Poverty in Pre-Reform Uzbekistan - What Do Official Data Really Reveal

Abstract

Using 1989 household survey data, we investigate large differences in poverty measured with a conventional all-Union per capita income line between Uzbekistan, the largest Central Asian republic of the former U.S.S.R., and Ukraine as an example of a European republic. We show that (i) differences between the two countries in the distribution of household size is not the main explanation, (ii) undervaluation of agricultural income in kind understates the welfare of rural households, something of particular importance in Uzbekistan, and (iii) indicators of food consumption provide important additional information. Lessons are drawn for the measurement of poverty in post-Union Uzbekistan.