“The incedence and intensity of poverty are more important in determining poverty based on income alone”. In this context analyse the latest United Nations Multidimensional Poverty Index Report.
Subtopic: Social Justice · poverty measurement — Multidimensional Poverty Index
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Income poverty counts those below a money-metric line; the global Multidimensional Poverty Index (MPI), published by UNDP with the Oxford Poverty and Human Development Initiative using the Alkire-Foster method, instead multiplies the incidence of poverty (H — the share of people who are multidimensionally poor) by its intensity (A — the average share of weighted deprivations the poor actually suffer). This H × A design is precisely why incidence and intensity, rather than income alone, determine both who is poor and how deeply.
Structure of the index
- Three equally weighted dimensions — health (nutrition, child mortality), education (years of schooling, school attendance) and living standards (cooking fuel, sanitation, drinking water, electricity, housing, assets).
- A person deprived in one-third or more of the weighted indicators is counted as MPI-poor.
India in the recent UNDP-OPHI reports
- About 415 million Indians exited multidimensional poverty between 2005-06 and 2019-21 — the largest recorded reduction anywhere.
- Incidence fell from roughly 55% to about 16%, and intensity from around 47% to 42%; the poorest states, children and disadvantaged caste groups improved fastest, narrowing gaps.
- Nutrition, cooking fuel and housing remain the biggest contributors to remaining deprivation, and rural poverty stays well above urban.
- NITI Aayog's national MPI mirrors the trend, with headcount falling from about 25% in 2015-16 to about 15% in 2019-21.
Analytical significance and limits
- The MPI exposes overlapping service deprivations that income measures miss, and supports targeting — the logic behind NITI Aayog's national MPI and the Aspirational Districts Programme.
- But it omits income itself, depends on lagged NFHS survey rounds, and captures acute deprivation rather than vulnerability to relapse.
Read alongside consumption-based poverty lines, the MPI equips policy to attack not merely how many are poor, but how poor they are — the true measure of progress against deprivation.
What an examiner expects to see
- MPI = H × A: incidence (headcount ratio of the multidimensionally poor) multiplied by intensity (average deprivation share) — the Alkire-Foster method.
- Three equally weighted dimensions (health, education, living standards) across 10 indicators; deprivation in one-third of weighted indicators makes a person MPI-poor.
- Headline finding: about 415 million Indians exited multidimensional poverty between 2005-06 and 2019-21; incidence fell from ~55% to ~16%.
- Intensity also declined (roughly 47% to 42%), meaning the poor are less deeply deprived — a fact invisible to income-only measures.
- Poorest states, children and disadvantaged groups improved fastest, indicating pro-poor convergence.
- Nutrition, cooking fuel and housing dominate residual deprivation; rural incidence remains far above urban.
- Limits: no income dimension, lagged NFHS data, and acute-poverty focus — so MPI must complement, not replace, consumption-based lines.
Concrete cases, schemes and judgments
- UNDP-OPHI Global MPI reports (2022-2023) — 415 million Indians exiting poverty over 2005-06 to 2019-21
- NITI Aayog's National MPI — headcount declining from about 25% (2015-16) to about 15% (2019-21)
- NFHS-4 and NFHS-5 as the underlying data rounds
- Aspirational Districts Programme as MPI-style targeting in practice
- Ujjwala, Swachh Bharat, Jal Jeevan Mission and PMAY attacking specific MPI indicators