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Poverty, Vulnerability, and Welfare in Bhutan : Progress and Challenges (Inglês)

This note uses data from the Bhutan living standards survey (BLSS) for 2007, 2012, and 2017 to examine trends in poverty reduction and shared prosperity and to assess the drivers of poverty reduction in the last decade. The note documents the remarkable progress that Bhutan has made in reducing poverty, sharing prosperity, and improving other measures of well-being. To this end, it first establishes a poverty trend that is measured in a consistent manner over time. The resulting poverty trend deviates from official poverty rates for mainly two reasons: (a) the consumption aggregate is being measured in a consistent way over time, resulting in a different distribution of consumption in each survey year; and (b) the 3.20 dollars World Bank poverty line for lower middle-income countries is used as the cut-off to define poverty. Poverty reduction was helped by improved earnings in the commercial agriculture sector. Moreover, vulnerability has remained high, partly because farmers are exposed to various uninsured risks, including price shocks, but also because the social protection system is weak overall and nonfarm diversification is low. Going forward, it will be important to continue increasing agricultural productivity and creating productive jobs outside of the agriculture sector. Proper prioritization and sequencing of policies may also help in this regard.


  • Autor

    Kim,Yeon Soo

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    Sul da Ásia,

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  • Nome do documento

    Poverty, Vulnerability, and Welfare in Bhutan : Progress and Challenges

  • Palavras-chave

    Demographic and Health Survey; access to safe drinking water; global database of share prosperity; income-generating activity; income generating activity; equity of access to services; labor force participation rate; female labor force participation; cost of living index; access to health service; access to health care; modes of service delivery; Computer-Assisted Personal Interviewing; rural to urban migration; average per capita consumption; per capita consumption growth; literacy and numeracy levels; consumption aggregate; change in poverty; Food Price Index; food price inflation; poverty headcount rate; food poverty line; official poverty line; social protection system; source of income; health care facility; source income; health care facilities; official poverty rate; formal insurance mechanisms; poverty line using; rural area; share of earning; rural male female; education and health; sustainable poverty reduction; measures of welfare; cash crop farming; health care professional; net job creation; purchasing power parity; share of employment; limited information; reduction in poverty; fruit and vegetable; public transport service; availability of care; social protection program; take time; measure of poverty; sale of asset; ischemic heart disease; access to water; public health service; health care system; public sector job; acres of land; Access to Education; quality of care; sale of share; Access to Electricity; production of egg; access to finance; demand for meat; number of workers; care for child; poverty line equivalent; fruit bearing trees; support for people; incidence of poverty; method of choice; government health facility; job training program; price of good; food consumption data; labor market outcome; distribution of consumption; social assistance program; Support for Agriculture; total labor force; mental health problem; access to infrastructure; labor productivity growth; value of consumption; direct job creation; social assistance scheme; variability in weather; share of children; quality of education; public sector worker; social insurance scheme; primary education enrollment; net secondary enrollment; tertiary enrollment rate; resulting poverty line; change in population; constraints to growth; secondary care services; agriculture industry; quality of data; analysis of poverty; original poverty line; estimation of poverty; living standard measurement; international poverty line; sectoral growth rate; value-added markets; manufacturing industry; household expenditure data; Private Sector Growth; cash crop cultivation; impact of shock; living standard survey; formal education program; value added; recent years; poverty trend; poor household; agricultural activity; agricultural household; human capital; agriculture sector; household survey; budget share; family consumption; fishing sector; productive activity; nonformal education; hydropower development; price shock; monetary poverty; farm diversification; high share; subsistence farmer; data quality; Agricultural Statistics; agricultural product; education level; volatile price; consumption pattern; aggregate data; survey data; working-age population; uninsured risk; unit price; pilot studies; agricultural productivity; important policy; Rural Poor; Poverty Measurement; input use; poverty estimate; subsistence agriculture; livestock product; statistical yearbook; agricultural production; household income; mountainous terrain; boarding school; income source; poor child; free health; remote village; dairy product; business income; consumption distribution; new concept; electricity access; younger cohort; irrigation facility; technological innovation; dietary intake; mean income; remote area; household head; per household; population shift; household poverty; agricultural worker; poverty alleviation; yield data; government action; market access; commercial farming; rural population; farming activity; export market; recent progress; global food; price trend



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