FAO.org

This analytical tool illustrates one of the most popular welfare-based measures of inequality, the Atkinson Index . In particular, it discusses the foundations of this Index, in terms of social welfare specifications, and the concept of equally distributed equivalent income on which the measure is based. The use of this measure is then exemplified in a step-by-step procedure and in a numerical example. For further information, see also: Impacts of Policies on Poverty: Distributional Poverty Measures Poverty Analysis: Poverty and Dominance Social Welfare Analysis of Income Distributions: Social Welfare, Social Welfare Functions and Inequality Aversion This paper is part of the FAO Policy series: EASYPol-Resources [...]

This analytical tool addresses the most popular inequality index, the Gini index. It discusses its characteristics and the link with another popular graphical tool of representing inequality, the Lorenz Curve. Extended version of the Gini Index with different weighting schemes are also discussed. The use of the Gini Index and of its generalised versions is explained through a step-by-step procedure and numerical examples. For further information, see also: Charting Income Inequality. The Lorenz Curve. EASYPol Series 000 Impacts of Policies on Poverty. Basic Poverty Measures. EASYPol Series 007 Policy Impacts on Inequality: Inequality and Axioms for its Measurement. EASYPol Series 054 Policy Impacts on Inequality: [...]

China’s economy has experienced remarkable growth since economic reform initiated in 1979. The rapid economic growth has been associated with unprecedented progress in poverty alleviation. Based on China’s official poverty line, the absolute level of poverty incidence fell from 33 percent in 1978 to less than 3 percent in 2004. Even based on World Bank’s US$1/day (in PPP terms) poverty line, rural poverty incidence also fell from more than 30 percent in the early 1990s to about 8 percent in 2004. While past accomplishments are impressive, there are still great challenges ahead. Income disparity rose with economic growth. There is also [...]

There are four main reasons for which agriculture in sub-Saharan Africa (SSA) deserves more public support.  First is a moral imperative: SSA governments cannot and should not ignore a sector on which about 70 percent of their population directly depend for their livelihoods, if they are serious about their commitment to MDG1. Second, in spite of their generally poor performance, SSA countries do not have any realistic strategic option that they can rely upon for achieving sustainable economic development, other than agriculture. Third, there is evidence that appropriate policies and direct public sector investment have combined to trigger agriculture sector-led [...]

The LogFrame method is an instrument employed by analysts, planners and managers for: problem analysis, objective formulation, planning, implementation, monitoring and evaluation of selected, objective-oriented interventions that aim at a change of reality from a situation which is perceived as negative towards a positive situation. Because of its general logic, the LogFrame method can be applied to any type of objective oriented tasks, irrespective of the nature, level of aggregation or complexity of the problem to be solved. Though originally developed as a method for project planning and management, the method and its methodological principles can analogously be applied to analysis, planning and management of programmes and [...]

Once a decision is taken to establish an MPI system, this module puts forward the aspects to be considered in organizing such a system and discusses possible institutional/organizational set ups. The following four organizational options are distinguished: Setting up an MPI capacity at central government level, but not directly affiliated to a line ministry; as a special unit in a line ministry (e.g. Ministry of Agriculture); as a separate project-type unit; as an external institution (research institute, NGO, consulting firm). Each of these options has special advantages and disadvantages. Which of the options is selected depends on the policy to be monitored, on the expectations from [...]

This paper presents the eight methodo-“logical” steps for monitoring policy impacts (MPI), comprising: Step 1: Initiation and preparation of MPI Step 2: Policy review and analysis Step 3: Development of the impact model Step 4: Selection of impact indicators Step 5: Research design Step 6: Information and data collection Step 7: Data compilation, processing and analysis Step 8: Feedback of results of MPI to policy makers, clients, public. It is pointed out that the eight steps represent a logical sequence but that the steps are closely interlinked and that there are likely possible feedback cycles to previous steps. In a concluding section, conditions for a practical application of MPI [...]

Monitoring Policy Impacts (MPI) is a policy management instrument, applied to improve the efficacy of policies in reaching their objectives. MPI identifies diversions of reality from plan when they occur, as well as the causes of such diversions, thus allowing immediate corrections, if required, and respective adjustments in policy design and implementation. With its special features – focussing on impacts at policy level, tracing of flaws, timeliness of recording and feed back - MPI is related to but distinct from other conventional monitoring and evaluation concepts, such as implementation monitoring, project and programme monitoring, and evaluations which are conducted ex-post [...]

This module documents calculation and use of Lorenz curves for inequality analysis. Specifically, it illustrates how Generalised Lorenz (GL) Curves can be used to identify the best income distribution on social welfare grounds within a set of alternative income distributions generated by different policy options where ordinary Lorenz curves fail to work. It is developed for capacity developent and operational purposes.

This module illustrates how Generalised Lorenz (GL) Curves can be used to identify the best income distribution on social welfare grounds, within a set of alternative income distributions generated by different policy options, in many of the cases where ordinary Lorenz curves fail to work. After illustrating some pitfalls of ordinary Lorenz Curves, a cursory presentation of the step-by-step procedure to check for Generalised Lorenz dominance and to infer welfare judgements is provided and demonstrated with some simple numerical examples. This module also points out the limitations of the GL approach whenever GL curves cross each other. In addition, it illustrates [...]