Multi-dimensional Poverty Index 2018

Context

  • India has made momentous progress in reducing multidimensional poverty, according to estimates from the 2018 global Multidimensional Poverty Index (MPI) released today by the United Nations Development Programme (UNDP) and the Oxford Poverty and Human Development Initiative (OPHI).

Key Facts

  • The incidence of multidimensional poverty has almost halved between 2005-06 and 2015-16, climbing down to 27.5 percent from 54.7 percent.
  • Among South Asian countries, only Maldives has a lower headcount ratio than India at 1.9 percent, with Nepal (35.3 percent), Bangladesh (41.1 percent), and Pakistan (43.9) having higher incidences of multidimensional poverty.
  • The latest figures paint a stark picture of just how many are still left behind by development, but they also demonstrate that progress can happen quickly with the right approach.
  • Globally, some 1.3 billion people live in multidimensional poverty, which is almost a quarter of the population of the 104 countries for which the 2018 MPI is calculated. Of these 1.3 billion, almost half – 46 percent – are thought to be living in severe poverty and are deprived in at least half of the dimensions covered in the MPI.
  • The MPI looks beyond income to understand how people experience poverty in multiple and simultaneous ways. It identifies how people are being left behind across three key dimensions: health, education and living standards, and 10 indicators – nutrition, child mortality, years of schooling, school attendance, sanitation, cooking fuel, drinking water, electricity, housing and assets.
  • Those who are deprived in at least a third of the MPI’s components are defined as multidimensionally poor. The 2018 report, which is now closely aligned with the Sustainable Development Goals, cover almost three-quarters of the world’s population. The 2015-16 district-level calculations of the incidences of multidimensional poverty for India has been sourced from the National Family Health Survey IV. The data for 2005-06 is from the National Family Health Survey III.
  • Pockets of poverty are found across India, but multidimensional poverty is particularly acute – and significant – in the four states of Bihar, Jharkhand, Uttar Pradesh and Madhya Pradesh. These accounted for 196 million MPI poor people – more than half of all MPI poor in India.
  • But there was also progress. Jharkhand made the biggest strides among all states in reducing multidimensional poverty, with Arunachal Pradesh, Bihar, Chhattisgarh, and Nagaland only slightly behind.
  • “The MPI demonstrates the tremendous strides India has made, and continues to make, in reducing poverty. It is especially encouraging that traditionally disadvantaged groups are catching up the fastest.

About the MPI

  • Global MPI was first developed in the year 2010 by the United Nations Development Program (UNDP) and Oxford Poverty and Human Development Development (OPHI).
  • It does not assess poverty based on income only, like a World Bank, but also calculates poverty in a multi-dimensional manner.
  • These three categories mainly measure MP3Is on 10 indicators based on health, education, living-tolerance. These three categories have the same weight age in the index.
  • These 10 indicators are divided into three categories:
  • Health (1/3): Nutrition (1/6) and Infant Mortality Rate (1/6)
  • Education (1/3): Schooling Year (1/6) and School Presence (1/6)
  • Living (1/3): Cooking Fuel (1/18), Toilet (1/18),
  • Drinking Water (1/18), Electricity (1/18), Housing (1/18) and Property (1/18).
  • The Alky-Foster method is used to assess the global MPI multi demiological position. Under this, poverty is assessed by each individual on one or more exclusions.
  • The MPI is a multiplier (MPI = HxA) in which H (poor number of people / head count) and A (average share of indicators in which the poor people are deported.)

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