Two Approaches to Measuring and Understanding Poverty

This paper studies two tools used to understand and measure poverty: the Participatory Wealth Ranking System (PWR) and Progress Out of Poverty Index (PPI). These two methods are used by the Small Enterprise Foundation to understand how to reach poor individuals and how to track changes in poverty over time. The paper covers the following aspects in detail:

• Explanation of the PWR tool;
• Explanation of the PPI tool;
• Key difference between both tools;
• Relationship between both tools on the basis of a correlation analysis.