www.pep-net.org ISSN 1908-6889 Volume XI, Number 2 March 2014

Panel analysis of the effects of the Global Financial Crisis on rural households in Edem, Nigeria* I nt roduct i on The Communi t y- Based Moni t or i ng Syst em ( CBMS) -Ni geri a proj ect was ai med at moni t ori ng, eval uat i ng, and t racki ng househol d povert y and anal yzi ng t he ef f ect s of t he gl obal f i nanci al cr i si s ( GFC) on r ural househol ds i n Ni geri a usi ng t he Edem communi t y i n Nsukka Local Government Area as a case st udy. Two rounds of ( panel ) dat a were col l ect ed wi t h one-year i nt erval f rom househol ds i n t he st udy communi t y. The col l ect ed dat a compr i sed soci oeconomi c/ demographi c vari abl es, pover t y i ndi cat or s, and sel ect ed i ndi cat ors f or moni t ori ng t he ef f ect s of GFC on househol ds, i ncl udi ng t hei r copi ng and adapt at i on mechani sms. These dat a were col l at ed and anal yzed t o enabl e t he government and government agenci es t o f ormul at e ef f ect i ve and t arget ed povert y t racki ng and management , and t o hel p t hem ef f ect i vel y f ocus or di rect t hei r pol i ci es t oward t he act ual needs of t he peopl e. Repeat i ng t hi s househol d survey at gi ven i nt erval s ai med t o ensure t he avai l abi l i t y of r el i abl e dat a and f aci l i t at e t hei r use f or good governance, sust ai nabl e growt h, and devel opment of t he rural soci et y, especi al l y i n devel opi ng count ri es where povert y i s very common and f l ui d and, t heref ore, very much vul nerabl e t o economi c shocks.

RURAL NI GERIA. A village in Enugu Stat e, Nigeria. (Photo by Juju Films)

An i ni t i al survey of 3,821 househol ds i n 2009/ 2010, f ol l owed by a survey of 3,816 househol ds i n 2011/ 2012 were conduct ed i n t he rural communi t y of Edem wi t h f i ve vi l lages t o showcase t he t ri ckl e ef fect s of gl obal f i nanci al cri ses on househol ds i n rural communi t i es. The quest i onnai res were admi ni st ered t o al l househol ds in t he f i ve vi l l ages— Edemani , Akpa, Okpuj e, Ozzi , and I bagwa— of Edem. The di st ri but i on of t he surveyed househol ds i s shown i n Tabl e 1.

This is an edited version of the working paper submit ted by the CBMS-Nigeria Team headed by Dr. Anthonia Achike to the PEP-Asia and CBMS Network Office. The aut hors’ detailed analysis of t he results of the first CBMS census was feat ured in t he publication tit led “Monit oring and Mitigating the I mpact on Povert y of t he Global Financial and Economic Crisis,” which can be viewed online: ht t p:/ / www.pep-net .org/ communicat ions/ pep-books/ *

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Research Results Tabl e 1. Di st ri but i on of households i n surveyed vi l lages i n Edem, Ni geri a Survey round First Second

Akpa 650 648

Edemani 1,218 1,217

I bagwa 942 941

Okpuj e 642 642

Ozzi 369 368

Total 3,821 3,816

Sources: CBMS-Nigeria 1st & 2nd Field Surveys (2009/ 10; 2011/ 12)

Table 2. Di st ri but i on of househol d members, by age, sex, and survey round Survey Second First Femal e Second First Sex Male

0-15 2,906 3,093 2,802 3,051

16-30 2,144 2,199 2,643 2,727

31-45 725 739 1,343 1,367

46-60 796 920 1,278 1,353

61-75 762 653 817 626

76 & above 242 199 252 217

Total 7,575 7,803 9,135 9,341

Sources: CBMS-Nigeria 1st & 2nd Field Surveys (2009/ 10; 2011/ 12)

Soci oeconomi c Charact eri st i cs of Household Members The age dist ribution, as shown in Table 2, indicates that household members within the age range of 0-15 years accounted for the highest number while t hose above 76 years had the least number in both the first and second surveys. Thi s i ndi cat es a relat ively higher proport ion of children under t he dependent population and a lower proportion for adults, also within t he dependent populat ion. This dat a alone already has implications for t he education and welfare policies of the government, as well as the households’ vulnerability t o GFC incidence. The age dist ribution also shows t hat chi l dren wi t hi n t he dependent population fell from 6,144 in t he first survey to 5,708 in the second survey. The survey further indicated t hat bot h male and female populat ions wit hin the age bracket of 16-30 years, 31-45 years, and 46-60 years were reduced in t he second survey when compared t o the first survey. Furthermore, one can infer t hat the GFC, which has implicat ions for unemployment, also exerted an increasing effect on t he number of dependent population during t he peak of t he crisis. However, t he second survey result shows a relatively marginal decrease in t he number of the dependent population. Povert y I ndi cat ors Table 3 compares the effects of t he GFC on households in Edem community using a list of povert y indicat ors. The result showed that on t he average, unemployment rate was lower in the second survey compared to that of t he first survey. This is depicted by

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the reduction in unemployment rat e from 8.8 percent in t he first survey t o 4.37 percent in t he second survey. The fall in t he unemployment rat e during t he second survey may have resulted from the response of the local government t o the result of t he f i rst CBMS survey by set t i ng up and facilitat ing the set -up of many small-scale cottage industries. Also, many household members t ook up available jobs t o cope with the economic hardship caused by t he GFC. The ef fect s of t he GFC made i t necessary t hat every member of t he household should contribut e t o t he upkeep of the family. As a result , most household members got themselves involved in any avai labl e economi c act ivi t y, and t hi s reduced t he rate of unemployment. I t is pertinent to point out, however, that some household members during t hat time got employed in jobs that were far below their qualificat ions (disguised unemployment ). For exampl e, degree hol ders were empl oyed as ni ght guards or securi t y personnel or ot her j obs t hat do not necessari l y requi re t ert i ary educat i on training. These employees were just t oo pressed or desperat e t o earn income for a living. The crude mortality rat e worsened wit h dat a showing an increase from 7.1 per thousand populat ion in the first survey to 9.6 per t housand population in t he second survey. Thi s i s cont rary t o a pri ori expect at ion. The increase in t he crude mortality rate in t he second survey may be an indicat ion that the GFC reduced t he households’ ability (especially where t he household head is engaged in menial jobs) to purchase basic health care services. This

may have account ed for the higher mortality rate in t he second survey compared t o t he first survey. Access to waste disposal facilit ies improved in the second survey compared t o that of the first survey. Survey result values show that t his increased from 1.1 percent to 1.4 percent . I ncreased access t o wast e disposal facilit ies may be in response to t he hi gh crude mort alit y rat e experienced during the GFC period. Higher access to waste disposal facilities to ensure a cleaner environment is one of t he ways to fight diseases and, hence, reduce mortality rat e. Thus, t he ri se i n t he proport i on of households with access to waste disposal facilities may be due to the households’ determination to fight the high mort ality rat e. The st udy result also showed t hat t he proportion of households living less than 3 kilometers (km) to a daily market, which was 68.2 percent in the first survey, was reduced to 56.6 percent in t he second survey result. This reduction may not be unconnect ed t o t he simmering effects of GFC t hat may have l ed t o a reduced functionalit y of many markets. This result has not conformed to a priori expectation, especially because the local government aut hori t i es, i n response t o CBMS sensitization, built few markets despit e t he GFC effect s. The decrease in t he number of people engaging in part -t ime works from 9.4 percent in t he first survey t o 8.8 percent in t he second survey may i ndi cat e an improvement in t he employment condition ( wi t hout consi deri ng t he qual i t y or appropriateness of the jobs), if we assume that t hose people moved from part-time to full-t ime jobs, hence, result ing in t he reduct i on of t he adverse ef f ect s of unemployment/ disguised unemployment. There was posit ive change in the primary school at tendance rate between the first and the second survey. I n t he first survey, the primary school at tendance rate was 98.6 percent, increasing to 99.7 percent in the second survey. This implies that t he proportion of children wit hin the 6-12 age bracket who enrolled in school increased. This conforms with a priori expectation and may be at tributed t o t he Local Government

Research Results Table 3. St at us of CBMS-Ni geri an povert y i ndi cat ors by survey round Vari abl e

First Survey 8.8 7.1

Unemployment rat e Crude mortality rate Access t o waste disposal 1.1 facilit y 68.2 Access t o daily market 9.4 Part-time worker 53.2 Job satisfact ion rate Primary school at tendance 98.6 rate 54.3 Literacy rate 64.3 Morbidit y incidence 39.3 Access t o t oilet facility Ownership of household durable assets 35.0 Television 24.7 CD player 52.3 Radio 23.2 Video set 45.7 GSM 14.3 Electric generator 19.9 Bicycle 29.3 Motorcycle 4.9 Car 2.5 Satellite dish 4.5 Refrigerator 1.9 Deep freezer 18.5 Kerosene Stove 1.7 Computer 1.0 Air conditioner 74 Wheelbarrow 1.5 Gas cooker 0.63 Washing machine 17.9 Electric fan

Remarks

Second Survey 4.4 9.6

Posit i ve Negat ive

1.4 56.6 8.8 66.7

Posit i ve Negat ive Posit i ve Posit i ve

99.7 57 55 39.2

Posit i ve Posit i ve Posit i ve Negat ive

37.4 25.3 57 25.3 49.4 14.7 19.8 29.4 5.2 2.6 4.5 1.7 19.9 2.1 1.0 79.8 0.97 0.6 18.8

Posit i ve Posit i ve Posit i ve Posit i ve Posit i ve Posit i ve Negat ive Posit i ve Posit i ve Posit i ve Posit i ve Negat ive Posit i ve Posit i ve Posit i ve Posit i ve Negat ive Negat ive Posit i ve

Sources: CBMS-Nigeria 1st & 2nd Field Surveys (2009/ 10; 2011/ 12)

Council’s response t o t he result of the first survey. Right after an int eractive session between t he local government authorities and t he CBMS-Nigeria t eam, t eachers were posted in schools in rural communities, including Edem. Also a few schools were built under the auspices of t he Education Task Fund (ETF). Thus, government efforts t oward maki ng sure t hat every chi l d bet ween the ages of 6-12 is att ending school became effectively enhanced. I t is pert i nent t o not e t hat t he recent l y concluded CBMS recap survey confirmed the revamping and remodeling of t he public schools by the local government despite t he change in administration. As expected, the lit eracy rate improved bet ween t he t wo survey peri ods. The literacy rat e in the first survey was 54.3

percent but rose to 57.0 percent in t he second survey period. This implies t hat in t he communit y, t he proport ion of t he population t hat can read and writ e rose by 2.7 percent within an interval of one year. I t may be assumed that this is connected to t he i mproved rat e of pri mary school enrolment . The morbidit y incidence, which fell from 64.3 percent in the first survey to 55.0 percent in t he second survey, signifies an improvement in the health care delivery. The improvement may be as a result of assist ance in the form of mosquit o nets received from t he government as a way of cushioning t he impacts of GFC, which also indicat es a t ype of response from t he government t oward alleviat ing the effects of the crisis.

The proport ion of t he populat ion wit h access t o a t oi l et f aci l i t y decreased marginally in t he second survey when compared t o t he fi rst survey. Result s showed that 39.3 percent had access to toilet facility in the first survey, marginally decreasing t o 39.2 percent in t he second survey. Though t he difference appears very marginal, it may not be unconnect ed to t he rise in t he crude mortality rat e. On t he ownership of durable asset s by househol ds, survey resul t s showed an increase in the proportion of households’ ownership of most of the durable assets in the second survey when compared to t he first survey. The proportion of households with the following durable asset s— bicycle, deep freezer, gas cooker, and washing machine—decreased in the second survey. This is quit e understandable because most rural communities use t hese durable assets as economic alt ernatives, such that they can dispose them and use t hem when t he economic condit ion warrant s. However, this is not so for bicycles. The data in Table 3 showed that while the proportion that owns bicycle fell by 0.1 percent in t he second survey, t he proport ion that owns motorcycle rose by 0.1 percent. Thus, t he fall in t he proport ion that owns bicycle may be att ributed to the rise in t he proportion that owns mot orcycle, which is the most common means of transport ation in t he rural communities. To generate a more in-depth knowledge of the effect of the GFC, the st udy comput ed disaggregated CBMS-Nigeria indicators for the five villages that comprise the Edem community. This will help in the further analysis of t he effects of the GFC in Edem, by comparing it s effects across the five vi l l ages. Tabl e 4 shows t he povert y indicators for the five villages. Crude Mort al i t y Rat e Mortality rat e is typically expressed in units of deaths per 1,000 individuals per year, thus, a mort alit y rate of 9.5 in a population of 100,000 would mean 950 deaths per year in that entire population. The villages with high mortality rat es are Okpuje and I bagwa, while t he villages with low crude mort alit y rat es are Edemani, Akpa, and Ozzi. However, t he second survey showed that the mortality rat e worsened in

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Research Results Table 4. St at us of CBMS-Ni geri a povert y i ndi cat ors, by vi llage and survey round Vari abl e Unemployment rat e Crude mort ality Access t o waste disposal facility Access t o daily market Part-time worker Job satisfact ion rate Primary school at tendance rat e Literacy rate Morbidity rate Access t o t oilet facilit y

Survey round First Second First Second First Second First Second First Second First Second First Second First Second First Second First Second

Akpa 8.9 1.6 4.6 8.5 1.7 3.3 57.0 40.0 15.0 10.0 26.0 44.0 98.2 100.0 54.4 55.1 52.9 59.3 30.5 31.8

Edemani 12.0 7.0 3.9 7.5 1.2 1.8 69.0 62.0 11.0 8.5 54.0 57.0 99.2 99.8 55.6 61.1 74.0 63.3 45.9 46.4

I bagwa 6.5 3.7 11.6 12.0 0.3 0.1 60.0 55.0 4.3 6.8 74.0 80.0 98.6 99.2 52.3 54.1 65.6 50.8 44.1 31.1

Okpuj e 4.7 3.5 13.3 10.0 0.3 0.2 88.0 71.0 2.8 1.7 74.0 98.0 95.9 99.6 50.9 52.0 44.1 31.1 26.8 25.2

Ozzi 8.2 2.6 3.7 9.4 1.1 1.7 69.0 60.0 16.0 12.0 36.0 52.0 .0 98.0 100.0 58.3 59.1 76.4 61.4 17.6 16.3

Sources: CBMS-Nigeria 1st & 2nd Field Surveys (2009/ 10; 2011/ 12)

some villages that had low level of crude mortality in the first survey while t hose with high crude mortality rate in the first survey maintained a fairly stable crude mortality rate in t he second survey . For inst ance, while Ozzi had t he lowest crude mort ality rate in t he first survey, this rate rose t o 9.4 in the second survey, t hat of Edemani rose to 7.5, while that of Akpa rose t o 8.5. Meanwhile, Okpuje and I bagwa remained at 10 and 12, respectively. I t was not easy to associate t he mortality rat e of t he different villages wit h t he relat ive level of infrast ruct ure development and t he availabilit y of healt h facilit ies because t he Local Government Council provided some infrast ructure and social amenit ies to these local communit ies in response to the result s of the first CBMS survey. I t was, however, during the recap survey t hat some of t he respondent s confessed t hat t hey persist ent l y gave negat ive responses in order t o at t ract government presence to their communities. Job Sat i sf act i on Rat e Job satisfaction is defined as the level of contentment of an individual t o his or her job, and whether or not he/ she likes the job or individual aspects or facets of t hat job.

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Hence, it is bot h a socioeconomic variable and a welfare indicator. Though I bagwa and Okpuje had the same rate of 74 percent during the first survey, in the second survey, Okpuje recorded a job sat i sfact i on rat e of 98 percent whil e I bagwa posted 80 percent only. The job satisfact ion rat e in Edemani rose from 54 percent in t he first survey t o 57 percent in the second survey. Ozzi improved from 36 percent in t he first survey t o 52 percent in the second survey while Akpa, which had the lowest, rose as well from 26 percent in the first survey to 44 percent in t he second survey. Part -t i me Work/ Workers The part-time workers decreased in the second survey in all the villages except in I bagwa where it showed an increased rat e. I n the first survey, I bagwa had a proportion of part -t i me workers at 4.3 percent . However, this proportion rose to 6.8 percent in the second survey. Ot her villages showed a reduction in t he proport ion of part -t ime workers. Ozzi decreased from 16 percent in t he first survey to 12 percent in the second survey. Akpa decreased its rate from 15 percent to 10 percent, Edemani showed a decrease

from 11 percent t o 8.5 percent , while Okpuj e wi t h 2.8 percent became 1.7 percent in the second survey. Unemployment Rat e This is t he percent age of tot al workforce that is unemployed and is looking for a paid job. Unemployment rat e is one of the most closely watched stat ist ics because a rising rat e can lead to insecurity of lives and propert ies. I n t he survey, unempl oyment rat e decreased in all t he villages during t he second survey compared to t he first survey. Akpa experienced t he highest level of improvement in t he employment rat e. I ts unemployment rat e fell from the highest rate of 8.9 percent in the first survey to almost the least rat e of 1.6 percent in t he second survey. Ozzi and Edemani also experi enced a signifi cant fal l in t heir unemployment rat es from 8.2 percent and 12 percent in the first survey to 2.6 percent and 7 percent, respectively, in t he second survey. Okpuje, and I bagwa, which had relat ively low unemployment rat es in t he first survey, further improved in t he second survey. I n Okpuje, it also came down t o 3.5 percent from 4.7 percent in the first survey, while I bagwa improved from a high rate of 6.5 percent t o 3.7 percent in the second survey. Access t o Dai ly Market Al l t he vi l l ages showed worseni ng si t uat i on wi t h respect t o t hei r access t o dai l y mar ket ( pr opor t i on of househol ds l ess t han 3 km t o t he market ) bet ween t he f i rst and t he second survey. As shown above, Edemani and Ozzi , whi ch have equal proport i ons i n t he f i rst survey, showed t hat t hei r proport i on of househol ds l ess t han 3 km t o t he market were reduced f rom 69 percent i n t he f i rst survey t o 62 percent and 60 percent , respect i vel y, i n t he second survey. Okpuj e, whi ch appeared t o have t he l argest proport i on of househol ds l i vi ng l ess t han 3 km t o t he dai l y market i n t he f i rst survey showed a reduct i on f rom 88 percent t o 71 percent . I bagwa as wel l showed reduced rat es f rom 60 percent t o 55 percent , and Akpa f rom 57 percent t o 40 percent .

Research Results Pri mary School At t endance Rat e For all t he villages t hat were surveyed, t he primary school at t endance rat e (or t he proport i on of children 6-12 years old at tending school) showed an improvement in the second survey. Note that a rise in t he primary school attendance rate signifies an increase in the number of children 6-12 years old who at tend school. I n Akpa, it rose to 100 percent in t he second survey from a proport ion of 98.2 percent in t he first survey. I n Edemani, it was 99.8 percent in the second survey compared to a lower 99.2 in the first survey. I n I bagwa, Okpuje, and Ozi, primary school at tendance rates were 99.2 percent, 99.6 percent, and 100 percent during the second survey compared t o t he first survey values of 98.6, 95.9, and 98.0 percentages, respect ively.

Morbi di t y Rat e The morbidit y rat e decreased in all t he villages accept Akpa where it increased from 52.9 percent to 59.3 percent. Among t hese vi l l ages, Ozzi had t he l argest decrease by falling from 76.4 percent in t he first survey to 61.4 percent in t he second survey. Next after Ozi is I bagwa, which experienced a decrease from 65.6 to 50.8. Morbidity rat e in Okpuje decreased from 44.1 percent t o 31.1 percent , whi l e Edemani also posted a decrease from 74 percent t o 63.3 percent. One can right ly infer that as educat ion is being positively enhanced in t hese villages, healt h care awareness i ncreased and, t hus, t he observed decrease in morbidity rat es by t he second survey is in compliance with a priori expect ations.

The improvement in t he primary school at tendance rate in all the villages is an i ndi cat i on of t he response of t he government to the report from the first survey. The first survey showed that some children who are 6-12 years old were not at t endi ng school . The government responded to this by establishing addit ional primary schools in each of the villages and by recruiting and posting t eachers in newly established primary schools and even in existing ones. This impact ed positively to the primary school attendance rat e in each of the villages.

Access t o Toi let Faci li t y While the proportion of respondents with access to toilet facility increased for some villages, it decreased for the ot hers. For instance, Akpa and Edemani had increases in the proportion of households with toilet f aci l it y—f rom 30.5 percent and 45.9 percent in the first survey to 31.8 percent and 46.4 percent, respect ively in t he second round of survey. However, for I bagwa, Okpuje, and Ozzi, decreases were post ed from 44.1 percent, 26.8 percent, and 17.6 percent respectively in the first survey to 31.1 percent , 25.2 percent , and 16.3 percent in the second survey.

Li t eracy Rat e I t is commonly said and believed that an educated country is a developed country. This implies that literacy may be direct ly related t o economic development. A high literacy rat e accords any society a bett er chance of reduced violence, crime rat e, and unemployment . Each of t he villages surveyed showed high literacy rat es in t he first survey and an increased literacy rate in the second survey. Survey data showed t hat Edemani had t he highest increase in lit eracy rate from 55.6 percent in the first survey to 61.1 percent in t he second survey. Among t he villages, Akpa had t he least increase in lit eracy rat e—from 54.4 percent t o 55.1 percent. For t he remai ni ng vi l l ages—I bagwa, Okpuje, and Ozzi—their lit eracy rates rose from 52.3, 50.9, and 58.3 percent in t he first survey to 54.1, 52.0, and 59.1 percent in the second survey, respect ively.

Ef f ect s of GFC on Occupat i on and Employment Table 5 illustrates the work stat us of t he population between t he first survey and the second survey periods. As the results show, even though the proportion of t he employer, self -empl oyed, and regular employee was reduced between t he survey peri ods, t here i s st i l l a general improvement in t he level of employment. This may be attributed to the increase in the proportion of casual employees. Tabl e 6 shows t he proport i on of peopl e empl oyed by sect or. The resul t f rom t he f i rst survey shows t hat 11. 7 percent of househol d members were empl oyed i n t he publ i c sect or whi l e 88.3 percent were empl oyed i n t he pri vat e sect or. Dat a show t hat j ust a smal l f ract i on of t he popul at i on has benef i t ed f rom gover nment empl oyment programs. However, t he proport i on of t hose empl oyed became even smal l er owi ng t o t he f i nanci al cri si s. Onl y 7. 4 per cent of t he popul at i on was empl oyed i n t he publ i c sect or, whi ch i s about 4. 4 percent l ower compared t o t he f i rst survey resul t . The pri vat e sect or empl oyment i ncreased duri ng t he second survey, i mpl yi ng t hat t he pri vat e sect or was abl e t o absorb t hose di sengaged f rom t he publ i c sect or due probabl y t o t he GFC.

Table 5. Employment st at us of i ndi vi duals i n t he household by survey round Empl oyment St at us Unempl oyed Employer Self-employed Regular employee Casual employee Unpaid family worker Student apprent ice Pensi oner

Fi rst Survey 9.9 0.5 45.2 3.0 1.1 6.7 32.7 1.0

Second Survey 4.7 0.5 44.6 2.8 1.2 10.8 34.5 1.0

Sources: CBMS-Nigeria 1st & 2nd Field Surveys (2009/ 10; 2011/ 12)

Table 6. Proport i on of employed househol d members by sect or and survey round Survey Round First Survey Second Survey

Publi c Sector ( %) 11.7 7.4

Private Sector ( %) 88.3 92.6

Sources: CBMS-Nigeria 1st & 2nd Field Surveys (2009/ 10; 2011/ 12)

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Research Results The Ef f ect s of GFC on Househol ds and t hei r Copi ng Mechani sms Table 7 shows the proportion of households t hat borrowed or received government assist ance in the communit y of Edem. Table 7 shows t hat households borrowed more during the first survey than in t he second survey. Thi s i mpl i es t hat apart f rom devoting more number of hours to work, household members also borrowed t o sustain t hemselves during the crisis. This was one of the coping mechanisms that households adopt ed in order to mitigate the negat ive effect s of GFCon their welfare. However, when empl oyment rat es improved, households borrowed less as shown in the second survey. Table 7 further shows that on average, 57.7 percent of t he households borrowed during the first survey while only 46 percent borrowed during t he second survey. This shows a fall of 11.7 percent in the proportion of households that borrowed wit hin this period. Table 7 also shows t he proport ion of households t hat received assist ance from the government as a way of cushioning t he impacts of GFC, which also indicates t he government’s response toward alleviating the effects of the crisis. Survey data show that during t he first survey, only 5.3 percent of the population received assist ance from the government in t he form of mosquito treated nets and fertilizers. I n t he second survey, dat a show t hat 40.7 percent received government assist ance. This is an indicat i on of t he government ’s poli cy response toward alleviating t he plight of t he masses. The distribution of purchases on credit across qui nt i les (Table 8) showed no particular t rend, both in the second and first surveys. The f irst quint i le, which showed t he l argest proport i on of households t hat bought food on credit, is higher in the second survey t han in the first survey. Quintile 3, wit h 21.16 percent and 11.04 percent for t he first and second surveys, respect i vel y shows a hi gher proportion for t he first survey. I n Quintile 5, the proportion t hat bought food on credit is greater in the first survey compared to the second survey. This may suggest that the households do not depend on cash crops but on product s from their nearby garden.

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Table 7. Proport i on of households t hat borrowed and recei ved government assi st ance, by survey round Survey round First Survey Second Survey

Borrowed 57.7 46.0

Recei ved Government Assi st ance 5.3 40.7

Sources: CBMS-Nigeria 1st & 2nd Field Surveys (2009/ 10; 2011/ 12)

Table 8. Proport i on of households t hat purchased f ood on credi t , by qui nt i le and survey round Quint ile Quint ile Quint ile Quint ile Quint ile

1 2 3 4 5

Fi rst survey 33.4 6.9 21.2 19.2 19.2

Second survey 37.5 14.8 11.0 20.0 16.7

Sources: CBMS-Nigeria 1st & 2nd Field Surveys (2009/ 10; 2011/ 12)

Table 9. Proport i on of households t hat ski pped meal, by qui nt i le and survey round Quint ile Quint ile Quint ile Quint ile Quint ile

1 2 3 4 5

Fi rst survey 21.3 20.6 27.1 13.6 17.4

Second survey 22.1 21.6 26.6 14.6 15.2

Sources: CBMS-Nigeria 1st & 2nd Field Surveys (2009/ 10; 2011/ 12)

Table 10. Toi let syst ems and proport i on of househol ds t hat use t hem by survey round Pit t oilet Flush t oilet I n-t he-bush

Fi rst survey 35.3 4.6 60.2

Second survey 35.3 4.7 600

Sources: CBMS-Nigeria 1st & 2nd Field Surveys (2009/ 10; 2011/ 12)

There is no particular distribut ion trend in t he number of t imes t hat a household skipped meal across quintiles (Table 9). I n Quint ile 1, 22.1 percent and 21.3 percent of households skipped meal in the second and first surveys, respectively. I n Quint iles 3 and 5, the proportion of t hose who skipped meals is lower in the second survey t han in the first survey. Table 10 compares t he toilet systems used by households in t he first and second survey. The proport ion of households that that use pit toilet is higher in t he second survey than in the first survey by 0.05

percent. The proportion of households that use wat er ci st ern i ncreased f rom 4.6 percent in t he first survey t o 4.7 percent in the second survey while the proportion that st ill make use of in-the-bush decreased from 60.2 t o 60.0 percent . Thi s last variable i ndi cat es t hat t he decreased proportion is a welcome development. The proport i on of househol d asset s ownership shows improvement for most of t he asset s (Tabl e 11). For i nst ance, ownership of t elevision increased from 35. 4 percent t o 38. 5 percent , and ownership of radio also increased from

Research Results Table 11. Di st ri but i on of households by ownershi p of asset s and survey round Television CD player Radi o Video set Mobile phone Electric generat or Bi cycl e Mot orcycle Car Satellite dish Refrigerat or Deep freezer Kerosene stove Comput er Air condit ioner Wheelbarrow Gas cooker Washing machine Elect ric fan

Fi rst survey 35.4 25.0 52.5 23.5 46.2 14.6 20.2 29.6 5.1 2.5 4.6 1.9 18.7 1.6 1.0 74.5 1.5 0.6 18.0

Second survey 38.5 26.5 57.6 26.2 50.6 15.3 20.0 30.4 5.4 2.7 4.7 2.0 20.0 2.1 0.8 80.8 1.0 0.6 19.5

Sources: CBMS-Nigeria 1st & 2nd Field Surveys (2009/ 10; 2011/ 12)

52.5 percent to 57.6 percent . However, ownershi p of some asset s decreased between t he first survey and t he second survey. For i nst ance, ownership of air condit ioner, bicycle, and gas cooker were lower in the second survey. This also shows some sl ack i n wel f are and cal l s f or government attention.

usi ng t he Edem communi t y, whi ch comprises t he five villages of Edemani, Akpa, Ozzi, Okpuje, and I bagwa. The study was carried out in two different survey periods (first and second survey) t o monit or

t he effect s of GFC on t he welfare of households. The survey made use of povert y indicators to study t he effect of t he GFC in the community by comparing the indicators in the t wo survey periods. The results from the surveys show that despite the GFC, t he number of unemployed did not increase in the second survey. This may not imply that t he GFC cont ri but ed posi t i vel y t o employment in the communit y but because those that were disengaged from t he public sector were absorbed in the privat e sector. Similarly, other poverty indicat ors, such as access t o the wast e disposal facilities, primary school att endance rate, lit eracy rate, morbidity rat e, and job sat isfaction rate, showed improvement in t he second survey compared t o t he f i rst survey. However, the GFCaffect ed negatively other indicators like crude mortality rat e, access to daily market, part-t ime workers, and access to toilet facilit y. I n the case of households’ ownership of durable assets, the proportion that owns durable assets increased for all the durable asset s except for a few items such as bicycle, deep freezer, gas cooker, and washing machine.

Summary Prior to the GFC that start ed in t he Unit ed St at es i n 2007, t he l evel of povert y alleviation in the less developed count ries, especially in t he rural areas, has been very low. As t he crises expanded t o ot her count ries, t he poverty situations became worse in bot h the developed and developing count ries. I n Nigeria, the poverty situation became phenomenal following t he GFC as all t he sect ors of the economy including t he government, firms, and households were affected by the crises. Monitoring t he effect of t he GFC provides valuable insight for the government and policy makers on the welfare sit uation of households. I t also provides informat ion on t he coping mechanisms adopt ed by the househol ds i n t he f ace of economi c difficult ies. The study of the impact of t he GFC in Nigeria was specifically undertaken

TRANSPORTATI ON. Women riding a motorcycle in Enugu stat e, Nigeria. (Photo by Juju Fims)

CBMS Network Updates March 2014

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Research Results

FOOD PREPARATI ON. A household prepares their lunch which consists of ogbono soup and pounded yam. (Photo by Juju Films)

I n order t o cope wit h t he difficult situat ion arising from t he GFC, households adopt ed some st rat egi es, such as borrowi ng, buyi ng on credi t , and ski ppi ng some meal s. Moreover, t he communi t y at t ract ed t he at t ent i on of t he government in order t o alleviat e t he effect s of t he crisis t hrough t he provision of mosquit ot reat ed net s and fert ilizer. Conclusi on and Recommendat i on The st udy looked at the effects of GFCon t he various aspects of t he lives of people in t he Edem communit y and t he mechanisms adopt ed t o mit igat e t hese effect s. The result of t he st udy revealed t he welfare levels of t he communit y during t he t wo periods (first and second survey), which gave room f or t hei r compari son and enabled t he assessment of t he people’s responses t o cope wit h t he effect s of t he GFC. Some of t he indicat ors, like t he crude mort alit y rat e, access t o t oilet facilit ies, and dist ance t o market , indicat ed t hat much need to be done to improve t he welf are of t he househol ds. Thus, t he analysis est ablished t hat most households

8

CBMS Network Updates March 2014

are st ill in worse conditions/ stat es due to t he effect s of GFC despit e government int ervent ions and t heir own eff ort s t o mitigate the effect s of the crisis. Following this, the st udy recommends the following: 

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Government shoul d provi de more j ob opport unit ies (e.g., using oil proceeds t o build more i ndust ri es) t o t ake care of unempl oyed members of t he households. Thi s will not only cat er for t hose unemployed but also t ake care of t hose displaced by t he crises because most of t hem are current l y underemployed. This condit ion can be derived from result s in Table 4, which shows a rise in t he number of casual empl oyees. Government should expand the safet y net t o t ake care of t he larger population as its presence is currently not felt by a number of households. This is evident in t he second survey which shows that

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less t han half of t he population di d not benef i t f rom t he government’s assist ance. For the government t o respond appropriately, there is a need for more information on welfare condit ion of t he households (Yusrina and Akhmad 2013). This impl ies t hat t he government should finance t he continuing updat e of a dat abase that will provide informat ion about t he househol ds’ economi c condit ions.



Government should also provide soft financing for households to enable them t o invest profitably. This recommendation is based on the fall in t he proport ion of househol ds t hat borrowed (duri ng t he second survey), whi ch was l ikely due t o t he unavailability of credit caused by t he GFC and not necessaril y because t hei r wel f are condit ions have improved. 

News Updates

UNICEN conducts training on CBMS Scan in Olavarria,Argentina A t ot al of 56 enumerat ors and f our supervi sors were t rai ned on t he use of CBMS Scan and CBMS Port al l ast March 25- 28, 2014 at t he Muni ci pal Bi cent enni al House i n t he ci t y of Ol avarría, Argent i na. The t rai ni ng program was carri ed out by Mari o Ravi ol i and Lorena Luquez of t he I nst i t ut e of Economi cs, Uni versi dad Naci onal del Cent ro de l a Provi nci a de Buenos Ai res (UNI CEN) i n part nershi p wi t h t he f ocal per sons— Bel en Menendez and Carol i na Di ez—f rom t he muni ci pal i t y of Ol avarri a. The t rai ning st art ed wi t h t he di scussi on on t he concept s of t he Core Househol d Prof i l e Quest i onnai re, t hen proceeded wi t h t he act ual use of t he CBMS Scan— a mobi l e- based dat a col l ect i on syst em— whi ch was modi f i ed f or depl oyment i n t he si t es t hat wi l l be cover ed by communi t y- based

TRAINING ON CBMS SCAN. Mario Ravioli and Lorena Luquez of UNICEN discussing the features of the CBMS Scan.

moni t ori ng syst em (CBMS) surveys i n Argent i na. I n addi t i on t o l earni ng how t o use t he CBMS Scan, t he super vi sor s al so di scussed t he possi bl e probl ems t hat may occur during t he census. The CBMS census i n t he muni ci pal i t y of Ol avarri a i s expect ed t o st art i n Apri l 2014. I mpl ement ed by t he I nst i t ut e of Economi cs of UNI CEN, t he ongoi ng CBMS proj ect Argent i na ai ms t o expand t he cover age of CBMS t o t he muni ci pal i t i es of Ol avarría and Beni t o Juárez and t o capt ure i ssues rel at ed t o ent r epr eneur shi p and yout h empl oyment . The pi l ot phase of t he proj ect whi ch st art ed i n 2011 covered t he ci t i es of Tandi l and Urundel .  CBMS SCAN. An enumerator administers the household profile questionnaire using the CBMS Scan, a tablet-based data collection system designed by the CBMS Network.

CBMS Network Updates March 2014

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News Updates

Conference puts spotlight on how CBMS can help build safe, resilient and proactive communities With the devastat ing effect s of typhoon Yolanda (int ernational name: Haiyan) still fresh on the public mind, t he 10th CBMS Philippines National Conference, held from March 24-26, 2014 at t he Crowne Plaza Manila Galleria, placed t he spot light on how t he communit y-based monit oring system (CBMS) can be harnessed t o build safe, reliant and proactive communities. Over 500 part icipant s from the academe, local government unit s, nongovernment organizat ions, and nat ional government agenci es at t ended t he t hree-day conference, which included discussions on t he uses of CBMS f or grassroot s participatory budgeting process, disaster risk reduct i on and management , l ocal governance, vulnerability mapping, program desi gn and t arget i ng, and i mpact monitoring, among others. According to I nt erior and Local Government Secret ary Mar Roxas, “Yolanda has all t he more st ressed t he i mport ance of dat a, before and after disast ers, not only to track people and communit ies, but t o match risk

BUILD BACK BETTER. Socioeconomic Planning Secretary and Director General of the National Economic and Development Authority, Dr. Arsenio Balisacan, underscored how the Reconstruction Assistance on Yolanda or RAY plan can make communities more resilient and sust ainable.

profiles wit h CBMS dat a and t o make realt i me i nformat i on avai labl e for di sast er preparedness, and in t he case of Eastern Visayas and neighboring regions, for early

recovery, rehabilit ation and development .” This was part of hi s keynot e address delivered by Undersecretary Pet er I rving Corvera during the conference. Secret ary Roxas also called for a broader CBMS t hat will include relevant information on disast er preparedness noting that by doing so, “national and local governments can invest more on the preparedness side inst ead of the response side using t he broadened CBMS information.”

10TH CBMS CONFERENCE. Dr. Celia Reyes, CBMS Network Leader (left) and Dr. Rereso Tullao, Jr., Executive Director of the DLSU-Angelo King Institute for Economic and Business Studies (right) flank Usec. Peter Irving Corvera of the DILG, who delivered the keynote on the first day of the conference on behalf of Secretary Mar Roxas.

10 CBMS Network Updates March 2014

Meanwhi l e, Dr. Arseni o Bal i sacan, Secret ary of Socioeconomic Planning and Direct or General of the National Economic and Devel opment Aut hori t y ( NEDA) highlight ed how the nat ional government has trained its sight s on ensuring “full operat ion of long-t erm act ions on climate change adapt ation and mit igation (CCA/ M) and di sast er ri sk reduct i on and management (DDRM).” I n part icular, he cited the passage of the People’s Survival Fund (PSF) in 2012, completion of climate change projection at the provincial level, i mpl ement at i on of t he Nat i onwi de

NewsUpdates

LAUNCHING OF THE MANY FACES OF POVERTY-VOLUME 5. Photo shows the representatives of the seven local government units featured in the publication composed of Antipolo City, Legazpi City, Marikina City, Naga City, Puerto Princesa City, Tacloban City, and Valenzuela City together with Secretary Arsenio Balisacan of NEDA (4th from left) and Dr. Celia Reyes of the CBMS Network (1st from left).

Operational Assessment of Hazards or Project NOAH, and geo-hazard mappi ng and assessment of all cities and municipalities using large-scale maps. Secretary Balisacan noted that in the case of typhoon Yolanda, the government has created a separat e plan dubbed Reconst ruct ion Assistance on Yolanda or the RAY Plan, which aims to restore the economic and social conditions of the areas, at the very least, to their pre-typhoon levels and to a higher level of disaster resilience. “Through RAY, we are espousing the “Build Back Better” principle to make affected communities more resilient and sustainable,” he said. Among the highlights of the conference was the launching of “The Many Faces of Poverty: Volume 5,” which features the statistical tables and poverty maps of the cities of Antipolo, Legazpi, Marikina, Naga, Puerto

Pri ncesa, Tacl oban, and Val enzuel a— generated using the CBMS methodology. The book series aims to identify who and where the poor are as it provides a comprehensive picture of the different faces of poverty in various parts of the country. It will also aid in identifying the most pressing needs of the communi t i es, assi st i n pri ori t i zi ng interventions to address these needs, and facilitate the targeting of programs for those who need assistance the most. The Subnational Millennium Development Goal (MDG) Reports of the provinces of Benguet, I fugao, Kalinga, Occidental Mindoro, Oriental Mindoro, Southern Leyte, Surigao del Sur; and the cities of Pasay, Puerto Princesa, and Tabaco City were also launched during the conference. I n his remarks, Country Director Maurice Dewulf of the United Nations Development

Programme (UNDP) said that the subnational MDG reports are “a testament to the relevance of t he MDGs in t his era where growing inequalities, climate change, natural disasters and conflict have taken the forefront as the main obstacles to the achievement of the MDGs.” He pointed out that “‘the great power of the MDGs was in their global agenda setting and in their capacity to unite diverse actors around a common cause.” He also encouraged action so that “rather than remaining mere rhetoric, these must be translated into action at the national and local levels and make a difference for people.” The conference was organized by the PEP Asia-CBMS Network Office of the De La Salle University (DLSU)-Angelo King Institute (AKI ) in partnership with the Department of the I nterior and Local Government (DILG), the NEDA, and t he Nat i onal Ant i -Povert y Commission (NAPC). 

LAUNCHING OF SUBNATI ONAL MDG REPORTS. Photo shows the representatives of the 7 provinces and 3 cities, together with UNDP Country Director Maurice Dequlf (3rd from left), Director Erlinda Capones of the NEDA Social Development Staff (2nd from left), OIC Director Annaliza Bonagua of the DILG Bureau of Local Government Development (4th from left), and Dr. Celia Reyes of the CBMS Network (5th from left).

CBMS Network Updates 11 March 2014

NewsUpdates CBMS Niger completes review of social protection policies and monitoring systems

The CBMS Network Updates i s t he quarterly newsletter of the CBMS Network of the PEP Project. This work was carried out by the Angelo King Institute for Economic and Business Studies with financial support from t he Int ernat ional Development Research Centre (IDRC).

The Updates may be downloaded free from the Project'swebsite: http://www.pep-net.org.

For inquiries , please write or call: PEPAsia& CBMSNetwork Office Angelo King Institute for Economic and Business Studies De La Salle University-Manila 10th Flr. Angelo King International Center Estrada cor. Arellano Sts., Malate, Manila 1004, Philippines Tel No: (632) 523-8888 loc. 274 DL/Telefax No: (632) 526-2067 E-mail: [email protected] [email protected]

WOMEN POWER. Women carrying firewood in Niger. (Photo by Jim Richardson)

The Observatoire National de la Pauvreté et du Dével oppement Humai n Durabl e (ONAPAD), an agency under the National I nstitute of Statistics (I NS) of Niger, has complet ed a revi ew of exist i ng soci al prot ection policies in Niger. The review covered, among others, the Plan for Economic and Social Development (PDES), which provides a comprehensive analysis of Niger’s development challenges and plans to achieve accelerated and sustainable growth; and the 3N (Nigeriens Nourish Nigeriens) initiative, which aims to improve agricultural production and enhance the securit y of livelihoods particularly in rural areas through a bottomup, grassroot s planning approach. The

review’s completion allowed the finalization of CBMS Niger’s methodology which includes a descriptive and econometric analysis in order to perform micro-simulations of the effects of social protection policies. The results of the review are also now being used to finalize the household questionnaire. The communit y-based monit oring syst em (CBMS) project in the country, led by CBMS Niger, primarily aims to develop a CBMS that can periodically collect data necessary to cal cul at e and anal yze a number of multidimensional poverty indicators, as well as measure and understand the effects of social protection in the informal sector. 

Editorial Staff Celia M. Reyes Editor-in-Chief Marsmath A. Baris, Jr. Managing Editor Joel E. Bancolita Steffie Joi I. Calubayan Novee Lor C. Leyso Anne Bernadette E. Mandap Jasminda A. Quilitis Researchers/Writers

CBMS NETWORK UPDATES PEP Asia and CBMS Network Office Angelo King Institute for Economic & Business Studies De La Salle University-Manila 10th Flr. Angelo King International Center Estrada cor. Arellano Sts., Malate, Manila 1004, Philippines

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