Samtse Identified as Poorest District in Bhutan, Paro, and Thimphu Fare Better
According to the Moderate MPI, the poverty rate in Bhutan for 2022 is estimated at 17.8% of the population, with an average deprivation score of 42.8%. The MPI value, derived from the product of poverty incidence and intensity, stands at 0.076.
It indicates that poor individuals in Bhutan experience 7.6% of the deprivations that would be faced if all people were deprived in all indicators. Notably, rural areas exhibit higher poverty rates at 23.9%, while urban areas fare better at 8.2%.
The report highlights the contribution of different indicators to overall poverty. Deprivations in access to health (18.0%), water and school attendance (15.7%), and female years of schooling (15.3%) are identified as the most significant contributors. The education dimension holds the largest share (45.0%) when aggregating by dimensions, while living standards and health dimensions contribute 21.3% and 33.6%, respectively.
In terms of regional disparities, Samtse emerges as the poorest Dzongkhag, with 17.7% of its population living in multidimensional poverty. Paro and Thimphu show relatively lower poverty rates than other districts.
Population size plays a crucial role in poverty analysis, as the largest number of multi-dimensionally poor individuals reside in Samtse, followed by Thimphu and Chhukha. Gasa has the lowest poverty rate at 1.0%.
The report also sheds light on child poverty, highlighting those children, particularly those aged 10-17 years, are the most vulnerable group, with 20.7% of all children living in poverty. Furthermore, the analysis of households based on the gender of the household head reveals no difference in the level of multidimensional poverty.
However, the educational attainment of the household head influences the poverty rate, indicating the importance of education in poverty reduction.
The report emphasizes that the MPI complements monetary poverty measures. While 12.4% of Bhutanese are considered monetary poor, only 4.7% are both monetary poor and multidimensionally poor according to the Moderate MPI. This disparity highlights the need for multiple poverty measures to ensure a comprehensive understanding of individuals’ material conditions and vulnerabilities.
The findings also demonstrate Bhutan’s remarkable progress in poverty reduction. The original MPI, measuring acute poverty, identified 5.8% of Bhutanese as poor in 2017.
However, the updated results reveal a significant reduction in poverty nationwide, with the incidence dropping to 2.1%. This achievement surpasses the Sustainable Development Goal (SDG) Target 1.2, which aims to halve the incidence of MPI by 2030. Bhutan has successfully met this target ahead of schedule, demonstrating its commitment to leaving no one behind.
The report indicates that rural areas experienced the fastest reduction in poverty, decreasing from 8.1% to 3.1%. In contrast, urban areas witnessed a decline in poverty incidence but an increase in intensity, indicating the need for focused efforts to reduce urban poverty further.
Furthermore, the urban population share increased from 35.5% to 40.3%, emphasizing the importance of addressing poverty in urban areas.
Notably, the poorest Dzongkhags showed the fastest absolute reduction in poverty, ensuring equitable progress across different regions. This aligns with the goal of leaving no one behind and promoting equity in poverty reduction efforts.
The Moderate MPI report highlights Bhutan’s commitment to addressing multidimensional poverty comprehensively. By utilizing this updated index as the official national MPI for the coming decade, Bhutan aims to continue its efforts to eradicate poverty and improve the well-being of its citizens.
By Kinley Yonten
