Multidimensional poverty in Mekong river delta

Abstract

The study provides a critical review of poverty measurement in Mekong River Delta and arguments for utilizing a recent multi-dimensional methodology framework. By applying Alkire & Foster’s methodology for Vietnamese Households Living Standards Survey data 2010 (VHLSS 2010), it produces a multidimensional poverty estimation of Mekong River Delta at the aggregate level, provincial level and identify the biggest contributors to multidimensional poverty. Twelve indicators corresponding to four dimensions are considered for estimation. The study also works out how policy-makers can prioritize the budget spending among provinces and within each province based on decomposable property of adjusted headcount ratio. Lastly, the study investigates the effectiveness of using uni-dimension, per capita consumption, in poverty measurement and reaching a conclusion that consumption alone cannot capture deprivation experienced by the poor households.