Poverty Measurement: Challenges and Benefits

• by Sunil Bhat and Veena Yamini
• Jul 27, 2012
• 1 min

This Note highlights the practical challenges in the use of poverty measurement tools, as well as the benefits of their use for MFIs.

Poverty is multifaceted and highly complex. This Note highlights the practical challenges in the use of poverty measurement tools, as well as the benefits of their use for MFIs. If meaningful interventions are to be made to improve the lives of poor clients, it is essential that we collect relevant information. The poverty measurement tools available may not be perfect, but they provide a fairly good understanding of the client base. While quantitative poverty tools may be useful when used correctly, MicroSave believes qualitative research techniques such as focus group discussions and participatory rapid appraisal tools are essential to capture deeper insights for better understanding of clients.