monitoring the urban quality of life in latin america: an introduction
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Monitoring the Urban Quality of Life in Latin America: An Introduction. Eduardo Lora Research Department Inter-American Development Bank October, 2008. The Concept of QoL. Living conditions (e.g. basic needs) Capabilities (e.g. UNDP human development Index) - PowerPoint PPT PresentationTRANSCRIPT
Monitoring Monitoring the Urban Quality of Life the Urban Quality of Life
in Latin America:in Latin America:An IntroductionAn Introduction
Eduardo LoraEduardo LoraResearch Department Research Department
Inter-American Development BankInter-American Development Bank
October, 2008October, 2008
The Concept of QoLThe Concept of QoL
1.1. Living conditions (e.g. basic needs)Living conditions (e.g. basic needs)
2.2. Capabilities (e.g. UNDP human Capabilities (e.g. UNDP human development Index)development Index)
3.3. ““Livability” of the environment (e.g. Livability” of the environment (e.g. income per capita and growth)income per capita and growth)
4.4. Life appreciation and happinessLife appreciation and happiness ……all these are interconnectedall these are interconnected
Beyond Facts:Beyond Facts:Understanding Quality of LifeUnderstanding Quality of Life
SETTING THE STAGESETTING THE STAGE1.1. Quality of Life through a New LensQuality of Life through a New Lens2.2. The Reality of PerceptionsThe Reality of Perceptions3.3. The Conflictive Relationship between Satisfaction and IncomeThe Conflictive Relationship between Satisfaction and Income4.4. Satisfaction beyond IncomeSatisfaction beyond Income
FACTS AND PERCEPTIONS IN ACTIONFACTS AND PERCEPTIONS IN ACTION5.5. Getting a Pulse on Health QualityGetting a Pulse on Health Quality6.6. Learning about Educational Quality and PerceptionsLearning about Educational Quality and Perceptions7.7. Rethinking Conventional Wisdom on Job QualityRethinking Conventional Wisdom on Job Quality8.8. Building Quality Cities: More than Bricks and MortarBuilding Quality Cities: More than Bricks and Mortar
THE CURTAIN CALLTHE CURTAIN CALL9.9. Making Political Sense of Quality of Life PerceptionsMaking Political Sense of Quality of Life Perceptions
New Sources of Information on QoLNew Sources of Information on QoL
General: the Gallup World PollGeneral: the Gallup World Poll– Annual since 2006Annual since 2006– 130 countries, 22 from LAC130 countries, 22 from LAC– ~1000 individuals by country~1000 individuals by country– over 100 QoL-related questionsover 100 QoL-related questions
Urban: pilot surveys in 8 citiesUrban: pilot surveys in 8 cities– Argentina: Buenos AiresArgentina: Buenos Aires– Bolivia: La Paz, Santa CruzBolivia: La Paz, Santa Cruz– Colombia: BogotColombia: Bogotá, Medellíná, Medellín– Costa Rica: San JoséCosta Rica: San José– Peru: LimaPeru: Lima– Uruguay: MontevideoUruguay: Montevideo
Understanding QoL perceptionsUnderstanding QoL perceptions
Not a direct reflection of realityNot a direct reflection of reality– Not a substitute for objective dataNot a substitute for objective data
Very influenced by cultureVery influenced by culture– Country rankings don´t tell muchCountry rankings don´t tell much
Perceptions are not a direct Perceptions are not a direct reflection of “reality”reflection of “reality”
Correlation with objective
indicatorsCorrelation with
cultural bias
Life satisfaction Per capita GDP 0.81 0.29
Satisfaction with standard of living Per capita GDP 0.65 0.51
Satisfaction with health Life expectancy 0.21 0.39
Confidence in medical system Life expectancy 0.29 0.60
Satisfaction with local educational system
Score on PISA test 0.42 0.68
Satisfaction with housingPublic services
coverage 1 0.76 0.41
Availability of affordable priced good homes
Home ownership rate 2 0.23 0.51
Source: Authors' calculations based on Gallup (2006 and 2007), World Bank (2007) and UNDP (2008). Countries are the unit of observation. Public services are water, electricity and landline phone service. Ownership rates only available for Sub-saharian Africa and Latin America and the Caribbean.
Perceptions are not a direct Perceptions are not a direct reflection of “reality”reflection of “reality”
Relationship between Water Coverage and House Satisfaction
Haiti
Dominican RepublicNicaragua
Paraguay
El SalvadorHonduras
BelizeGuyana
PeruBolivia
Ecuador
Trinidad & Tobago
Brazil
Guatemala
Argentina
Cuba
PanamaVenezuela
ColombiaMexicoUruguay
Costa Rica
Jamaica
Chile
Puerto Rico
30
40
50
60
70
80
90
100
40 50 60 70 80 90 100 110
Water coverage, %
Hou
se s
atis
fact
ion,
%
Source: Author’s calculations based on Gallup (2006 and 2007)
Perceptions of Own Housing and of Own Perceptions of Own Housing and of Own City City
Source: Author’s calculations based on Gallup (2006 and 2007)0 20 40 60 80 100
Haiti
Jamaica
Trinidad and Tobago
Peru
Bolivia
Chile
Dominican Republic
Guyana
Nicaragua
Belice
Ecuador
Uruguay
Brazil
El Salvador
Colombia
Argentina
Mexico
Honduras
Panama
Venezuela
Costa Rica
Paraguay
Guatemala
Sub-Saharian Africa
Europe and Central Africa
Middle East and North Africa
East Asia and the Pacific
Latin America and the
South Asia
Western Europe
Percentage satisfied
Satisfaction with own housing
Satisfaction with City
Cultural biases and satisfaction Cultural biases and satisfaction with own citywith own city
Relationship between Satisfaction with City and Cultural Bias
-2
-1.5
-1
-0.5
0
0.5
1
1.5
2
50 55 60 65 70 75 80 85 90 95 100
Percentage satisfied with city
Cu
ltura
l Bia
s
Source: Authors' calculations based on Gallup (2006 and 2007)
Understanding QoL perceptionsUnderstanding QoL perceptions
Not a direct reflection of realityNot a direct reflection of reality– Not a substitute of objective dataNot a substitute of objective data
Very influenced by cultureVery influenced by culture– Country rankings don´t tell muchCountry rankings don´t tell much
Subject to self-serving biasesSubject to self-serving biases– Public and private domains not directly comparablePublic and private domains not directly comparable
Limited by information, aspirationsLimited by information, aspirations– Not a good yardstick of the quality of policiesNot a good yardstick of the quality of policies– Maximizing “happiness” not a good policy objectiveMaximizing “happiness” not a good policy objective
Two examples of self-serving Two examples of self-serving biases: housing and job satisfactionbiases: housing and job satisfaction
0 20 40 60 80 100
Haiti
Jamaica
Trinidad and Tobago
Peru
Bolivia
Chile
Dominican Republic
Guyana
Nicaragua
Belice
Ecuador
Uruguay
Brazil
El Salvador
Colombia
Argentina
Mexico
Honduras
Panama
Venezuela
Costa Rica
Paraguay
Guatemala
Sub-Saharian Africa
Europe and Central Africa
Middle East and North Africa
East Asia and the Pacific
Latin America and the
South Asia
Western Europe
Percentage satisfied
Satisfaction with housing
Availability of good homes at affordable prices
0 20 40 60 80 100
Haiti
Domincan Republic
Peru
Trinidad and Tobago
Chile
Argentina
Jamaica
Ecuador
El Salvador
Belize
Guyana
Nicaragua
Uruguay
Paraguay
Bolivia
Mexico
Colombia
Honduras
Panama
Brazil
Venezuela
Costa Rica
Guatemala
Sub-saharian Africa
Europe and Central Asia
Middle East and North Africa
South Asia
East Asia and the Pacific
Latin America and the
North America
Western Europe
Percentage satisfied
Satisfaction with employment
Satisfaction with public labor policy
Source: Author’s calculations based on Gallup (2006 and 2007)
The role of information and aspirations: The role of information and aspirations: satisfaction with educationsatisfaction with education
People Who Think the Majority of the Children Receive a Good Education
0
10
20
30
40
50
60
70
80
90
100
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22
Years of education
Per
cen
tag
e o
f re
spo
nde
nts
Honduras Chile
Source: Authors' calculations based on Quality of Life Modules of household surveys. Note: the sample corresponds to adults 18 years old or older.
Understanding QoL perceptionsUnderstanding QoL perceptions
However…However… Answers do reflect how people feelAnswers do reflect how people feel
– Richness of information at individual levelRichness of information at individual level Hosts of things matterHosts of things matter
– Own´s income and others´incomeOwn´s income and others´income– And many things beyond incomeAnd many things beyond income
Some things matter more than othersSome things matter more than others– Helps understand market and politicial Helps understand market and politicial
attitudes.attitudes.
The richer, the more satisfiedThe richer, the more satisfiedwith their homes and citieswith their homes and cities
Satisfaction with own home
0
10
20
30
40
50
60
70
80
90
100
6 7 8 9 10 11
Ln GDP per capita, 2005
Satis
fied
with
ow
n ho
me
Satisfaction with city
0
10
20
30
40
50
60
70
80
90
100
6 7 8 9 10 11
Ln GDP per capita, 2005
Satis
fied
with
city
……but the richer those around you, the lower but the richer those around you, the lower the satisfaction with the material aspects of lifethe satisfaction with the material aspects of life
***
***
***
***
*** **
**
*
*
The relationship among satisfaction, own income and income of others
Satisfaction beyond incomeSatisfaction beyond income
Housing satisfaction:Housing satisfaction:Water, phone and title deeds matterWater, phone and title deeds matter
How much the probability of being satisfied with housing increases if…
House has water 34.082***
Someone in the house has a telephone 22.232**
House has electricity -4.843
Person is the owner 26.179*
Person has a title deed 50.172***
Woman 5.053
Age -5.315***
Age squared 0.061***
Kids at school -0.418
Number of household members 0.581
Number of kids at home -3.120
Income quintile 16.336***
Country fixed effects Yes
Number of observations 6371
R2 0.0564
Source – IDB, Beyond Facts: Understanding Quality of Life. Chapter 8.
Services coverage is high, though Services coverage is high, though far from universalfar from universal
Public Services Coverage in Urban Areas and the Coverage Gap Between the Highest and Lowest Two Quintiles
Sanitation Water Electricity
Coverage Gap Coverage Gap Coverage Gap
Argentina 60.4 39.2 98.4 4.0 99.5 1.2
Bolivia 61.2 -3.2 90.2 9.7 92.5 6.1
Brazil 65.5 30.2 95.6 9.9 99.6 0.9
Chile 91.8 11.2 99.3 1.3 99.7 0.6
Colombia 87.6 10.4 89.9 5.2 90.4 4.6
Costa Rica 43.4 5.8 98.9 0.6 99.9 0.2
Ecuador 67.4 28.7 91.1 9.7 99.3 1.2
El Salvador 50.6 30.7 73.7 23.8 90.7 14.4
Guatemala 66.7 23.9 77.9 0.8 96.0 11.0
Mexico 69.5 37.1 94.9 8.9 99.6 1.0
Nicaragua 36.4 23.8 89.5 13.4 95.5 12.8
Paraguay 15.0 14.7 89.7 20.1 98.4 3.8
Peru 77.6 34.3 83.4 23.8 96.3 12.6
Uruguay 66.2 38.3 98.8 1.5 99.3 1.9
Venezuela 95.1 5.7 93.9 6.7 99.1 0.9
Average 56.9 17.8 85.6 9.9 94.9 6.5
Source: Cristini and Moya (2008) based on SEDLAC.
And And homehome ownership is pretty high, ownership is pretty high, even for the poor…even for the poor…
Home Ownership Rates by Income (urban areas)
Low income High income Average
Argentina 58.4 70.6 66.0
Bolivia 55.4 55.0 53.9
Brazil 65.3 73.0 69.9
Chile 59.8 69.2 65.9
Colombia 57.8 64.1 60.0
Costa Rica 69.1 74.2 72.2
Dominican Republic 59.3 58.3 59.3
Ecuador 70.6 69.5 69.4
El Salvador 56.3 71.0 66.0
Guatemala 71.1 70.0 70.0
Honduras 57.2 62.0 59.2
Mexico 67.3 71.8 69.5
Nicaragua 67.6 79.6 76.6
Paraguay 75.6 74.2 74.4
Peru 55.1 70.0 65.7
Uruguay 43.9 75.5 64.0
Venezuela 77.2 74.3 75.3
Latin America and The Caribbeana 63.6 71.3 68.4
But many poor families lack title deedsBut many poor families lack title deedsPercentage of Homeowners in the Lowest Two Quintiles with Title Deeds, 2007
40 50 60 70 80 90 100
Dominican Republic
Uruguay
Panama
Belize
Brazil
Chile
Argentina
Colombia
Honduras
Paraguay
Nicaragua
Peru
El Salvador
Ecuador
Guatemala
Costa Rica
Guyana
Bolivia
Mexico
Source: Gallup (2007).
How Latin Americans judge their citiesHow Latin Americans judge their citiesPercentage of persons with the following perception…
0 10 20 30 40 50 60 70
Not satisfied with traffic
Not satisfied with water quality
Not satisfied with air quality
Not satisfied with roads
Not satisfied with health services
Not satisfied with housing availability
Not satisfied with education services
Drug traffic in the city
Not satisfied with public transport
Not satisfied with city parks
Not satisfied with sidewalks quality
Gangs in the city
Do not feel safe walking alone
Source – IDB, Beyond Facts: Understanding Quality of Life. Chapter 8.
The most serious concern: securityThe most serious concern: security
Sub-Sah
AfricaWeste
rn
Europe
East
Asia
Percentage of People who Feel Unsafe Walking Alone at Night
30 35 40 45 50 55 60 65 70
Mexico
Panama
Honduras
Colombia
Peru
Nicaragua
Guatemala
Costa Rica
Uruguay
El Salvador
Dominican Republic
Venezuela
Ecuador
Paraguay
Bolivia
Argentina
Chile
Brazil
Latin America and The Caribbean
Percentage
Source: Gallup (2007).
How important each of these things is for How important each of these things is for their satisfaction with the citytheir satisfaction with the city
Impact of the following perceptions on the satisfaction
with the city
0.00 0.04 0.08
Not satisfied with traffic
Not satisfied with water quality
Not satisfied with air quality
Not satisfied with roads
Not satisfied with health services
Not satisfied with housing availability
Not satisfied with education services
Drug traffic in the city
Not satisfied with public transport
Not satisfied with city parks
Not satisfied with sidewalks quality
Gangs in the city
Do not feel safe walking alone
Source – IDB, Beyond Facts: Understanding Quality of Life. Chapter 8.
A ranking of city problemsA ranking of city problems(combining dissatisfaction and importance)(combining dissatisfaction and importance)
Source – IDB, Beyond Facts: Understanding Quality of Life. Chapter 8.
Total impact of the following problems
0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0
Not satisfied with traffic
Not satisfied with water quality
Not satisfied with air quality
Not satisfied with roads
Not satisfied with health services
Not satisfied with housing availability
Not satisfied with education services
Drug traffic in the city
Not satisfied with public transport
Not satisfied with city parks
Not satisfied with sidewalks quality
Gangs in the city
Do not feel safe walking alone
What comes nextWhat comes next
A more rigorous explanation of the theory and the A more rigorous explanation of the theory and the
methods: Bernard Van Praagmethods: Bernard Van Praag
A detailed example, Buenos Aires: Guillermo A detailed example, Buenos Aires: Guillermo
CrucesCruces
A summary of the city cases: Andrew PowellA summary of the city cases: Andrew Powell
Can this be useful? Enrique PeñalosaCan this be useful? Enrique Peñalosa
Panel debate and conclusionsPanel debate and conclusions