Poverty and inequality impact of COVID-19 pandemic: The case of Mazar-i-Sharif, Balkh province, Afghanistan

Abstract

Poverty was already a main problem in Afghanistan even before, but it has exacerbated due to the pandemic. However, the actual impact of the pandemic on households had not been investigated. This study provides such analysis using data obtained from a strictly random survey of 1060 households in the capital of Balkh, the fourth most populated province in Afghanistan. Using headcount ratio and poverty gap measures and both income and expenditure approaches, the results show that an additional 12% of households fell below the poverty line, from an already high of 75% before the pandemic. The poverty gap index rises to 34%, but the computed Gini coefficient indicates no significant change in inequality. Poor governance and corruption in Afghanistan are major impediments to address the issue of poverty. This paper suggests several measures which can be implemented to have effective policies and governance to alleviate poverty.