How to Reach the Sustainable Development Goal 1.2? Simulating Different Strategies to Reduce Multidimensional Child Poverty in Two Middle-Income Countries

Although the UN Millennium Development Goals (MDGs) have contributed to substantial progress in reducing the number of people living on less than $1.25 a day since 1990, it is now generally accepted that poverty goes beyond the simple lack of income. The new Sustainable Development Goals (SDGs) adopted by all member states of the United Nations (UN) in September 2015 call for “reducing at least by half the proportion of men, women and children of all ages living in poverty in all its dimensions according to national definitions” by 2030 (UNDESA 2016). Although there must be numerous ways of achieving this goal, research evidence on reducing multidimensional poverty is scarce. This paper investigates possible strategies for halving MD poverty among children using the case studies of Armenia and Bosnia and Herzegovina (BiH). Both Armenia and BiH conducted multidimensional child poverty studies in 2014–2016 based on nationally agreed definitions and using secondary data from representative household budget surveys. This analysis compares two approaches to halving the rate of multidimensional poverty among children aged 5–15 by employing static simulations: 1) reducing deprivation headcount in two to three key dimensions and 2) increasing monetary transfers to the consumption-poor.