In the last couple of weeks I engaged in undertaking livelihood study. The main objective of the study was to examine living situation of a community in my district
Today in this post I want to share with you one of the major findings, which depicts living status of study participants as reflected by their Average Propensity to Consume (APC).
To make you clearer, Average Propensity to Consume (APC) is one of good methods used to measure economic status of a community or an individual.
It gives clear picture about income and expenditure patterns of that particular community so that able to snapshoot poverty status or general living conditions
Accordingly, the current income and expenditure analysis of my study revealed; average monthly expenditure found to be USD 210 against that of monthly income of USD 187; Bringing Average Propensity to Consume (APC) 1.12
What does this (APC) 1.12 now indicates?
Generally, it shows the capacity to spend. The amount of money study participants’ spent to buy basic things like food, cloths, transport health services etc when divided by monthly income earned.
Therefore, APC 1.12 means, their monthly income was too low to cover cost of basic needs. Their monthly income can only be able to purchase 89% of demanded goods and services.
i.e without saving anything, they still struggling to generate extra income at least by 11% to fulfil their current basic need and sustain life.
your IDEA how they make extra income, ensure household member’s food demand, child schooling……..