Model Answer
0 min readIntroduction
Poverty, traditionally defined by income levels, is increasingly recognized as a multifaceted deprivation impacting human well-being. Amartya Sen’s work revolutionized poverty analysis by shifting the focus from income to ‘capabilities’ – the freedoms people have to achieve functionings they value. This perspective challenged conventional wisdom and paved the way for more comprehensive poverty measures. Recent years have witnessed significant advancements in poverty measurement, moving beyond monetary metrics to incorporate health, education, and living standards, reflecting a growing recognition of the complex nature of deprivation. The Global Multidimensional Poverty Index (MPI), released annually by the UNDP and OPHI, is a prime example of this evolution.
Amartya Sen’s Poverty Measure: The Capability Approach
Sen’s capability approach, articulated in works like ‘Development as Freedom’ (1999), argues that poverty is not simply a lack of income but a deprivation of essential capabilities.
- Functionings: These are ‘beings and doings’ – what people actually *do* and *are* (e.g., being adequately nourished, being able to move about freely).
- Capabilities: These represent the set of possible functionings a person can achieve, given their resources and circumstances. Poverty, according to Sen, is the failure to achieve a minimally acceptable level of these capabilities.
- Conversion Factors: Sen highlighted that the same income can translate into different capabilities for different individuals due to personal characteristics (e.g., disability, age) and social factors (e.g., discrimination, infrastructure).
Sen’s approach emphasizes the importance of individual agency and the need to consider diverse dimensions of well-being. It moves beyond a purely economic view of poverty, recognizing its social, political, and ethical dimensions.
Recent Advances in Poverty Measurement
Recognizing the limitations of solely income-based measures, several advancements have been made in poverty measurement:
1. Multidimensional Poverty Index (MPI)
Developed by the Oxford Poverty and Human Development Initiative (OPHI) and the UNDP, the MPI identifies multiple deprivations at the household level across three dimensions: health, education, and standard of living.
- It uses 10 indicators to assess deprivation, weighted equally across the three dimensions.
- A household is considered multidimensionally poor if it is deprived in at least one-third of the weighted indicators.
2. Inclusive Wealth Index (IWI)
Developed by the UN Environment Programme, the IWI measures a nation’s wealth by considering not only manufactured capital but also human and natural capital. This provides a more sustainable and holistic measure of progress than GDP alone.
3. Consumption-Based Measures with Improved Data Collection
Improvements in household surveys, such as the National Sample Survey Office (NSSO) in India, have led to more accurate consumption expenditure data, providing a better understanding of poverty levels. The Periodic Labour Force Survey (PLFS) also contributes to this.
4. Alkire-Foster Methodology
This methodology provides a general framework for constructing MPIs, allowing for customization based on specific country contexts and priorities. It’s the underlying methodology for the global MPI.
Comparison of Poverty Measures
| Measure | Focus | Strengths | Limitations |
|---|---|---|---|
| Income/Consumption-Based Measures | Monetary deprivation | Easy to calculate, internationally comparable | Ignores non-monetary aspects of poverty, doesn’t capture inequality within households |
| Sen’s Capability Approach | Functionings and capabilities | Holistic, emphasizes individual agency, considers diverse deprivations | Difficult to quantify capabilities, subjective interpretation |
| Multidimensional Poverty Index (MPI) | Multiple deprivations across health, education, and living standards | Provides a more comprehensive picture of poverty, identifies specific deprivations | Indicator selection can be subjective, data requirements can be demanding |
Conclusion
Amartya Sen’s capability approach fundamentally reshaped our understanding of poverty, moving beyond purely economic definitions. Recent advancements, particularly the MPI, build upon this foundation by providing more nuanced and comprehensive measures of deprivation. While each measure has its strengths and limitations, a combination of approaches – incorporating both monetary and non-monetary indicators – is crucial for effective poverty reduction strategies. Future research should focus on refining these measures and addressing data gaps to ensure that poverty alleviation efforts are targeted and impactful, ultimately enhancing human well-being and promoting inclusive development.
Answer Length
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