Poverty Assessment Tools - An Overview of the PPI and USAID PAT
Progress out of Poverty Index™ USAID
(PPI™)Poverty Assessment Tool (PAT) Short survey of 10-33 questions to Short survey of 10 questions that assess assess poverty at household level. What Is it? poverty likelihood at a household level. Questions may cover education, health, housing, and assets. Both tools: 1) assess absolute poverty at the household level; 2) are created using national level household survey data; 3) have known levels of accuracy; 4) are How are the PPI and PAT similar? relatively simple to administer; 5) are calibrated to international and/or national poverty lines, allowing for industry-wide comparisons; and 6) are accompanied by a manual and training materials to guide users. May be used at any number of times, depending on the use the MFI will put the Can be used at any time, but after loan information to. For example, it can be approval or acceptance into program is used during new-member screening or When is it used? highly encouraged to minimize bias. Can loan application. May also be be used as a one-time assessment or as administered periodically, annually, or at part of ongoing monitoring. client exit. Appropriate for targeting, assessment, or monitoring. PATs have been developed and certified for 25 countries: Albania, Azerbaijan, Fourteen PPIs are developed for Bangladesh, Bosnia and Herzegovina, Bangladesh, Bolivia, Haiti, India, Cambodia, Colombia, East Timor, Indonesia, Kenya, Mali, Mexico, Morocco, Ethiopia, Ghana, Guatemala, Haiti, India, Pakistan, Palestine, Peru, the Philippines, Indonesia, Jamaica, Kazakhstan, Kosovo, and Vietnam. Grameen Foundation and What countries it is available for? Madagascar, Malawi, Mexico, Peru, the the Ford Foundation are currently Philippines, Serbia, Tajikistan, Uganda, developing additional PPIs, and expect and Vietnam. The IRIS Center expects to that a total of 38 PPIs will be in use by have a total of 31 PATs available by the the end of 2009. For updates visit end of 2009. For updates visit www.progressoutofpoverty.org. www.povertytools.org. Administered by loan officers. Possible responses for each indicator have assigned point values. Total points can be summed in field by loan officer and poverty likelihood immediately estimated. Can enter overall score or Implemented by field staff or external overall score plus individual indicator team. Data entered into customized data score into MIS. A sampling methodology entry template for each tool. After is introduced to MFIs during the pilot simple data-cleaning steps, software How is it implemented? process. The pilot objectives set by the automatically calculates the prevalence organization will determine the sample of extreme poverty. Can be applied to all used. The pilot is different from a full- clients or a sample of current, new or scale implementation, because it is set incoming clients. Sample size depends up to test a specific aspect of the use of on level of confidence desired. the PPI before fully implementing the PPI across all operations, which can imply using the PPI on a sample or census basis, depending on the information needs of the MFI. Automatic calculation of prevalence of Poverty likelihood (probability of being poverty and extreme poverty. Multiple very poor or poor) for individual clients, poverty indicators related to education, What type of information groups of clients, or clients as a whole. housing, and assets can be analyzed to does it provide? Multiple indicators related to client learn more about clients. Database can economic well-being, each statistically be exported for further analysis using linked to poverty in the country. other software. Yes, the PPI takes 5 minutes on average to conduct. That includes conducting the interview, tallying the score, and The PAT could be adapted for targeting, determining the client’s target status, as but is designed to automatically Can it be used for targeting? set by the MFI. This enables quick and calculate poverty at the aggregate/group easy targeting, as points can be level. computed immediately in the field with only paper and pencil. Varies depending upon sample size or Low to moderate cost. Varies depending census methodology, logistical costs, What are the costs? upon sampling frame, logistical costs, management and reporting uses and MIS and the use of internal or external team. issues (if necessary). Time required? About 3-8 minutes per client About 10-20 minutes per client. Basic interview techniques, computation, Basic interview techniques, sampling, What are the skills required? data entry, and data managmement. and data processing. Field staff administers survey, key punch operator enters information into Field staff or external team, including 2-5 Who is involved? database, lower-level technical staff interviewers, field supervisor, data entry analyzes data, management reviews operators, and HQ coordinator(s). reports. Internal use primarily but also of interest Internal management; meeting USAID Who will use it? to external stakeholders interested in reporting requirements; other poverty profile and impact of MFI. stakeholders interested in client profile. Requires automated MIS or other EPI Info software (freeware) and a System infrastructure required?database system (e.g., Excel, Access, computer with windows 98 or later. No SPSS, etc.). other software is required. The PPI™ allows MFIs to divide their The latest PATs calculate the prevalence clients into distinct poverty bands (above of both poverty and extreme poverty, and below different poverty lines). Using allowing an organization to classify its the PPI an organization can track poverty outreach to the non-poor, poor, and very levels of clients, see how those levels How can we use these tools poor. The PAT can be used multiple change over time and analyze the to analyze change in client times to analyze change in poverty correlations between poverty likelihoods status? status among these categories. and other variables. This information can However, it is important not to equate be used to target clients, track their change with impact, as the latter poverty movement and develop products requires detailed study to ensure and services to meet their needs better. credible results. Indicators statistically linked to poverty. Provides accurate and credible estimate Uses multiple statistical methods to of poverty outreach and poverty trends select indicators and calibrate poverty among clients. Allows immediate predictions. Relatively low cost and estimate of client poverty likelihood. practical to implement. Automated steps What are its key features? Relatively easy and inexpensive to for data processing and poverty administer and flexible in terms of when calculation to reduce errors. Latest tools it can be administered. Poverty include both extreme poverty and scorecards calibrated to multiple poverty lines. extreme poverty and poverty lines. Tool creation requires appropriate national household survey data set, and Requires appropriate national-level advanced statistical skills. Need household survey data set to derive sufficient training and supervision to What are its issues? poverty indicators. Process to derive minimize bias during implementation. build PPIs is complex and requires high Household roster on most PATs takes a technical aptitude in data analysis. bit more time than shorter tools, but provides additional, useful info about the Please go to household for additional analysis. Please go to www.povertytools.org or www.progressoutofpoverty.org or email Brian Beard at the IRIS Center at email the Grameen Foundation Social Access Tools and Support Materials? bbeard@iris.econ.umd.edu or Anthony Performance Management Center at Leegwater at spm@grameenfoundation.org aleegwater@iris.econ.umd.edu t Tool (PAT)