Multidimensional Poverty in India
Source: UNDP
GS II (Policies and Developmental Studies): Issues relating to the development and management of Social Sector/Services relating to Health, Education, Human Resources
Overview
- News in Brief
- About Multidimensional Poverty in India
Why in the News?
With the pursuit of ‘Sabka ka Saath’ in these 10 years, the Government has assisted 25 crore people to get freedom from multidimensional poverty.
News in Brief
- In her Interim Budget speech, Finance Minister Nirmala Sitharaman said 25 crore Indians had been pulled out of poverty over the past decade.
- This number appeared in a discussion paper, Multidimensional Poverty in India Since 2005-06, published by NITI Aayog on Jan 15.
- The paper was written by Ramesh Chand, Member, NITI Aayog, and Yogesh Suri, Senior Adviser, NITI Aayog, with technical inputs from the United Nations Development Programme (UNDP) and the Oxford Policy and Human Development Initiative (OPHI).
India’s National MPI is a contribution towards measuring progress for target 1.2 of the Sustainable Development Goals (SDGs) that aims to 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” by 2030.
About Multidimensional Poverty in India
- Multidimensional Poverty Index (MPI), developed by Sabina Alkire and James Foster, was adopted by the United Nations Development Programme (UNDP) in their Human Development Report.
- It captures overlapping deprivations in health, education and living standards (UNDP, 2010).
- NITI Aayog in collaboration with the United Nations Development Programme (UNDP), and the Oxford Poverty and Human Development Initiative (OPHI) developed the National Multidimensional Poverty Index (MPI).
What is Multi-Dimensional Poverty?
- Multidimensional poverty in India refers to a condition where individuals or households experience deprivation across multiple dimensions of well-being, such as health, education, living standards, and access to basic services.
- Unlike traditional measures of poverty that focus solely on income or consumption levels, multidimensional poverty indices take into account various factors that contribute to poverty and deprivation.
Globally, the MPI uses 10 indicators covering three main areas: (i) health, (ii) education, and (iii) standard of living.
- Health dimension includes nutrition and child & adolescent mortality indicators.
- Education dimension includes years of schooling and school attendance indicators.
- Standard of living dimension includes six household-specific indicators: housing, household assets, type of cooking fuel, access to sanitation, drinking water, and electricity.
- Factors contributing to multidimensional poverty in India include
- Healthcare: Limited access to healthcare services, high infant mortality rates, malnutrition, and prevalence of diseases contribute to multidimensional poverty.
- Education: Despite efforts to improve access to education, disparities in educational attainment persist, particularly in rural areas and among marginalized communities. Lack of quality education perpetuates intergenerational poverty.
- Living standards: Inadequate housing, lack of access to clean water and sanitation facilities, and poor infrastructure in many parts of the country contribute to multidimensional poverty.
- Employment and Livelihoods: Unemployment, underemployment, and informal employment with low wages are widespread, particularly in rural areas. Lack of decent work opportunities contributes to poverty and vulnerability.
- Social Exclusion: Marginalized groups such as Dalits, Adivasis, women, and religious minorities face discrimination and exclusion, limiting their access to resources and opportunities.
- Environmental Factors: Climate change, environmental degradation, and natural disasters exacerbate poverty, particularly in vulnerable communities reliant on agriculture and natural resources for their livelihoods.
What are the findings of Multidimensional Poverty in India?
- The steep decline in poverty headcount ratio from 24.85% in 2015-16 to 14.96% in 2019-21.
- In numbers 13.5 crore people out of multidimensional poverty.
- The fastest decline of multidimensional poverty in rural areas declined from 32.59% in 2015-16 to 19.28% in 2019-21.
- Reduction in the incidents of poverty in Urban areas from 8.65% in 2015-16 to 5.27% in 2019-21.
- The Intensity of poverty, which measures average deprivation among people living in multidimensional poverty, reduced from 47.14% to 44.39% during the survey period 2015-16 (NFHS-4) and 2019-21 (NFHS-5).
- Bihar, with 33.76%, followed by Jharkhand with 28.81%, and Meghalaya with 27.79% are the states with the highest proportion of the population experiencing multidimensional poverty.
- UP, Bihar, MP, and Odisha recorded the steepest decline in number of MPI Poor.
About United Nations Development Programme (UNDP)
The United Nations Development Programme (UNDP) is the UN’s global development network. It works in about 170 countries and territories, helping to eradicate poverty, reduce inequalities, and build resilience so that communities and countries can sustain progress.
UNDP’s Function
- Poverty Reduction: UNDP supports countries in developing and implementing strategies to reduce poverty through sustainable and inclusive development approaches.
- Sustainable Development Goals (SDGs): UNDP plays a crucial role in supporting countries in achieving the Sustainable Development Goals (SDGs), which aim to address various global challenges, including poverty, inequality, climate change, and peace and justice.
- Governance and Rule of Law: UNDP works to strengthen governance structures, promote the rule of law, and build accountable institutions to ensure inclusive and equitable development outcomes.
- Climate Change and Environmental Sustainability: UNDP supports countries in addressing climate change impacts, building resilience to natural disasters, and promoting sustainable management of natural resources.
- Gender Equality and Women’s Empowerment: UNDP promotes gender equality and women’s empowerment by supporting initiatives that address gender-based discrimination, promote women’s participation in decision-making processes, and ensure equal access to resources and opportunities.
- Crisis Response and Recovery: UNDP provides support to countries affected by conflicts, disasters, and other crises, helping them to recover and rebuild resilient societies.
- Innovation and Partnerships: UNDP promotes innovation and partnerships to find sustainable solutions to development challenges, working with governments, civil society, the private sector, and other stakeholders.
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