FAQ Consumer Guide for PPI and USAID PAT 10-30-08

8/7/2019 FAQ Consumer Guide for PPI and USAID PAT 10-30-08

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Poverty Assessment Tools - An Overview of the PPI and USAID PAT

USAID Poverty Assessment Tool

What Is it?

ow are the PPI and PAT simila

When is it used?

hat countries it is available fo

Progress out of Poverty Index

Short survey of 10 questions that assesspoverty likelihood at a household level.

Short survey of 10-33 questions toassess poverty at household level.Questions may cover education, health,housing, and assets.

Both tools: 1) assess absolute poverty at the household level; 2) are created usingnational level household survey data; 3) have known levels of accuracy; 4) arerelatively simple to administer; 5) are calibrated to international and/or nationalpoverty lines, allowing for industry-wide comparisons; and 6) are accompanied bya manual and training materials to guide users.

May be used at any number of times,depending on the use the MFI will put theinformation to. For example, it can beused during new-member screening or

loan application. May also beadministered periodically, annually, or atclient exit. Appropriate for targeting,assessment, or monitoring.

Can be used at any time, but after loanapproval or acceptance into program ishighly encouraged to minimize bias. Can

be used as a one-time assessment or aspart of ongoing monitoring.

Fourteen PPIs are developed forBangladesh, Bolivia, Haiti, India,Indonesia, Kenya, Mali, Mexico, Morocco,Pakistan, Palestine, Peru, the Philippines,and Vietnam. Grameen Foundation andthe Ford Foundation are currentlydeveloping additional PPIs, and expectthat a total of 38 PPIs will be in use bythe end of 2009. For updates visitwww.progressoutofpoverty.org.

PATs have been developed and certifiedfor 25 countries: Albania, Azerbaijan,Bangladesh, Bosnia and Herzegovina,Cambodia, Colombia, East Timor,Ethiopia, Ghana, Guatemala, Haiti, India,Indonesia, Jamaica, Kazakhstan, Kosovo,

Madagascar, Malawi, Mexico, Peru, thePhilippines, Serbia, Tajikistan, Uganda,and Vietnam. The IRIS Center expects tohave a total of 31 PATs available by theend of 2009. For updates visitwww.povertytools.org.


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How is it implemented?

Can it be used for targeting?

Administered by loan officers. Possibleresponses for each indicator haveassigned point values. Total points canbe summed in field by loan officer andpoverty likelihood immediatelyestimated. Can enter overall score or

overall score plus individual indicatorscore into MIS. A sampling methodologyis introduced to MFIs during the pilotprocess. The pilot objectives set by theorganization will determine the sampleused. The pilot is different from a full-scale implementation, because it is setup to test a specific aspect of the use ofthe PPI before fully implementing the PPIacross all operations, which can imply

using the PPI on a sample or censusbasis, depending on the informationneeds of the MFI.

Implemented by field staff or external

team. Data entered into customized dataentry template for each tool. Aftersimple data-cleaning steps, softwareautomatically calculates the prevalenceof extreme poverty. Can be applied to allclients or a sample of current, new orincoming clients. Sample size dependson level of confidence desired.

What type of informationdoes it provide?

Poverty likelihood (probability of beingvery poor or poor) for individual clients,groups of clients, or clients as a whole.Multiple indicators related to clienteconomic well-being, each statisticallylinked to poverty in the country.

Automatic calculation of prevalence ofpoverty and extreme poverty. Multiplepoverty indicators related to education,housing, and assets can be analyzed tolearn more about clients. Database canbe exported for further analysis usingother software.

Yes, the PPI takes 5 minutes on averageto conduct. That includes conducting theinterview, tallying the score, anddetermining the clients target status, asset by the MFI. This enables quick andeasy targeting, as points can becomputed immediately in the field withonly paper and pencil.

The PAT could be adapted for targeting,but is designed to automaticallycalculate poverty at the aggregate/grouplevel.


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What are the costs?

Time required? About 3-8 minutes per client About 10-20 minutes per client.

What are the skills required?

Who is involved?

Who will use it?

ystem infrastructure required

Varies depending upon sample size orcensus methodology, logistical costs,management and reporting uses and MISissues (if necessary).

Low to moderate cost. Varies dependingupon sampling frame, logistical costs,and the use of internal or external team.

Basic interview techniques, computation,

data entry, and data managmement.

Basic interview techniques, sampling,

and data processing.Field staff administers survey, key punchoperator enters information intodatabase, lower-level technical staffanalyzes data, management reviewsreports.

Field staff or external team, including 2-5interviewers, field supervisor, data entryoperators, and HQ coordinator(s).

Internal use primarily but also of interestto external stakeholders interested inpoverty profile and impact of MFI.

Internal management; meeting USAIDreporting requirements; otherstakeholders interested in client profile.

Requires automated MIS or other

database system (e.g., Excel, Access,SPSS, etc.).

EPI Info software (freeware) and a

computer with windows 98 or later. Noother software is required.

How can we use these toolsto analyze change in client

status?

The PPI allows MFIs to divide theirclients into distinct poverty bands (aboveand below different poverty lines). Usingthe PPI an organization can track povertylevels of clients, see how those levelschange over time and analyze thecorrelations between poverty likelihoodsand other variables. This information canbe used to target clients, track theirpoverty movement and develop productsand services to meet their needs better.

The latest PATs calculate the prevalenceof both poverty and extreme poverty,allowing an organization to classify itsoutreach to the non-poor, poor, and verypoor. The PAT can be used multipletimes to analyze change in povertystatus among these categories.

However, it is important not to equatechange with impact, as the latterrequires detailed study to ensurecredible results.


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What are its key features?

What are its issues?

ess Tools and Support Materia

Indicators statistically linked to poverty.Provides accurate and credible estimateof poverty outreach and poverty trendsamong clients. Allows immediateestimate of client poverty likelihood.Relatively easy and inexpensive toadminister and flexible in terms of when

it can be administered. Povertyscorecards calibrated to multipleextreme poverty and poverty lines.

Uses multiple statistical methods toselect indicators and calibrate povertypredictions. Relatively low cost andpractical to implement. Automated stepsfor data processing and povertycalculation to reduce errors. Latest tools

include both extreme poverty andpoverty lines.

Requires appropriate national-levelhousehold survey data set to derivepoverty indicators. Process to derivebuild PPIs is complex and requires hightechnical aptitude in data analysis.

Tool creation requires appropriatenational household survey data set, andadvanced statistical skills. Needsufficient training and supervision tominimize bias during implementation.Household roster on most PATs takes abit more time than shorter tools, but

provides additional, useful info about thehousehold for additional analysis.Please go to

www.progressoutofpoverty.org oremail the Grameen Foundation SocialPerformance Management Center [email protected]

Please go to www.povertytools.org oremail Brian Beard at the IRIS Center [email protected] or AnthonyLeegwater [email protected]


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(PAT)


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FAQ Consumer Guide for PPI and USAID PAT 10-30-08

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