It is important for countries to measureand track poverty as frequently and accurately as possible,particularly in Central America. That information allowsidentifying the poor and keeping them on the agenda,understanding the evolution of poverty trends over the shortand long term, assessing the determinants of poverty,targeting policy interventions geared to poor people, andevaluating the effectiveness of policy actions. The need tofrequently updating and collecting precise and inclusivepoverty data is critical for countries in Central America, asub-region that has proven vulnerable to various types ofshocks in the past (including the recent fuel, food price,and financial crises from 2007-2008). Of particularimportance for governments and donors is the issue ofcalculating poverty at high levels of geographicdisaggregation to help them best target policy interventionsfor poor and vulnerable populations, while efficientlyallocating resources. Notwithstanding important advances inrecent years, there are a variety of elements in currentpoverty measurement and mapping practices in Central Americathat are susceptible to further improvement. The purpose ofthis note is to take stock of current poverty measurementpractices and the status of statistical capacity foreffective poverty measurement in Central America. The firstsection reviews the main aspects that characterize povertymethodologies currently employed by each of the sixcountries in Central America, laying out similarities anddifferences and highlighting where there's room forimprovement. The second section takes a closer look atnational statistical capacity for poverty data collectionand evaluation, with a special focus on periodicity. Thefinal section lays out the key constraints to povertymeasurement in Central America parsed out by the topics ofpoverty measurement methodology, poverty mapping, andstatistical capacity.
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