|Distance to urban areas x Distance to waterways|0.000|0.000|0.027|
|---|---|---|---|
|**Model statistics**||||
|Unit of observation|Enumeration areas|||
|Observations|92|||
|Degrees of freedom|67|||
|R‐squared|0.953|||
|Adjusted R‐squared|0.937|||
|Root mean squared error|11.2|||
|F‐Statistic|56.9|||

Source: Flowminder / WorldPop.

Both the urban and the rural model were used to predict poverty at the 100m‐by‐100m pixel‐level for all urban and inhabited rural areas. In order to derive imputed poverty estimates at the pre‐war region and district levels, pixels were aggregated using as population weights an updated version of the WorldPop population layer.<sup>29</sup>

# 6. Poverty in Somalia

Poverty is a complex phenomenon that refers to the deprivation of a person, household, or community in multiple dimensions (Deaton and Zaidi, 2002). In general, it considers whether individuals or households have enough resources to meet their needs. Identifying the poor population or those living below a minimum threshold is a first crucial step for evidence‐based planning aimed at alleviating poverty in any country. Profiling the poor and vulnerable is crucial to inform policies, design targeted interventions, as well as to monitor and evaluate the evolution of living standards and poverty reduction efforts (Baker, 2000). This section presents an overview of quantitative measures used to assess poverty and inequality in Somalia using SHFS wave 2 data. The analysis focuses on the monetary dimensions of poverty. The World Bank’s forthcoming Somali Poverty Assessment, and therein especially the first chapter, provides a more detailed analysis of poverty and deprivation, including non‐monetary dimensions of deprivation.

## 6.1. Measuring poverty

Three components are required for poverty analysis. First, a measure of welfare. Second, a poverty line that defines a level of welfare at which individuals are either considered poor or not poor. Third, an aggregate poverty measure (Coudouel et al., 2002; Haughton and Khandker, 2009; Ravallion, 2008). The measure of welfare used in this analysis, per‐capita consumption, is discussed in detail in Section 4.

### _Poverty line_

There are two types of poverty lines: relative to the overall distribution of consumption in a country, or anchored in an absolute level of what a household should consume to meet basic needs <mark>(Beegle, at al., 2016).</mark> Many countries define a national poverty line based on the cost of essential food items or a minimum calorie intake in that country, along with an allowance for non‐food products. While a national poverty line allows for a precise measure of poverty according to national standards and circumstances, it is not comparable with other countries. Thus, absolute poverty lines are preferred to measure poverty across countries.

This analysis uses the international poverty line which was introduced in the 1990 World Development Report with the aim of measuring poverty consistently across countries (Ravallion et al., 2009). To be

> 29 The poverty estimates were obtained using an updated WorldPop population density map of Somalia with the latest data from wave 2 of the SHFS and DigitalGlobe.

29