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Library Small Area Estimation of Poverty in Rural Bhutan

Small Area Estimation of Poverty in Rural Bhutan

Small Area Estimation of Poverty in Rural Bhutan

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Date of publication
February 2013
Resource Language
ISBN / Resource ID
oai:openknowledge.worldbank.org:10986/12348

The Small Area Estimation (SAE) of
poverty in Rural Bhutan was prepared with an objective to
provide a more disaggregated picture of poverty in Bhutan
down to the gewog level, based on the Bhutan living standard
survey 2007 and Population and Housing Census of Bhutan
(PHCB) 2005. The report records the estimation process in
detail and describes results of statistical tests for
quality checks. According to these tests, the poverty
estimates at the gewog level are reliable. The report also
enhances the transparency of the process and intends to
serve as a guide for future updates. According to the
Poverty Analysis Report (PAR) 2007, about one-fourth of the
country's population is estimated to be poor with rural
poverty as high as 30.9 percent. This report, which presents
some results of the SAE, compliments the PAR 2007. However,
vast differences in poverty levels across dzongkhag
(district) and gewog (sub-district) persist. Popular
perceptions suggest that the geography of poverty and of
economic affluence is accentuated at the local level, and
that an understanding of the spatial distribution of
economic welfare is needed in order to spread the benefits
of growth to lagging regions. In order to fulfill
Bhutan's development philosophy of gross national
happiness, and poverty reduction, it is essential to
understand its geographic and spatial patterns. In the case
of Bhutan, its land-locked geography and sparse population
pose major challenges for poverty reduction. Poverty maps
will help the government and development partners locate
pockets of poverty which might otherwise be overlooked.

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