A Review of Poverty Trends Between 1991 and 1994

This study examines the evolution of poverty in Peru between 1991 and 1994, a critical period marked by economic reforms. It analyzes the difficulties involved in measuring poverty, particularly when applying the concept of the “poverty line,” which is based on a monetary value representing the consumption necessary to meet basic needs. The study proposes methodological alternatives for estimating poverty, highlighting the importance of using price indices that accurately reflect the cost of food baskets and total consumption. Using data from the National Survey on the Measurement of Living Standards (ENNIV), the study shows that, although a reduction in poverty is estimated, the magnitude varies significantly depending on the methodology applied. The results reveal that poverty declined more in rural areas than in urban areas, suggesting that social support policies have been more effective in areas where poverty is more acute. The implications for economic policy underscore the need to revise poverty measurement methodologies in order to design more effective interventions. (Abstract and audio: Department of Economic Publications)