The Multidimensional Poverty Index (MPI) is measured by:
- A.Measuring each person's overlapping deprivations across the indicators in the health, education and standard of living dimensions
- B.Measuring each person's separate efficiencies across the indicators in the wealth, income and standard of living dimensions
- C.Measuring each person's poverty on the indicators of health, happiness and ownership of vehicles
- D.Measuring inequalities and deprivations in respect of wealth, income and standard of living dimensions
Correct answer
Explanation
The correct answer is A. The MPI measures the overlapping deprivations each person faces across indicators of health, education and standard of living.
The global MPI was developed in 2010 by the Oxford Poverty and Human Development Initiative and the UNDP. It looks beyond income at ten indicators: nutrition and child mortality for health; years of schooling and school attendance for education; and cooking fuel, sanitation, drinking water, electricity, housing and assets for standard of living. A person deprived in at least one-third of the weighted indicators is counted as multidimensionally poor. The index multiplies the share of people who are poor by the average intensity of their deprivation. India's NITI Aayog uses a national version with twelve indicators.
B is wrong because the MPI counts deprivations, not efficiencies, and does not use wealth and income dimensions. C is wrong because happiness and vehicle ownership are not its indicators. D is wrong because the MPI does not measure inequality in wealth or income.
Exam tip: MPI has three dimensions and ten indicators, and the poverty cut-off is one-third of the weighted indicators.
Practice Questions
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- A.1 only
- B.3 and 4
- C.1 and 2
- D.2 and 4
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- D.Twelfth Finance Commission
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