Income poverty and inequality in Namibia
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Date
2007
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Abstract
In this paper a national income poverty line for Namibia is derived based on estimated expenditures required to sustain a minimum calorific intake (food poverty line) as well as other basic necessities such as clothing and shelter (non-food poverty line). Estimates are based on actual consumption patterns of the poorest as recorded by the Namibia Household Income and Expenditure Survey conducted in 1993/94. This method is preferred over the previously applied food-share method. The overall poverty line is estimated at N$107 per capita per month in 1993/94 prices or approximately N$212 per capita per month in 2003 prices. According to this definition 53% of households and 65% of individuals in Namibia live below the income poverty line at the time of the survey. The analysis confirms tremendous inequalities in the way income and poverty is distributed. The poorest 20% of the population receives 2.5% of total expenditure, while the top 20% receives 71%. The standard measure of inequality, the Gini-coefficient, is estimated to be 0.697, which is probably the highest in the world. The methods and analysis presented in the paper should serve as a bench-mark for the analysis of the ongoing 2003/04 income and expenditure survey in particular and as a key tool for designing, implementing and monitoring policies that can effectively combat income poverty and inequality in Namibia in line with Vision 2030 and the Millennium Development Goals.
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Millennium development goals., Namibia house hold income and expenditure, Poverty in Namibia