Food, housing, health care and education costs should typically be below 6070% of all spendings (Anker and Anker 2017b). This is questionable as it includes current expenditures which we wanted to avoid. We launch the Living Income Methodology, as adapted from the Living Wage Methodology, to estimate the living income for rural households. Living wage report for urban and rural Pakistan, Sialkot, north eastern Punjab with context provided in the sports ball manufacturing industry. (pp. IOM. A limitation is that focusing on the cheapest foods per food group does not take account of the nutrition density of a food. Food price data was collected invillage shops and atthe local market in the rural town of Kaberebere. Please enable Javascript in your browser. Living Income Benchmark: the aim of this activity is to provide raw data to enable Heifer Nigeria to determine the LIB target beneficiary's need to afford a decent standard of living in their. These must be comparable to ensure consistent contextual factors were used and to ensure the living income gap is accurate. Similar to Anker and Anker (2017b) we set this at 2%. Comparing data across years and regions or countries requires conversion into comparable units, such as US$ PPP for a specific year. Food prices for Sidama were collected in July 2018 at multiple vendor locations, covering markets and small shops in the villages Tula, Yirgalem and Wugigra. (pp. ESAP/WP/248. Access to health care. Multiple stakeholders can also pool financial resources to commission benchmark studies: Academy, researchers and NGOs: primary and secondary data collection and data modelling. Box 1.Ten guiding questions to estimate the living income in a particular time and place, Reference household size and composition (local survey). They are easy to use and results are immediately calculated. Decent education makes up 5% of the total living income budget, as compared with 1% of the current household expenditure. Accessed 20 Jul 2018. We assess each identified local health care service. Multiple pathways towards achieving a living income for. 2018). Medicines from a public pharmacy cost US$ 89 PPP/RH/year (Table 6). The total education costs were US$ 1580 PPP per child or US$ 260 PPP/RH/year (Table 7). Our Living Income Methodology is intentionally focused on local data and surveys to benchmark a minimum incomethat rural households would need to earn in a given locality. 51). Important indigenous plants used in the Transkei as food supplements. While the Anker Methodology is based on secondary data, we use a combination of secondary reports, local observations, key informant interviews and/or focus group discussions. The Tanzanian education system includes seven years of primary education (ages 713) and 4years of secondary education (ages 1417). All data was collected in August 2018. 61): https://www.globallivingwage.org/living-wage-benchmarks/ghana/ Global Living Wage Coalition. The population density in rural Wondo Genet and Melga districts in Sidama zone in southern Ethiopia exceeds 1000 person per km2 and the average farm size per household is less than 1ha (Mellisse et al. This can result in essential differences, as illustrated by the education costs. New York: United Nations. discussion paper No 2003/90: World Institue for Development Economics Research, UN University. What are the costs of health care services not covered by the basic insurance? Next, the Living Income Diet Tool is used to calculate the lowest-cost diet per AME, The Living Income Diet Tool is an optimization model and described in detail in OnlineResource 3. Overview of cost items included in the Living Income Methodology. 8150, pp. The Living Income Methodology described in this paper allows a rapid benchmarking of the living income in a rural area in Africa or in other low-income countries. Total annual housing costs were estimated at US$ PPP 1541 (Table 5). For Isingiro District, Uganda, they were obtained from the Banana Agronomy Baseline Survey among 92 farm households in the region (Banana Agronomy Baseline Survey, NARO-IITA Uganda, unpubl.) What are the annual housing costs for a house that complies with these local minimum standards for decent housing? (pp. PubMed (2016). FAO/WHO/UNU (2001). https://datahelpdesk.worldbank.org/knowledgebase/articles/906519-world-bank-country-and-lending-groups, Accessed 01-05-2018. A living wage is the wage keeping a worker and his family out of poverty. We convert living incomes benchmarks from local currency to United States Dollars for ease of international understanding. Both for the Lushoto, Tanzania and Isingiro, Uganda, the living income was estimated to be 1.25 times the international poverty line of 1.90 US$ PPP/person/day, the generally accepted benchmark for low-income countries, while in Sidama, Ethiopia it was 10%. In developing the Living Income Methodology we sought to balance detail and rapidity for each issue. USDA. Croes, P. R., & Vermeulen, W. J. V. (2016). This makes it difficult to deploy quickly as a benchmark for rural developments projects and industries. Smith, S., Anker, M., & Anker, R. (2017). A price correction was made for carrots, cabbage, papaya, sweet banana, dried tilapia, groundnut (flour), peas, and ghee. These same considerations hold for other national poverty lines. SDG 2 addresses zero hunger and sustainable food systems (United Nations General Assembly 2015). 5.1 Indicator: Gap of the mean income to the Living Income benchmark 22 5.2 Indicator: Gap of the median income to the Living Income benchmark 24 5.3 Bar charts including the intrinsic value of food produced and consumed at home (or other in-kind income) 25 5.4 Indicator: Share of those below the Living Income benchmark 26 2017; Table 2). This benchmark follows the same research methodolo-gy and timeline as a parallel study for a living income benchmark in Cote d'Ivoire, funded by GIZ, and also coordinated by the Living Income Community of Prac-tice, and contributes to the learning on the applicability of the Anker methodology for living income calculations. Reference household sizes were 3.2 AE in Lushoto, 3.7 AE in Isingiro and 5.2 AE in Sidama. The Anker Methodology (Anker and Anker 2017b) is detailed and, if the guidelines are followed, takes on average about 60 person days for a full study including broad stakeholder engagement (Bhattacharyya 2018). In the real world all these factors vary widely and numerous combinations exist. The living income per AE facilitates calculation of the income for individual households in rural areas, explicitly considering household size. International network of food data systems (INFOODS). Assessment of a living income in any given location requires about one week of fieldwork. (pp. To allow some variation in the diet for matters of palatability and portion size, another 10% was added to the food costs. 2016), Dominican Republic (Anker and Anker 2013b), Ghana (Smith et al. In the next section we explain the components in more detail. Estimation of housing costs involves: 1) defining a local standard for basic healthy housing for a reference household, and 2) estimating the annual costs of a house that meets these standards. Despite the fact that eliminating poverty would be a major achievement for humanity, US$ 1.90 per day is deemed the to be the absolute minimum, also referred to as the extreme poverty line. We believe women-led, small-scale farming is the future of our economy and our relationship with theEarth. 41). This will support the identification of the configuration of technologies and management practices of farming systems that are best adapted to the local conditions. Dikhanov, Y., Hamadeh, N., Vigil-Oliver, W., Degefu, T. B., & Song, I. With support from our in-country teams, project participants build sustainable businesses to close the gap between living incomes and their actual incomes. Dietary reference intakes for vitamin a, vitamin K, arsenic, boron, chromium, copper, iodine, manganese, molybdenum, nickel, silicon, vanadium and zinc. The data for assessing the living income for rural households were based on secondary and primary sources collected through key informant interviews in Wondo Genet and Melga districts. We assumed that local services for both education and health care meet the human needs. The first step to addressing living income in your supply chain is to create internal alignment and identify your regions of interest to prioritize where to find living income benchmarks. Other well-known benchmarks are the minimum wage and the living wage. Clean water. This could argue for a living income lowered with the value of home-produced food. Jolly, R. (1976). Development Policy Review A9, 2, 3144. The authors declared that they have no conflict of interest. (2014). Food Security, 7(4), 857874. Find company research, competitor information, contact details & financial data for VIGIN ALEXANDRE of LYS LEZ LANNOY, HAUTS DE FRANCE. The actual pattern of expenditures of households is not addressed here, as it is not part of the benchmark, but the benchmark serves as a basis for comparison of households or regions. Living wage report for rural Vietnam: Context provide in the seafood processing industry. Subsequently, it checks if the calculated NFNH cost cover the health care and education costs based on a rapid assessment using local primary and secondary data. (pp. In Toronto, the median income for individuals in 2020 was $39,200, and across the province, it was $41,200, according to the 2021 census. It can be used in regional development schemes both by policy makers and researchers to provide context for their plans. For instance, our methodology can be used to assess the potential impact of a wide variety of rural development interventions on the households incomes, such as subsidies on inputs, technology development, farmer organization to improve market access, etc. www.et.undp.org; UNDP. OECD (2011). Beltsville: Beltsville Human Nutrition Research Centre. Our living income methodology can provide the basis for such an extension. While the elimination of poverty is a noble goal, the aspirations of poor people are to rise above the poverty line and to educate their children, receive fair payments for their labour and products. National Bureau of Statistics Tanzania (2015). The Rural Household Multi-Indicator Survey (RHoMIS) for rapid characterisation of households to inform climate smart agriculture interventions: Description and applications in East Africa and Central America. For home consumption, although costs per unit are lower, farmers have to produce more volume compared with what they would buy, as losses in the phase of production and storage are much higher than for purchased food; 19% for sub-Saharan Africa (Gustavsson et al. We suggest to include at least ten informants, but more can be interviewed depending on the variation among sources. The last time the ComCare income benchmark was revised was in 2014, when the per capita household income benchmark was raised from $550 or less, to $650 or less a month. This approach allows to easily calculate the living income related to food security for households of different size based on their composition, including extended families. (2015b). Unfortunately, most farmers have 200 to 300 coffee bushes cultivated on 0.1 to 0.3 hectares of land. Costs are estimated per household per year based on the average usage and the average costs per treatment for the three most common diseases in the study area, as the most common diseases have the largest impact on health in terms of people affected and are relatively easy to cure (OnlineResource 1). Report. The calculated diet is an intermediate product, solely for the purpose of cost assessment. (2018). (pp. https://doi.org/10.1371/journal.pone.0175554. 73). Book The objectives of our study were to: (1) provide a rapid and incisive method to calculate the living income at local level; (2) develop a set of simple tools for rapid benchmarking of living income; (3) test the method in three case studies in the East African highlands; and (4) compare these three living income estimates with other estimates based on the Anker Methodology. Living wages around the world. The housing construction should be able to sustain about 50years without major repairs also called the expected service life of the house (Anker and Anker 2017b). Agricultural Systems, 151, 225233. For wages in commodity production this is a serious shortcoming. Open Access This article is licensed under a Creative Commons Attribution 4.0 International License, which permits use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons licence, and indicate if changes were made. 15). The tools of the Living Income Methodology described in this paper offer a consistent harmonized approach. 2017; Table 1) are met. Correspondence to World population prospects: The 2017 revision, key findings and advance tables. Household composition is often a defining characteristic of different socio-economic groups within a region, which may require different types of support or development interventions. 159). Sayeed, A., & Dawani, K. (2017). UNESCO (2000). We do not explicitly address labour input, as the living income benchmark refers to a daily monetary value required per AE, irrespective of the length of a working day. If a benchmark does not exist in your priority area, use an alternative benchmark or commission a benchmark study to create one. Lukmanji, Z., Hertzmark, E., Mlingi, N., Assey, V., Ndossi, G., & Fawzi, W. (2008). This suggests that rural households in low-income countries require an income above the international poverty line in order to comply with all their basic human rights for nutritious food, healthy housing, decent health care, sufficient education and other essential needs. A measured approach to ending poverty and boosting shared prosperity: Concepts, data, amd the twin goals. The costs were estimated in a focus group discussion with parents and amounted to US$ 310 PPP/RH/year (Table 7). Appleton, S. (2003). Income distribution in OECD countries. The Living Income Methodology covers four major expenditure groups: food, housing, non-food non-housing (NFNH) and unforeseen costs (Fig. Cocoa farmer income: The household income of cocoa farmers in cote d'Ivoire and strategies for improvement (p. 47). Health care costs (key informant interviews, secondary reports). The resulting value of US$ 1.90 per capita per day is subsequently applied to all other low-income countries in the world. PLoS One, 12(4), e0175554. Other sources often contribute to household income, such as petty trade, off-farm wages, either in- or outside agriculture, and remittances from family members working in cities or abroad. First because it is easy to assess. In any given location this requires about one week of fieldwork. The main health costs of a household related to medicines. Article 43): Global Living Wage Coalition. This income could be derived from their own farming activities, from selling their labour locally, or from other types of employment. 13): https://www.living-income.com/papersandreports, ISEAL Alliance, Sustainable Food Lab, GIZ. For the living wage also the number of full time labourers is required, which is generally based on statistics on labour force participation rates, unemployment rates and age. In search of some income refernce points for LCA using a country level benchmark (part2): Fair minimum wage. For living income benchmarks, visit the ALIGN platform from Hivos and Fairfood. (pp. Several International Labour Organisation (ILO) conventions and other statements point to the international agreement on the right to a decent minimum wage or living wage (ILO 2008; United Nations 2007; United Nations General Assembly 1948, art 23). The United Republic of Tanzania has over 57 million inhabitants, 67% of which live in rural areas (World Bank 2018a). Mamkoottam, K., & Kaicker, N. (2016). 6. This example underlines the importance of a decent living as a basis for assessing living income and to avoid current expenditures wherever possible. 201). Nutrient contents of Gallant soldier (Galinsoga parviflora), which was lacking in the USDA Food Composition database, were taken from Wehmeyer and Rose (1983). If there are multiple benchmarks, which is the most recent? The Reference Value methodology for estimating country-level living wages and living incomes (for rural or urban areas) enables the Institute to provide estimates more quickly than the full Anker Benchmark methodology, but still produces internationally comparable values that are easily updated every year. OECD Social Policy Studies No. From the survey the average household composition is calculated and converted to AME and AE by using the equivalence factors. This is also true for the international poverty line of US$ PPP 1.90/capita/day, last reviewed in 2011 and increased from US$ PPP 1.25/capita/day in 2005. Subsequently, all calculated variables are expressed per AE. Global trends in dietary micronutrient supplies and estimated prevalence of inadequate intakes. Google Scholar. For a good overview in variation of the living income across rural areas, countries and regions, it would be worthwhile to record all studies in a central (web) database, where case studies can be stored and viewed publicly. Key informant interviews were performed with parents of children in public primary school (n=13), and lower secondary school (n=10) The household out-of-pocket expenses per child per year were reported. We set a 10% margin above the basic costs of a nutritious diet to allow modification of the diet to respect individual preferences. The three most important health care service types were: (i) doctor consultation at apublic health care centre, (ii) medicine from apharmacy, and (iii) laboratory self-test for malaria. The Ghana Living Income Benchmark study, and the parallel study being conducted in Cte d'Ivoire, intend to: 1) create credible, robust costs of a decent living assessments for the critical cocoa growing regions of both countries and 2) contribute to the learning about how to calculate and use a living income benchmark for smallholder farmers. In this article we propose a simple method that can be used in all types of development projects to benchmark a rural living income. We express it per adult equivalent per day (AE/day) and data collection is focused on rural households and their immediate surroundings. As shown in Fig. As food comprises some 50% of the living income in low-income countries, the national and regional living income may very well differ (Appleton 2003). Article 99). (pp. To be able to compare the living income and its components across countries the local units are converted to Purchasing Power Parity to the international (US) dollar (US$ PPP). In our methodology we assess health care and education costs similarly to the rapid assessment in the Anker Methodology. The living income benchmark will help you calculate the living income gap, and understand how much more the average farming household needs to receive to earn a living income. Food Security, 9(5), 10531071. (2007). Follow these links to the Benchmark . Basic health care insurance was not available in rural Uganda. https://doi.org/10.1016/j.agsy.2015.07.005. related to access to markets, prices of food and other commodities and family size. The Anker methodology is now widely accepted as the gold standard for measuring living wages and living incomes and it has played an important role in catalyzing wage and income improvement in global supply chains. 2015) the nuclear family does not reflect reality sufficiently. Living wage for Kenya with focus on fresh flower farm area near Lake Naivasha. We assume that in low-income countries the equivalence elasticity is less than in high-income countries. WHO/FAO (2003). for housing (OECD 2011; Atkinson et al. Nutrient contents of foods are based on the nutrient composition of the raw purchased product, the average waste factor of its food group (USDA 2018; Gustavsson et al. Costs of health care include all annual household out-of-pocket expenses to cover basic health care based on the locally available services. In regions such as north Ghana with 1014 people per household (De Jager et al. As one example, many families in Lushoto, Tanzania indicated they would prefer to send their children to private schools and to use private hospitals if they could afford to which would more than double the living income. We are grateful to IITA Dar es Salaam data collection team: Abby Gamba, Bakari and Augustino, NARO and IITA Uganda (Godfrey Taulya) for using Banana Agronomy Socio-Economic survey data for the reference household, David Verhoog, Wageningen Economic Research for advice and checking the conversion calculations of the economic data to one year for all countries. We propose that the regular inventories and surveys in agricultural research and development, such as the RhoMIS survey (Hammond et al. Geneva, Switzerland. 2017). 37): Fairtrade International, Social Accountability International. Costs for school lunches are included in the food costs. Report 5. We help people forge the first connections so that they can shift from subsistence to sustainability from reliance on others toresilience. Kampala, Uganda. If projects propose investment in farming activities the required labour input per day needs explicit attention, to avoid falling into the trap of implicitly assuming 12 or 16h work days. Agriculture is closely linked to both SDGs. New York: United Nations. Anker, R., & Anker, M. (2013c). If basic health insurance is available, this may be the best option, but coverage should be checked. 103): FAO. Estimated annual education costs in Isingiro District are US$ 510 PPP/RH/year (Table 7). (pp. Bhattacharyya, M. (2018). USDA table of nutrient retention factors - release 6 (p. 18). The unit in which income and poverty standards are expressed differs. How many years of education are officially counted for completion of primary and lower secondary school? With increased productivity of livestock and crops, farmers provide for their families and improve the health of theircommunities. 2b the share of different cost categories (food, housing, NFNH, and unforeseen) in the total living income following our methodology was within the range found for the countries assessed by the Anker Methodology, but the share of the food costs was at the lower end. Whilst the cost of shelter is included in the international poverty line, what constitutes acceptable shelter is unclear. When calculating the living income gap, the two main data points are household actual income and the living income benchmark. The majority of the households facing poverty lives in rural areas. Despite these positive trends, Tanzania remains a low income country and poverty is widespread. Both are based on the size of a typical nuclear family for a region. Institute of Medicine (US) panel on micronutrients. Household out-of-pocket expenses cover only parental responsibilities for essential needs for a child to go to school (school fees, clothing/uniform, materials such as books). This is examined in the interviews and focus group discussions and costs can be adapted based on real data if needed. Our assessment of the living income is based on essential human rights, so it is of major importance to stick to those issues and not to be misled by current habits, which easily occurs when collecting data. Essential items reported most frequently by informants (n5) as parental responsibility were: uniform, shoes and a schoolbag (category Clothing), books and supplies (category Materials), school maintenance fee, exam fee and security fee (category Fees). We grow incomes. Provided by the Springer Nature SharedIt content-sharing initiative, Living income benchmarking of rural households in low-income countries, https://doi.org/10.1007/s12571-020-01099-8, https://doi.org/10.1371/journal.pone.0175554, https://doi.org/10.1007/s11367-015-1017-1, https://doi.org/10.1007/s12571-017-0720-0, https://doi.org/10.1016/j.agsy.2015.07.005, http://www.fao.org/infoods/infoods/tables-and-databases/en/, https://doi.org/10.1007/s10888-016-9326-6, https://www.living-income.com/papersandreports, https://doi.org/10.1016/j.agsy.2016.05.003, https://doi.org/10.1111/j.1467-7679.1976.tb00338.x, https://doi.org/10.1007/s12571-015-0480-7, https://doi.org/10.1007/s10457-017-0106-5. PPP values change over time and for each country we used the PPP values for the year the prices were reported and converted them to 2017, based on inflation rates and the consumer price indices as reported by the World Bank following their calculation procedure (World Bank 2018a). 70): Fairtrade International, Sustainable Agriculture Network, Rainforest Alliance, UTZ Certified. We do not evaluate the diet itself. (2004). https://doi.org/10.1007/s12571-017-0720-0. Evidence form the Luxembourg income study. Labour is also shared or hired out, sometimes at the expense of their own production (Leonardo et al. 2; data overview in OnlineResource 5). Unfortunately, we do not have data in some of the countries assessed by the Anker Methodology, so we are not able to give a final direct comparison. (2017) reported that the influence of leaving out non-poverty items and the selection of poverty specific goods, as we do in our procedure to select the cheapest food items from each food group, has a negligible effect on the PPP value. 3 Take action In reality, the quality of local education and health care in low-income countries is sadly lacking. The case of Uganda in the 1990s. To explore agricultural development opportunities for smallholder farmers in low-income countries, rapid locally-specific assessments are crucial. We work with farmers and their communities to identify opportunities within value chains that deliver livingincomes. Tanzania food composition tables (p. 272). PubMed Central Living wage report for rural Brazail, Minas Gerais south/Southwestern region with focus on the coffee sector for context. Construction costs are divided over the expected service life. 169): UNESCO. The Ugandan education system also includes seven years of primary and four years of secondary education. If not, additional time is required to review existing databases. The food basket at local or regional scale may differ from the national food basket. 18 (pp. Ethiopia is characterized by an average GDP growth rate of 11% over the last decade, which is about double of the average growth for Sub Saharan Africa (UNDP 2014). (2011) Global food losses and food waste. Washington DC: World Bank. We follow the approach to include extended family members for societies where this is relevant. The component food costs is calculated per adult male equivalent, as food requirements areage and gender specific and subsequently converted into adult equivalent. volume13,pages 729749 (2021)Cite this article. We use cookies to provide relevant content and ads, to enable certain donation functionality, and to analyze our traffic. Uganda is among the countries with the highest growth in GDP among countries in SSA world (World Bank 2016). To work on living income, some minimum conditions must be met to start action, including traceability to farming households, trade relationships and direct farmer engagement within your trade relationships. https://www.living-income.com Accessed 02-03-2020. Home garden system dynamics in southern Ethiopia. ISEAL Alliance (2020). It is defined as the remuneration for a standard work week, necessary for a worker to meet his familys basic needs in a particular place (Anker and Anker 2013c). Be sure to share benchmark data publicly. The three most common diseases treated were typhoid fever, diarrheal diseases and malaria. We define living income as the amount of money each person in a household needs per day to live a dignified life. https://doi.org/10.1016/j.agsy.2016.05.003. The living income estimates for Lushoto District, Tanzania and Isingiro District, Uganda, are in the same order of magnitude as benchmarks in other rural areas in East African countries, such as Mount Kenya in Kenya and Mulanje District and Thyolo District in Malawi (Fig. The housing costs cover the value of an owner-occupied house plus expenses for utilities, maintenance and taxes. Regional or national poverty lines? A living income benchmark provides a rung on the income ladder above the poverty line. Accessed 20 Jul 2018. A living income benchmark is an estimate of the cost of a basic and decent standard of living for a household. Northampton: Edward Elgar Publishing. Trang, S., & Binh, T. (2017). What are the costs of basic health care insurance; which health care service types are (not) covered? Absolute numbers living in poverty, however, increased due to the rapid population growth (Uganda Bureau of Statistics 2016). Ethiopia, Tanzania and Uganda, are classified as low-income countries and were part of the 15 countries included in the assessment of the extreme poverty line of US $ 1.90 in 2011 (Chen and Ravallion 2010; World Bank 2015b). Living income benchmarking of rural households in low-income countries. (2016). The Anker Methodology is often applied to households who produce internationally-traded commodities such as in cocoa, coffee and tea in order to derive wages which business would have to pay farmers, so that they can earn a decent living (Rusman et al. This value can then be used to calculated the living income for an individual household, based on household composition.

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