Poverty and inequality

Poverty and inequality


 
The Global Multidimensional Poverty Index (MPI) was created using a method developed by Sabina Alkire, OPHI Director, and James Foster, OPHI Research Associate and Professor of Economics and International Affairs at George Washington University (2011). The Global MPI 2014 is an index of acute multidimensional poverty that covers 108 countries. It directly measures the nature and magnitude of overlapping deprivations in health, education and living standard at the household level. The MPI provides vital information on who is poor and how they are poor, enabling policymakers to target resources and design policies more effectively. The Global MPI is the first international measure to reflect the intensity of poverty – the number of deprivations each person faces at the same time. It offers an essential complement to income poverty indices because it measures and compares deprivations directly, without the need for PPPs (Purchasing Power Parity rates). The MPI is built using DHS, MICS, WHS surveys and national data, 2002-2013.

Key findings of the Global Multidimensional Poverty Index (MPI) 2014 (released in June 2014) are as follows (please click here to download document 1, document 2 and document 3):

Indian scenario

• India is home to 343.5 million destitute people – 28.5% of its population is destitute.

• India is the second poorest country (in terms of MPI) in South Asia behind war-torn Afghanistan.

• Among the poor in 90 countries, inequality is high in India, Pakistan, Afghanistan, Yemen, Somalia and in 15 Sub-Saharan African countries during 2014.

• The Oxford analysis of multi-dimensional poverty reduction in India was done using National Family Health Survey datasets from 2005.


Global scenario

• The MPI 2014 covers 108 countries, which are home to 78% of the world’s population. Thirty percent of them – 1.6 billion people – are identified as multidimensionally poor.

• Of the 1.6 billion identified as MPI poor, 85% live in rural areas; significantly higher than income poverty estimates of 70 to 75%

• Of these 1.6 billion people, 52% live in South Asia, and 29% in Sub-Saharan Africa. Most MPI poor people - 71% - live in Middle Income Countries

• The country with the highest percentage of MPI poor people is still Niger; 2012 data from Niger shows 89.3% of its population are multidimensionally poor

• Nearly all countries that reduced MPI poverty also reduced inequality among the poor

• Of the 1.6 billion identified as MPI poor, 85% live in rural areas; significantly higher than income poverty estimates of 70-75%

• Of 34 countries for which we have time-series data, 30 - covering 98% of the MPI poor people across all 34 - had statistically signi!cant reductions in multidimensional poverty

• The countries that reduced MPI and destitution most in absolute terms were mostly Low Income Countries and Least Developed Countries

• Nepal made the fastest progress, showing a fall in the percentage of the population who were MPI poor from 65% to 44% in a five-year period (2006-2011)

• Nearly all countries that reduced MPI poverty also reduced inequality among the poor

• Across the 49 countries analysed so far, half of all MPI poor people are destitute; over 638 million people

• Overall in South Asia, over 420 million people are destitute

• In Niger, 68.8% of the population is destitute – the highest share of any country
 



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