Tag Archives: perceptions of poverty

The Conundrum of Identifying the Poor

I used to think that giving aid was easy. You just find those in need and give them money, incentives or beneficial programs, right? It turns out that even the seemingly simple initial process of identifying the poor is not as easy as it sounds. Not only has a truly efficient method of identifying those living in poverty yet to be established, but there are discrepancies between community satisfaction with known methods and the method’s official success rate.

The main challenge that is faced by researchers and potential benefactors in developing countries when identifying poor people is a lack of reliable income data. Many of the poorest people work informally and/or inconsistently, with few or no verifiable income records. Considerable and creative efforts therefore need to be made to identify intended beneficiaries if aid money is not to be misdirected toward wealthier households.

To date, Proxy Means Tests (PMTs) have proved the most accurate method of identifying families living on USD$2 or less a day. Read More »

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