- According to the recent global MPI 2019 report, between 2005-06 and 2015-16, India lifted 271 million out of poverty, significantly reducing deprivations in many of the ten indicators, particularly in “assets, cooking fuel, sanitation and nutrition”.
What is the global MPI?
- The global Multidimensional Poverty Index (MPI) is an international measure of acute poverty covering over 100 developing countries.
- It was developed by Oxford Poverty and Human Development Initiative (OPHI) and the UN Development Programme (UNDP) in 2010.
- Usually poverty is measured by the level of income. But MPI uses multiple indicators to judge the overall development of population. That is why the index is called multidimensional.
- It measures progress in 101 countries, covering a population of 5.7 billion, based on 10 indicators that include health, education and standard of living.
- The MPI assesses poverty at the individual level.
- If someone is deprived in a third or more of ten (weighted) indicators, the global index identifies them as ‘MPI poor’, and the extent or intensity of their poverty is measured by the number of deprivations they are experiencing.
- It also enables policy makers to target resources and design policies more effectively.
- MPI measures progress against the Sustainable Development Goal-1 (SDG-1).
Significance of MPI Report:
- It creates a comprehensive picture of people living in poverty.
- It permits comparisons both across countries, regions and the world and within countries by ethnic group, urban/rural location, as well as other key household and community characteristics.
- It is an analytical tool to identify the most vulnerable people i.e. the poorest among the poor.
- It reveals poverty patterns within countries and over time.
MPI 2019: World
- Across the 101 countries, 23.1 per cent of the people are multidimensionally poor.
- Children are more prone to multidimensional poverty than adults, according to MPI. About 34 per cent of the world’s children covered under MPI survey are multidimensionally poor. For the adult this comes to 17.5 per cent.
- Multidimensionally poor children are concentrated more in the Sub-Saharan Africa and the South Asia.
- These two regions account for 85 per cent of multidimensionally poor population of the world.
- Ethiopia, India and Peru significantly reduced deprivations in all 10 indicators, namely nutrition, sanitation, child mortality, drinking water, years of schooling, electricity, school attendance, housing, cooking fuel and assets
MPI 2019: India
- India has registered the fastest absolute reduction in the Multidimensional Poverty Index (MPI) value among ten countries, spanning every developing region, whose combined population is two billion people.
- The ten developing nations for which the comparison is made include countries across income categories: upper middle (Peru), lower middle (Bangladesh, Cambodia, India, Nigeria, Pakistan, Vietnam) and low (Democratic Republic of the Congo, Ethiopia, Haiti).
- Overall, India was among three countries where poverty reduction in rural areas outpaced that in urban areas, which as per the report, is an indicator of pro-poor development.
- Between 2005-06 and 2015-16, the incidence of multidimensional poverty in India has almost halved, to 27.9 per cent from 55.1 per cent, lifting 271 million out of poverty.
- With regards to intensity, the reduction is negligible, which goes to show that the experience of the poor person, how they face deprivation, hasn’t changed all that dramatically.
- The poorest parts of the country are more quickly lifting people out of poverty, which demonstrates India’s commitment to ensuring no one is left behind, in line with the Sustainable Development Goals and the government’s own priorities.
Fastest improving state
- Among the four Indian states with the most acute MPI i.e. Bihar, Jharkhand, Uttar Pradesh and Madhya Pradesh, Jharkhand has made the most progress.
- Jharkhand is among the poorest regions in the world improving the fastest, which reduced multidimensional poverty from 74.9 per cent to 46.5 per cent in the ten years.
Traditionally disadvantaged subgroups
- Traditionally disadvantaged subgroups such as those living in rural India, Muslims, the Scheduled Castes and Tribes, and young children are still the poorest in India.
Source of Data
- The National Family Health Survey round three and four (NHFS 2005-06 & 2015-16) is the source for the comparative data on the indicators.
About Oxford Poverty and Human Development Initiative (OPHI)
- The Oxford Poverty and Human Development Initiative (OPHI) is an economic research and policy centre within the Oxford Department of International Development at the University of Oxford.
- OPHI aims to build and advance a “more systematic methodological and economic framework for reducing multidimensional poverty, grounded in people’s experiences and values”.
- OPHI works towards this by Broadening poverty measurement, Improving data on poverty, Building capacity and Impacting policy.
About United Nations Development Programme (UNDP)
- The United Nations Development Programme (UNDP) is the United Nations’ global development network.
- UNDP works in about 170 countries and territories, helping to achieve the eradication of poverty, and the reduction of inequalities and exclusion.
- UNDP countries to develop policies, leadership skills, partnering abilities, institutional capabilities and build resilience in order to sustain development results.
- It is headquartered in New York.
- The status of UNDP is that of an executive board within the United Nations General Assembly.
- The UNDP Administrator is the third highest-ranking official of the United Nations after the United Nations Secretary-General and Deputy Secretary-General.