The Evolution of Poverty in Bolivia: A Multidimensional Approach

Abstract

This paper constructs a multidimensionalpoverty measurement for Bolivia based on all fundamental rightsestablish in its 2008 Constitution than can be measured in the surveys; and documents the observed poverty changes in Bolivia during the last decade using this multidimensional approach. In particular, we extent Hernani-Limarino (2010) analysis of the evolution of income poverty with an analysis that incorporares five nonincome dimensions: access to education, short term social security (health), long term social security (pensions), adequate dwelling, and basic dwelling services (electricity, water, basic sanitation and telecommunications). Our analysis shows that, during 1999-2011 income poverty has shown a downward trend accelerated from the year 2005 with an average reduction rate of 4.5% per year, representing 253,364 people per year. On the other hand, slight increases were observed in access to social dimensions during 1999-2005 in urban areas, while in rural areas have maintained high levels of deprivation. These results have reduced multidimensional poverty by 24 percentage points during the period from 1999 to 2011 but also an increase of people with social vulnerability due to elusive behavior of non-monetary poverty in the country.