Poverty and inequality analysis in the IGAD region: Regional profile and country status

This paper assesses the extent of poverty and inequality in the IGAD region. It also assesses the decomposition of poverty and empirically analyze the determinants of multidimensional poverty for each member States. The global Multidimensional Poverty Index (MPI) was used to measure multidimensional poverty and understand the magnitude, intensity and determinants of multidimensional poverty. A brief comparison with income poverty was also presented. We find that on average the economy of the IGAD region is improving over time, but poverty still remains the main agenda as a significant proportion of the population of the region remain poor.

Regionally, inequality is a major issue and varies from country to country. Poverty is also decomposed by location as well as dimensions. Rural areas are identified as the poorest while living standard appears to contribute the most in multidimensional poverty. The empirical analysis shows that household level variables explain poverty in both rural and urban areas of the region. The paper also highlights some policy implications.


by: Abebe D. Beyene (PhD)