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Poverty Measurement Peru


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Between 2004 and 2007, no annual official statistics on poverty existed in Peru due to serious problems with the household survey used to estimate poverty and implemented by the National Statistical Institute (INEI). Within this context, in March 2007, INEI requested technical assistance from the World Bank to solve the methodological and data collection issues. The World Bank team proposed the creation of an external Advisory Committee (AC) whose role would be to oversee the work of an inter-institutional technical team.

Besides fine-tuning and implementing the AC model, the World Bank’s support has included technical assistance, capacity building and advice on dissemination activities, all with the goal of developing consensus on how to resolve the main methodological issues and improve policy dialogue. This participatory approach of a task typically implemented solely by the government has been a unique and innovative accomplishment. As a result, the methodological issues in the measurement of poverty in Peru have been resolved and improved, capacity has been strengthened in INEI, and dissemination efforts have facilitated widespread public access of the information produced.

Based on this experience, this website presents the main elements of the AC model that facilitated its success with the objective of informing the design of similar models elsewhere in the future. The related technical assistance by the World Bank can be broadly divided into two periods: An initial phase to deal with the problems in the 2005 data and generate comparable poverty estimates for 2004 to 2006; and ongoing work that is aimed at updating and overhauling the applied methodology of poverty measurement.


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Initial Phase
In response to serious technical problems with household survey data for 2005, the National Statistics Institute (INEI) requested technical assistance from the World Bank. As part of the work, the Bank coordinated the establishment of an external, inter-institutional Advisory Committee in order to solve the methodological issues. At the end of this phase, comparable national poverty estimates are published for the first time in three years, covering the period 2004 to 2006. For more details on this phase click here 


Ongoing Work
Following the successful resolution of the 2005 data problems, it was decided to continue the AC’s work towards updating the methodology of measuring poverty; the base year for the new methodology is 2007, and it was decided that until all components of the update were implemented, poverty estimates would be continued to be published based on the old methodology. Once in place, the new methodology will also be extended to past data to ensure comparability. For more details on this phase click here 

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