Multidimensional Poverty Index of UNDP

Multidimensional Poverty Index of UNDP

Subject : International Relations

Section: Reports and Indices

Concept :

• The United Nations Development Programme (UNDP) and the Oxford Poverty and Human Development Initiative (OPHI) released the latest update of the global Multidimensional Poverty Index (MPI).
• The report highlights the remarkable progress made by India in reducing poverty, with 415 million people lifted out of poverty between 2005-06 and 2019-21.

India’s Poverty Reduction Success:

• The incidence of poverty in India declined from 55.1% to 16.4% during the 15-year period.
• In 2005-06, around 645 million people were in multidimensional poverty, which decreased to approximately 370 million in 2015-16 and 230 million in 2019-21.
• India is among 25 countries that successfully halved their global MPI values within 15 years, including Cambodia, China, Congo, Honduras, Indonesia, Morocco, Serbia, and Vietnam.

Global Multidimensional Poverty Index

• The index is a key international resource that measures acute multidimensional poverty across more than 100 developing countries.
• It was first launched in 2010 by the OPHI and the Human Development Report Office of the UNDP.
• The MPI monitors deprivations in 10 indicators spanning health, education and standard of living and includes both incidence as well as intensity of poverty.

MPI Indicators and Dimensions:

• A person is multidimensionally poor if she/he is deprived in one third or more (means 33% or more) of the weighted indicators (out of the ten indicators).
• Those who are deprived in one half or more of the weighted indicators are considered living in extreme multidimensional poverty.