POVERTY AND INEQUALITY IN SUDAN: AN ANALYSIS OF HOUSEHOLD DATA (2000)

Abstract

Abstract This study attempted to analyze the trends of poverty and income inequality in Sudan across socio-economic groups and overtime, with special emphasis on a set of interrelated factors that contribute to poverty and affect human capabilities The study examined the following main contentions: Firstly, during the period 1990 '- 2000 poverty and income inequality have increased substantially This period also witnessed the worsening position of the poor. Secondly, a reduction in poverty as well as in its depth and severity is significantly associated with access to social services. Thirdly, economic growth is important in poverty reduction. It is found that, for urban and rural areas the absolute poverty line was SD 928998 and SD. 655356 per household per year with a household size of 7 07 and 7.63 persons respectively. It is also found that, for urban and rural areas, the absolute poverty line was SD. 742410 and SD. 535107 per household per year with per-adult household size of 5.65 and 6 23 persons respectively. The subjective poverty lines based on perceived minmum income for total sample, urban, and rural areas were SD. 6454149, SD. 761781.5 and SD. 5862507 per household per year respectively On the other hand a subjective poverty line based on the perceived adequacy of consumption was estimated at SD. 5902794 per household per year, where average household size was 7 36 persons Therefore, the subjective and objective poverty lines were approximately the same. During the period 1990-2000 all poverty measures have increased at high rates. In 1990, 77.5 percent ofthe households were poor, whereas in 2000 it is found that 88 percent of the total households surveyed fall on or below the poverty line The depth and severity rates of poverty were 60% and 48.4% respectively The incidence, depth and severity indices of poverty varied substantially across regions and across rural and urban areas. Across all regions all rural poverty measures were higher than the urban poverty measures. The policy implication of this result is that poverty alleviation strategy should favor the rural areas and anti-poverty policies should be directed towards the regions with the highest values of all poverty measures. Also it is found that a reduction in poverty as well as in its depth and severity is significantly associated with access to social services The growth elasticity ol‘ poverty is found to be statistically significant but small. Thus, although growth is

important in poverty reduction, its role in this respect should not be overestimated One possible explanation to this finding is that poverty in Sudan has reached alarmed proportion and that alleviation of which requires influential pro-poor policies It is found that income inequality has become more severe, where the Gini Coefficient increased from 61% in 1990 to 73 2% in 2000. Also the data revealed that the income inequality has grown more rapidly in urban than in rural areas.