% to 46.6% in the period covered. In Ulaanbaatar it dropped from 54.1% to 26.9%.
What is the situation in 2010? Poverty has increased with the economic downturn in the world and following the dzud disaster last year. Loss of livelihood has led to loss of household income, and the low-income households have been hit most. Economic growth has led to more disparity of income and inequitable distribution of wealth.
The World Bank methodology to measure poverty is not the same as used by the NSC so some of their figures do not agree. The Deputy Chief of the NSC, L.Erdenesuren, explained these differences. The number of livestock has increased and so has the amount saved by citizens. Several improvements have taken place in the education and health sectors and it is also significant that the use of solar energy devices and mobile phones has risen much.
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