Difference between revisions of "Poverty Datum Line (PDL)"

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==Trends in PDL statistics==
 
==Trends in PDL statistics==
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===July 2021===
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*The Food Poverty Line (FPL) for one person in July 2021 was Z$4,379.00
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*The Total Consumption Poverty Line (TCPL) for one person stood at Z$6,126.00 in July 2021.
  
 
===May 2021===
 
===May 2021===

Revision as of 12:56, 27 July 2021

PDL Basket

The Poverty Datum Line (PDL) represents the cost of a given standard of living that must be attained if a person is deemed not to be poor. The food poverty datum line (FPL) represents

the minimum consumption expenditure necessary to ensure that each household member can (if all expenditures were devoted to food) consume a minimum food basket representing 2 100 calories.

The Food Poverty Line (FPL) is computed by valuing the products in the minimum needs basket by the average prices across all the provinces of Zimbabwe. It is assumed that an individual whose total per capita consumption expenditures do not exceed the FPL is very poor. The FPL is sometimes referred to as the lower line.[1]

Background

An individual whose total consumption expenditure does not exceed the food poverty line is deemed to be very poor. The total consumption poverty line (TCPL) is naturally higher than the FPL. It is derived by computing the non-food consumption expenditures of poor households whose consumption expenditures were just equal to the FPL. The amount was added to the FPL, if an individual does not consume more than the TCPL, he or she is deemed poor. The analysis uses the per capita consumption expenditure, and an average of five persons is used based on the average size of households as established by the 2002 and 2012 Population Census.[2]

International Labour Organisation (ILO) Recommendation

The International Labour Organisation (ILO) recommends that the PDL should be used as a benchmark or reference point in determining minimum wages. However, in the current environment, wage growth is lagging behind inflation and employers and workers are up in arms over salaries and wages adjustment.

Most workers’ salaries are about half the PDL, leaving them struggling to make ends meet. The situation for both Government and private companies was compounded by the current Covid-19 lockdown that forced companies to scale down operations, lay off some workers or cut their salaries. The lockdown was aimed at curbing spread of the deadly disease.

Trends in PDL statistics

July 2021

  • The Food Poverty Line (FPL) for one person in July 2021 was Z$4,379.00
  • The Total Consumption Poverty Line (TCPL) for one person stood at Z$6,126.00 in July 2021.

May 2021

  • The Food Poverty Line (FPL) for one person in May 2021 was Z$4,139.00
  • The Total Consumption Poverty Line (TCPL) for one person stood at Z$5,771.00 in May 2021.

March 2021

  • The Food Poverty Line (FPL) for one person in March 2021 was Z$4,033.00
  • The Total Consumption Poverty Line (TCPL) for one person stood at Z$5,312.00 in March 2021.

February 2021

  • The Food Poverty Line (FPL) for one person in February 2021 was Z$3,934.00
  • The Total Consumption Poverty Line (TCPL) for one person stood at Z$5,187.00 in February 2021.

January 2021

  • The Food Poverty Line #FPL for one person in January 2021 was Z$3,768.00.
  • The Total Consumption Poverty Line #TCPL for one person stood at Z$4,987.00 in January 2021.

November 2020

The Food Poverty Line #FPL for one poor person in November 2020 was Z$3,279.00. The Total Consumption Poverty Line #TCPL for one poor person stood at Z$4,426.00 in November 2020.

NB: In line with International Standards of disseminating poverty statistics, the Zimbabwe National Statistics Agency (ZIMSTAT), with effect from November 2020 started disseminating the Food Poverty Line (TPL) and the Total Consumption Poverty Line (TCPL) for one person. The lines will be calculated using the internationally recommended lower bound poverty line methodology. Previously, ZIMSTAT was disseminating poverty datum lines for one person and for a household of five persons.

For purposes of devolution ZIMSTAT will be publishing PDL as per province. For an individual, not to be deemed poor in his/her respective province, his/her total income should be above the given lines shown in the table below:

Provincial Poverty Datum Lines

Food Poverty Line (FPL) Total Consumption Poverty Line (TCPL)
Bulawayo 3,330.37 4,696.06
Manicaland 3,476.05 4,403.99
Mashonaland Central 3,627.53 5,410.79
Mashonaland East 3,117.53 4,165.59
Mashonaland West 3,106.32 4,537.19
Matabeleland North 3,362.17 4,480.11
Matabeleland South 2,830.31 3,625.59
Midlands 3,242.72 4,138.98
Masvingo 3,414.55 4,686.15
Harare 3,072.21 4,192.56

October 2020

The Food Poverty Line #FPL for one person in October 2020 was $1,522.00. The #FPL for an average of five persons per household in October 2020 was $7,608.00. The Total Consumption Poverty Line #TCPL for one person stood at $3,750.00 in October 2020. The #TCPL for an average of five persons per household stood at $18,750.00 in October 2020.

September 2020

The Food Poverty Line (FPL) for one person in September 2020 was $1,477.00 while that for an average of five persons per household during the same month was $7,383.00. The Total Consumption Poverty Line (TCPL) for one person stood at $3,591.00 in September 2020 while that for an average of five persons per household during the same month stood at $17,957.00.

August 2020

The Food Poverty Line (FPL) for one person in August 2020 was $1,442.00 while that for an average of five persons per household during the same month was $7,211.00. The Total Consumption Poverty Line (TCPL) for one person stood at $3,449.00 in August 2020 while that for an average of five persons per household during the same period stood at $17,244.00

July 2020

The Food Poverty Line (FPL) for one person in July 2020 was $1,329.00, while that for an average household of five persons was $6,643.00. The Total Consumption Poverty Line (TCPL) for one person stood at $3,115.00 in July 2020, while that for an average of five persons per household was pegged at $15,573.00

June 2020

The Food Poverty Line (FPL) for one person in June 2020 was $950.00, while that for an average household of five persons was $4,749.00. The Total Consumption Poverty Line (TCPL) for one person stood at $2,267.00 during the same period (June 2020), while that for an average of five persons per household pegged at $11,334.00

May 2020

The Food Poverty Line (FPL) for one person in May 2020 was $680.00 while that for an average household of five persons was $3,398.00. The Total Consumption Poverty Line (TCPL) for one person during the same period (May 2020) stood at $1,697.00 while that for an average of five persons per household was $8,484.00. This came at a time prices of commodities in supermarkets have also significantly increased. This also came after the government announced a 150 percent fuel price increase. The Zimbabwe Energy Regulatory Authority (ZERA), announced a shocking fuel price increase on the night of Tuesday 23 June 2020, which saw a litre of petrol going for $71.62 (US$1.28), up from $28.96 while diesel went up from $24.93 to $62.77 (US$1.09).[3]

April 2020

Zimbabwe’s poverty datum line (PDL) increased to $7 426 in April from $6 421 in March, the Zimbabwe National Statistics Agency (ZIMSTAT), revealed on Monday 8 June 2020. The data shows that financial requirements for a family of five to live a basic comfortable life and not be deemed poor continued to go up while the economy is under a Covid-19 (Coronavirus) lockdown. Given that year-on-year inflation for April was 765 percent, indications are the PDL for May is likely to surge forward.

“The Total Consumption Poverty Line for one person during the same period was $1 485,16 while that for an average of five persons per household stood at $7 425,81,” Zimstat said. The rise in the cost of living reflects the impact of inflation (Zimbabwe Inflation Rates) caused mainly by exchange rate instability which has seen the local currency lose its value against the United States dollar.[4]

March 2020

The total consumption poverty line (TCPL) for an average of five persons shot by 21,3% to $6 420,87 in March 2020, the country’s statistical agency ZimStat announced on Friday 24 April 2020.

“The TCPL for an average of five persons stood at $6 420,87 in March 2020. This means that an average household required that much to purchase both food and non-food items for them not to be deemed poor. This represents an increase of 21,3% when compared to the February 2020 figure of $5 292,63,” said ZimStat. Moreso, the total food poverty line (TFPL) for an average of five persons in Zimbabwe grew by 12,8% to $2 365,15 in March 2020 from $2 097,12 the previous month.

At a time authorities are planned to provide a cash relief of a paltry $200 to vulnerable households to cushion them from the impact of COVID-19, food poverty line (FPL) for one person in March 2020 stood at $473. ZimStat said the poverty datum lines vary by province as prices vary from place to place. The TCPL for an average household in March 2020 ranged from $5 613 in Mashonaland Central Province to $7 436 in Matabeleland North Province. The differences are explained by differences in average prices in the provinces.[5]

References

  1. [1], Zimbabwe National Statistical Agency, Published: April 2013, Accessed: 17 September, 2020
  2. [2], Techzim, Published: September, 2016, Accessed: 17 September, 2020
  3. Tendai Kamhungira, [3], Daily News, Published: 27 June, 2020, Accessed: 17 September, 2020
  4. [4], The Herald, Published: 10 June, 2020, Accessed: 17 September, 2020
  5. Fidelity Mhlanga, [5], Newsday, Published: 27 April, 2020, Accessed: 17 September, 2020