Poverty Measurement in Tajikistan : A Methodological Note

Overview & Synopsis

This methodological note presents the updated framework for measuring poverty in Tajikistan, developed through collaboration between the Government of Tajikistan and the World Bank following the modernization of the national Household Budget Survey (HBS). The report explains the methodology used to estimate welfare, establish national and extreme poverty lines, and measure poverty using internationally recognized standards adapted to Tajikistan’s economic and demographic context. Key methodological innovations include the use of household consumption per adult male equivalent, spatial and temporal price adjustments, caloric-based equivalence scales, and the Cost of Basic Needs (CBN) approach for deriving poverty thresholds. The note also documents the modernization of the HBS, including improvements to survey design, sampling, and data collection methods, and evaluates the robustness of poverty estimates through extensive sensitivity analyses. Using HBS 2021 data, the methodology estimates a national poverty rate of 25.62 percent and an extreme poverty rate of 9.44 percent, while highlighting significant regional and rural-urban disparities. The report provides a transparent and evidence-based foundation for poverty monitoring, policy formulation, and future assessments of living standards in Tajikistan.