Multidimensional Poverty:

Individuals experiencing poverty describe their hardship as encompassing far more than just financial limitations. They navigate a web of deprivations affecting health, nutrition, access to basic resources, education, and job quality. Viewing poverty solely through the lens of income risks fails to capture its multidimensional reality.  Multidimensional poverty measures offer a more nuanced perspective, considering deprivations across various dimensions. This paints a richer picture of who is affected and reveals the true scope of hardship beyond a single poverty figure. Additionally, it enables disaggregated analysis, highlighting variations in poverty across regions and demographics(1)

Global Multidimensional Poverty Index:

• With the goal of assessing poverty beyond income limitations, the Global Multidimensional Poverty Index (MPI) was developed in 2010 by the Oxford Poverty & Human Development Initiative (OPHI) and the United Nations Development Programme (UNDP).

• The Multidimensional Poverty Index (MPI) serves as a globally recognized tool for measuring acute multidimensional poverty across more than 100 developing nations. It offers a valuable complement to traditional income-based poverty measures by capturing the complex interplay of deprivations individuals face simultaneously in health, education, and living standards.

• MPI offers a distinct outlook on poverty by examining deprivations beyond income at the individual level. Individuals experiencing deprivations in at least one-third of the ten weighted indicators included in the global MPI are classified as "MPI poor." Notably, the MPI not only identifies those living in poverty but also measures the intensity of their hardship based on the percentage of deprivations they face.(2)

Niti Ayog's MPI:

• Niti Aayog's Multidimensional Poverty Index (MPI) is a relatively new metric introduced in 2021 that aims to capture the complex and multifaceted nature of poverty in India.

• The national MPI model retains ten indicators of the global MPI model, with the addition of two indicators, viz., Maternal Health and Bank accounts in line with national priorities. (Figure 1)

  
  

Figure 1. showing indicators and their weights of Niti Ayog’s MPI

National MPI: A Progress Review 2023

The National Multidimensional Poverty Index (MPI) Progress Report published in 2023 reveals a drastic reduction in multidimensional poverty between 2015-16 and 2019-21.

India's fight against poverty has scored a resounding victory, exceeding expectations and putting the nation firmly on track to achieve the critical Sustainable Development Goal (SDG) 1.2: at least halving multidimensional poverty by 2030. This remarkable feat signifies a 135 million-strong exodus from the clutches of poverty, a testament to the country's unwavering commitment to social and economic upliftment.

Rural areas have emerged as the champions of this transformation, showcasing the strongest decline in multidimensional poverty. This targeted approach underscores a conscious effort to bridge the gap and empower traditionally disadvantaged populations.

The success story unfolds through crucial indicators:

• Enhanced nutrition: Hunger pangs are fading, replaced by the promise of improved health and well-being.

• Educational attainment: Knowledge is spreading its wings, paving the path for a brighter future and increased opportunities.

• Sanitation access: Hygiene and sanitation standards are rising, creating a healthier and more dignified environment for all.

• Cleaner cooking fuel: Kitchens are no longer shrouded in harmful smoke, thanks to the adoption of cleaner fuel sources, benefiting both health and environmental sustainability.

These improvements are reflected not just in numbers, but also in the intensity of poverty: the average deprivation score among the multidimensionally poor has decreased significantly from 47.14% to 44.39%, highlighting a broader and more profound enhancement in well-being.

Variations of MPI at State-level:

The battle against poverty is not uniform across the country and differs from one state to the other. Notably, Uttar Pradesh, Bihar, Madhya Pradesh, Odisha, and Rajasthan are leading in this race, witnessing the steepest declines in the number of individuals classified as multidimensionally poor. These states serve as inspiring examples of effective policy implementation and targeted interventions.

India's Multidimensional Poverty Reduction Inspires Global Progress

India's multidimensional poverty triumph is a beacon of hope, not just for its own citizens but for the entire world. It demonstrates the transformative power of concerted efforts, strategic investments, and an unwavering commitment to leaving no one behind. As the journey towards SDG 1.2 continues, the lessons learned from this remarkable achievement can guide other nations on their own paths to eradicating poverty in all its forms.(3)

MPI – A Mirage?

A departure from the singular metric of income, the MPI attempts to portray a subtle image, capturing deprivation across health, education, and living standards. Yet, amid initial applause, whispers of dissent have begun to stir, questioning the index's efficacy as a true measure of poverty.

Unearthing Methodological Conflicts:(4)

• India's MPI Progress: A Call for Continued Improvement in Poverty Measurement

Nevertheless, there has been a significant decline in India’s Multidimensional poverty as measured by MPI, concerns regarding the methodology still exists. These reservations, in no way intends to diminish the remarkable progress, underscore the importance of rigorous scrutiny and continual improvement in poverty measurement tools.

• Headcount Inflation in MPI: Masking Poverty's True Impact?

  One key concern arises from the deprivation cut-off: experiencing any deprivation in any dimension automatically classifies an individual as "multidimensionally poor." Hence, critics argue that this might potentially lead to overestimating of the headcount, masking the true depth of the poverty's impact.

•  Lack of transparency

  Adding to the scepticism, is the lack of transparency surrounding the selection and weighting of indicators. This critical factor, determining who falls below the poverty line, remains shrouded in ambiguity, hindering accountability and hence, raises questions about the MPI's fairness and accuracy.

  Moreover, some critics argue for a stronger emphasis on health, particularly in a public health context, questioning whether the current MPI adequately captures the complexities of health-related deprivations.

• Data Aggregation

  Furthermore, concerns exist about the aggregation of data across diverse districts. Critics argue that such broad strokes might unwittingly mask significant regional disparities, obscuring the pockets of persistent poverty within seemingly improved state and national averages.

• Finally, the reliance on self-reported data introduces a potential layer of uncertainty. While acknowledging the strengths of this approach in capturing lived experiences, robust validation mechanisms are crucial to mitigate the risk of inaccuracies and ensure data integrity.

Beyond the Concerns: Unveiling the MPI's Power as a Compass(5)

While legitimate worries surround the MPI methodology, dismissing it as an illusion would be a grave misstep. Indeed, its disaggregated data provides invaluable insights, not just in the headline numbers, but in the granular terrain of deprivation across dimensions and districts. This granular map transcends the limitations of traditional income-based measures, transforming poverty from a monolithic shadow into a multi-hued mosaic.

•  MPI Unveils Pockets of Need

  Imagine this mosaic: not a barren wasteland of uniform poverty, but a landscape where clusters of high health deprivation reveal communities crying out for primary healthcare infrastructure or targeted outreach programs. Clusters of low educational attainment highlight areas in dire need of school initiatives and literacy campaigns. This precision targeting is the MPI's true strength, guiding our interventions and resource allocation like a laser, ensuring no pocket of despair remains unseen or unheard.

• MPI as Roadmap for Action: Targeting Investments, Maximizing Impact

  By identifying specific deprivations within geographical areas, the MPI becomes a roadmap for action, guiding investments towards where they are most needed and maximizing their impact. This targeted approach allows us to address the unique challenges faced by different communities, fostering a more equitable and sustainable path towards poverty eradication.

Charting a New Course: Refining the Compass of Progress (6)

• Like a compass in shifting sands, MPI requires continuous calibration.

• Rigorous critique, as advocated is essential to identify and address methodological shortcomings.

• The MPI's true value lies not in its headline numbers, but in its potential to catalyze action.

• It can be a stepping stone, a bridge between academic discourse and concrete policy decisions

• Public health professionals must leverage its insights to advocate for holistic interventions that address not just income, but the entire web of deprivations that trap communities in poverty's cycle.

• The MPI, used judiciously, can be a roadmap, not a definitive destination.

Refine, Learn, Act, Evolve : Building a Future Free from Poverty 

The MPI, though imperfect, presents a significant step towards understanding poverty's complexities. Public health professionals and biostatisticians can contribute by:

• Engaging in rigorous critique: Identifying methodological flaws and advocating for data strengthening and transparency.

• Emphasizing context: Analyzing the MPI alongside income measures and understanding its limitations in specific scenarios.

• Using it as a tool, not a target: Focusing on the MPI's potential to guide targeted interventions and policy adjustments, not as a standalone measure of progress.

• Emphasizing open dialogue, diverse perspectives, and ongoing evolution to enhance the MPI's accuracy and effectiveness.

The MPI is not a panacea, but a stepping stone. By acknowledging its limitations and actively improving its methodology, we can ensure that it becomes a valuable instrument for guiding India's journey towards a truly multidimensional vision of poverty reduction and equitable health for all.

References:

1.  What is Multidimensional Poverty? | MPPN [Internet]. 2016 [cited 2024 Feb 4]. Available from: https://www.mppn.org/multidimensional-poverty/what-is-multidimensional-poverty/

2. Global Multidimensional Poverty Index | OPHI [Internet]. [cited 2024 Feb 12]. Available from: https://ophi.org.uk/multidimensional-poverty-index/

3. National Multidimensonal Poverty Index. A Progress Review 2023. Niti Ayog. Government of India [Online]. 2023 (Accessed on 07 Jan 2024). Available from: https://niti.gov.in/sites/default/files/2023-08/India-National-Multidimentional-Poverty-Index-2023.pdf

4. Sen, A. The Multidimensional Poverty Index: A critical appraisal. Journal of Social Policy. 2019. 48(2), 293-322.

5. Joshi, P., & Sahu, P. K. Multidimensional poverty in India: An assessment of the MPI 2019. Journal of Social Indicators Research. 2021. 154(1), 277-304

6. Ghosh, A. Multidimensional Poverty Index: A statistical critique. Journal of Quantitative Economics. 2021. 19(1), 1-42.