Q. Consider the following statements regarding “UNDP Multidimensional Poverty Index (MPI) 2022”:
1.The methodology involves measuring each person’s overlapping deprivations across 10 indicators in three equally weighted dimensions.
2.The MPI ranges from 0 to 1, and higher values imply higher multidimensional poverty.
Which of the statements given above is/are correct?
Explanation: Multidimensional poverty measures are hence used to create a more comprehensive picture. It reveals who is poor and how they are poor and the range of different deprivations experienced by them.
- One such measure is the United Nations Development Programme’s (UNDP) global Multidimensional Poverty Index (MPI) which measures acute multidimensional poverty across more than 100 developing countries.
- The methodology involves measuring each person’s overlapping deprivations across 10 indicators in three equally weighted dimensions: health, education, and standard of living.
- The health and education dimensions are based on two indicators each, while the standard of living is based on six indicators.
- All the indicators needed to construct the MPI for a country are taken from the same household survey.
- Each indicator is equally weighted within its dimension, so the health and education indicators are weighted 1/6 each, and the standard of living indicators are weighted 1/18 each.
- The MPI ranges from 0 to 1, and higher values imply higher multidimensional poverty. The MPI complements the international US$ 1.90-a-day poverty line by identifying who is multi-dimensionally poor and shows the composition of multidimensional poverty.
Source: Economic Survey