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The Multidimensional Poverty Index (MPI) was developed in 2010 by Oxford Poverty & Human Development Initiative and the United Nations Development Programme.[1]

HistoryEdit

The MPI was created for the 20th Anniversary edition of the UNDP Human Development Report and uses different factors to determine poverty beyond income-based lists. It uses a range of deprivations that afflict an individual's life. "The measure assesses the nature and intensity of poverty at the individual level in education, health outcomes, and standard of living."[2]

The MPI is an index of acute multidimensional poverty. It reflects deprivations in very rudimentary services and core human functioning for people across 104 countries. Although deeply constrained by data limitations, MPI reveals a different pattern of poverty than income poverty, as it illuminates a different set of deprivations. The MPI has three dimensions: health, education, and standard of living. These are measured using ten indicators. Poor households are identified and an aggregate measure constructed using the methodology proposed by Alkire and Foster. Each dimension and each indicator within a dimension is equally weighted.

Calculation of the indexEdit

CalculationEdit

The MPI is calculated as follows:[3]


MPI = H \times A


H: Percentage of people who are MPI poor (incidence of poverty)
A: Average intensity of MPI poverty across the poor (%)

Indicators usedEdit

The following ten indicators are used to calculated the MPI:[4]

  • Education (each indicator is weighted equally at 1/6)
  1. Years of Schooling: deprived if no household member has completed five years of schooling
  2. Child Enrolment: deprived if any school-aged child is not attending school in years 1 to 8
  • Health (each indicator is weighted equally at 1/6)
  1. Child mortality: deprived if any child has died in the family
  2. Nutrition: deprived if any adult or child for whom there is nutritional information is malnourished
  • Standard of Living (each indicator is weighted equally at 1/18)
  1. Electricity: deprived if the household has no electricity
  2. Sanitation: deprived if they do not have an improved toilet or if their toilet is shared (MDG Definition)
  3. Drinking water: deprived if the household does not have access to clean drinking water or clean water is more than 30 minutes walk from home (MDG Definition)
  4. Floor: deprived if the household has dirt, sand or dung floor
  5. Cooking fuel: deprived if they cook with wood, charcoal or dung
  6. Assets: deprived if the household does not own more than one of: radio, TV, telephone, bike, or motorbike

A person is considered poor if they are deprived in at least 30% of the weighted indicators. The intensity of poverty denotes the proportion of indicators in which they are deprived.

Real exampleEdit

Niger:[5]

  • MPI = 0.642
  • H = 0.927
  • A = 0.693

In Niger, 92.7% of the country's population is MPI poor (they are deprived in at least 30% of the weighted indicators, by definition). Those who are MPI poor suffer from deprivation in 69.3% of indicators, on average.

Fictional exampleEdit

Country X consists of persons A, B and C. The following table shows the deprivation on each of the 10 indicators for persons A, B and C.

"0%" indicates no deprivation in that indicator, while "100%" indicates deprivation in that indicator.

Indicator Weight Person A Person B Person C
1 1/6 0% 0% 0%
2 1/6 0% 0% 0%
3 1/6 100% 100% 0%
4 1/6 0% 100% 0%
5 1/18 0% 100% 100%
6 1/18 0% 100% 100%
7 1/18 0% 0% 100%
8 1/18 100% 100% 100%
9 1/18 100% 0% 100%
10 1/18 100% 0% 0%
Weighted score 33.33% 50.00% 27.78%
Status MPI poor MPI poor Not MPI poor

Factor H for country X is:

\frac {1 + 1 + 0}{3} = 0.667

Factor A for country X is:

\frac {33.33% + 50.00%} {2} = 0.417

Thus, the MPI for country X is:

0.667 \times 0.417 = 0.278

MPI in some developing countriesEdit

Country MPI Number of MPI
Poor People
(millions)
 % of People
who are
MPI Poor
Average
Intensity of
MPI Poverty
 % of People who
are Income Poor
($1.25)
Template:Country data Albania 0.004 0.030 0.96 38.10 2.0
Template:Country data Angola 0.452 13.614 77.35 58.43 54.3
Template:Country data Argentina 0.011 1.181 2.99 37.74 4.5
Template:Country data Armenia 0.008 0.070 2.25 36.53 10.6
Template:Country data Azerbaijan 0.021 0.461 5.37 38.61 2.0
Template:Country data Bangladesh 0.291 91.166 57.77 50.43 49.6
Template:Country data Belarus 0.000 0.002 0.02 35.12 2.0
Template:Country data Belize 0.024 0.017 5.57 42.55 N/A
Template:Country data Benin 0.412 6.044 71.95 57.30 47.3
Template:Country data Bolivia 0.175 3.446 36.28 48.28 19.6
Template:Country data Bosnia and Herzegovina 0.003 0.031 0.81 37.19 2.0
Template:Country data Brazil 0.039 16.205 8.52 45.97 5.2
Template:Country data Burkina Faso 0.536 12.142 82.60 64.87 56.5
Template:Country data Burundi 0.530 6.591 84.50 62.69 81.3
Template:Country data Cambodia 0.263 7.703 53.87 48.88 40.2
Template:Country data Cameroon 0.299 10.211 54.61 54.67 32.8
Template:Country data Central African Republic 0.512 3.716 86.41 59.29 62.4
Template:Country data Chad 0.344 6.667 62.90 54.72 61.9
Template:Country data People's Republic of China 0.056 165.787 12.47 44.89 15.9
Template:Country data Colombia 0.041 4.090 9.21 44.12 16.0
Template:Country data Comoros 0.408 0.444 73.93 55.25 46.1
Template:Country data DR Congo 0.393 45.740 73.18 53.73 59.2
Template:Country data Côte d'Ivoire 0.320 10.484 52.16 61.39 23.3
Template:Country data Croatia 0.007 0.070 1.60 41.56 2.0
Template:Country data Czech Republic 0.000 0.001 0.01 46.67 2.0
Template:Country data Djibouti 0.139 0.235 29.32 47.25 18.8
Template:Country data Dominican Republic 0.048 1.083 11.05 43.28 5.0
Template:Country data Ecuador 0.009 0.294 2.21 41.59 4.7
Template:Country data Egypt 0.026 5.138 6.41 40.37 2.0
Template:Country data Estonia 0.026 0.094 7.22 36.54 2.0
Template:Country data Ethiopia 0.582 70.709 89.96 64.74 39.0
Template:Country data Gabon 0.161 0.495 35.39 45.47 4.8
Template:Country data Gambia 0.324 0.967 60.42 53.56 34.3
Template:Country data Georgia 0.003 0.035 0.80 35.21 13.4
Template:Country data Ghana 0.140 6.894 30.11 46.40 30.0
Template:Country data Guatemala 0.127 3.466 25.86 49.11 11.7
Template:Country data Guinea 0.505 7.906 82.35 61.28 70.1
Template:Country data Guyana 0.055 0.110 13.77 39.67 7.7
Template:Country data Haiti 0.306 5.556 57.27 53.34 54.9
Template:Country data Honduras 0.160 2.349 32.62 48.91 18.2
Template:Country data Hungary 0.003 0.076 0.76 38.89 2.0
Template:Country data India 0.296 644.958 55.38 53.50 41.6
Template:Country data Indonesia 0.095 46.666 20.77 45.90 7.5
Template:Country data Iraq 0.059 4.203 14.25 41.27 N/A
Template:Country data Jordan 0.010 0.159 2.70 35.45 2.0
Template:Country data Kazakhstan 0.002 0.090 0.59 36.90 3.1
Template:Country data Kenya 0.302 22.835 60.41 50.01 19.7
Template:Country data Kyrgyzstan 0.019 0.258 4.86 38.81 21.8
Template:Country data Laos 0.267 2.882 47.25 56.50 44.0
Template:Country data Latvia 0.001 0.007 0.30 46.67 2.0
Template:Country data Lesotho 0.220 0.961 48.07 45.79 43.4
Template:Country data Liberia 0.484 3.022 83.94 57.65 83.7
Template:Country data Republic of Macedonia 0.008 0.038 1.92 40.87 2.0
Template:Country data Madagascar 0.413 13.114 70.51 58.54 67.8
Template:Country data Malawi 0.384 10.406 72.26 53.19 73.9
Template:Country data Mali 0.564 10.806 87.14 64.71 51.4
Template:Country data Mauritania 0.352 1.912 61.68 57.07 21.2
Template:Country data Mexico 0.015 4.278 3.98 38.86 2.0
Template:Country data Mongolia 0.065 0.410 15.76 41.01 22.4
Template:Country data Montenegro 0.006 0.009 1.53 41.61 N/A
Template:Country data Morocco 0.139 8.892 28.50 48.83 2.5
Template:Country data Mozambique 0.481 17.475 79.79 60.25 74.7
Template:Country data Myanmar 0.088 6.969 14.19 62.01 N/A
Template:Country data Namibia 0.187 0.832 39.62 47.19 49.1
Template:Country data Nepal 0.350 18.322 64.74 54.05 55.1
Template:Country data Nicaragua 0.211 2.281 40.73 51.86 15.8
Template:Country data Niger 0.642 13.070 92.69 69.31 65.9
Template:Country data Nigeria 0.368 93.832 63.53 57.87 64.4
Template:Country data Pakistan 0.275 88.276 50.97 54.03 22.6
Template:Country data Palestinian territories 0.003 0.028 0.69 38.22 N/A
Template:Country data Paraguay 0.064 0.809 13.26 48.50 6.5
Template:Country data Peru 0.085 5.645 19.81 43.09 7.9
Template:Country data Philippines 0.067 11.158 12.58 53.45 22.6
Template:Country data Moldova 0.008 0.081 2.19 37.55 8.1
Template:Country data Russia 0.005 1.795 1.26 38.85 2.0
Template:Country data Rwanda 0.443 7.730 81.36 54.39 76.6
Template:Country data São Tomé and Príncipe 0.236 0.103 51.62 45.80 N/A
Template:Country data Senegal 0.384 7.964 66.92 57.40 33.5
Template:Country data Serbia 0.003 0.081 0.83 40.03 N/A
Template:Country data Sierra Leone 0.489 4.399 81.47 60.04 53.4
Template:Country data Slovakia 0.000 0.000 0.00 0.00 2.0
Template:Country data Slovenia 0.000 0.000 0.00 0.00 2.0
Template:Country data Somalia 0.514 7.061 81.16 63.30 N/A
Template:Country data South Africa 0.014 1.510 3.07 46.70 26.2
Template:Country data Sri Lanka 0.021 1.061 5.33 38.67 14.0
Template:Country data Suriname 0.044 0.037 7.46 58.82 15.5
Template:Country data Swaziland 0.183 0.494 41.13 44.44 62.9
Template:Country data Syria 0.021 1.134 5.53 37.52 N/A
Template:Country data Tajikistan 0.068 1.145 17.10 40.03 21.5
Template:Country data Tanzania 0.367 26.952 65.26 56.29 88.5
Template:Country data Thailand 0.006 1.105 1.65 38.49 2.0
Template:Country data Togo 0.284 3.418 54.25 52.43 38.7
Template:Country data Trinidad and Tobago 0.020 0.073 5.62 35.12 4.2
Template:Country data Tunisia 0.010 0.285 2.82 37.13 2.6
Template:Country data Turkey 0.039 6.183 8.47 45.93 2.7
Template:Country data Ukraine 0.008 1.014 2.19 35.74 2.0
Template:Country data United Arab Emirates 0.002 0.025 0.57 35.32 N/A
Template:Country data Uruguay 0.006 0.056 1.68 34.71 2.0
Template:Country data Uzbekistan 0.008 0.625 2.32 36.21 46.3
Template:Country data Vietnam 0.075 12.313 14.30 52.50 21.5
Template:Country data Yemen 0.283 11.710 52.51 53.94 17.5
Template:Country data Zambia 0.325 7.830 63.66 51.10 64.3
Template:Country data Zimbabwe 0.174 4.769 38.46 45.22 N/A

Source: Alkire, Sabina and Maria Emma Santos. 2010. Multidimensional Poverty Index: 2010 Data. Oxford Poverty and Human Development Initiative. Available at: www.ophi.org.uk/policy/multidimensional-poverty-index/.

See alsoEdit

ReferencesEdit

  1. includeonly>"A wealth of data. A useful new way to capture the many aspects of poverty", The Economist, July 29, 2010. Retrieved on 2010-08-04. “Aided by the improved availability of survey data about living conditions for households in over 100 developing countries, the researchers have come up with a new index, called the Multidimensional Poverty Index (MPI), which the United Nations Development Programme (UNDP) will use in its next “Human Development Report” in October.”
  2. Multidimensional Poverty Index. Oxford Poverty & Human Development Initiative. URL accessed on 2010-08-04.
  3. http://www.ophi.org.uk/wp-content/uploads/Argentina.pdf
  4. http://www.ophi.org.uk/wp-content/uploads/Argentina.pdf
  5. http://www.ophi.org.uk/wp-content/uploads/Niger.pdf


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