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A validity assessment of the Progress out of Poverty Index (PPI) for Rwanda

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  • Desiere, Sam
  • Vellema, Wytse
  • D’Haese, Marijke

Abstract

Development organisations need easy-to-use and quick-to-implement indicators to quantify poverty when requested to measure program impact. In this paper we assess the validity of the Progress out of Poverty Index (PPI)TM, a country-specific indicator based on ten closed questions on directly observable household characteristics, by its compliance to the SMART criteria. Each response receives a pre-determined score, such that the sum of these scores can be converted into the likelihood the household is living below the poverty line. We focus on the PPI scorecard for Rwanda, which was validated using two national household surveys conducted in 2005/06 and 2010/11. The PPI is Specific, Measurable, Available cost effectively, and Timely available. Yet, its Relevance depends on the way it is used. Although it accurately distinguishes poor from non-poor households, making it a useful reporting tool, its limited sensitivity to changes in poverty status restricts its usefulness for evaluating the impact of development projects.

Suggested Citation

  • Desiere, Sam & Vellema, Wytse & D’Haese, Marijke, 2014. "A validity assessment of the Progress out of Poverty Index (PPI) for Rwanda," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182727, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaae14:182727
    DOI: 10.22004/ag.econ.182727
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    Keywords

    Food Security and Poverty;

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