UN Launches Multidimensional Vulnerability Index (MVI)

UN Launches Multidimensional Vulnerability Index (MVI)

Sub: IR

Sec: Report and Index

• Introduction of the MVI:
  • The UN General Assembly officially launched the Multidimensional Vulnerability Index (MVI), a new data-driven tool designed to help small island developing states (SIDS) and other developing nations gain access to low-interest financing.
  • The MVI is intended to serve as a complement to GDP and other development metrics, recognizing that traditional economic indicators may not fully capture the unique vulnerabilities of these nations.
• Purpose and Background:
  • Since the 1990s, SIDS that do not qualify for low-interest financing based on GDP per capita alone have advocated for a measure that accounts for their vulnerability to external shocks, such as climate change.
  • The MVI is the result of years of discussions, culminating in a UN General Assembly resolution that mandates the UN and a committee of independent experts to keep the index up to date.
• Key Indicators of the MVI:
  • The MVI incorporates indicators related to a state’s structural vulnerabilities and lack of economic, environmental, and social resilience.
  • These indicators include factors such as:
    • Import dependency
    • Exposure to extreme weather events and pandemics
    • Impacts of regional violence
    • Refugee influx
    • Demographic pressure
    • Water and arable land resources
    • Child mortality rates (under five)
    • Target Audience and Applicability:
      • Although initially proposed by SIDS, the MVI is designed to capture exogenous vulnerabilities and lack of resilience to external shocks for all developing countries, ensuring credibility and comparability across different contexts.
    • Voluntary Use and Adoption:
      • The use of the MVI is voluntary; however, the resolution encourages UN organs and multilateral development banks to consider using the MVI to complement their existing policies.
    • Response from the Alliance of Small Island States (AOSIS):
      • The AOSIS has welcomed the resolution, expressing hope that the MVI will be deployed in real-world contexts.
      • The ambassador emphasized that while the MVI may not completely change the existing system, it has the potential to unlock new ways of thinking and acting on development.

Overview of Multidimensional Vulnerability Index (MVI)

The Multidimensional Vulnerability Index (MVI) is a newly introduced international benchmark designed to measure the structural vulnerability and lack of structural resilience across various dimensions of sustainable development at the national level.

Unlike traditional economic indicators such as Gross National Income per capita (GNI pc) or Gross Domestic Product (GDP), the MVI offers a more comprehensive understanding of a country’s exposure to external shocks and its ability to withstand them.

Structure of the MVI

The MVI consists of two levels:

• Universal Quantitative Assessment:
  • This level provides a quantitative evaluation of structural vulnerability and resilience (or the lack thereof) using a common methodology applicable to all developing countries.
  • The assessment is presented as a summary index number that ranks countries based on their level of vulnerability.
• Vulnerability and Resilience Country Profiles (VRCPs):
  • These profiles offer a detailed and tailored analysis of a country’s specific vulnerability and resilience factors, including those not captured by structural indicators alone.
  • VRCPs are created by individual countries and can be used to direct support and cooperation towards addressing specific vulnerabilities and enhancing resilience.