Poverty is a complex issue that goes beyond income levels. The National Multidimensional Poverty Index (MPI) provides a more comprehensive measurement by considering various indicators related to health, education, and living standards. Unlike traditional poverty measures, which focus solely on income, the MPI evaluates multiple deprivations that affect an individual’s quality of life.
This topic explores the key indicators used in the National Multidimensional Poverty Index, their significance, and how they help in assessing poverty more accurately.
What is the Multidimensional Poverty Index (MPI)?
The Multidimensional Poverty Index (MPI) is a tool developed by the United Nations Development Programme (UNDP) and the Oxford Poverty and Human Development Initiative (OPHI). It measures poverty based on multiple factors rather than just income, offering a more detailed picture of deprivation across different dimensions.
Most countries have their own National MPI, which adapts global standards to their specific socio-economic conditions.
Key Indicators of the National Multidimensional Poverty Index
The MPI is based on three main dimensions:
- Health
- Education
- Living Standards
Each dimension includes specific indicators that measure different aspects of poverty.
1. Health Indicators
Health is a fundamental dimension of the MPI, as poor health conditions directly affect a person’s ability to work, learn, and live a fulfilling life. The two primary indicators in this category are:
a. Nutrition
- Assesses whether household members suffer from malnutrition or undernourishment.
- Malnutrition is a major indicator of poverty, as it reflects inadequate access to food and proper healthcare.
b. Child Mortality
- Measures whether any child in the household has died due to preventable causes.
- High child mortality rates indicate poor healthcare access, sanitation issues, and overall poverty.
2. Education Indicators
Education plays a crucial role in breaking the cycle of poverty. The MPI includes two indicators under education:
a. Years of Schooling
- Evaluates whether any household member has completed a minimum number of years of formal education (usually six years).
- Lack of schooling is a strong indicator of future income deprivation and limited job opportunities.
b. School Attendance
- Measures whether school-aged children are enrolled and attending school.
- Low school attendance rates suggest financial difficulties, child labor, or lack of educational infrastructure.
3. Living Standards Indicators
Living standards refer to the overall quality of life based on access to essential services and infrastructure. The six key indicators in this category are:
a. Cooking Fuel
- Determines whether a household uses clean cooking fuel such as electricity, gas, or clean-burning stoves.
- Dependence on solid fuels (wood, charcoal, dung) increases health risks due to indoor air pollution.
b. Sanitation
- Assesses whether a household has access to improved sanitation facilities such as private toilets with proper waste disposal.
- Poor sanitation contributes to disease spread and overall health deterioration.
c. Drinking Water
- Measures whether a household has access to safe drinking water within a short walking distance.
- Lack of clean water is a major cause of health issues and mortality in impoverished communities.
d. Electricity
- Checks whether a household has access to electricity for lighting, heating, and daily activities.
- Absence of electricity limits education, business opportunities, and overall quality of life.
e. Housing
- Evaluates the quality of housing based on materials used for walls, floors, and roofs.
- Poor housing conditions indicate extreme poverty and vulnerability to natural disasters.
f. Assets Ownership
- Examines whether a household owns basic assets such as a radio, television, telephone, bicycle, or refrigerator.
- Lack of assets reflects financial hardship and limited access to information or economic activities.
How is the Multidimensional Poverty Index Calculated?
The MPI assigns a weight to each indicator and considers a person multidimensionally poor if they are deprived in one-third or more of the weighted indicators.
Steps in MPI Calculation:
- Data Collection – Surveys gather information on the 10 key indicators.
- Scoring System – Each deprivation is assigned a weight, contributing to the overall poverty level.
- Threshold Determination – A household is classified as multidimensionally poor if it lacks basic needs in multiple dimensions.
Why is the National MPI Important?
✔ Provides a Holistic View of Poverty – Unlike income-based measures, the MPI highlights the different forms of deprivation people experience.
✔ Helps Governments in Policy Making – By identifying the most deprived areas, governments can target poverty reduction programs more effectively.
✔ Monitors Progress Over Time – MPI allows countries to track improvements in living standards and adjust policies accordingly.
✔ Encourages International Comparisons – Different countries can compare their MPI scores to measure progress in global poverty reduction efforts.
Challenges in Implementing the MPI
Despite its advantages, measuring multidimensional poverty comes with several challenges:
Data Collection Difficulties – Conducting nationwide surveys is costly and time-consuming.
Variability in Standards – Some countries have different definitions of poverty indicators, making comparisons challenging.
Limited Awareness – Many policymakers and citizens still rely on traditional income-based poverty measurements.
The National Multidimensional Poverty Index (MPI) provides a detailed and accurate way to assess poverty by considering health, education, and living standards. Unlike income-based poverty measures, it highlights the multiple deprivations that affect people’s quality of life.
By understanding these key MPI indicators, governments and organizations can develop more effective poverty reduction strategies, ensuring that progress is made in all aspects of human well-being.