MULTIDIMENSIONAL POVERTY INDEX (Syllabus: GS Paper 2 – Social Issues)

News-CRUX-10     22nd September 2023        

Context: According to NITI Aayog, the Multidimensional Poverty Index (MPI) is another method for assessing poverty, but it has been criticized for not providing "useful information" recently.

 Multidimensional Poverty Index (MPI)

  • About: The index is a key international resource that measures acute multidimensional poverty across more than 100 developing countries.
  • Produced by: United Nations Development Programme (UNDP) and the Oxford Poverty and Human Development Initiative (OPHI)
  • Calculation of MPI: Multiplying the incidence of poverty and the average intensity of poverty.
  • MPI Ranges: From 0 to 1, and higher values imply higher poverty.

National Multidimensional Poverty Index (MPI)

  • About: It is prepared based on the latest National Family Heath Survey of 2019-21.

o NFHS is conducted by the International Institute for Population Sciences (IIPS) under the Ministry of Health and Family Welfare, Government of India.

  • First Edition Released: 2021
  • Nodal Agency: NITI Ayog
  • Indicators: 3 equally weighted dimensions - Health, Education, and Standard of living 
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