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Poverty index in India.

MULTIDIMENSIONAL POVERTY INDEX

The global Multidimensional Poverty Index (MPI) was developed in 2010 by the Oxford Poverty and Human Development Initiative (OPHI) and the UNDP. It replaced the previous Human Poverty Index.

The global poverty index is an international measure of acute poverty index in India covering over 100 developing countries. It complements traditional income-based poverty measures by capturing the severe deprivations that each person faces at the same time with respect to education, health, and living standards.

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The index uses the same three dimensions as the HDI: health, education, and standard of living. These are measured using 10 indicators.

 

Dimension

 

Indicators

 

Health ·  Child mortality

·  Nutrition

 

Education ·  Years of schooling
School attendance
Living standards ·      Cooking fuel

·      Toilet

·      Water

·      Electricity

·      Floor

·      Assets

Indicators

The following 10 indicators are used to calculate the MPI:

Education (each indicator is weighted equally at 1/6)

Years of schooling: deprived if no household member has completed 6 years of schooling

Child school attendance: deprived if any school-aged child is not attending school up to class 8

Health (each indicator is weighted equally at 1/6)

Child mortality: deprived if any child has died in the family in the past 5 years

Nutrition: deprived if any adult or child for whom there is nutritional information is stunted

Standard of living (each indicator is weighted equally at 1/18)

Electricity: deprived if the household has no electricity

Sanitation: deprived if the household’s sanitation facility is not improved (according to Millennium Development Goals (MDG) guidelines), or it is improved but shared with other households

Drinking water: deprived if the household does not have access to safe drinking water (according to MDG guidelines) or safe drinking water is more than a 30-minute walk (roundtrip) from home

Floor: deprived if the household has a dirt, sand, or dung floor

Cooking fuel: deprived if the household cooks with dung, wood, or charcoal

Assets ownership: deprived if the household does not own more than one out of radio, TV, telephone, bike, motorbike, or refrigerator and does not own a car or truck

A person is considered poor if they are deprived in at least a third of the weighted indicators in Poverty Index in India. The intensity of poverty index in India denotes the proportion of indicators in which they are deprived.

Calculation of the Index

The MPI is calculated as follows:

MPI=H x A

H: Percentage of people who are MPI poor (incidence of poverty)

A: Average intensity of MPI

 

 

Indian Economy

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