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Moderate Multidimensional Poverty Index: Paving the Way Out of Poverty.

Sabina Alkire¹, Fanni Kövesdi¹, Elina Scheja²

¹Oxford Poverty and Human Development Initiative (OPHI), Department of International Development, University of Oxford, Oxford, UK.

Social Indicators Research

|June 26, 2023

Summary

A new Moderate Multidimensional Poverty Index (MMPI) offers a broader view of poverty beyond acute deprivation. This index helps identify hidden poverty aspects and aligns with global development goals.

Keywords:

Capability approach Intrahousehold inequality Middle-income countries Multidimensional poverty Poverty measurement Sustainable development goals

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Area of Science:

Socioeconomic indicators
Poverty measurement
Sustainable Development Goals

Background:

Existing poverty metrics often focus solely on acute deprivation.
Eradicating poverty requires understanding sustainable pathways out of poverty.
There is a need for poverty indicators that reflect moderate and higher levels of deprivation.

Purpose of the Study:

Introduce a trial Moderate Multidimensional Poverty Index (MMPI).
Develop a measure reflecting moderate multidimensional poverty.
Create a meaningful superset of the acutely poor population.

Main Methods:

Adjusted nine indicators of the global Multidimensional Poverty Index (MPI).
Empirically illustrated using nationally representative household surveys from six countries.
Developed a methodology for a moderate poverty measure.

Main Results:

Confirmed the added value of three nested measures: destitution, acute, and moderate poverty.
The MMPI provides insights into intrahousehold deprivations, such as in education.
Demonstrated informative differences between MMPI and monetary poverty measures.

Conclusions:

The Moderate MPI is a desirable global poverty index.
It illuminates previously hidden aspects of multidimensional poverty.
Further country-level studies are needed to finalize the MMPI structure due to data constraints.