Global Multidimensional Poverty Index

[vc_section][vc_row][vc_column width=\”1/2\”][vc_column_text]What is Global Multidimensional Poverty Index?

The Global MPI stands for Multidimensional Poverty Index that is released by Oxford Poverty and Human Development Initiative (OPHI).

The global Multidimensional Poverty Index (MPI) is an international measure of acute multidimensional poverty covering over 100 developing countries. It complements traditional monetary poverty measures by capturing the acute deprivations in health, education, and living standards that a person faces simultaneously.

Who publishes Global Multidimensional Poverty Index?

The idea behind this index is to measure acute multidimensional poverty across developing countries using various indicators. It was developed by OPHI with the United Nations Development Programme (UNDP) in 2010. It is a part of UNDP’s Human Development Report (HDR) and is released annually

How is Global Multidimensional Poverty Index calculated?

The MPI assesses poverty at the individual level. If a person is deprived in a third or more of ten (weighted) indicators, the global MPI identifies them as ‘MPI poor’. The extent – or intensity – of their poverty is also measured through the percentage of deprivations they are experiencing.

The global MPI shows who is poor and how they are poor and can be used to create a comprehensive picture of people living in poverty. It permits comparisons both across countries and world regions, and within countries by ethnic group, urban/rural area, subnational region, and age group, as well as other key household and community characteristics. For each group and for countries as a whole, the composition of MPI by each of the 10 indicators shows how people are poor.

This makes the MPI and its linked information platform invaluable as an analytical tool to identify the most vulnerable people – the poorest among the poor, revealing poverty patterns within countries and over time, enabling policymakers to target resources and design policies more effectively.

The global MPI was developed by OPHI with the UN Development Programme (UNDP) for inclusion in UNDP’s flagship Human Development Report in 2010. It has been published annually by OPHI and in the HDRs ever since.

Global MPI 2022

The global Multidimensional Poverty Index 2022 compares acute multidimensional poverty for 111 countries in developing regions. These countries are home to 6.1 billion people, three-quarters of the world’s population. Of these people, 1.2 billion (19.1%) are identified by the 2022 global MPI as multidimensionally poor.

The 2022 global MPI shows both who is poor – in terms of their age group, subnational region, and whether they live in an urban or rural area – and how they are poor – which overlapping deprivations they face, and how many deprivations they have.

This year’s report, Global Multidimensional Poverty Index 2022: Unpacking deprivation bundles to reduce multidimensional poverty, produced in partnership with the United Nations Development Programme Human Development Report Office (UNDP HDRO), examines interlinkages, or the simultaneous interlinked deprivations which multidimensionally poor people face around the world. The report presents for the first time an in-depth analysis of the possible combinations – or bundles – of deprivations across the ten indicators measured in the global MPI. The analysis investigates which interlinked deprivations are most frequent and where, and how they can be addressed with multisectoral approaches to poverty reduction.

Key Takeaways

• Sustainable Development Goal target 1.2 is to reduce at least by half the proportion of men, women, and children of all ages living in poverty in all its dimensions according to national definitions by 2030, and India’s progress shows that this goal is feasible, even at a large scale.
• Rural areas account for nearly 90 percent of poor people: 205 million of the nearly 229 million poor people live in rural areas —making them a clear priority
• Among poor people, deprivations in cooking fuel and housing are the most common, followed by nutrition and sanitation.
• More than one in five children is poor (21.8 percent) compared with around one in seven adults (13.9 percent).

India’s performance in Global MPI 2022

• 415 million people exited poverty between 2005/06 and 2019/21 out of which 140 million did so between 2015/2016 and 2019/2021.
• India is the only country in South Asia in which poverty is significantly more prevalent among female-headed households than among male-headed households
• Following the AF methodology (Alkire and Foster (2011)), the MPI is calculated by multiplying the incidence of poverty (H) and the average intensity of poverty (A). More specifically, H is the proportion of the population that is multidimensionally poor, while A is the average proportion of dimensions in which poor people are deprived. So, MP I = H × A, reflecting both the share of people in poverty and the degree to which they are deprived.

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