Multidimensional Diagnostic on Inequalities: A Comprehensive Analysis of Inequalities in Colombia

In Colombia, and in other countries, the objective of the Extension of the EU-AFD Research Facility on Inequalities is to provide analysis, methodologies, and statistics that allow understanding the state of inequalities in the country, the dynamics and interrelationships with the different areas, sectors, and regions of the economy. The objective is to provide robust and updated data, to provide evidence for the construction of public policies, but also to identify areas where data collection can be improved, and those where research can be deepened to better understand the context and support the construction of public policies aimed at reducing inequalities...

In Colombia, DANE has made great progress in recent years in the collection and availability of data in order to analyze and better understand the reality of the country. Several studies have been carried out with some of these data, but, for several years, there has been no comprehensive analysis of inequalities at the national level using several databases to get a complete picture of the country's situation. Since mid-2021, AFD has been working hand-in-hand with DANE and Fedesarrollo to carry out a multidimensional diagnostic on inequalities, based on an innovative reference methodology created by AFD. It provides a comprehensive view of the country's situation as it covers a wide range of aspects (health, education, incomes, etc.) all under the prism of inequalities and using different indicators and databases.

This project is framed in a context in which inequalities acquire crucial relevance in the public policy of the current government and in the agreements adopted by it within the framework of the 2030 agenda, as well as in its entry into the OECD.

The project aimed to support and strengthen the production of national statistics on inequalities, promoting exchanges and interoperability between DANE and other national and international institutions. More specifically, the main objectives were:

1. To implement the methodology of the multidimensional diagnostic on inequalities, and therefore create the first national diagnostic on inequalities in Colombia. For this, AFD worked hand in hand with Fedesarrollo and in close collaboration with DANE.
2. To accompany DANE's technical teams in the production, updating and improvement of statistics on inequalities based on the inequality diagnostic methodology. These data will be used to monitor over time the evolution of the indicators considered relevant, and, depending on the outcome of the data collected, to advance in analyses that integrate elements related to climate change and the environment.
3. To support DANE’s technical teams in implementing new methodologies and initiatives to obtain statistics that allow a better understanding of the distribution of income of individuals and households in the country. Workshops and seminars served to share experiences and establish practices that allow high-quality data for decision-making.

The research project led to the publication of the multidimensional diagnostic on inequalities in Colombia. It takes into account multiple dimensions of inequality: income distribution, consumption, labour income, household assets and services, level of wealth in land and financial assets, access to and quality of education and health, access to basic services... This document is key to understanding the gaps that exist in Colombia, and allows for evidence-based decision-making and progress towards reducing inequalities.
 

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