UNDP’S REPORT (Syllabus: GS Paper 3 – Economy)

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Context: The latest UNDP report that assesses progress on human development in the Asia-Pacific region places India among the countries with the highest income and wealth inequalities measured in terms of the share of the richest 10% of the population.

  • However, since 2005 India has managed to get around 415 million people out of multidimensional poverty.


Highlights of Report

  • As per the report, other countries with highest income inequality in the region are Maldives, Thailand, and Iran. 
  • Besides India, countries exhibiting highest wealth inequalities, as measured by wealth share of the top 10%, include Thailand, China, Myanmar and Sri Lanka.
  • In India, between 2000 & 2022, per capita income soared from $442 to $2,389.
  • Between 2004 & 2019, poverty rates plummeted from 40% to 10%.
  • For Example, between 2005 & 2006 and 2019 & 2020, India decreased its multidimensional poverty index by 39% points, lifting 415 million out of multidimensional poverty.
  • Despite these successes, poverty remains concentrated in states that are home to 45% of India's population but contain 62% of its poor.



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: 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.


UNDP

  • Established: In 1966 by the General Assembly of the United Nations.
  • Funding: It is funded entirely by voluntary contributions from member nations.
  • Headquarters: New York, USA.





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