Multidimensional Poverty Indices Launched in Costa Rica and El Salvador
Added on November 4, 2015
Both Costa Rica and El Salvador launched a national Multidimensional Poverty Index (MPI) on the same day, October 29th. OPHI’s co-founder John Hammock and Outreach Technical Director Adriana Conconi participated in these launches, John Hammock in Costa Rica’s capital, San Jose, and Adriana Conconi in San Salvador. In their remarks the OPHI representatives stressed both the academic validity and robustness of the measure and its potential for impacting people who live in poverty through better and more targeted social policies.
The President of Costa Rica, Mr. Luis Guillermo Solís, was joined by Second Vice President Ms. Ana Helena Chacón and Human Development Minister Mr.Carlos Alvarado in presenting the new measure to the country. The President stressed that the MPI will be used to reduce extreme poverty by allowing the government to target government resources to those that need it. He also stressed that the MPI was the result of a strong partnership between the Government, the private sector through Horizonte Positivo and OPHI.
In El Salvador Christian Salazar, UNDP representative in the country, explained the need for a poverty measure that goes beyond income and that is not subject to price and exchange rate volatility. He was joined by Lilian Vega a technical advisor for the multidimensional poverty measurement team who presented the national MPI which has 20 indicators grouped in 5 dimensions. Mr. Roberto Lorenzana, the Technical Secretary of the Presidency, closed the event by summing up the relevance of the MPI as a tool for policy.
Global Monitoring Report includes first-time coverage of Multidimensional Poverty Index
Added on October 9, 2015
The Global Monitoring Report (GMR) 2015/2016, produced jointly by the World Bank and International Monetary Fund, details findings from the Global Multidimensional Poverty Index (MPI) for the first time.
While the report details a decline of those living in global poverty, reclassified as living on $1.90 or less a day, it stresses that ‘Pockets of very deep and multidimensional poverty continue to persist’ and emphasises that ‘more attention is needed to the non-income dimensions of development’ in order to ‘sustainably end extreme poverty and promote shared prosperity’.
The GMR explores multidimensional poverty measurement and profiles the MPI as a possible implementation. In particular, it highlights how the MPI can be broken down to reveal the different types of deprivation faced by the poor across different regions of countries, noting that ‘Breaking down poverty by dimension provides policy makers with localized information for reducing multidimensional poverty’.
The report describes how, according to recent updates of the Global MPI, Niger is the country with the highest rates of multidimensional poverty, while the poorest subnational region in the world is Salamat in southeast Chad, where nearly 98% of inhabitants are MPI poor. The region with the highest deprivation in nutrition is Affar in Ethiopia, and that with most child mortality is Nord-Ouest in Cote d’Ivoire. Karamoja in Uganda is the most deprived region for sanitation, and Wad Fira in Chad for drinking water, electricity and years of schooling.
The report also highlights how several countries have already implemented their own multidimensional poverty measures, noting that ‘as the post-2015 process unfolds, demand for harmonized multidimensional poverty assessments at the country and global levels is likely to rise.’
The Global MPI is an internationally-comparable measure of acute poverty covering more than 100 developing countries. It has been calculated by OPHI and published in the UN Development Programme’s Human Development Report since 2010. Overall, 1.6 billion people are multidimensionally poor according to the Global MPI, with the largest global share in South Asia and the highest intensity in Sub-Saharan Africa.
The UKDCS selected the list from the 6,975 impact case studies submitted to the Research Excellence Framework, the system used to assess the research quality of UK universities.
OPHI was recognised for its work to develop the Alkire Foster (AF) method for multidimensional poverty measurement. The AF method is a flexible tool that captures the overlapping deprivations that a person or household experiences in different indicators of poverty, such as poor health, a lack of education and inadequate living standards. It provides a headline measure of poverty and can also be broken down to reveal what poverty is like in different areas of a country and among different groups of the population.
The AF method is being used by a growing number of governments to develop their own national or regional multidimensional poverty measures, incorporating indicators of poverty relevant to their own specific contexts. It enables policymakers to develop coordinated poverty-reduction initiatives and target their resources at those most in need.
The AF method has also been used to construct the Global Multidimensional Poverty Index, which has been calculated by OPHI and published in the UN Development Programme’s Human Development Report since 2010. The Global MPI is an internationally-comparable measure of acute poverty covering more than 100 developing countries.
World leaders show how integrated policies to fight poverty need multidimensional measures
Added on September 28, 2015
High level side-event at the UN summit for the adoption of the post-2015 development agenda
Anchoring a Global Multidimensional Poverty Index within the SDGs
New York, 27 September 2015
During the United Nations summit to agree a historic new global development agenda, twenty eminent speakers stressed the importance of adopting a multidimensional approach to measuring and eradicating poverty at the national and global levels.
The event celebrated the sea-change embodied within the new Sustainable Development Goals (SDGs), which recognises that ‘eradicating poverty in all its forms and dimensions’ as ‘the greatest global challenge’. The 20 speakers shared with passion and commitment their work to address poverty, using Multidimensional Poverty Indices (MPIs) that catalyse integrated policies and disaggregated data to leave no one behind.
Many calls were also made for an internationally comparable Global MPI to be a tier 1 indicator within the SDGs and for National MPIs, that measure poverty according to national definitions, to be aspirational indicators for Target 1.2. Speakers shared how multidimensional poverty metrics can help to fight poverty in all its forms and dimensions, how they can be disaggregated to help leave no one behind, and help catalyse integrated policies that address interlinked deprivations together – key principles of the SDGs.
The distinguished speakers, including Heads of State, Ministers of Planning and Ministers of Social Development, Finance and Foreign Affairs, are at the forefront of practical efforts to reduce all forms of poverty. The measures they use inform their efforts to improve lives of poor people. In their observations they showed how multidimensional poverty measures can complement monetary poverty measures.
Watch a video of the event:
The eminent leaders addressing the 200-strong audience included:
E. Mr. Luis Guillermo Solís Rivera, President of Costa Rica
E. Mr. Tshering Tobgay, Prime Minister of Bhutan
E. Mr. Juan Orlando Hernández, President of Honduras
E. Mr. Kenny Anthony, Prime Minister of Saint Lucia
E. Mr. Wu Hongbo, Under-Secretary-General for Economic and Social Affairs, United Nations
Their contributions stressed the importance of putting poor people at the heart of the sustainable development agenda via multidimensional approaches to measuring and eradicating poverty.
The other speakers sharing important contributions on multidimensional poverty included:
The Philippines: H.E. Dr. Arsenio Balisacan, Socioeconomic Planning Secretary of the Philippines
Colombia:E. Tatyana Orozco de la Cruz, Director of the Department for Social Prosperity of Colombia
South Africa: H.E. Jeff Radebe, Minister in the Presidency for Planning, Monitoring and Evaluation, South Africa
Chile: H.E. Marcos Barraza Gómez, Minister of Social Development of Chile
Viet Nam: H.E. Mr. Dang Huy Dong, Deputy Minister, Ministry of Planning and Investment of Viet Nam
Ecuador:E. Cecilia Vaca Jones, Minister Coordinator of Social Development of Ecuador
Islamic Development Bank: Dr. Savas Alpay, Chief Economist of the Islamic Development Bank
Georgia:E. Mr Mikheil Janelidze, First Deputy Minister of Foreign Affairs of Georgia
Senegal: H.E. Amadou Ba, Minister of Economy and Finance, Senegal
League of Arab States and Tarek Nabil El Nabulsi, Director of Development and Social Policies Department, League of Arab States
UN Economic and Social Commission for Western Asia: Khalid Abu-Ismail, Chief Economic Policy Section, UN Economic and Social Commission for Western Asia
Germany: Dr. Ingolf Dietrich, Deputy Director-General, Head of the Special Unit of Post-2015 Agenda, Federal Ministry for Economic Cooperation and Development of Germany
Panama: H.E. Mrs. María Luisa Navarro, Deputy Minister for Multilateral Affairs and Cooperation of Panama
United States: Mr. Noam Unger, Deputy Assistant for Policy, Planning and Learning, USAID of the United States
Mexico: Gabriel Rivera Conde, Chief Strategic Projects, Office of the President of Mexico
The discussion was fast-paced, focused and substantive. President Solis of Costa Rica called for a poverty narrative that inspires commitment and action – by government, but also by civil society and the private sector. Prime Minister Tobgay of Bhutan shared how multidimensional poverty and well-being measures create an insightful measurement framework for multi-level policy and programme design. Presidetn Hernandez of Honduras shared a compelling example of a campesino farmer whose life is trapped in a battery of interlocking deprivations, but also observed how the Global MPI enables Honduras to be compared on the world stage to countries in Asia and the Arab world. Prime Minister Anthony of St Lucia brought in Bob Marley to call for attention to the hidden, forgotten, and isolated people and the links between poverty and environmental degradation.
In the Ministerial Discussion, Arsenio Balisacan (Philippines) shared how their multidimensional poverty measures – which are incorporated in their national development plan – better reflected the impact of economic growth, while Tayana Orozco (Colombia) shared a distilled and compact overview of Colombia’s many-layered innovative policy uses of the MPI. Jeff Radebe (South Africa), stressed how measures that display the interlinkages of poverty can stimulate and guide integrated policy, and also mentioned how South Africa’s census-based MPI was a ‘precision measure of poverty’ that interested many. Marcos Barraza (Chile) shared the structure and findings of Chile’s official National MPI launched in January 2015, and Dang Huy Dong (Vietnam) explained the need to have a ‘headline’ indicator of multidimensional poverty to give visibility to social progress. Cecilia Vaca Jones (Ecuador), whose country will shortly release a national MPI, articulated how it resonated with the indigenous cosmology of Buen Vivir, of harmony between peoples, and with the environment. Savas Alpay (Islamic Development Bank) described the interest in Islamic Development Bank member countries in building national MPIs, and of their work in supporting capacity building in statistical offices.
In a closing set of brief and pity remarks as well as submitted statements, other important points emerged. Mikheil Janelidze (Georgia) shared how MPI is a natural next step given their history of social policy interventions. Maria Luisa Navarro (Panama) charted Panama’s trajectory which has spawned an interest in multidimensional poverty measurement. Amadou Ba (Senegal) shared their work on building a national MPI – the first in Africa, and Tarek Nabulsi (League of Arab States) described the need in the Arab region for a comparable MPI, but one focused on moderate poverty, and their collaboration with UNESWA to bring this into being. Ingolf Dietrich (Germany) articulated Germany’s interest in following how multidimensional poverty metrics are evolving, and Noam Unger (USAID) shared how USAID’s new vision for extreme poverty is, for the first time, multidimensional. Mexico, the country who had released their National MPI even before UNDP’s Global MPI launch in 2010, closed the session, and welcomed participants to come to the next meeting of the Multidimensional Poverty Peer Network (mppn.org), which will be hosted by Mexico.
Highlights from the discussion included:
The UN Secretary General Ban Ki Moon, whose message to the audience was delivered by H.E. Mr. Wu Hongbo, Under-Secretary-General for Economic and Social Affairs, United Nations, shared with participants the number of Global MPI poor people in developing countries and said:
“Our challenge, at the global, national and local levels, is to reduce these numbers and ensure lives of dignity for all. That means accurately tracking vulnerability, exclusion and other key variables. It means seizing the great potential of the data revolution to help us better measure poverty and get a full picture of its impacts. Only then will Governments, which will be in the driver’s seat of implementation, be able to determine and pursue their national priorities.”
H.E. Mr. Luis Guillermo Solís Rivera, President of Costa Rica who celebrated the priority of poverty in all its forms and dimensions in the SDGs, and stressed how national multidimensional poverty index, or MPI, can improve the effectiveness of social policy. He said
“…leaders that are committed to fighting against poverty in all its dimensions need to join forces to create mechanisms to achieve our objectives. I believe in the relevance of making the complexity of our challenges visible: we must understand poverty as the deprivation of several capacities and living conditions, and not merely as the lack of income.”
Stressing the need to include a Global MPI within the SDGs he said:
“…similarly to the case of the $1.25-a-day indicator of extreme poverty, we need an index of multidimensional poverty that is comparable across countries and over time, such as the existing Global MPI of UNDP and OPHI. We need an index that considers acute and moderate poverty. And we need this index to be disaggregated by region and indicator.”
H.E. Mr. Tshering Tobgay, Prime Minister of Bhutan talked about Bhutan’s two-pronged approach to multidimensional measurement which captures the multiple dimensions of wellbeing in the form of the Gross National Happiness Index and the multiple dimensions of poverty in their official national MPI.
He observed that ‘Indicators are like eyes: they help us to see things; they bring matters into focus’ – and so shape action:
“Bhutan’s national MPI is not only a measure, it is also a tool – a policy tool. We use it to inform our allocation of resources. It identifies people who are poor because of gaps in infrastructure and social services, even where people are not income poor, as in one of our remotest district.”
He raised “the call to have a Global MPI as a Tier 1 indicator of the SDGs, and to support others to develop the use National MPIs” – yet he also encouraged linked measures of poverty and well-being:
“Together we can design a new metric by which to assess our societies and our own lives, one that not only leaves no person behind, but also leaves no part of human life and potential behind.”
H.E. Mr. Juan Orlando Hernández, President of Honduras, who grew up in the rural areas, used the case of Don Camilo to illustrate interconnected deprivations faced by farmers and their multiple causes. He said:
“It has taken us a long time to understand that poverty is multidimensional – that it is a complex phenomenon, and must be confronted with different tools and from different angles.”
He also showed how the Global MPI can be used to compare poverty in Honduras with situations in Asia and the Arab States. He said:
“This ability to differentiate between countries and regions using the MPI shows us the territorial imbalances that we must break.”
H.E. Mr. Kenny Anthony, Prime Minister of Saint Lucia who spoke about the particular challenges of the hidden, forgotten and isolated poor among small island developing states, drew out the potential of joining together efforts to fight poverty and to strike out environmental threats within the SDGs. He said that
“A Global MPI helps us know and understand poverty better, allows us to compare clearer, and gives us a stronger platform to remove the scourge of poverty from the human family.”
Of the new global development agenda he said:
“Lifting people out of poverty means uplifting the entire human experience. Target 1.2 of our new Sustainable Development Goals affirms this and promotes efforts for a Global Multidimensional Poverty Index.”
The further contributions from senior representatives of governments who have adopted or are establishing official national MPIs showed the energy, vitality and rapid pace of growth in this emerging area of poverty measurement. The meeting agenda shows the diversity of participants from around the world.
Towards a Multidimensional Poverty Index for Germany
Added on September 22, 2015
A new study published in the OPHI working paper series proposes a multidimensional poverty index (MPI) for Germany to reveal the overlapping disadvantages poor people can face across different areas of life.
Nicolai Suppa from the Technical University of Dortmund constructed an MPI using German data from 2001-02, 2006-07 and 2011-12. Based on the Alkire Foster method, his MPI for Germany incorporates six dimensions of poverty:
social participation; and
His analysis of the MPI revealed substantive differences in the prevalence of multidimensional poverty among different groups of the population and in different areas of the country. For example, people living by themselves tended to experience more poverty than those living in a couple, regardless of children in the household. Similarly, people with fathers who had limited education or where their education was unknown were associated with higher multidimensional poverty.
There were also significant differences in the dimensions that contributed most to poverty among different groups of people. For people with a background of migration, the dimensions of material deprivation and housing contributed relatively more to multidimensional poverty, while health contributed less. The relative contributions of deprivations in social participation and health increased with age, while the roles of housing and material deprivation decreased.
The study also looked at changes in multidimensional poverty over time and suggests that the overall increase in multidimensional poverty from 2001/02 to 2006/07 was due to deprivations in employment and material deprivation. Similarly, indicators for education and unemployment played a crucial role in reducing multidimensional poverty during the second half of the decade.
Changes in multidimensional poverty over time varied for different groups of the population. For example, the findings showed that migrants experienced a stronger increase in multidimensional poverty than non-migrants during the first half of the decade and a greater decrease during the second half. This decrease resulted in a reduced poverty gap between migrants and non-migrants by 2011/12. There were also variations in the way poverty changed over time among different age groups.
Overall, using data from 2011/2012, the study found that 8% of people in Germany lived in multidimensional poverty, compared to 5% who were income poor. The author highlights the discrepancy between multidimensional and income poverty measures in showing who is poor, emphasising that the choice of measure can make a difference to targeting poverty-reduction initiatives.
Blog: Income and Multidimensional Poverty – Fighting poverty in all its dimensions
Added on September 22, 2015
The way we define poverty has changed. At the Sustainable Development Summit on 25-27 September 2015, the UN will formally adopt a new sustainable development agenda that will include a goal to end poverty in all its forms everywhere. The new goals officially recognise that poverty is more than a lack of money. This is a significant turning point that brings us closer to understanding the true extent of poverty – and a crucial step towards fighting it.
With 17 Sustainable Development Goals (SDGs) finalised, attention will now turn to how they will be measured, and how to use new measures to improve governance. And fortunately governments have some experience on how this can be done. Later this month at a high-level side event during the Sustainable Development Summit, leaders and ministers from governments around the world will underline their experience with a Multidimensional Poverty Index at the national level, used to complement the traditional income measure. The Presidents of Costa Rica, Ecuador and Honduras and the Prime Ministers of Bhutan and Saint Lucia, and senior ministers from Chile, Colombia, Mexico, and the Philippines, are among those who will argue, based on their experience, for a Global Multidimensional Poverty Index (MPI) to be embedded in the new development framework as a measure of target 1.2 – to reduce at least by half the proportion of men, women and children of all ages living in poverty in all its dimensions by 2030. Such a global indicator to measure progress towards poverty reduction would complement MPIs at the national level.
A new Global MPI would build on the current Global MPI that has been published by the UN Development Programme’s Human Development Report Office since 2010, developed with and calculated by the Oxford Poverty & Human Development Initiative (OPHI), a research centre at the University of Oxford. It complements traditional measures of income poverty by combining different indicators of deprivation such as poor sanitation, malnutrition, unsafe water, poor quality housing and lack of education. According to the latest updates of the Global MPI, released in June this year and covering 101 developing countries, 1.6 billion people are living in multidimensional poverty around the world.
An improved Global MPI for the SDGs (the MPI 2015+) would draw together SDG indicators and help us gain an even richer picture of the true reality of poverty.
The side event is organised by the government of Costa Rica with the support of the Multidimensional Poverty Peer Network (MPPN), a group of 40 governments that is championing the use of multidimensional poverty measures alongside traditional income measures at both the national and global levels. These governments also include China, Nigeria, Senegal, South Africa and Vietnam, among many others.
With such diverse nations committed to multidimensional poverty measurement in the SDGs, the Global MPI 2015+ can be complemented by countries’ national MPIs – as is already occurring. Using indicators of poverty relevant to their own specific contexts, the governments of Bhutan, Colombia, Chile, Malaysia and Mexico, as well as the state government of Minas Gerais in Brazil and Ho Chi Minh City in Vietnam, have already launched such measures. Many others – including Pakistan, Philippines, Ecuador, El Salvador, Costa Rica, Tunisia and Vietnam – are in the process of developing theirs.
Global and national MPIs drive forward the emphasis on leaving no one behind because they can be disaggregated by states or provinces, and by other groups. They incentivise synergistic and integrated policies because they show which deprivations affect people at the same time. By identifying how and where people are poor, multidimensional poverty measures enable governments to allocate resources, and design targeted and integrated policy interventions more effectively. People’s lives are complex and we need to take a joined up approach to fighting poverty.
Poverty goes beyond income – by next week that will be official. Now we must equip governments at the national level and the global community with the most effective tools for fighting it. National MPIs and a Global Multidimensional Poverty Index for the SDGs can complement income poverty measures and help energise a coordinated, effective and multi-sectoral attack on poverty in all its dimensions, driving forward real social change.
Sabina Alkire is Director of the Oxford Poverty & Human Development Initiative (OPHI), University of Oxford and the Oliver T. Carr Professor and Professor of Economics and International Affairs at George Washington University.
Vietnam moves to multidimensional approach to poverty reduction
Added on September 21, 2015
Vietnam will move from one-dimensional poverty measurement to a multidimensional approach with a new programme approved by the Prime Minister for 2016-2020.
The country will adopt a national measure of multidimensional poverty, based on OPHI’s Alkire-Foster method, which will show the disadvantages poor people face across five different areas:
access to education and healthcare;
access to information; and
access to insurance and social assistance.
Households that cannot meet over a third of their basic needs in these areas will be identified as multidimensionally poor, while those lacking more than half will be considered critically poor.
The new measure can be broken down to reveal what poverty is like in specific areas of the country and among different communities, helping policymakers to target their resources effectively and implement coordinated poverty-reduction initiatives.
In December 2014, Ho Chi Minh City in Vietnam launched the first city-wide multidimensional poverty index. The measure revealed significant differences between income and multidimensional poverty. While only 0.1% of the city’s population lives below Vietnam’s national income poverty line, the MPI shows that 11.35% of people are multidimensionally poor.
The governments of Bhutan, Colombia, Chile, Malaysia and Mexico, as well as the state government of Minas Gerais in Brazil, have also already launched official multidimensional poverty measures using indicators of poverty relevant to their own specific contexts. Many others – including Pakistan, Philippines, Ecuador, El Salvador, Costa Rica and Tunisia – are in the process of developing such measures.
Find out more about the Multidimensional Poverty Peer Network, a group of over 40 countries and institutions that support the use of multidimensional poverty measures alongside traditional measures of income poverty at both the global and national levels.
Researchers from OPHI and George Washington University used the Relative Autonomy Index (RAI) to assess men’s and women’s motivational autonomy in the Republic of Chad across eight different domains of life, including household activities such as cleaning or doing laundry, making major household purchases, participating in groups, and employment. The RAI directly measures the extent to which a person’s motivation for his or her behaviour in a specific domain, or aspect of life, is autonomous as opposed to controlled.
Using a nationally representative dataset, the study found that women in Chad on average had less autonomous motivation in all eight domains compared to their male counterparts.
The researchers also investigated the relationship between women’s autonomy and breastfeeding. They found that motivational autonomy at the community-level was associated with likelihood of exclusive breastfeeding in the first six months of a child’s life. Women that live in clusters where other women have higher autonomy in household activities were on average more likely to exclusively breastfeed their children than women that live in more coerced environments.
In comparison, there was no significant positive association between breastfeeding and motivational autonomy at the individual level. The researchers suggest this indicates that in the Republic of Chad, motivational autonomy might work through mechanisms at the community rather than the individual level.
On average across the country, the prevalence of exclusive breastfeeding for the first six months of a child’s life was 38.4%.
The study also explores the correlation between autonomy and indicators of psychological and subjective wellbeing. It found that relative autonomy was weakly correlated with psychological wellbeing, but had no clear relationship with subjective wellbeing – it was even negatively correlated with the indicators of overall life satisfaction and happiness.
Applications invited for OPHI Training Course in Dakar, in collaboration with SESRIC and ISFD
Added on September 10, 2015
OPHI, in collaboration with the Statistical, Economic and Social Research and Training Centre for Islamic Countries (SESRIC) and the Islamic Solidarity Fund for Development (ISFD), is inviting applications for a training course in Multidimensional Poverty Measurement that will be hosted in Dakar, Senegal.
The course will be taught in English, but will have simultaneous translation into French and Arabic.
The course will take place from 30 November-6 December, 2015. The purpose of this intensive training is to provide a thorough conceptual and technical introduction to some techniques of measuring multidimensional poverty with a strong emphasis on the Alkire Foster method. The empirical motivation for measuring multidimensional poverty will be presented as well as the conceptual motivation, drawing on Amartya Sen’s capability approach.
Applicants are warmly invited to apply by completing the application form which is available by clicking HERE. The closing date for applications is 25 September 2015, and participants will be informed of selection from 30 September.
**N.B. please forward all relevant attachments to email@example.com
More details on the course and a draft agenda are available here. Any further enquiries can be directed to Julia Zulver (firstname.lastname@example.org).
The training courses is addressed to those who are working on, or actively interested in gaining skills in, multidimensional poverty measurement, particularly, professionals, government officials, academics, and post-graduate students. Other applicants having a demonstrated research interest in empirical analysis in these topics will be considered on the basis of their experience and space availability.
A demonstrable knowledge of STATA is an absolute pre-requisite for attending the course. Every attendant to the training course will need to have STATA 10 or higher installed in his/her laptop. The software is not provided by the organizers
Where possible, participants should have a strong knowledge in quantitative methods (e.g. econometrics, statistics, etc), and a strong interest in poverty measurement and analysis.
UNGA high-level side event: Anchoring a Global Multidimensional Poverty Index within the SDGs
Added on September 9, 2015
High-level side event at the UN General Assembly, New York
27 September 2015,Conference Room 3 (CR3), 1:15-2:45 pm
At this critical juncture in the process of finalising how the Sustainable Development Goals (SDGs) will be measured, this event will show the importance of embedding a multidimensional measure of poverty within the new framework. Specifically, it will stress how a global Multidimensional Poverty Index (MPI), as a core (tier one) indicator within the SDGs, can energise a coordinated, effective and multi-sectoral attack on poverty in all its dimensions (and thus help to measure Target 1.2 of the SDGs).
Distinguished speakers at the event include:
H. E. Mr. Luis Guillermo Solís Rivera, President of Costa Rica
H. E. Mr. Tshering Tobgay, Prime Minister of Bhutan
H. E. Mr. Juan Orlando Hernández, President of Honduras
H.E. Mr. Kenny Anthony, Prime Minister of Saint Lucia
H. E. Rafael Correa, President of Ecuador (tbc)
H. E. Mr. Wu Hongbo, Under-Secretary-General for Economic and Social Affairs, United Nations
Tatyana Orozco de la Cruz, Director of the Department for Social Prosperity of Colombia
Marcos Barraza Gómez, Minister of Social Development of Chile
H. E. Dr. Arsenio Balisacan, Socioeconomic Planning Secretary of the Philippines
Dr. Savas Alpay, Chief Economist of the Islamic Development Bank
The event is organised by the Republic of Costa Rica with the support of the Multidimensional Poverty Peer Network (MPPN), of which OPHI acts as Secretariat. The MPPN is a South-South network of more than 40 governments and institutions that is championing the use of multidimensional poverty measures alongside traditional income measures at both the national and global levels. These governments include China, Colombia, Costa Rica, Mexico, Nigeria, Senegal, South Africa and Vietnam among many others.
The diverse participants within the MPPN endorse the use of the global MPI for the SDGs and the use of national, regional and sub-national MPIs as a powerful policy tools for enhanced poverty reduction, with the ability to illuminate the state and progress of marginalised groups.
For more information or to RSVP please email email@example.com.Please note that security for the event will be tight as the event is taking place during the Summit to Adopt the SDGs. Please be advised that attendance must be confirmed by Thursday 24 September. All attendees must provide their full first name and surname. Further details and security screening will be given after your confirmation. Please note that even those participants with a UN Ground Pass need to be included in the attendance list.
Director of OPHI Sabina Alkire is interviewed in the International Monetary Fund’s Survey Magazine podcast series.
The podcast explores how the Multidimensional Poverty Index reflects the overlapping disadvantages poor people can experience at the same time, highlighting how it can be used to inform more effective poverty-reduction strategies.
Sustainable Development Agenda to include goal on multidimensional poverty
Added on August 13, 2015
Goal 1 of the Sustainable Development Goals proposes to reduce poverty in all its dimensions
A goal to reduce multidimensional poverty has been accepted as part of the sustainable development agenda to be adopted by the UN in September 2015. 193 governments announced their consensus on the agenda on Sunday 2 August. Their shared vision for the future of sustainable development, which includes 17 goals and 169 targets, is described in the document “Transforming our world: the 2030 agenda for sustainable development”.
The declaration of the 193 countries reads:
“We recognise that eradicating poverty in all its forms and dimensions, including extreme poverty, is the greatest global challenge and an indispensable requirement for sustainable development”.
“We are determined to end poverty and hunger, in all their forms and dimensions, and to ensure that all human beings can fulfil their potential in dignity and equality and in a healthy environment”.
Goal 1. End poverty in all its forms everywhere
Goal 1.2. By 2030, reduce at least by half the proportion of men, women and children of all ages living in poverty in all its dimensions according to national definitions.
The Global MPI 2015+ would reflect the overlapping disadvantages that each poor person experiences at the same time – this could include, for example, poor sanitation, malnutrition, gender discrimination, poor quality of work, or violence. It could be broken down to show what poverty is like in different areas of a country, or among different groups of the population, enabling governments to better target their resources and combat poverty more effectively.
Disparities between monetary and multidimensional poverty: Evidence from Vietnam
Added on August 11, 2015
People who are poor according to monetary poverty measures are not always multidimensionally poor, a new study published in the OPHI working paper series has found.
The researchers used panel household survey data in Vietnam from 2007, 2008 and 2010 to analyse the prevalence and dynamics of both multidimensional and monetary poverty. Using the Multidimensional Poverty Index (MPI), a measure of poverty that accounts for multiple deprivations experienced by the poor across health, education and living standards, they compared the level of multidimensional poverty in Vietnam with the level of monetary poverty (set at the cut-off of $1.67 a day).
Their findings revealed that among those who are monetary poor (16.3% of the population), only a third are also multidimensionally poor (5.5% of the population).
The results show a large disparity between monetary and multidimensional measures of poverty, including variation across different groups of the population depending on households’ characteristics and their access to markets. Those who have better access to markets and public services benefit more from economic growth and are more likely to see a decline in monetary poverty, while their performance in the multidimensional measure is less impressive.
The authors note that this implies the results of economic growth are transferred more directly to the reduction in income poverty during the early years of development. They argue that the increase in income is necessary but not sufficient for the improvements in other indicators of poverty, which usually require a longer amount of time and additional efforts.
The study found that people from a less educated background, for example where the head of the household has no schooling or primary education only, are more likely to be poor according to both the monetary and multidimensional measures of poverty. They also experience a higher intensity of poverty.
The research also revealed a greater decrease in monetary poverty than multidimensional poverty over time. In particular, the poor made faster progress but with more fluctuations in monetary rather than multidimensional poverty. Conversely, the non-poor experienced more fluctuations and download mobility in indicators of multidimensional poverty.
The researchers emphasise that poverty reduction policies should pay explicit attention to improving non-income indicators of poverty, which have shown slower progress.
OPHI research reveals significant changes in multidimensional poverty over time
Added on August 4, 2015
Multidimensional poverty levels have significantly decreased in recent years, a new study from the Oxford Poverty & Human Development Initiative (OPHI) suggests.
The researchers analysed figures from the Global Multidimensional Poverty Index (MPI), an internationally comparable measure of acute poverty in over 100 developing countries that reflects the overlapping disadvantages poor people can face across different areas of their lives.
Their analysis focused on 34 countries, covering 2.5 billion people or 37% of the world’s population, where comparable data is available across time. Data ranges from 1998/9 to 2012, and the time period for each country ranges between 2 and 12 years depending on the frequency of data collection.
The findings revealed that 31 out of the 34 countries analysed significantly reduced multidimensional poverty over two or three time periods. Nepal, Rwanda, Ghana, and Tanzania were the best performers in reducing MPI overall, while Armenia, the Dominican Republic and Bolivia saw the fastest poverty reductions in relative terms. 28 of the 34 countries analysed also reduced extreme poverty – destitution.
The researchers looked at changes in both the incidence of poverty and the intensity of poverty that poor people experience. They found that most countries reduced poverty relatively through a decrease in incidence – the percentage of people who are multidimensionally poor. In Ethiopia and Niger, however, the MPI was mainly reduced by a decrease in the intensity of deprivation among the poor.
The results showed significant changes in all of the ten poverty indicators that make up the Global MPI. Deprivation in nutrition reduced the most in Sub-Saharan Africa and Latin America & the Caribbean, while education indicators reduced most in South Asia.
The researchers also looked at changes in poverty in 338 regions within 31 of the countries analysed, as well as among ethnic groups in 3 countries. In total, 208 regions, representing 78% of the sample, showed a statistically significant reduction in MPI. In 9 out of the 31 countries, the poorest region experienced the fasted reduction.
Among ethnic groups, poverty reduced more slowly in Benin, leading to an increase in inequality among the poor. In Ghana, poverty among ethnic groups reduced at a similar rate, while Kenya’s MPI reduction greatly decreased disparities between ethnic groups.
In addition, the study revealed that the relationships between the pace of multidimensional poverty reduction and the decrease in the number of people living on less than £1.25 a day were variable, suggesting that both multidimensional and monetary poverty measures merit separate analysis.
Roughly 54 per cent of the world’s population now lives in cities, with Asia and Africa urbanizing faster than other regions. Urbanization is generally seen as a route to rising prosperity and better living standards. But critical researchers likeDavid Sattherthwaite and Diana Mitlin argue that standard ways of measuring poverty underplays its significant scale.
The risks? Without a complete understanding of the nature and scope of urban poverty, policymakers may fail to prioritize and worse still, lack the tools to tackle it. This, even as more and more people move to cities in search of jobs, better schools for their children, more security and better public services among a laundry list of benefits conflated with life in the cities.
Since 2009, the United Nations Development Programme has worked with Viet Nam’s Ho Chi Minh City authorities to assess poverty using theMulti-Dimensional Poverty Index (MPI)a lens that is less susceptible to the shortcomings that more traditional yardsticks are riddled with.
Developed by the globally-acclaimed poverty gurusSabina Alkire and James Foster,the MPI allows us to measure the extent and intensity of poverty by unpacking the deprivations that manifest themselves to make an individual or family ‘poor’ (e.g. health, education, and living standards), rather by looking simply at amount of money households earn or spend.
Although the MPI was not designed specifically for urban contexts, the city officials worked to identify indicators that reflected the challenges faced by residents. They added two new dimensions — Access to Information, and Employment and Social Insurance — and employed 11 urban-focused indicators.
And here’s what we are learning:
1.Povertyis much more prevalent in urban areas than generally acknowledged. Many more residents of HCMC qualify as “poor” when viewed from a multi-dimensional lens (approximately 16%), than when applying the official income poverty line (almost 0%). This tells us that whilst urban residents may have higher incomes than others, they still lack basic requirements — and higher income alone does not always equate to a higher quality of life.
2.Incomealone is not a good indicator of poverty. In HCMC, there is very little overlap between the group that is income poor and the group that is multi-dimensional poor. This suggests that a uni-dimensional approach (like income or consumption) often conceals the serious deprivations faced by households.
3.Urbanpoverty is characterized by different patterns and scopes of deprivations: Lack of health insurance and vocational training are the most significant factors contributing to poverty across HCMC’s population. Types and scopes of deprivations vary among resident groups and locations. Within the city’s boundaries, rural people are more deprived than urban people in general, and more deprived in access to safe water and health insurance in particular. Although the deprivation in safe water is significant for HCMC as a whole, this deprivation is not an issue for some districts. Even within one district, the situation varies between city wards.
4. In urban areas,migrantsare generally multi-dimensionally poorer than other residents: The surveys carried out as part of our work were the first official poverty assessments in HCMC to include migrants in their sample. By incorporating these populations, we could confirm that they indeed suffer a higher rate of poverty than permanent residents. Global research suggests they suffer most acutely due to the inaccessibility of services, in spite of the fact that they often have higher incomes than permanent residents.
The HCMC case shows us that it is both necessary and possible to shine a greater light on the conditions of urban poverty. What we’re able to see, however, depends on what tools we use. The MPI has the potential to be adapted and adopted by city stakeholders for use from everything from assessing whether the government’s policies are benefitting the poor, to identifying which households to select for targeted assistance.
Making invisible urban poverty visible will be the first step towards tackling it, in building more inclusive, sustainable societies.
It highlights how the Global MPI can be broken down to reveal which regions and groups are poorest, and which are reducing poverty the fastest, providing a detailed map that enables policymakers to target resources and initiatives effectively.