Testing the Progress out of Poverty Index: Triangulation of the PPI with Key Informant Wealth Ranking Exercises and SILC Financial Diaries
Catholic Relief Services (CRS), with Microfinance Opportunities (MFO), conducted a comparative exercise to test whether the Progress out of Poverty Index® (PPI) was sensitive enough as a measure of relative poverty for the objectives and purposes of the Expanding Financial Inclusion in Africa Project (EFI). In Northern Zambia, many respondents to the PPI surveys carried out under the EFI project had the same high poverty likelihood scores, yet the Financial Diaries data for the same households suggested real differences in their poverty levels.
Developing a third source of data on the socio-economic situation of the Financial Diaries' households in the form of a wealth ranking exercise allowed a triangulation of PPI data, Financial Diaries income data, and wealth ranking categories. The wealth ranking exercise also allowed an assessment of the extent to which there was an overlap between the indicators mentioned by the Financial Diaries' enumerators during the wealth ranking exercise and those indicators used in teh PPI questionaire in case discrepancies pointed to PPI question criteria that were not relevant in this context.