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Current Affairs 2023

Multidimensional Poverty Index - UPSC Current Affairs

The Multidimensional Poverty Index (MPI) is an annual global index that measures acute multidimensional poverty in developing countries using various indicators. The MPI 2022 report shows that 1.2 billion people (19.1%) live in severe multidimensional poverty in 111 nations, of which 593 million (50%) are children under the age of 18 years. The MPI is an essential tool to identify and measure acute multidimensional poverty and highlights the need to address poverty and inequality in various regions.

Apr 06, 2023

3 min read

Multidimensional Poverty Index (MPI) is a global index released annually by Oxford Poverty and Human Development Initiative (OPHI) in partnership with United Nations Development Programme (UNDP). The purpose of this index is to measure acute multidimensional poverty in developing countries using various indicators. The MPI 2022 was released in October 2022, while India ranked 62 in the Global MPI 2020 which ranked 107 countries. 

 

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MPI measures poverty at an individual level and identifies an individual as 'MPI Poor' if he/she is deprived in one-third of the 10 indicators. The three dimensions of Global MPI include Health, Education, and Living Standards, and are measured through 10 indicators such as nutrition, child mortality, years of schooling, school attendance, cooking oil, sanitation, drinking water, electricity, housing, and assets. Deprivation is measured through various criteria such as undernourished person, uncompleted years of schooling, unavailability of safe drinking water, inadequate housing materials, and absence of electricity, among others.

 

The MPI 2021 evaluated 109 developing countries and found that 1.3 billion people across these countries live in acute multidimensional poverty, out of which 644 million are children (below the age of 18). MPI also helps to keep a check on the performance of countries in achieving the Sustainable Development Goals (SDGs) targets. The ‘Health’ dimension covers SDG 2 – Zero Hunger and SDG 3 – Health and Well-Being, the ‘Education’ dimension covers SDG 4 – Quality Education, and the ‘Living Standards’ dimension covers SDG 1 – No Poverty, SDG 6 – Clean Water and Sanitation, SDG 7 – Affordable and Clean Energy, and SDG 11 – Sustainable Cities and Communities.

 

The MPI 2022 report titled “Unpacking deprivation bundles to reduce multidimensional poverty” revealed that 1.2 billion people (19.1%) live in severe multidimensional poverty in 111 nations, of which 593 million (50%) are children under the age of 18 years. The report also highlighted that the pandemic had rolled back the advancements in multidimensional poverty by three to ten years. However, it is challenging to gauge the pandemic's true impact on poverty due to the lack of regular household surveys.

 

Furthermore, the report revealed a distinctive trend in South Asia where 45.5 million poor individuals lack access to food, shelter, sanitation, and cooking fuel. India, Bangladesh, and Pakistan have the highest concentration of such individuals. This trend emphasizes the need to address poverty and inequality in these countries.

 

In conclusion, the Multidimensional Poverty Index is an essential tool to identify and measure acute multidimensional poverty in developing countries. It helps to track the performance of countries in achieving the Sustainable Development Goals targets and highlights the need to address poverty and inequality in various regions. The MPI 2022 report shows that the pandemic has reversed the advancements in poverty reduction, and immediate action is required to tackle this issue.

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