Poverty in Cote d'Ivoire: A Framework for Action

The poverty assessment tracks how the locus and nature of poverty have evolved over time and examines contemporary living standards among poor Ivorians. Côte d'Ivoire is home to many migrants from poorer neighboring countries. The analysis covers all people present in the country, regardless of nationality, origin or duration of residence.

Household consumption — Two poverty lines are used. The higher line is CFAF 144,800 (US$ 290) per person per year in March-May, 1995. Households above this line can generally afford a calorically adequate diet and meet other minimum household expenses. The lower line, described as an extreme poverty line is CFAF 94,600 (US$ 190) per person per year. This line was selected to focus on the poorest 10 percent of the population. It permits an adequate diet only if all other expenditures are eliminated.

The proportion of households below the higher poverty line rose from 11 percent in 1985 to 31.3 percent in 1993 and to 36.8 percent in 1995. With the increase came important shifts in the locus of poverty. Whereas almost all households below this line were in rural areas in 1985, a quarter of poor households were found in urban areas by 1995. In Abidjan in particular, poverty rose very rapidly, even after 1993 when economic recovery was just beginning. Poverty is still concentrated among farm households and households headed by informal sector workers. Larger households and those with less educated members have high concentrations of poverty.

Indicators of social welfare — Among poor Ivorians, social indicators are low throughout the life cycle: high mortality among infants and mothers, low educational attainments, low literacy and low life expectancy. Access to food is not secure for many households and up to a third of children have been found to be malnourished. The UNDP Human Development Index ranks Côte d'Ivoire 145th among 174 countries. The country's rank is 130 in income terms, pointing to a gap between the economic and social achievements of the nation. Indicators revealing the use of health services and net school enrollment indicate that many basic needs were unmet in 1995. Among primary school age children, 51 percent attended school. Among adults, 49 percent were literate.

Qualitative perceptions of well-being — The poverty assessment reports the findings of a qualitative survey conducted on a participatory basis by consultants and staff of the national statistical office (INS). Uncertainty, precariousness, exclusion, vulnerability, and powerlessness were all commonly perceived dimensions of well-being and poverty.

Gender and poverty — The poverty assessment finds important disparities in living standards between men and women as reflected, for example, in their respective access to health and education services. Female workers are concentrated in low productivity food production and processing, informal trade and domestic activities. Four factors combine to marginalize poor Ivorian women: inadequate control by women over their time and labor, limited access to productive resources, insufficient human capital accumulation and lack of voice in public policy decisions. Low productivity among women has limited their economic contribution and thus diminished potential GNP.

Poverty Strategy

The bulk of the poverty assessment is devoted to a diagnostic review of areas where long term progress will have to be made to ensure success in poverty reduction. The main themes are: (i) achieving and sustaining high rates of growth in which the poor parts of society can participate; (ii) addressing gender disparities more fully within the national agenda with a particular focus on poor women; (iii) improving access to food and incomes from food production among the poor; (iv) achieving better labor market outcomes for the poor; (v) improving access of the poor to social services; (vi) strengthening safety nets; and (vii) strengthening poverty planning and building strong partnerships.

The poverty assessment concludes that recent growth performances and immediate growth prospects are promising. The fate of poor Ivorians is nonetheless dependent on what rate of growth will be sustained in the longer term, and how much lower income groups are able to participate. The Government set ambitious growth objectives and has recently established its Axes prioritaires (guidelines) for a Plan national de lutte contre la pauvreté (National Poverty Reduction Plan). The combination of growth and poverty plans can potentially bring rapid progress.

Government's poverty plan places considerable emphasis on narrowing the gap between social and economic achievements. It proposes more investment in infrastructure and basic human resources (adult literacy, primary school enrollment and health care coverage) to benefit the poorest areas. The most pervasive constraint to long term poverty reduction remains rapid demographic growth, both at the household and the national level.

Incentive and Regulatory Framework

During the 1980s, a number of incentive policies were not conducive to sound economic development. Economic regulation of filières for the main export crops; protective regimes for certain industries; uneven tariff and non-tariff barriers to trade; protection in the transport, maritime transport and energy sectors; labor market regulation; subsidization of credit, and; exoneration of capital equipment from taxation, had a generally negative impact on both growth and poverty reduction.

Current government policies are pro-growth and provide a broadly favorable context for poverty reduction. Measures to reinforce public finances, maintain monetary discipline, strengthen public administration, rationalize the operations of public enterprises, lower regulatory barriers, raise efficiency in key sectors and encourage private sector growth are underway. Rapid completion of reforms will facilitate poverty reduction by buoying the economy and allowing higher productivity in the sectors where the poor earn their main livelihoods.

Public Expenditure

Public expenditure on social services does not adequately address the needs of poor households. An analysis of the incidence of public expenditure in health and education on poor Ivorians shows that the poorest quintile of the population benefits from only 11 percent of public spending on health and from 14 percent of spending on education, while the highest quintile benefits from 31 percent and 35 percent respectively. Government spending in effect reinforces disparities. Within social sector expenditures, those on primary health services and primary education best meet the needs of poor Ivorians, while the greatest disparities occur at higher levels of services, notably hospital use and tertiary education. A greater shift of resources towards basic social services is needed.

Safety Nets

In Cote d'Ivoire, three formal safety nets offering benefits on an individual basis exist or are being considered: a benefits program for public employees, private enterprise benefit schemes and a proposal for a health insurance program. These programs generally provide security to those above the poverty line. Cote d'Ivoire also has a long experience with targeted funds to achieve goals such as the improvement of housing or the construction and maintenance of rural and urban infrastructure. While they do not have a specific poverty mandate, such programs sometimes help deliver services in poor neighborhoods.

To facilitate the supply response to the CFA franc devaluation, the Government created several new social funds. These mostly provide low cost loans and/or guarantees for micro-projects financed by the commercial banks. They include support for young farmers, development of cooperatives in cocoa and coffee and support of micro-projects by recent graduates or jobless people. The funds do not have a poverty mandate, but could be a potentially useful tool for reaching the poor. The funds' present activities reach the poor only to a limited extent. The Government is examining ways to improve their impact.

Statistical System

Although extensive poverty data have been collected since 1985, these are not fully used in government decision making. Access to data by Ivorian researchers is limited, though their results could be a valuable supplement to analysis within the Government. Some key data such as wage trends and informal sector activities are monitored inadequately or not at all. To ensure that the Plan national de lutte contre la pauvreté is achieving its desired results, further monitoring efforts will be needed. An ongoing restructuring of INS provides an opportunity to enhance its poverty focus.