Mains Paper 1: Social Issues | Poverty & development issues
From UPSC perspective, the following things are important:
Prelims level: Global MPI report 2108
Mains level: India’s efforts in reducing poverty and their outcomes
- The Global MPI 2018 Report was recently published by the United Nations Development Programme (UNDP) and the Oxford Poverty and Human Development Initiative.
What is global MPI?
- The global Multidimensional Poverty Index (MPI) is an international measure of acute poverty covering over 100 developing countries.
- It complements traditional income-based poverty measures by capturing the severe deprivations that each person faces at the same time with respect to education, health and living standards.
- The global MPI was developed by OPHI with the UN Development Programme (UNDP) for inclusion in UNDP’s flagship Human Development Report in 2010. It has been published in the HDR ever since.
Global MPI 2018 Report
- The report measures MPI, or multidimensional poverty index, which it says can be broken down to show “who is poor” and “how they are poor”.
- This factor in two measures, poverty rate as a percentage of the population, and intensity as the average share of deprivations that poor people experience.
- The product of these two is MPI. If someone is deprived in a third or more of 10 weighted indicators, the global index identifies them as “MPI poor”.
- India has reduced its poverty rate drastically from 55% to 28% in 10 years, with 271 million people moving out of poverty between 2005-06 and 2015-16.
- The report, covering 105 countries, dedicates a chapter to India because of this remarkable progress.
- However, India still had 364 million poor in 2015-16, the largest for any country, although it is down from 635 million in 2005-06.
- Of the 364 million people who were MPI poor in 2015-16, 156 million (34.6%) were children.
- In India, poverty reduction among children, the poorest states, Scheduled Tribes, and Muslims was fastest, the report says.
- Bihar was the poorest state in 2015-16, with more than half its population in poverty.
- The four poorest states —Bihar, Jharkhand, Uttar Pradesh, and Madhya Pradesh — were still home to 196 million MPI poor people, which was over half of all the MPI poor people in India.
- Jharkhand had the greatest improvement, followed by Arunachal Pradesh, Bihar, Chhattisgarh, and Nagaland.
- At the other end, Kerala, one of the least poor regions in 2006, reduced its MPI by around 92%.
- 3 billion people live in multidimensional poverty.
- 83% of all multidimensionally poor people in the world live in Sub-Saharan Africa and South Asia.
- Two-thirds of all MPI poor people live in middle-income countries.
- Half of the multidimensionally poor are children aged 0-17.
- 85% of MPI poor people live in rural areas.
- 46% of those who are multidimensionally poor live in severe poverty.
- In 2015/16, more than 364 million people are still MPI poor in India.
- In India, 271 million people moved out of poverty in ten years.