chapter  3
62 Pages

Poverty and Household Living Standards

WithAraceli Damián

Many scholars have stated that the 1982 economic crisis and the stabilisation and structural adjustment policies implemented by the Mexican government led to an impoverishment of the Mexican population. There is no consensus among scholars about the trends in poverty during the 1980s and 1990s. Mexican National Accounts do not estimate household income. The variable most closely related to household income in National Accounts is private consumption. The definition of the extreme poverty line can be criticised on the grounds of not taking into consideration other food-preparation and consumption expenditures, neglecting completely non-food requirements. The selection of the food basket of the fifth decile as the demarcation point of the extreme poverty line has been criticised on the grounds that it does not provide the "cheapest" possible alternative to fulfil the "minimum" nutritional requirements. National Accounts calculations show an improvement in income between 1989 and 1992 as a result of a general improvement in the economy.