Skip to main content

Advertisement

SpringerLink
Log in

Rethinking Dimensions: The South African Multidimensional Poverty Index

  • Published:
Social Indicators Research Aims and scope Submit manuscript

Abstract

The growth of literature on multidimensional poverty measures generates an uncertainty about which dimensions best capture the extent of poverty. This paper applies multiple correspondence analysis in the context of multidimensional poverty in South Africa to identify statistically valid additional dimensions using National Income Dynamics Study data of 2012. The results confirm the argument that economic status (lack of employment) and financial commitment (over-indebtedness) can be regarded as important dimensions, as their occurrence constrains households from participating in the activities essential in modern society. It is therefore proposed that, in addition to health, education, and living standard dimensions, both economic status and financial commitments should be included in the framework for the South African multidimensional poverty analysis. A central contribution of this work is a proposal of a hybrid multidimensional measure which recommends a combination of both non-monetary and monetary indicators, in particular over-indebtedness.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Fig. 1
Fig. 2
Fig. 3
Fig. 4

Similar content being viewed by others

Notes

  1. Equations 1 and 2 are adopted from Husson et al. (2011).

  2. Adopted from Ezzrari and Verme (2012).

References

  • Adams, C., Gallant, R., Jansen, A., & Yu, D. (2013). Public assets and service delivery—Is it really a success? In Proceedings of the economic society of South Africa (ESSA) conference, 25–27 Sept, Bloemfontein.

  • Alkire, S., & Foster, J. E. (2011). Counting and multidimensional poverty measurement. Journal of Public Economics, 95(7–8), 476–487.

    Article  Google Scholar 

  • Alkire, S., & Santos, M. E. (2010). Acute multidimensional poverty: A new index for developing countries. OPHI working paper series, 38.

  • Alkire, S., Foster, J. E., Seth, S., Santos, M. E., Roche, J. M., & Ballon, P. (2015). Multidimensional poverty measurement and analysis. Oxford: Oxford University Press.

    Book  Google Scholar 

  • Angulo, R., Diaz, Y., & Pardo, R. (2016). The Colombian multidimensional poverty index: Measuring poverty in a public policy context. Social Indicators Research, 127, 1–38.

    Article  Google Scholar 

  • Asselin, L.-M. (2009). Analysis of multidimensional poverty: Theory and case studies. New York: Springer.

    Book  Google Scholar 

  • Asselin, L.-M., & Anh, V. T. (2008). Multidimensional poverty and multiple correspondence analysis. In N. Kakwani & J. Silber (Eds.), Quantitative approaches to multidimensional poverty measurement. London: Palgrave Macmillan.

    Google Scholar 

  • Ataguba, J. E.-O., Ichoku, H. E., & Fonta, W. M. (2013). Multidimensional poverty assessment: Applying the capability approach. International Journal of Social Economics, 40(4), 331–354.

    Article  Google Scholar 

  • Atkinson, A. B., & Marlier, E. (2010). Analysing and measuring social inclusion in a global context. New York: United Nations.

    Google Scholar 

  • Atkinson, T., Cantillon, B., Marlier, E., & Nolan, B. (2002). Social indicators: The EU and social inclusion. Oxford: Oxford University Press.

    Book  Google Scholar 

  • Battiston, D., Cruces, G., Lopez-Calva, L. F., Lugo, M. A., & Santos, M. E. (2013). Income and beyond: Multidimensional poverty in six Latin American countries. Social Indicators Research, 112, 291–314.

    Article  Google Scholar 

  • Benzecri, J. P. (1973). Data analysis: Analysis correspondences. Paris: Dunod.

    Google Scholar 

  • Betti, G., & Verma, V. (2004). A methodology for the study of multi-dimensional and longitudinal aspects of poverty and deprivation. Università di Siena Working Paper, 49.

  • Bhorat, H., & Van der Westhuizen, C. (2013). Non-monetary dimensions of well-being in South Africa, 1993–2003: A post-apartheid dividend? Development Southern Africa, 30(3), 295–314.

    Article  Google Scholar 

  • Blaauw, D., & Pretorius, A. (2012). The determinants of subjective well-being in South Africa: An exploratory enquiry. Journal of Economic and Financial Sciences, 6(1), 179–194.

    Google Scholar 

  • Bookwalter, J. T., Fuller, B. S., & Dalenberg, D. R. (2006). Do household heads speak for the household? A research note. Social Indicators Research, 79(3), 405–419.

    Article  Google Scholar 

  • Booysen, F., Von Maltitz, M., Van der Berg, S., Burger, R., & Du Rand, G. (2008). Using an asset index to assess trends in poverty in seven sub-Saharan African countries. World Development, 36(6), 1113–1130.

    Article  Google Scholar 

  • Bourguignon, F., & Chakravarty, S. R. (2003). The measurement of multidimensional poverty. Journal of Economic Inequality, 1, 25–49.

    Article  Google Scholar 

  • Bruck, T., & Kebede, S. W. (2013). Dynamics and drivers of consumption and multidimensional poverty: Evidence from rural Ethiopia. IZA discussion paper, 7364.

  • Burger, R., Van der Berg, S., Van der Walt, S., & Yu, D. (2004). Geography as destiny: Considering the spatial dimensions of poverty and deprivation in South Africa. In Proceedings of the DPRU/TIPS (development policy research unit/trade and industrial policy strategies) conference, 13–15 Oct, Somerset West.

  • Chakraborty, A., Pattanaik, P. K., & Xu, Y. (2008). On the mean of squared deprivation gaps. Economic Theory, 34, 181–187.

    Article  Google Scholar 

  • Civic Consulting of the Consumer Policy Evaluation Consortium. (2008). The over-indebtedness of European households: Updated mapping of the situation, nature and causes, effects and initiatives for alleviating its impact. In Final report part 1: Synthesis of findings.

  • Collicelli, C., & Valerrii, M. (2001). Poverty in transformation: Definition indicators, and key players at the national and Mediterranean level. Marseille: Euro-Mediterranean Forum of Economic Institutes.

    Google Scholar 

  • Cummins, R. A., McCabe, M. P., Romeo, M. P., & Gullone, E. (1994). The comprehensive quality of life scale instrument development and psychometric evaluation on tertiary staff and students. Educational and Psychological Measurement, 54, 372–388.

    Article  Google Scholar 

  • Dasgupta, P., & Weale, M. (1992). On measuring the quality of life. World Development, 20, 119–131.

    Article  Google Scholar 

  • Department of Basic Education. (2014). Department of basic education. Education for all (EFA) 2014 country progress report. Pretoria: Department of Basic Education.

    Google Scholar 

  • Department of Energy. (2012). A survey of energy-related behaviour and perceptions in South Africa. Pretoria: Department of Energy.

    Google Scholar 

  • Department of Trade and Industry. (2006). National Credit Act. Act no 34 of 2005. Pretoria: Department of Trade and Industry.

    Google Scholar 

  • Diener, E. (1995). A value-based index for measuring national quality of life. Social Indicators Research, 36(2), 107–127.

    Article  Google Scholar 

  • Duclos, J.-Y., & Batana, Y. M. (2010). Multidimensional poverty among West African children: Testing for robust poverty comparisons. In J. M. Cockburn & J. Kabubo-Mariara (Eds.), Child welfare in developing countries. New York: Springer.

    Google Scholar 

  • Duclos, J.-Y., Sahn, D. E., & Younger, S. D. (2006). Robust multidimensional spatial poverty comparisons in Ghana, Madagascar and Uganda. World Bank Economic Review, 20, 91–113.

    Article  Google Scholar 

  • Ebrahim, A., Botha, F., & Snowball, J. (2013). Determinants of life satisfaction among race groups in South Africa. Development Southern Africa, 30(2), 168–185.

    Article  Google Scholar 

  • Ezzrari, A., & Verme, P. (2012). A multiple correspondence analysis approach to the measurement of multidimensional poverty in Morocco, 2001–2007. Policy research working paper, 6087.

  • Finn, A., Leibbrandt, M., & Woolard, I. (2013). What happened to multidimensional poverty in South Africa between 1993 and 2010? Southern African labour and development research unit working paper series, 99.

  • Goodwin-Groen, R., & Kelly-Louw, M. (2006). The National Credit Act and its regulations in the context of access to finance in South Africa: Report prepared for FinMark Trust, South Africa. Johannesburg: FinMark.

    Google Scholar 

  • Greenacre, M. (2007). Correspondence analysis in practice. Barcelona: Chapman & Hall.

    Book  Google Scholar 

  • Greyling, T., & Tregenna, F. (2016). Construction and analysis of a composite quality of life index for a region of South Africa. Social Indicators Research. doi:10.1007/s11205-016-1294-5.

    Google Scholar 

  • Heady, B. (2005). A framework for assessing poverty, disadvantage and low capabilities in Australia. Melbourne: Melbourne Institute.

    Google Scholar 

  • Higgs, T. (2007). Measuring and understanding the well-being of South Africans: Everyday quality of life in South Africa. Social Indicators Research, 81(2), 331–356.

    Article  Google Scholar 

  • Hinks, T., & Gruen, C. (2007). What is the structure of South African happiness equations? Evidence from quality of life surveys. Social Indicators Research, 82(2), 311–336.

    Article  Google Scholar 

  • Hirschowitz, R. (2000). Measuring poverty in South Africa. Pretoria: Statistics South Africa.

    Google Scholar 

  • Hirschowitz, R., Orkin, M., & Alberts, P. (2000). Key baseline statistics for poverty measurement. In R. Hirschowitz (Ed.), Measuring poverty in South Africa. Pretoria: Statistics South Africa.

    Google Scholar 

  • Huchzermeyer, M. (2011). Cities with ‘slums’: From informal settlement eradication to a right to the city in Africa. Cape Town: UCT Press.

    Google Scholar 

  • Husson, F., Le, S., & Pages, J. (2011). Exploratory multivariate analysis by example using R. Boca Raton, FL: CRC Press.

    Google Scholar 

  • Jansen, A., Moses, M., Mujuta, S., & Yu, D. (2015). Measurements and determinants of multifaceted poverty in South Africa. Development Southern Africa, 32(2), 151–169.

    Article  Google Scholar 

  • Kaptan, K. (2016). Probability of being ‘multidimensional’ poor. Social Indicators Research. doi:10.1007/s11205-016-1296-3.

    Google Scholar 

  • Kelley, A. C. (1991). The human development index: Handle with care. Population and Development Review, 17, 315–324.

    Article  Google Scholar 

  • Kibet, M. K. (2010). Comparative study of infant and child mortality: The case of Kenya and South Africa. African Population Studies, 24(1&2), 1–25.

    Google Scholar 

  • Kingdon, G. G., & Knight, J. (2004). Subjective well-being poverty versus income poverty and capabilities poverty? Global poverty research group working paper series, 003.

  • Klasen, S. (2000). Measuring poverty and deprivation in South Africa. Review of Income and Wealth, 46(1), 33–58.

    Article  Google Scholar 

  • Krishnan, V. (2015). Development of a multidimensional living conditions index (LCI). Social Indicators Research, 120, 455–481.

    Article  Google Scholar 

  • Kuklys, W. (2005). Amartya Sen’s capability approach: Theoretical insights and empirical applications. New York: Springer.

    Google Scholar 

  • Laderchi, C. R., Saith, R., & Stewart, F. (2003). Does it matter that we don’t agree on the definition of poverty? A comparison of four approaches. QEH working paper series, working paper number 107. Oxford: Queen Elizabeth House, University of Oxford.

  • Lemanski, C. (2011). Moving up the ladder or stuck on the bottom rung? Homeownership as a solution to poverty in urban South Africa. International Journal of Urban and Regional Research, 35(1), 57–77.

    Article  Google Scholar 

  • Lugo, M.-A. (2007). Employment: A proposal for internationally comparable indicators. OPHI working paper no. 2: Missing dimensions of poverty data. Oxford: Oxford University.

  • Mack, J., & Lansley, S. (1985). Poor britain. London: Allen & Unwin.

    Google Scholar 

  • Martinez-Martinez, O. A., Lombe, M., Vazquez-Rodriguez, A.-M., & Coronado-Garcia, M. (2016). Rethinking the construction of welfare in Mexico: Going beyond the economic measures. International Journal of Social Welfare, 25, 259–272.

    Article  Google Scholar 

  • Mitra, S., Jones, K., Vick, B., Brown, D., McGinn, E., & Alexander, M. J. (2013). Implementing a multidimensional poverty measure using mixed methods and a participatory framework. Social Indicators Research, 110, 1061–1081.

    Article  Google Scholar 

  • Møller, V. (2013). South African quality of life trends over three decades, 1980–2010. Social Indicators Research, 113, 915–940.

    Article  Google Scholar 

  • Møller, V., & Devey, R. (2003). Trends in living conditions and satisfaction among poorer older South Africans: Objective and subjective indicators of quality of life in the October Household Survey. Development in South Africa, 20(4), 457–476.

    Article  Google Scholar 

  • Morris, M. D. (1979). Measuring the condition of the world’s poor. Oxford: Pergamon.

    Google Scholar 

  • National Credit Regulator. (2010). Debt review task team. Proposed debt review assessment guidelines: Annexure C. Midrand: National Credit Regulator.

    Google Scholar 

  • National Planning Commission. (2012). National development plan 2030: Our future—Make it work. Pretoria: National Planning Commission, Presidency.

    Google Scholar 

  • Njong, A. M., & Ningaye, P. (2008). Characterizing weights in the measurement of multidimensional poverty: An application of data-driven approaches to Cameroonian data. OPHI working paper, 21.

  • Noble, M., Babita, M., Barnes, H., Dibben, C., Magasela, W., Noble, S., et al. (2006). The provincial indices of multiple deprivation for South Africa 2001. Oxford: University of Oxford.

    Google Scholar 

  • Noble, M., Barnes, H., Wright, G., & Roberts, B. (2010). Small area indices of multiple deprivation in South Africa. Social Indicators Research, 95(2), 281–297.

    Article  Google Scholar 

  • Nolan, B., & Whelan, C. T. (1996). Resources, deprivation, and poverty. Oxford: Clarendon Press.

    Google Scholar 

  • Nolan, B., & Whelan, C. T. (2009). Using non-monetary deprivation indicators to analyse poverty and social exclusion in rich countries. Lesson from Europe? UCD school of social science working paper series, 2009.

  • Ntsalaze, L., & Ikhide, S. (2016a). Household over-indebtedness: Understanding its extent and characteristics of those affected. Journal of Social Sciences, 48(1-2), 79–93.

    Article  Google Scholar 

  • Ntsalaze, L., & Ikhide, S. (2016b). The effects of household indebtedness on multidimensional poverty. International Journal of Social Economics. doi:10.1108/IJSE-03-2016-0086.

    Google Scholar 

  • Nussbaum, M. (2000). Women and human development: A study in human capabilities. Cambridge: Cambridge University Press.

    Book  Google Scholar 

  • Osberg, L., & Sharpe, A. (2000). International comparisons of trends in economic well-being. Paper presented at the annual meeting of the American Economic Association. New York.

  • Oxford poverty and human development initiative. (2015). Global multidimensional poverty index (MPI) at a glance—OPHI country briefing June 2015: South Africa. Oxford: Department of International Development.

    Google Scholar 

  • Porter, K. (2012). The damage of debt. Washington and Lee Law Review, 69(2), 2014–2055.

    Google Scholar 

  • Posel, D., & Casale, D. (2011). Relative standing and subjective well-being in South Africa: The role of perceptions, expectations and income mobility. Social Indicators Research, 104(2), 195–223.

    Article  Google Scholar 

  • Posel, D., & Rogan, M. (2013). Measured as poor versus feeling poor: Comparing objective and subjective poverty rates in South Africa. In Proceedings of the economic society of South Africa (ESSA) conference, 25–27 Sept, Bloemfontein.

  • Pressman, S., & Scott, R. (2009). Consumer debt and the measurement of poverty and inequality in the US. Review of Social Economy, LXVII(2), 127–146.

    Article  Google Scholar 

  • Rath, S., Morobi, T., Chigumete, T., Mushoriwa, F., & Srinivas, S. (2016). Diet, obesity and non-communicable diseases in South Africa and India. World Journal of Pharmacy and Pharmaceutical Sciences, 5(2), 544–563.

    Google Scholar 

  • Ravallion, M. (1997). Good and bad growth: The human development reports. World Development, 25, 631–638.

    Article  Google Scholar 

  • Ravallion, M. (2011). On multidimensional indices of poverty. Journal of Economic Inequality, 9, 235–248.

    Article  Google Scholar 

  • Renke, S., Roestoff, M., & Haupt, F. (2007). The National Credit Act: New parameters for the granting of credit in South Africa. Obiter, 20(2), 229–270.

    Google Scholar 

  • Ringen, S. (1988). Direct and indirect measures of poverty. Journal of Social Policy, 17(3), 351–366.

    Article  Google Scholar 

  • Roestoff, M., Haupt, F., Coetzee, H., & Erasmus, M. (2009). The debt counselling process: Closing the loopholes in the National Credit Act 34 of 2005. PER: Potchefstroomse Elektroniese Regsblad, 12(4), 247–305.

    Google Scholar 

  • Sahn, D. E., & Stifel, D. C. (2000). Poverty comparisons over time and across countries in Africa. World Development, 28, 2123–2155.

    Article  Google Scholar 

  • Scott, L. (2002). A poverty indicator system for local government. Development Southern Africa, 19, 483–501.

    Article  Google Scholar 

  • Sen, A. K. (1979). Issues in the measurement of poverty. The Scandinavian Journal of Economics, 81(2), 285–307.

    Article  Google Scholar 

  • Sen, A. K. (1985). Well-being, agency and freedom: The Dewey lectures 1984. The Journal of Philosophy, 82, 169–221.

    Google Scholar 

  • Sen, A. K. (1993). Capability and well-being. In M. C. Nussbaum & A. Sen (Eds.), The quality of life (pp. 9–29). Oxford: Oxford University Press.

    Google Scholar 

  • Sen, A. K. (1999). Development as freedom. Oxford: Oxford University Press.

    Google Scholar 

  • Sen, A. K. (2004). Capabilities, lists, and public reason: Continuing the conversation. Feminist Economics, 10(3), 77–80.

    Article  Google Scholar 

  • Siani, J. (2015). A multidimensional analysis of poverty using the fuzzy set approach. Evidence from Cameroonian data. Economics Bulletin, 35(3), 2012–2025.

    Google Scholar 

  • South African Reserve Bank. (2015). Financial stability review September 2015. Pretoria: South African.

    Google Scholar 

  • Statistics South Africa. (2012). Census in brief. Pretoria: Statistics South Africa.

    Google Scholar 

  • Statistics South Africa. (2013). Men, women and children: Findings of the living conditions survey 2008/2009. Pretoria: Statistics South Africa.

    Google Scholar 

  • Statistics South Africa. (2014). The South African MPI: Creating a multi-dimensional poverty index using census data. Report No. 03-10-08. Pretoria: Statistics South Africa.

  • Stewart, F. (1985). Basic needs in developing countries. Baltimore: Johns Hopkins University Press.

    Google Scholar 

  • Subramanian, S., & Majumdar, M. (2002). On measuring deprivation adjusted for group disparities. Social Choice and Welfare, 19, 265–280.

    Article  Google Scholar 

  • Townsend, P. (1979). Poverty in the United Kingdom. Harmondsworth: Penguin.

    Google Scholar 

  • Townsend, P., & Gordon, D. (1989). Low income households. Memorandum of Evidence submitted to the House of Commons Social Services Committee, 579, 45–73.

  • Tsui, K. Y. (2002). Multidimensional poverty indices. Social Choices and Welfare, 19, 69–93.

    Article  Google Scholar 

  • Turok, I. (2014). The resilience of South African cities a decade after local democracy. Environment and Planning A, 46, 749–769.

    Article  Google Scholar 

  • UNDP. (1991, 2010). Human development report. New York: Oxford University Press.

  • Van der Berg, S., Taylor, S., Gustafsson, M., Spaull, N., & Armstrong, P. (2011). Improving education quality in South Africa. Report for the National Planning Commission, University of Stellenbosch.

  • Van der Pas, S., Ramklaas, S., O'Leary, B., Anderson, S., Keating, N., & Cassim, B. (2015). Features of home and neighbourhood and the liveability of older South Africans. European Journal of Ageing, 12, 215–227.

    Article  Google Scholar 

  • Verick, S. (2012). Giving up job search during a recession: The impact of the global financial crisis on the South African labour market. Journal of African Economies, 21(3), 373–408.

    Article  Google Scholar 

  • Von Maltzahn, R., & Durrheim, K. (2008). Is poverty multidimensional? A comparison of income and asset-based measures in five Southern African countries. Social Indicators Research, 86, 149–162.

    Article  Google Scholar 

  • Wolff, J., & De-Shalit, A. (2007). Disadvantage. Oxford: Oxford University Press.

    Book  Google Scholar 

  • Woolard, I., & Leibbrandt, M. (2006). Towards a poverty line for South Africa: Background note. Cape Town: Southern Africa Labour and Development Research Unit.

    Google Scholar 

  • Yu, J. (2013). Multidimensional poverty in China: Findings based on the CHNS. Social Indicators Research, 112, 315–336.

    Article  Google Scholar 

  • Zaidi, A., & Burchardt, T. (2005). Comparing incomes when needs differ: Equivalization for the extra costs of disability in the UK. Review of Income and Wealth, 51(1), 89–114.

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Department of Financial Intelligence, University of South Africa, P.O. Box 392, Pretoria, 0003, South Africa

    Lungile Ntsalaze

  2. Department of Development Finance, University of Stellenbosch Business School, P.O. Box 610, Bellville, 7535, South Africa

    Sylvanus Ikhide

Authors
  1. Lungile Ntsalaze
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Sylvanus Ikhide
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Lungile Ntsalaze.

Rights and permissions

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Ntsalaze, L., Ikhide, S. Rethinking Dimensions: The South African Multidimensional Poverty Index. Soc Indic Res 135, 195–213 (2018). https://doi.org/10.1007/s11205-016-1473-4

Download citation

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s11205-016-1473-4

Keywords

Search

Navigation