Multidimensional poverty encompasses various deprivations faced by individuals. It goes beyond income to include health, education, and living standards. A person may experience poor health, malnutrition, lack of clean water, and inadequate schooling simultaneously. This broad perspective provides a more accurate picture of poverty.
International Poverty Line
The World Bank defines the international poverty line at USD 2.15 per day, adjusted for purchasing power parity as of 2017. This threshold is used to measure monetary poverty. However, it does not account for other dimensions of deprivation.
Global Multidimensional Poverty Index (MPI)
The Global MPI is an essential tool for assessing multidimensional poverty. It evaluates over 100 developing countries. The Oxford Poverty and Human Development Initiative (OPHI) and the United Nations Development Programme (UNDP) publish the MPI. It measures poverty across three dimensions – health, education, and standard of living.
Dimensions and Indicators of MPI
The MPI is structured around three key dimensions, each contributing equally to the index. The dimensions are:
- Health: Indicators include nutrition and child mortality.
- Education: Indicators focus on years of schooling and school attendance.
- Standard of Living: Indicators cover access to electricity, clean water, flooring, and assets.
A person is classified as “MPI poor” if they are deprived in a third or more of these indicators.
India’s Performance in Global MPI
According to the 2023 Global MPI, India has made strides in poverty alleviation. Between 2005-06 and 2019-21, 415 million people were lifted out of poverty. India is one of 25 countries that halved their MPI values in 15 years.
National MPI in India
India’s National Multidimensional Poverty Index was first published by NITI Aayog in 2021. It includes two additional indicators – maternal health and bank accounts. These additions align the MPI with national priorities. The Indian MPI reflects the country’s unique challenges and goals.
Recent Developments in Multidimensional Poverty
In January 2024, NITI Aayog published a discussion paper indicating a decline in multidimensional poverty in India. The percentage dropped from 29.17% in 2013-14 to 11.28% in 2022-23. Approximately 24.82 crore people escaped poverty during this period.
Oxford Poverty and Human Development Initiative (OPHI)
OPHI is a research centre at the University of Oxford. Established in 2007, it focuses on poverty and human development. It aims to provide robust data and analysis to inform policy.
United Nations Development Programme (UNDP)
UNDP works globally to eradicate poverty and reduce inequalities. It operates in over 170 countries. The organisation focuses on sustainable development and promotes the MPI as a vital measurement tool.
Calculating the MPI
The MPI calculation involves three steps:
- Headcount Ratio (H): This measures the proportion of the population that is multidimensionally poor.
- Intensity (A): This assesses how poor the poor are, calculating the average deprivation among the poor.
- MPI Value: The final MPI is derived by multiplying the headcount ratio and intensity.
This method provides a comprehensive view of poverty levels.
Significance of the MPI
The MPI offers a holistic view of poverty. It identifies who is poor and the nature of their deprivations. This allows for effective comparisons between countries and regions. It also marks disparities within countries, such as between urban and rural areas.
Targeting Vulnerable Populations
The MPI aids in prioritising efforts to assist the most vulnerable groups. It can be adapted to different contexts while maintaining transparency. This adaptability makes it a valuable tool for policymakers.
Interconnected Deprivations and Sustainable Development Goals
The MPI aligns with several Sustainable Development Goals (SDGs). It addresses interconnected deprivations related to health, education, and living standards. It supports the 2030 Agenda, which aims to leave no one behind in the pursuit of sustainable development.
Trends in India’s MPI
India’s MPI has shown a positive trend. From 54.7% in 2019, it decreased to 49.9% in 2021. This decline indicates improved access to essential services like healthcare, education, and sanitation. Such progress is crucial for inclusive growth.
Policy Implications of MPI
The MPI informs policy decisions and resource allocation. By denoting specific areas of deprivation, it guides governments in formulating targeted interventions. This ensures that efforts are directed where they are most needed.
Global Comparisons of MPI
The MPI facilitates international comparisons. Countries can assess their performance relative to others. This benchmarking encourages nations to adopt best practices in poverty alleviation.
Future of Multidimensional Poverty Measurement
As poverty evolves, so must the metrics used to measure it. The MPI framework can be refined to include new indicators. This flexibility allows for a more comprehensive understanding of poverty.
Challenges in Measuring Multidimensional Poverty
While the MPI is a valuable tool, challenges remain. Data collection can be inconsistent across countries. Furthermore, cultural differences may affect how poverty is perceived and measured.
Community-Level Impacts of MPI
The MPI impacts communities directly. Localised data can inform community development initiatives. About specific deprivations helps in tailoring interventions to local needs.
Role of Technology in MPI
Technology plays important role in enhancing the MPI. Data collection methods have improved with digital tools. This advancement allows for more accurate and timely assessments of poverty.
Engagement of Stakeholders
The success of MPI initiatives relies on stakeholder engagement. Governments, NGOs, and communities must collaborate to address poverty effectively. This collective effort is vital for sustainable development.
Public Awareness and Education
Raising public awareness about multidimensional poverty is essential. Education can encourage understanding and empathy. Informed citizens can advocate for policies that address the root causes of poverty.
International Cooperation on Poverty Alleviation
Global challenges require international cooperation. Countries can learn from each other’s experiences in tackling multidimensional poverty. Collaborative efforts can lead to innovative solutions.
Future Research Directions
Ongoing research is necessary to enhance the MPI framework. New methodologies can emerge to address existing challenges. This research will contribute to a deeper understanding of poverty dynamics.
