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Multidimensional poverty targeting

File Created On:
June, 2014

Source: Fondation pour les études et recherches sur le Développement International

The importance of taking into account multidimensionality in poverty measurementhas been recently emphasized. The poverty alleviation literature has not, however,yet addressed the important issue of policy design for efficient multidimensionalpoverty reduction. From a positive perspective, it is regularly observed that differentpoverty dimensions are often correlated and mutually reinforced, especially overtime. From a normative perspective, it can be argued that, in addition to being concerned with impacts on multiple dimensions of poverty, policy should also consider impacts on their joint distribution. The paper integrates these two perspectives into a consistent policy evaluation framework. Targeting dominance techniques are also proposed to assess the normative robustness of targeting strategies. The analytical results are applied to data from Vietnam and South Africa and illustrate the role of both normative and positive perspectives in designing efficient multidimensional poverty targeting policies.