Multidimensional Poverty Index

Definition

The Multidimensional Poverty Index (MPI) is a comprehensive measure of global poverty that goes beyond just income to include other key aspects of human development, such as health, education, and living standards. It provides a more holistic assessment of poverty and deprivation across multiple dimensions of life.

5 Must Know Facts For Your Next Test

1. The MPI was developed by the Oxford Poverty and Human Development Initiative (OPHI) and the United Nations Development Programme (UNDP).
2. It measures poverty across three equally weighted dimensions: health, education, and living standards, with each dimension comprising several indicators.
3. The MPI identifies individuals as multidimensionally poor if they are deprived in at least one-third of the weighted indicators, providing a more nuanced understanding of poverty.
4. The MPI is particularly useful for comparing poverty levels across countries and tracking progress in poverty reduction over time.
5. Unlike traditional measures of poverty based solely on income, the MPI captures the interconnected nature of various deprivations that individuals may face.

Review Questions

• Explain how the Multidimensional Poverty Index (MPI) differs from traditional measures of poverty based on income.
  • The Multidimensional Poverty Index (MPI) differs from traditional measures of poverty based on income in several key ways. While income-based poverty measures focus solely on a person's monetary resources, the MPI takes a more comprehensive approach by considering multiple dimensions of human development, including health, education, and living standards. This allows the MPI to provide a more nuanced understanding of the various deprivations that individuals may face, which can often be interconnected. By incorporating these additional dimensions, the MPI offers a more holistic assessment of poverty and better informs efforts to address the complex and multifaceted nature of global poverty.
• Describe the process used to calculate the Multidimensional Poverty Index (MPI) and how it identifies individuals as multidimensionally poor.
  • The Multidimensional Poverty Index (MPI) is calculated by the Oxford Poverty and Human Development Initiative (OPHI) and the United Nations Development Programme (UNDP). It measures poverty across three equally weighted dimensions: health, education, and living standards, with each dimension comprising several indicators. To be identified as multidimensionally poor, an individual must be deprived in at least one-third of the weighted indicators. This approach allows the MPI to capture the interconnected nature of various deprivations that individuals may face, providing a more comprehensive assessment of poverty than traditional income-based measures. By considering multiple dimensions of human development, the MPI offers a more nuanced understanding of poverty and helps inform targeted interventions to address the complex challenges faced by the global poor.
• Analyze how the Multidimensional Poverty Index (MPI) can be used to compare poverty levels across countries and track progress in poverty reduction over time.
  • The Multidimensional Poverty Index (MPI) is a powerful tool for comparing poverty levels across countries and tracking progress in poverty reduction over time. By measuring poverty across multiple dimensions of human development, the MPI provides a more holistic assessment of deprivation than traditional income-based measures. This allows for a more nuanced understanding of the challenges faced by the global poor and enables policymakers to develop targeted interventions to address the interconnected nature of various deprivations. Furthermore, the MPI's ability to identify individuals as multidimensionally poor based on their level of deprivation across different indicators makes it a valuable resource for monitoring progress in poverty reduction efforts. As countries work towards achieving the Sustainable Development Goals, the MPI can serve as a crucial tool for measuring and comparing the effectiveness of their poverty alleviation strategies, ultimately driving more informed and impactful policy decisions.

Related terms

Poverty: The state of being extremely poor and lacking the means to provide for basic human needs.

Human Development Index (HDI): A composite statistic used to rank countries based on measures of life expectancy, education, and per capita income.

Deprivation: The lack of access to resources, opportunities, and capabilities that are considered essential for a decent standard of living.