Model Answer
0 min readIntroduction
The Multi-Dimensional Poverty Index (MPI), developed by the Oxford Poverty and Human Development Initiative (OPHI) and the United Nations Development Programme (UNDP) in 2010, is an internationally recognized measure of acute multidimensional poverty. Unlike the traditional income-based poverty measures, MPI considers multiple deprivations at the individual level across various dimensions. It provides a more comprehensive picture of poverty, capturing the overlapping disadvantages experienced by poor households. The National MPI in India, released by NITI Aayog, builds upon the global MPI framework but is tailored to the Indian context, using different indicators and weights.
Understanding the Dimensions and Indicators
The MPI is built around three core dimensions:
- Health: This dimension assesses the health status of individuals within a household. Indicators include:
- Nutrition: Whether any household member is malnourished (based on Body Mass Index - BMI).
- Child Mortality: Whether any child in the household has died in the past five years.
- Education: This dimension focuses on educational attainment and school attendance. Indicators include:
- Years of Schooling: Whether any household member has completed six or more years of schooling.
- School Attendance: Whether any school-aged child in the household is currently attending school.
- Standard of Living: This dimension captures the household’s access to essential amenities. Indicators include:
- Electricity: Whether the household has access to electricity.
- Sanitation: Whether the household has access to improved sanitation facilities.
- Drinking Water: Whether the household has access to safe drinking water.
- Housing: Whether the household has adequate housing (flooring, walls, and roof).
- Assets: Whether the household owns more than one of certain assets (e.g., bicycle, motorcycle, refrigerator, etc.).
- Cooking Fuel: Whether the household uses clean cooking fuel.
Calculating the MPI: A Step-by-Step Approach
The MPI is calculated in three main steps:
- Step 1: Identifying Deprived Individuals: For each household, each indicator is checked. If a household lacks a particular indicator, it is considered ‘deprived’ in that indicator.
- Step 2: Calculating the Deprivation Score: A household is identified as ‘multi-dimensionally poor’ if the weighted sum of its deprivations is greater than or equal to one-third (33.33%). The weight assigned to each dimension is equal (1/3). Within each dimension, indicators are assigned equal weights. For example, in the health dimension, each indicator (nutrition and child mortality) has a weight of 1/6 (1/3 divided by 2).
- Step 3: The MPI Value: The MPI is calculated by multiplying the incidence of poverty (the percentage of the population identified as multi-dimensionally poor) by the intensity of poverty (the average proportion of weighted deprivations experienced by poor households).
MPI = Incidence x Intensity
Global MPI vs. National MPI (India)
While both follow the same framework, the National MPI in India differs from the global MPI in several aspects. The Indian MPI uses different indicators tailored to the country’s context, such as maternal health, and includes a greater number of indicators (12) compared to the global MPI (10). The weights assigned to indicators may also vary. The National MPI provides a more granular understanding of poverty within India, allowing for targeted policy interventions.
| Feature | Global MPI | National MPI (India) |
|---|---|---|
| Number of Indicators | 10 | 12 |
| Focus | International Comparison | National/Regional Targeting |
| Data Source | Demographic and Health Surveys (DHS), Multiple Indicator Cluster Surveys (MICS) | National Family Health Survey (NFHS), National Sample Survey (NSS) |
Conclusion
The Multi-Dimensional Poverty Index is a powerful tool for understanding and addressing poverty beyond mere income levels. By considering multiple deprivations, it provides a more nuanced and comprehensive picture of the challenges faced by vulnerable populations. The Indian National MPI, with its context-specific indicators, is particularly valuable for designing and implementing targeted poverty alleviation programs. Continued refinement of the MPI methodology and regular data updates are crucial for effective monitoring and evaluation of progress towards reducing multi-dimensional poverty.
Answer Length
This is a comprehensive model answer for learning purposes and may exceed the word limit. In the exam, always adhere to the prescribed word count.