Public Expenditure Allocation and Non-Monetary Dimensions of Poverty: The case of Albania

Poverty is a complex phenomenon that involves various dimensions and not simply insufficiency of income or consumption. The non-monetary dimension of poverty has to do with having very limited or no access in basic services such as infrastructure, health and education. Analysis of the main characteristics of building and dwelling and their infrastructures constitutes a fundamental aspect of measuring the standard of living and the quality of life in non-monetary terms. Demographic, economic and social changes in years, particularly during the years of transition, have also influenced the inequalities and poverty dimensions in different geographical areas. In this paper, by analyzing the trend on education, health and dwelling infrastructure over time and across geographical areas, we aim to show how various factors related with better management of public services influence the poverty level. Cross-sectional data from Living Standards Measurement Survey 2012, 2008, 2005, and 2002 are used in the paper for analyzing non-monetary dimensions of poverty in Albania.