Innovations in Poverty Measurement : Seven Design Lessons on the Use of Advisory Committees to Improve Official Poverty Estimates in Peru

Abstract

Between 2004 and 2007, no annual official statistics on poverty existed in Peru. This was due to serious problems with the household survey used to estimate poverty and implemented by the National Statistical Institute (INEI). Many of the technical issues arose from changes in the survey instrument, data collection practices and delays in updating poverty measurement methodologies. This put on hold poverty analyses for more than three years, time during which little was known about changes in poverty, inequality and the effectiveness of policies to reduce poverty. Instead of providing direct technical assistance to INEI, the World Bank team proposed the creation of an external Advisory Committee (AC) whose role would be to: 1) discuss, advice and reach a consensus on the best methodology that could be used to improve and produce comparable poverty estimates in Peru; and 2) oversee the work of an inter-institutional technical team who would implement the AC's recommendations. This inter-institutional approach was aimed at helping INEI to create an environment of openness and transparency necessary to improve its credibility and relationship with its clients and the public.