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Abstract
Purpose – The purpose of this paper is to aim at taking a closer look at the decline in the inequality of
the distribution of four health variables, infant and child mortality, child stunting and underweight,
that took place in various Southeast Asian countries during the past 25 years. More specifically its goal
is to check the extent to which this decline in health inequality, as well as the overall reduction in infant
and child mortality, in child stunting and underweight, affected the poorest wealth quintile of the
population of these countries.
Design/methodology/approach – In the first part of the paper the author presents a systematic
comparison of the values taken by various consistent measures of the inequality of health attainments
and shortfalls for several countries in Southeast Asia and for four health indicators: infant mortality,
child mortality, child stunting and underweight. The second part of the paper uses the concept
of Shapley decomposition to determine the respective impacts of the decrease in the average value of
these health variables and in the inequality of their distribution on the reduction observed for each
of these variables in the lowest wealth quintile.
Findings – During the period examined there was an important decline infant and child mortality as well
as in child stunting and underweight in all countries of Southeast Asia for which data were available.
As far as the poorest wealth quintile is concerned this decline was mostly the consequence of the overall
decline in these health variables rather than to the reduction of the inequality of their distribution.
Research limitations/implications – Data were available for only four health variables and for
many countries data were available for only one period.
Practical implications – A decline in health inequality should be considered as an important aspect
of poverty reduction.
Social implications – Development should not be limited to its economic components. A broader
view of development is indispensable.
Originality/value – This study is probably one of the first ones to provide the reader with data on the
reduction in health inequality in Southeast Asia as well as on the impact of this decline on the poorest
wealth quintile.
© Asian Development Bank. The views expressed in this publication are those of the authors and
do not necessarily reflect the views and policies or the Asian Development Bank (ADB) or its Board
of Governors or the governments they represent. ADB does not guarantee the accuracy of the data
included in this publication and accepts no responsibility for any consequence of their use. By
making any designation of or reference to a particular territory or geographic areas, or by using the
term “country” in this document, ADB does not intend to make any judgments as to the legal or
other status of any territory or area.
JEL Classification — D63, I19
Journal of Economic Studies This paper is an extension of the first part of a presentation I gave at the ADB workshop on
Vol. 42 No. 1, 2015
pp. 34-53 “Poverty Reduction in Asia: Drivers, Best Practices and Policy Initiatives” held at Sogang University,
Emerald Group Publishing Limited
0144-3585
Seoul, South Korea, on August 23-24, 2013. The author would like to thank the discussant, Satya
DOI 10.1108/JES-10-2013-0151 Chakravarty, and other participants to this workshop for their very helpful comments.
On inequality
Keywords Health, Southeast Asia, Attainment, Child stunting, Infant mortality, Shortfall
Paper type Research paper in health and
1. Introduction
pro-poor
“The poor suffer worse health and die younger. They have higher than average child development
and maternal mortality, higher levels of disease, and more limited access to health care
and social protection. And gender inequality disadvantages further the health of poor 35
women and girls.” This citation is from a report (OECD-WHO, 2003) prepared jointly by
the OECD and the WHO on the link between poverty and health. This report
emphasizes in particular the fact that health should be considered as an asset so that
when poor people are sick, the lost income and the impossibility of affording the cost of
health care are likely to trap the poor in a situation where they become definitively
unable to ever leave the status of poor. This is so because the lack of good health
prevents them from investing in education and thus improving their labor productivity.
It becomes then clear that the goal of poverty reduction cannot be reached if inequality
in health is not reduced.
Policy makers seem in fact to have hesitated between emphasizing the importance of
improving the health of the poor and stressing the need to reduce health inequalities.
As mentioned by Gwatkin (2000), the 1978 Declaration of Alma-Ata on one side
stressed its concern for the unacceptable health conditions found among the hundreds
of millions among the world’s poor, on the other side was also in favor of encouraging
primary health care because of its potential to close the gap between the “haves” and
the “have-nots.” Similarly the World Health Report 1995 (WHO, 1995), while including a
lot of material on the health of the poor, was subtitled “Bridging the gaps.”
It is imperative to understand that such health inequality may already be observed in
the early stages of the life cycle. Minujin and Delamonica (2003), for example, analyzing
the Demographic and Health Surveys (DHS) of 24 developing countries, found that the
under the age of five mortality of the bottom quintile of the distribution of wealth was, on
average, 2.2 times higher than that of the household wealthiest quintile, the range of
variation going from 1.3 to 4.7. The reduction in the average under five mortality rates,
which was observed during the 1980s and 1990s, was hence the consequence of a
reduction of this mortality in the middle and top wealth quintiles. In the study of Minujin
and Delamonica (2003) household wealth was estimated via an “asset index” based on the
presence in the household of certain durable goods (such as a radio, a television or a
bicycle), the quality of the dwelling (e.g. roof and floor materials) and access to different
types of water and sanitation. To construct this index the authors followed the procedure
described in Filmer and Pritchett (1998) and Gwatkin et al. (1999). Such an approach is
quite simple and leads to less measurement errors since the components of such an asset
index are directly observed by the interviewer.
Another important fact is that although there is generally a significant gap between
the levels of health in urban and rural areas, the urban advantage in health, as
emphasized by Fotso (2006), in an analysis of the DHS of 15 countries in sub-Saharan
Africa, masks great disparities between the poor and non-poor within urban areas.
Given these important wealth-related health differences, one may wonder why they
exist and persist and, in particular, why poor children die earlier. Victora et al. (2003)
offer several explanations. Their narrative is as follows: in contrast to children who
grow up in better-off families, children in poor families have a higher risk of being
exposed to diseases because of deficient water and sanitation infrastructure, indoor air
pollution and poor housing conditions. Suffering from malnutrition, these children are
JES also likely to be less resistant to infectious diseases and to have a low weight at birth,
42,1 because of maternal malnutrition, infections during pregnancy and short birth intervals.
Preventive measures such as vaccination, vitamin supplementation and insecticide-treated
mosquito nets rather than being more common are in fact less prevalent among poor
households. Sick, poor children are less likely to be taken care of by health care providers,
and even when they are, the latter are probably less well trained than those attending
36 children of better off families.
The link between income and health status observed among adults has hence
antecedents in childhood, and this is also true in developed countries, as stressed
by Case et al. (2002). It is quite clear that the health of children in families of low
socio-economic status erodes faster with age and that these children start adulthood
with a much poorer health and much lower probability of succeeding financially.
One of the main goals of the present study is indeed to take another look at the
relationship between socio-economic status and child health and this paper makes several
contributions to the literature. First its focus is on the measurement of the inequality of
achievements and shortfalls, that is, of variables that have a lower and an upper bound.
The idea is that when a health variable such as, for example, infant mortality, is
bounded, health inequality may be measured via attainment or shortfalls. Infant mortality,
for example, is a shortfall, since it gives the percentage of children that do not survive
beyond age one. The corresponding attainment would refer to the percentage of children
surviving beyond the age of one. However, traditional measures of inequality, such as the
Gini or Atkinson indices, will generally have different values when the variable under
scrutiny is an attainment or a shortfall. Moreover, when comparing inequality in several
countries, the ranking of these countries may be quite different when the inequality
index is derived from an attainment and a shortfall measure. Several papers have
therefore proposed, in the case of bounded variables, indices that give identical results
for the inequality in attainments and shortfalls or at least guarantee that the order of
the units of observations (e.g. countries) will be identical, whether one works with the
notion of attainment or shortfall. Though not proposing new measures of shortfall or
achievement inequality, the empirical section of the paper makes, however, a systematic
comparison of six different indicators of achievement and shortfall inequality that have
appeared in the literature.
Second only two empirical illustrations appeared hitherto on the topic. Both analyzed
British data: regional British infant mortality rates (IMRs) in the paper by Erreygers (2009)
and a psychological measure of mental stress taken from the British Household Panel
Survey (BHPS) in the recent study of Chakravarty et al. (2013). The present paper on the
contrary examines four child health variables: infant and child mortality, child stunting
and underweight. In addition it concentrates its attention on a geographical area and
period for which studies of the link between wealth and health are rather scarce: Southeast
Asia in the 1990s and the first decade of the twenty-first century.
Third, assuming, for example, that there was, during a given period, a decrease in
the average level of infant mortality and a change in the inequality of its distribution,
this paper, using the concept of Shapley decomposition, estimates the respective
impacts of the overall reduction in infant mortality and of the change in its inequality
on the poorest wealth quintile of the population of various Asian countries. A similar
decomposition is applied to child mortality, child stunting and child underweight.
Such a breakdown has evidently important policy implications. Assuming the welfare
of the poor strata of the population is a concern for policy makers, they may wonder
whether the lot of the poor will not improve automatically when there is an overall
improvement in the health of the country (e.g. decline in average infant mortality or child On inequality
stunting) or whether a prerequisite for an increase in the well-being of the poor is a in health and
reduction in the socio-economic gaps in health.
The paper is therefore organized as follows. Section 2 reviews the literature on the
pro-poor
measurement of the inequality bounded variables and lists the indices which have been development
proposed and give consistent results for the inequality in attainments and shortfalls.
Section 3 then presents estimates of the inequality in health attainments and shortfalls in 37
different countries in Southeast Asia. Using the concept of Shapley decomposition, Section
4 shows how it is possible to determine the respective impacts of the decrease
in the average value of these health variables and of the change in the inequality of their
distribution on the reduction observed for each of these variables in the lowest wealth
quintile. This breakdown is then applied in Section 5 to data covering various Southeast
Asian countries during the past 25 years. Concluding comments are given in Section 6.
A Shortfall 10 20 70 7/1 ¼ 7
A Attainment 990 980 930 990/930 ¼ 1.065 Table I.
B Shortfall 20 50 90 90/20 ¼ 4.5 Inequality in
B Attainment 980 950 910 980/910 ¼ 1.077 attainments vs
C Shortfall 30 50 60 60/30 ¼ 2 inequality in
C Attainment 970 950 940 970/940 ¼ 1.031 shortfalls
JES in shortfalls that has been selected, the order is A, B, C. If, on the contrary, we classify the
42,1 countries by decreasing values of the inequality in attainments, the order is B, A, C.
In other words measuring the inequality in shortfalls gives a ranking which is different
from those obtained when measuring the inequality in attainments.
Various solutions have been proposed in recent years in the literature to overcome
such a difficulty. Erreygers (2009) was probably the first to suggest a solution.
38 He defined two indices, which are extensions of the Gini index and of the coefficient
variation and which will take the same value whether the computations are based on
shortfalls or attainments.
Let Bmax and Bmin be the upper and lower bound of the attainments and Emax and
Emin the upper and lower bounds of the shortfalls. Note that Emin ¼ 0 and Emax ¼
Bmax − Bmin so that Bmax − Bmin ¼ Emax − Emin.
The first index derived by Erreygers, which is derived from the Gini index, is
defined as:
8 X n
F G ðsÞ ¼ 2 v i si (1)
ðn ÞðE max E min Þ i¼1
40
3. An empirical illustration: inequality in attainments and shortfalls for
various indicators of health performance in Southeast Asia
Table II gives an empirical illustration covering the countries from Southeast Asia and
some years for which data were available and shows the values of six consistent
indices of inequality in attainments (shortfalls) derived from data on infant mortality.
Table AI in the Appendix presents similar results for the inequality of the distribution
of child mortality.
It is easy to observe that in those countries for which data were available
for more than one year there was a decrease in both the IMR observed at the
national level and the degree of inequality observed on the basis of data collected
at the level of wealth quintiles. The decrease in national IMRs was particularly
strong in Bangladesh, Cambodia and Nepal whereas the reduction in the wealth-
related inequality in infant mortality was important in Bangladesh, Indonesia
and Nepal.
In Table III we computed the correlation coefficients between the different indices
which consistently measure inequality in infant mortality. These coefficients are
usually very high. The only index which has a much lower correlation coefficient with
other indices is that proposed by Aristondo and Lasso de la Vega (2012).
Table IV gives the values of various indices of inequality of attainments
(shortfalls) as far as child stunting is concerned. The number of countries for which
such data were available for more than one period was quite limited but for those
three countries (Bangladesh, Cambodia and Nepal) for which such data were
available we observe that there was a decrease in the overall (at the national level)
percentage of children less than five years old who are stunted. The picture is,
however, quite different for inequality in child stunting since it barely varied in
Bangladesh but increased in Cambodia and Nepal during the first decade of the
twenty-first century. These results confirm the findings of Ikeda et al. (2013) who
wrote, in their study of child stunting in Cambodia, that “substantial economic
disparity between households was observed: a large fraction of households ranked
low on the nationwide wealth scale. Equitable economic growth is needed to attain
sustained reductions in the prevalence of child stunting in Cambodia.” For Nepal the
explanation may be more complex. Sah (2004) wrote that “under the family
attributes, the ethnicity shows slight effect, the economic status of household no
effect and mother’s education status prominent effects on nutritional status of
children under age three.” Since the socio-economic variable available in the DHS is
a wealth index derived via principal component analysis and not directly related to
income, there is probably no contradiction between Sah’s findings and those of the
present paper.
Table AII shows that the conclusions are the same concerning child underweight
and the inequality of this aspect of malnutrition among wealth quintiles.
The correlation coefficients between the indices measuring inequality in the extent
of child stunting as well as child underweight are usually also quite high[1].
Erreygers’s Lasso de la Atkinson consistent Kolm consistent
Overall index Vega and inequality index inequality index Normalized Theil consistent
infant Erreygers’s (coefficient of Aristondo (Chakravarty et al., (Chakravarty et al., mean logarithmic deviation
Country Year mortality index (Gini) variation) Index IR 2013) 2013) index (Chakravarty et al., 2013)
pro-poor
quintiles inequality
mortality and
in health and
41
between wealth
Overall infant
Table II.
in infant mortalitya
42
JES
42,1
Table III.
infant mortality
the inequality of
Correlation matrix
between measures of
Erreygers’s Lasso de la Atkinson consistent Kolm consistent
index Vega and inequality index inequality index Normalized Theil consistent
Erreygers’s (coefficient of Aristondo (Chakravarty et al., (Chakravarty et al., mean logarithmic deviation
index (Gini) variation) Index IR 2013) 2013) index (Chakravarty et al., 2013)
pro-poor
quintiles inequality
are stunted and the
in health and
Overall percentage of
43
between wealth
five years old who
children less than
Table IV.
of these percentagesa
JES 4. Determining the contribution of changes in the average value of a health
42,1 indicator and of its inequality to the value of this health indicator in the
poorest quintile
Let xt be the average value of a health indicator at time t and I(xt) be a measure of the
inequality of this indicator at time t. This index of inequality will be assumed to be an
absolute index since, as stressed in Section 2, this is a pre-condition for deriving
44 “consistent” values for the inequality in attainments and shortfalls will be the same
(see, Lambert and Zheng, 2010). Finally let xtP be the value of such a health indicator in
the poorest quintile in the population. The changes in xt , I(xt) and xtP between, say,
times 0 and 1 will be written as Dx, DI and DxP, respectively.
Adapting the approach of Deutsch and Silber (2011) we can write that xtP ¼
f ½x t ; I ðxt Þ so that DxP ¼ g ðDx; DI Þ.
Using the concept of Shapley decomposition (see, Chantreuil and Trannoy, 2013;
Shorrocks, 2013) we can, respectively, express the contributions C Dx and C DI of the
changes in the average value of the indicator and of its inequality, to the change in
the value of the health indicator in the poorest quintile as:
1
C Dx ¼ ½g ðDx a 0; DI a 0Þ ½g ðDx ¼ 0; DI a 0Þ
2
1
þ ½g ðDx a 0; DI ¼ 0Þ ½g ðDx ¼ 0; DI ¼ 0Þ
2
and:
1
C DI ¼ ½g ðDx a 0; DI a 0Þ ½g ðDx a 0; DI ¼ 0Þ
2
1
þ ½g ðDx ¼ 0; DI a 0Þ ½g ðDx ¼ 0; DI ¼ 0Þ
2
It is then easy to observe that:
DxP ¼ C Dx þ C DI
since:
DxP ¼ g ðDx a 0; DI a 0Þ
and:
g ðDx ¼ 0; DI ¼ 0Þ ¼ 0
Let us take as illustration the case of infant mortality in Bangladesh in 1993 (time 0)
and 2007 (time 1). Table V gives the IMRs (a shortfall measure labeled x) by wealth
quintile in this country.
Year Poorest quintile Second quintile Third quintile Fourth quintile Highest quintile
Table V.
Infant mortality
in Bangladesh by 1993 114.6 117.4 93.3 91.7 70.3
wealth quintile 2007 66.2 67.1 62.4 46.1 35.9
Note that x0 ¼ 114:6 þ 117:4 þ 93:3 þ 91:7 þ 70:30=5 ¼ 97:46. One can derive similarly On inequality
that x1 ¼ 55:54. Therefore Dx ¼ ðx1 x0 Þ ¼ 55:54 97:46 ¼ 41:92. in health and
It is also easy to see that x0P ¼ 114.6 and x1P ¼ 66.2, so that x1P − x0P ¼ 66.2 −
114.6 ¼ −48.4.
pro-poor
It is clear that the value of the shortfall of the lowest wealth quintile that would be development
observed when there is a change in both average wealth and in inequality, that is, when
we have (Dx a 0, DI ≠ 0), is the actual value of the shortfall of the lowest wealth quintile 45
at time 1, x1P ¼ 66.2.
The value x01P of the shortfall of the lowest wealth quintile that would have been
observed, had there been only a change in the average shortfall, that is, when (Dx a 0,
DI = 0), would be:
The value x001P of the shortfall of the lowest wealth quintile that would have been
observed, had there been only a change in inequality, that is, when (Dx ¼ 0, DI ≠ 0),
would be:
Similarly the contribution of the change in inequality to the change in the shortfall of
the lowest wealth quintile will be expressed as:
1
C DI ¼ ½ð66:2 72:68Þþ ð108:12 114:6Þ ¼ 6:48
2
As expected, the sum of these two contributions is –(41.92 + 6.48) ¼ −48.4 which is the
actual change (x1P − x0P) observed in the shortfall of the lowest wealth quintile.
In accordance with what was stressed in Sections 2 and 3, it is desirable that the
same breakdown holds when working with attainments rather than shortfalls.
Table VI shows the attainments for Bangladesh by wealth quintile, where the
attainment refers to the number of children, out of 1,000, surviving until age one.
Table VI.
Year Poorest quintile Second quintile Third quintile Fourth quintile Highest quintile Survival attainment
at age one in
1993 885.4 882.6 906.7 908.3 Bangladesh by
2007 933.8 932.9 937.6 953.9 964.1 wealth quintile
JES Call a0k and a1k the attainments of wealth quintile k in 1993 and 2007. The average
42,1 attainments a0 and a1 in 1993 and 2007 will then be a0 ¼ 902.54 and a1 ¼ 944.46 so
that the change in average attainments is Da ¼ 944.46 − 902.54 ¼ 41.92.
The change in the average attainments of the poorest quintile is Da0P ¼ 933.8 −
885.4 ¼ 48.4.
The value of the attainment of lowest wealth quintile that would be observed if there
46 were a change in both the average wealth and the inequality, that is, when we have
(Da ≠ 0, DI ≠ 0), is the actual value of the attainment of the lowest wealth quintile at
time 1, namely a1P ¼ 933.8.
The value a01P of the attainment of the lowest wealth quintile that would have been
observed, had there been only a change in the average wealth, that is, when (Da ≠ 0,
DI ¼ 0), would be:
a01P ¼ a0P þ ða1 a0 Þ ¼ 885:4 þ 41:92 ¼ 927:32
The value a001P of the attainment of the lowest wealth quintile that would have been
observed, had there been only a change in inequality, that is, when (Da ¼ 0, DI ≠ 0),
would be:
a001P ¼ a1P ða1 a0 Þ ¼ 933:8 41:92 ¼ 891:88
Finally the value a000
1P of the attainment of the lowest wealth quintile that would have
been observed, had there been no change in the average wealth and no change in
inequality (Da ¼ 0, DI ¼ 0), would obviously be the original value a0P ¼ 885.4 of the
attainment of the lowest wealth quintile.
Using the breakdown mentioned previously, the contribution of the change in the
average attainment to the change in the attainment of the lowest wealth quintile will
then be expressed as:
1
C Da ¼ ½ð933:8 891:88Þþ ð927:32 885:4Þ ¼ 41:92
2
. imilarly the contribution of the change in inequality to the change in the attainment of
S
the lowest wealth quintile will then be expressed as:
1
C DI ¼ ½ð933:8 927:32Þ þ ð891:88 885:40Þ ¼ 6:48
2
As expected, the sum of these two contributions is (41.92 + 6.48) ¼ −48.4, which is the
actual change (a1P − a0P) observed in the attainment of the lowest wealth quintile. We
also observe that the contributions (to the change in the attainment of the lowest wealth
quintile) of the change in the average attainment and that of the change in inequality
are identical (in absolute value) to the contributions of the changes in average shortfall
and inequality in shortfalls derived previously.
Table VIII.
Contributions of the Bangladesh 1993 and 2007 −99.2 −72.26 −26.94
change in average Cambodia 2000 and 2010 −64.1 −52.64 −11.46
child mortality and India 1998 and 2005 −24.3 −15.7 −8.6
its inequality to the Indonesia 1997 and 2007 −31.7 −17.7 −14
change in child Nepal 1996 and 2011 −81 −74.28 −6.72
mortality in the Philippines 1998 and 2008 −20.1 −15.36 −4.74
poorest wealth Vietnam 1997 and 2002 −10.9 −13.6 2.7
quintile Source: WHO Health Equity Monitor
6. Conclusions
This paper aimed first at providing estimates of the degree of inequality in health
attainments and access to health services in various countries in Southeast Asia during
the past 20 years. Particular attention was given to the fact that, when working with
bounded variables, indices measuring inequality in health attainments may be quite
different from inequality in health shortfalls so that we selected only indices which
have been proposed recently in the literature and give identical results for the
inequality of shortfalls and that of attainments. These indices were then computed for
four health variables: infant and child mortality, child stunting and underweight. In all
cases it appears that both the average value of these variables and the inequality of
their distribution between wealth quintiles declined over time.
In the second part of the paper we implemented the so-called Shapley decomposition
in order to find out whether the decline observed generally in the value taken by these
health variables among the poorest wealth quintile was mainly a consequence of
the overall decline (country as a whole) in the value of these variables or whether the
change in the between wealth quintiles inequality in the values taken by these health
variables played also a role. It then appeared that generally the overall decline in infant
and child mortality as well as in child stunting and underweight played the main role.
The decomposition approach selected was also shown to give identical results, whether
one works with shortfalls or attainments.
The breakdown proposed here has important policy implications because one can
think of two scenarios leading to an improvement of the well-being of the poor. A first
case is that where the well-being of the poor improves because the average well-being
in society increases. This would correspond to what is usually called “trickle down.”
Another possibility is that the well-being of the poor improves although no major
increase occurred in society as a whole. This would be the case if specific measures
aimed at the poor are taken to improve their lot. The empirical illustration given in this
paper for the very few countries for which data on mortality and malnutrition were
available for at least two periods has shown that most of the improvement was a
consequence of a general improvement in society. Since in the second period for which
data were available, the gap between the richest and poorest wealth quintiles was still
important (e.g. in Indonesia in 2007 infant mortality for the poorest wealth quintile was
55.7, that is, twice as high as the infant mortality of the richest wealth quintile which
was 25.8), there is no doubt that improving the lot of the poor requires specific
measures aimed at the poor.
In a recent article Nguyen (2013) argues that “isolated successes in parts of Asia
suggest that it is possible to reduce infant and child mortality rates quickly even
without high rates of economic growth […] At that stage, the focus needs to shift to
JES improving the quality of education, healthcare and childcare […].” Implementing such
42,1 policies clearly requires focussing on the poor strata of the population, that is, those
who have a low level of education and little access to health and child care.
Notes
1. These coefficients are available upon request from the author.
50
2. I thank an anonymous referee for drawing my attention to these important issues.
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developing countries: a systematic review and meta-analysis”, Journal of the Royal Society
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Corresponding author
Professor Jacques Silber can be contacted at: jsilber_2000@yahoo.com
Table AI.
Overall child
mortality and
between wealth
in child mortalitya
quintiles inequality
Appendix
Atkinson
Erreygers’s Erreygers’s Index IR consistent Kolm consistent Normalized Theil
Overall index index adjusting proposed by inequality index inequality index consistent mean
child adjusting the coefficient of Lasso de la Vega (Chakravarty et al., (Chakravarty logarithmic deviation index
Country Year mortality Gini index variation and Aristondo 2013) et al., 2013) (Chakravarty et al., 2013)
pro-poor
Table AII.
quintiles inequality
are underweight and
in health and
Overall percentage of
53
of these percentagesa