Multidimensional Poverty

Multidimensional Poverty

Multidimensional Poverty

• • A person who is impoverished may experience several disadvantages at once, such as ill health or starvation, a lack of electricity or clean water, low-quality employment, or insufficient education. 
  • Just concentrating on one aspect, like money, is insufficient to fully convey the experience of poverty.
  • Multidimensional poverty is defined as having income or consumption below the $2.15 worldwide poverty level (as defined by the World Bank) in addition to deprivations in education and access to essential infrastructure. 
  • The international poverty line, measured in terms of purchasing power parity in 2017, is set by the World Bank at USD 2.15 per day. 

Global Multidimensional Poverty Index

About

• • One important worldwide tool for measuring acute multidimensional poverty in more than 100 developing nations is the Global Multidimensional Poverty Index (MPI). 
  •  The UNDP’s Human Development Report Office and the Oxford Poverty and Human Development Initiative (OPHI) jointly publish the MPI.
  • The Index monitors impoverishment in the following 10 indicators and 3 dimensions: 
  • The MPI has a value between 0 and 1, with higher numbers denoting greater poverty. 
  •  A person is classified as “MPI poor” under the MPI method if they are deficient in three or more of the ten (weighted) indicators.
  •  The Global MPI 2023 and India 
  • India moved 415 million people out of poverty between 2005–06 and 2019–21, according to the 2023 Global MPI. 
  •  India is one among the 25 nations that, in less than 15 years, have effectively cut their worldwide MPI values in half. 
  • A comparison between India’s National MPI and the Global MPI 
  •  The first edition of the national Multidimensional Poverty Index for India was released in 2021 by NITI Aayog.

Two more indicators are available for the Indian MPI: 

• • The health dimension pertains to maternal health, while the standard of living dimension deals with bank balances. 
  •  The NITI Aayog claims that this was done in order to match the MPI with the national priorities of India. 

Multidimensional Poverty

• • The Finance Minister stated during her Interim Budget statement that “the Government has assisted 25 crore people to get freedom from multidimensional poverty with the pursuit of ‘Sabka ka Saath’ over the past ten years.” 

The foundation for this evaluation:

• • This figure was mentioned in a January 2024 NITI Aayog discussion paper titled Multidimensional Poverty in India Since 2005-06. 
  • According to the research, there was a decrease in multidimensional poverty in India from 29.17% in 2013–14 to 11.28% in 2022–23, meaning that around 24.82 crore individuals were able to escape poverty during this time.