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Multidimensional Poverty Index (MPI): Indian Economy Notes for UPSC

MPI evaluates poverty across three key dimensions, each divided into specific indicators:1. Health, 2. Education, 3. Standard of Living
Amith

Multidimensional Poverty Index (MPI)

The Multidimensional Poverty Index (MPI), developed by the United Nations Development Programme (UNDP) and the Oxford Poverty and Human Development Initiative (OPHI), measures poverty by considering multiple deprivations faced by individuals in their daily lives. Unlike income-based measures, MPI provides a broader perspective by assessing non-monetary aspects of poverty.


Key Features of MPI

  1. Dimensions of Poverty:
    MPI evaluates poverty across three key dimensions, each divided into specific indicators:

    • Health:
      • Child mortality.
      • Nutrition.
    • Education:
      • Years of schooling.
      • School attendance.
    • Standard of Living:
      • Access to electricity.
      • Sanitation.
      • Safe drinking water.
      • Housing quality.
      • Cooking fuel.
      • Assets ownership.
  2. Scoring:

    • Each indicator is weighted equally within its dimension.
    • A person is considered multidimensionally poor if they are deprived in one-third or more of the weighted indicators.

Significance

  • Provides a comprehensive view of poverty beyond income, helping policymakers identify specific areas for intervention.
  • Highlights regional disparities and vulnerable populations.
  • Tracks progress toward achieving Sustainable Development Goals (SDGs), particularly Goal 1: No Poverty.

India's Performance (2023)

  • India significantly reduced poverty, lifting 415 million people out of multidimensional poverty between 2005–06 and 2019–21.
  • The percentage of people in multidimensional poverty fell from 55.1% to 16.4% during this period.
  • States like Bihar, Jharkhand, and Uttar Pradesh recorded notable improvements.

Current Affairs

  • The Indian government’s flagship programs like PM Ujjwala Yojana, Swachh Bharat Abhiyan, and Pradhan Mantri Awas Yojana have contributed to reducing MPI.
  • The Global MPI Report 2023 acknowledged India’s efforts in reducing multidimensional poverty, showcasing it as a global success story.

MPI emphasizes the importance of addressing poverty from a holistic perspective, ensuring inclusive and sustainable development.

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