Poverty Dynamics in Zambia

Zambia remains a high-poverty country despite having attained middle-income status in 2011. According to projections, the country’s high levels of poverty will persist through to the middle of this century unless significant new policies and programmes can be developed. This report outlines the findings of a quantitative and qualitative analysis of poverty dynamics – defined as being stuck in poverty, escaping poverty either temporarily or in a sustained way, or becoming poor – and draws out policy implications.

Structural financial distress is manifested in the high levels of severe/food poverty, chronic poverty and impoverishment in rural areas witnessed by this study, which are strongly linked to environmental sustainability issues (deteriorating fish stocks, soil fertility, drought and floods) and disaster risk. There are many further effects: inability to cope with health shocks over time, early marriage, alcoholism, divorce, and a high number of chronically poor women-headed households. Panel data reveals relatively less poverty in urban areas compared to rural areas, but high levels of inequality within urban areas. Those in poorer urban townships endure high rents and the threat of eviction, precarious labour incomes and exploitation marked by long periods of unemployment. Inflation in the costs of living, together with the real costs of educating children, are not met by rising employment and incomes.

Sustained escapes are all too rare – where they occur, they are characterised by diversification within farming or into nonfarm enterprises, and by transitions from rural to urban residence. However, rural-urban migration as a pathway out of poverty is limited in Zambia compared to many other countries, indicating a need to spread the ‘inclusive urban development’ now being pioneered in Lusaka to other cities and towns across the country, in the hope that urban areas become more migrant-friendly. Impoverishment and temporary escapes from poverty are much more common in rural areas. A much greater emphasis in policy development is needed to prevent people falling (back) into poverty as well as to tackle the widespread rural chronic poverty. In urban areas, there is an urgent need to invest in the country’s power generation and electricity distribution system to avoid a repetition of the employment crisis generated by the 2019 drought and persistent load shedding. Load shedding has significant impacts on people’s livelihoods, especially traders, saloon and barber shop owners, welders and other users of electricity. Increasing the rate of rural electrification and access for poorer households will also help build resilience through investments in irrigation and nonfarm enterprises.

The overall context is one of macroeconomic vulnerability and constraints on public action. Zambia is a Least Developed Country (LDC) that is mineral-dependent, debt-distressed and with a revenue deficit. It also suffers from long-term urban–rural, inter-provincial and gender inequalities and highly contested politics characterised by weak policy development and implementation. With the advent of a new government, policies now need to tackle the causes of adverse poverty dynamics, and to introduce innovations into the policy framework – this research has suggestions on what they should be. Implementation problems are widespread, with examples including regularly delayed subsidised fertiliser distribution (despite early requests for down payments from beneficiaries), inadequate financing of social cash transfers and associated corruption scandals, and inadequate financing of the Food Security Pack programme. These contextual factors significantly constrain the effectiveness of state action on poverty reduction.

Zambians have faced a recent period of sharp shocks to the incomes of the poor (from 2017 to end-2019) as well as a decade (2011 to present) of systemic stressors driving a slower decline in income, savings and assets which increased the vulnerability to the recent shocks faced by households and those brought on by COVID-19 in 2020–21. The management of the 2019 drought is being evaluated, but the official response appears to have left much to be desired. Coupled with concerns about COVID-19 donor funding, questions are being raised about the politicisation of relief.

In this context, it is remarkable that some people can still escape poverty and remain out of it. The qualitative research revealed how these ‘sustained escapers’ demonstrate the benefits of education (including educated children), a stable marriage, women’s empowerment, diverse livelihoods, hard work, compassionate employer-labour relationships and careful management of health, partners, recreational pursuits and assets. In the medium term, getting agriculture policy right, combined with supporting diversification and inclusive urbanisation and supported by significant increases in public expenditure on health and education, will go a long way towards supporting those escapes and supporting more people to escape in the first place. With its 8th National Development Plan in process and a new government, Zambia has a major opportunity to tackle its persistently high poverty levels.

Authors: Andrew Shepherd, Virginia Bond, Chiti Bwalya, Richard Bwalya, Antony Chapoto, Lucia da Corta, Vidya Diwakar, Marta Eichsteller, Lwiindi Gwanu, Mary Lubungu, Monde Mwamba, Phillimon Ndubani, Joseph Simbaya and Mitelo Subakanya

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The role of agriculture in poverty escapes in Kenya – Developing a capabilities approach in the context of climate change

Rural poverty poses a significant developmental challenge in Kenya. Using a panel survey in rural Kenya and qualitative material from focus groups and life history interviews from the regions of Makueni and Vihiga, we investigate the changing role of how agriculture and farming practices have contributed to sustained escapes from poverty since 2000. In this study we analyse environmental, social and personal structures that facilitate conversion of agricultural strategies that enable poverty escapes in the context of climate change. Our study identifies that agriculture still forms an essential aspect of Kenyan households’ economic and social wellbeing. However, the study results indicate that links between accumulation of assets and poverty escapes are ambiguous, poor households find it problematic to convert agricultural strategies into a profit, and climate change shocks further exasperate these difficulties. We argue that constraints in conversion structures, such as limited infrastructure, and in conversion processes such as ongoing difficulties in land procurement and inheritance, unsustainable farming practices and continued lack of knowledge on climate-smart agriculture affect not only poverty escapes, but also the ability to adapt to and mitigate against environmental shocks. Development of conversion processes to improve existing conversion structures should be at the core of public interventions that seek to sustainably reduce poverty amidst climate change in rural Kenya.

This publication was authored by CPAN partners Marta Eichsteller, Tim Njagi, and Elvin Nyukuric, and was published in World Development journal.

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Mixed methods approach for research on youth inclusion in labour markets in Niger

This article briefly explores how to combine two qualitative methodologies to inspect the topic of youth inclusion in Niger via a mixed methods analysis. It presents the ethnographic approach developed by LASDEL’s social anthropological qualitative methodology and the CPAN’s critical realist mixed methods approach to research and analysis of poverty dynamics. In assessing their joint functioning, it also inspects some limitations of the experimented exercise for Niger.

Read the methods paper here

Read the associated report here

Read the policy briefs on education, migration, and entrepreneurship

Authors: Lucia da Corta, Aïssa Diarra, Vidya Diwakar, Abdoutan Harouna

Youth inclusion in labour markets in Niger: Gender dynamics and livelihoods

This paper uses a mixed methods approach to identify factors that challenge and enable young adults’ inclusion in the world of work in Niger, through a gender-streamlined analysis of different poverty trajectories of livelihoods and how these are affected by training, education and migration.

We find a high prevalence of self-employment activities in rural and urban contexts in the Tahoua and Zinder regions, characterised by low security of income flows, gendered professions and asset-dependent pathways to escape poverty. Among the barriers to labour inclusion, high education fees drastically reduce job prospects, particularly for the poorest. Those accessing schooling attest to the lack of stable offers or civil service contracts, instead engaging in informal service provision.

The dearth of savings and the unaffordability of productive assets (land, vehicles) hinder the ability to start an investment. Internal and international migration is seen as a method of occupational upgrading within predominantly non-poor trajectories by young people who can save and invest capital upon return, but it is a capital-intensive and risky investment that may be unaffordable for the poorest.

Changing norms influence youth labour trajectories. Divorce and remarriage rates are higher for young women and efforts to obtain training require careful renegotiations of gender and generational norms, including working in innovative ways within local social contexts.

Read the full report here

Read the associated methods paper here

Read the policy briefs on education, migration, and entrepreneurship

Authors: Lucia da Corta, Aïssa Diarra, Vidya Diwakar, Abdoutan Harouna, Cecilia Poggi

Youth inclusion in labour markets in Niger: Policy briefs on education, migration, and entrepreneurship

This set of briefs is based on the mixed methods research that identified factors that challenge and enable young adults’ inclusion in the world of work in Niger, through a gender-streamlined analysis of different poverty trajectories of livelihoods and how these are affected by training, education and migration. Each brief focuses on one of the key themes of the research findings: education and training, migration, and entrepreneurship. It collectively draws attention to key areas that require policy action in order to improve youth inclusion in labour markets in ways that can facilitate their pathways out of poverty.

Read the policy brief on education here

Read the policy brief on migration here

Read the policy brief on entrepreneurship here

Read the associated report here

Read the associated methods paper here

Authors: Andrew Shepherd, Abdoutan Harouna, Cecilia Poggi, Vidya Diwakar, Aïssa Diarra, Lucia Da Corta

Poverty dynamics and social protection in Nigeria

Nigeria has a large and growing share of people living in poverty. Roughly 40.1% of its population live below the national poverty line, while a similar share (46.4%) are multidimensionally poor based on deprivations in education, health, and living standards. Covid19 has amplified these concerns, forecasted by the World Bank to push an estimated additional 10 million Nigerians into extreme poverty by 2022.

This study investigates key drivers associated with descents into and exits from relative monetary poverty across zones of Nigeria, the ways in which COVID-19 pandemic are likely to impact these dynamics, and implications for the design of social protection programmes and policy in Nigeria. It analyses: 1) the Nigeria General Household Survey Panel from 2010/11-2015/16, 2) nine rounds of the Covid19 National Longitudinal Phone Survey 2020-2021, 3) the Nigeria Living Standards Survey 2018/19, and 4) a series of key informant interviews with social protection stakeholders in 2021. The results of the study point to a combination of asset and livelihood-based enablers for households to sustain poverty escapes, and draw out implications for the design of social protection in Nigeria in the time ahead.

Read the full report here

Read the briefing note here

Authors: Vidya Diwakar and Adeniran Adedeji

The research is funded through FCDO and commissioned by Save the Children International (Nigeria) and Action Against Hunger through the Child Development Grant Programme.

Rural poverty dynamics in Zambia: 2012-2019

Rural poverty rates in Zambia have stood above 75% since 1991, according to national poverty lines. Furthermore, Figure 1 shows that 76.6% of the rural population is living in poverty compared to 23.4% of the urban population, based on the national poverty line of 214 Zambian kwacha (ZMW) per adult equivalent per month. However, these rates hide underlying poverty dynamics in these areas. CPAN research across a range of developing countries in sub-Saharan Africa reveals that there are considerable movements of households into and out of poverty over time. Understanding the drivers of these poverty dynamics is therefore critical in efforts to speed up poverty reduction, as different poverty trajectories require (at least some) different policy responses. A more nuanced understanding of the poverty profile and dynamics in Zambia can thus contribute to more effective policy and programming efforts towards eradicating poverty.

This study examines the factors that support sustained escapes from poverty in rural Zambia, where there are stubbornly high poverty rates, and how to prevent impoverishment and tackle chronic poverty. For this dynamic analysis of poverty, the study uses the Rural Agricultural Livelihoods Survey (RALS) to examine the factors associated with sustained escapes, transitory escapes, impoverishment and chronic poverty. Understanding the factors driving these movements can be used by policy-makers in making progress towards achieving Sustainable Development Goal (SDG) 1 by developing new and strengthening existing policies and programmes to eradicate poverty.

Authors: Vidya Diwakar, Mitelo Subakanya, Mary Lubungu, and Antony Chapoto

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Assessing the drivers of poverty in Zambia: evidence from 2010 and 2015

Poverty has remained high and also predominantly a rural phenomenon in Zambia, despite various interventions and policies over the years. As of 2015, estimates put rural poverty at 73.6%, compared to urban levels of 23.4% (CSO and World Bank, n.d.). Understanding and responding to the drivers of rural and urban poverty can help contribute to poverty reduction. The objective of this paper is to investigate these drivers of poverty in Zambia. It responds to the question: Why has extreme poverty remained at such a high level and so widespread? To answer this question, the analysis employs the 2010 and 2015 rounds of the Zambia Living Conditions Monitoring Survey (LCMS) to identify correlates of poverty in rural and urban areas, by province and by expenditure quintile. It also explores the extent to which continued high levels of poverty may be accounted for by varied poverty dynamics around the poverty line.

The analysis reveals that there continue to be provinces in Zambia with high poverty in 2015, much of which is chronic in nature. Relatively limited escapes from poverty and more variable provincial-level impoverishment suggests a context in which resilience is weak. Even so, there are positive factors that offer some protection against poverty and improve welfare across the wealth distribution – in particular, a secondary education or higher, access to electricity, non-farm enterprises and owning livestock. A policy focus on these areas and the relevant intersections (for example, the combination of a secondary education or higher and a non-farm enterprise) would benefit Zambians on the road to zero poverty.

Authors: Vidya Diwakar and Richard Bwalya

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The future of Zambian poverty to 2060: assessing national and sub-national trends across scenarios

Poverty in Zambia is extensive and a persistent problem. Zambia’s recent period of positive macroeconomic performance did not lead to commensurate improvements for the poorest Zambians. Over half of all Zambians live below the national poverty line and about 1 in 3 live on less than $1.00 per day. Long-term trends in development in Zambia suggest that poverty could remain a challenge for many years to come.

This report utilizes the 2015 Living Conditions Monitoring Survey (LCMS) to understand the current state of poverty in Zambia, and examines the potential long-term future of poverty in Zambia using the International Futures (IFs) forecasting system to project poverty in Zambia at national and provincial levels. In this effort it also projects poverty across scenarios that reflect policy choices and possible patterns of development in Zambia.

Authors: Mickey Rafa, Singumbe Muyeba, Jonathan Moyer, and Taylor Hanna

Download the report here.

The role of behaviour-change programming on mindsets and livelihoods

The psychosocial dimensions of poverty have long been recognised, but psychosocial factors are rarely included in development frameworks as diagnostics or as interventions to address poverty. Religion and/or faith is also broadly recognized as having the potential to affect mindsets and constraints to economic wellbeing, but faith dimensions are rarely included in poverty interventions. This is consistent with gaps in the wider literature on faith in development and in empirical evidence on faith in development programming.  A review of the literature indicates that a lack of established faith and economic development frameworks might contribute to this evidence gap. Faith and psychological attributes are also difficult to measure, likely contributing to the gap in evidence-based faith-oriented models.

CPAN partnered with World Vision, a Christian humanitarian organization, to conduct an evaluation of the efficacy of its faith-based approach called Empowered Worldview (EWV). The EWV approach seeks to address ‘dependency mindsets and promote empowerment among smallholder farmers living in poverty’. We conducted a literature review to inform a conceptual framework of the potential pathways of change and outcome measures of an EWV intervention in livelihoods improvement programming. We also empirically tested the framework in Zambia on World Vision’s THRIVE programme (Transforming Household Resilience in Vulnerable Environments). THRIVE is an integrated livelihoods programme that includes EWV as a core approach—in addition to savings for transformation, natural resource management, farming as a Business, disaster risk reduction and microfinance interventions.  

Three hypotheses tested in the study:

1. Households trained in EWV are more likely to have positive mindsets (are empowered) than households not trained in EWV with regards to hope, identity, self-esteem and aspirations of economic/social well-being.

2. EWV interventions positively influence a household’s response to livelihood options, agency, and valuable social relationships leading to economic empowerment.

3. EWV interventions have a positive, statistically significant effect on livelihoods (THRIVE) results, including subjective well-being, income change, resilience, and child well-being.

Authors: Amanda Lenhardt, Vidya Diwakar, Joseph Simbaya, Emmanuel Tumusiime

Download the report here.

Download the technical brief here.

This project has been commissioned and is funded by World Vision.

Understanding the dynamics of poverty in Rwanda

Overview

While poverty rates in Rwanda have fallen significantly since the 2000s, the latest estimates reveal a slowdown in the poverty reduction rate. This calls for a better understanding of poverty and poverty dynamics in the country. In this paper, we use the latest three waves of Rwandan panel data, collected in 2010/11, 2013/14 and 2016/17, to characterise the dynamics of poverty in Rwanda and explain the slowdown in poverty reduction. Our results show that education, health insurance, diversification of occupations within households and savings all promote escape out of poverty and prevent impoverishment. The Girinka Programme acts as a lift out of poverty, while business creation has protective effect against impoverishment. Observed trends of these variables, especially the increase in households depending on agriculture wages and the reduction of business owners at the household level, appear as important factors in the slowdown in poverty reduction in Rwanda.

Authors: ODI & IPAR

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What to do about the slowdown in poverty reduction?

Key points

• Rwanda had been a stellar performer in poverty reduction until recently. Many of the gains were the result of government policies and programmes, but some of these programmes also have unintended consequences which need to be reviewed.

• The slowdown in poverty reduction during the 2010s has been driven by fewer escapes from poverty, the challenges people face in sustaining escapes, greater impoverishment as well as continued chronic poverty.

• In Rwanda, as elsewhere, escaping poverty and then staying out of it is mainly possible due to ‘growth from below’, and the government has been promoting this, especially in agriculture. Since around 2012, the government’s main growth thrust has been in promoting ‘growth from above’ as well as continued support to smallholder agriculture, and this has achieved significant improvements in infrastructure, the business environment and investment, as well as productivity growth in farming.

• In reviewing the poverty effects of economic transformation, a better balance between support for growth from below and growth from above is needed, especially in the nonfarm rural economy and the urban informal sector. More comprehensive and better enabling conditions for growth from below would allow more poor people to participate in and benefit from growth. • Reviews of the following issues are needed: the reasons why the rural nonfarm economy is relatively underdeveloped; the unintended consequences of a number of regulations affecting small and micro-enterprises as well as smallholder agriculture; and the unintended consequences of a raft of policies which demand cost recovery from poor and vulnerable households, limiting the savings and investments these households can make.

• Current efforts to make cities more inclusive through city Master Plans are excellent and should be pursued with vigour. This could provide a model for the other reviews suggested above.

• Rwanda’s unique health insurance scheme provides exceptional protection against ill-health as a source of impoverishment. The government and development partners could acknowledge the other sources of impoverishment – including loss of livelihood due to environmental hazards as well as the policy emphasis on cost recovery – and address these more resolutely. The loss of male labour in households where there is separation, divorce or widowhood is a further source of impoverishment, and while the government has made strenuous efforts to enhance the rights of married women in such situations, unmarried women in informal or polygamous unions are less protected.

• There has been significant progress in increasing the numbers of children enrolling in school. However, education costs are significant components of household budgets, even for poor people. Reducing or eliminating these costs through significantly increased public expenditure on education and providing children from poor families with the means to continue through secondary education would contribute significantly towards reducing poverty both now and intergenerationally.

• There are two main sources of chronic poverty: gender inequalities resulting in disadvantaged women-headed households, and the growing dependence of the poorest Rwandans on casual agricultural labour. Extending the protections currently available to married women to unmarried cohabiting and polygamously married women, as well as further measures to tighten the labour market to complement refreshed minimum wage legislation, are potential ways forward. Such measures could include implementing and extending the minimum social protection package to promote graduation from protection and social cohesion.

Author: Andrew Shepherd

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