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45-586: The Global Multidimensional Poverty Index ( MPI ) was developed in 2010 by the Oxford Poverty & Human Development Initiative (OPHI) and the United Nations Development Programme and uses health, education and standard of living indicators to determine the incidence and intensity of poverty experienced by a population. It has since been used to measure acute poverty across over 100 developing countries. The Global MPI

90-576: A country's development status. They conclude that 11%, 21% and 34% of all countries can be interpreted as currently misclassified in the development bins due to the three sources of data error, respectively. Wolff, Chong and Auffhammer suggest that the United Nations should discontinue the practice of classifying countries into development bins because the cut-off values seem arbitrary, and the classifications can provide incentives for strategic behavior in reporting official statistics, as well as having

135-468: A given 'cutoff' (e.g. having at least one adult member with at least six years of education). A household is assigned a 'deprivation score' determined by the number of indicators they are deprived in and the 'weights' assigned to those indicators. Each dimension (health, education, standard of living, etc.) is typically given an equal weighting, and each indicator within the dimension is also typically weighted equally. If this household deprivation score exceeds

180-457: A given threshold (e.g. 1/3) then a household is considered to be 'multiply deprived', or simply 'poor'. The final 'MPI score' (or 'Adjusted Headcount Ratio') is determined by the proportion of households deemed 'poor', multiplied by the average deprivation score of 'poor' households. MPI advocates state that the method can be used to create a comprehensive picture of people living in poverty, and permits comparisons both across countries, regions and

225-738: A group of poor people who suffer two deprivations on average and a group of poor people who suffer five deprivations on average at the same time. Country X consists of persons A, B and C. The following table shows the deprivation on each of the 10 indicators for persons A, B and C. "0%" indicates no deprivation in that indicator, while "100%" indicates deprivation in that indicator. Factor H for country X is: 1 + 1 + 0 3 = 0.667 {\displaystyle {\frac {1+1+0}{3}}=0.667} Factor A for country X is: 33.33 % + 50.00 % 2 = 0.417 {\displaystyle {\frac {33.33\%+50.00\%}{2}}=0.417} Thus,

270-559: A guide to policy, better data are needed. OPHI promotes collection and analysis of data on five 'missing dimensions' of poverty: To date, these dimensions have been largely overlooked in large-scale quantitative work on poverty and human development. OPHI has designed five 8-10 minute questionnaire modules that can be integrated into national household surveys to obtain these data. The following criteria were used to identify suitable indicators for inclusion in individual or household surveys. OPHI has ongoing collaboration with teams around

315-435: A headcount and also a unique class of poverty measures (Mα): M0: An 'adjusted head count'. This reflects both the incidence (the percentage of the population who are poor) and intensity of poverty (the number of deprivations suffered by each household, A). It is calculated by multiplying the proportion of people who are poor by the percentage of dimensions in which they are deprived (M0 = H x A). M1: This measure reflects

360-551: A methodology for measuring multidimensional poverty known as the Alkire Foster (AF) method . OPHI researchers apply the AF method and related multidimensional measures to a range of different countries and contexts . Their analyses span a number of different topics, such as changes in multidimensional poverty over time, comparisons in rural and urban poverty, and inequality among the poor. Sabina Alkire and James Foster created

405-439: A new method for measuring multidimensional poverty. It includes identifying 'who is poor' by considering the range of deprivations they suffer, and aggregating that information to reflect societal poverty in a way that is robust and decomposable. Contemporary methods of measuring poverty and wellbeing commonly generate a statistic for the percentage of the population who are poor, a head count (H). The Alkire Foster Method generates

450-530: A number of grounds, including focusing exclusively on national performance and ranking, lack of attention to development from a global perspective, measurement error of the underlying statistics, and on the UNDP's changes in formula which can lead to severe misclassification of "low", "medium", "high" or "very high" human development countries. There have also been various criticism towards the lack of consideration regarding sustainability (which later got addressed by

495-691: A person is deprived in at least one third of the weighted Multidimensional Poverty Index (MPI) indicators, globally, they are considered multidimensionally poor. Money alone is an incomplete measure of 'poverty'. Human development is more about giving people the opportunities to live lives they value, and enable them to achieve their own destiny. This goes beyond material resources – as people value many other aspects of life – and also focuses on what people are able to be and to do. OPHI has identified five 'Missing Dimensions' of poverty that deprived people cite as important in their experiences of poverty. To call attention to these 'missing dimensions', and to use them as

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540-500: A person with fewer than five years of education is considered deprived). The Alkire Foster method is a single societal poverty measure, but it can be broken down and analysed in a powerful way to inform policy. It can be used to: Human Development Index This is an accepted version of this page The Human Development Index ( HDI ) is a statistical composite index of life expectancy , education (mean years of schooling completed and expected years of schooling upon entering

585-569: A separate version of the HDI named the IHDI ( Inequality-adjusted HDI ). While both the HDI and the MPI use the three broad dimensions health , education and standard of living , the HDI uses indicators at the aggregate level while the MPI uses microdata and all indicators must come from the same survey. This, among other reasons, has led to the MPI only being calculated for just over 100 countries, where data

630-660: Is an economic research centre within the Oxford Department of International Development at the University of Oxford , England , that was established in 2007. The centre was established in 2007. In 2010, OPHI developed the Multidimensional Poverty Index for the United Nations Development Programme 's Human Development Report . Since then OPHI has published a Global Multidimensional Poverty Index (MPI) annually. OPHI also serves as

675-473: Is available for all these diverse indicators, while HDI is calculated for almost all countries. However, though HDI is thus more universally applicable, its relative sparsity of indicators also makes it more susceptible to bias. Indeed, some studies have found it to be somewhat biased towards GDP per capita (GDPpc), as demonstrated by a high correlation between HDI and the log of GDPpc. Hence, HDI has been criticized for ignoring other development parameters. Both

720-412: Is considered central — someone choosing to be hungry (e.g. when fasting for religious reasons ) is considered different from someone who is hungry because they cannot afford to buy food, or because the country is going through a famine . The index does not take into account several factors, such as the net wealth per capita or the relative quality of goods in a country. This situation tends to lower

765-465: Is grounded in Amartya Sen 's capability approach. OPHI works to implement this approach by creating real tools that inform policies to reduce poverty. OPHI's team members are involved in a wide range of activities and collaborations around the world, including survey design and testing, quantitative and qualitative data collection, training and mentoring, and advising policy makers. As per OPHI, if

810-653: Is released annually by UNDP and OPHI and the results are published on their websites. The MPI is published along with the Human Development Index (HDI) in the Human Development Report . It replaced the Human Poverty Index . Multidimensional Poverty Indices typically use the household as their unit of analysis, though this is not an absolute requirement. A household is deprived for a given indicator if they fail to satisfy

855-617: Is the year when the report was published. The HDI has extended its geographical coverage: David Hastings, of the United Nations Economic and Social Commission for Asia and the Pacific , published a report geographically extending the HDI to 230+ economies, whereas the UNDP HDI for 2009 enumerates 182 economies and coverage for the 2010 HDI dropped to 169 countries. The Human Development Index has been criticized on

900-406: Is unique in that it can distinguish between, for example, a group of poor people who suffer only one deprivation on average and a group of poor people who suffer three deprivations on average at the same time. This flexible approach can be employed in a variety of situations by choosing different dimensions (e.g. education), indicators (e.g. how many years of education a person has) and cutoffs (e.g.

945-410: The United Nations Development Programme (UNDP)'s Human Development Report Office. The 2010 Human Development Report introduced an inequality-adjusted Human Development Index (IHDI). While the simple HDI remains useful, it stated that "the IHDI is the actual level of human development (accounting for this inequality ), while the HDI can be viewed as an index of 'potential' human development (or

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990-414: The education system ), and per capita income indicators, which is used to rank countries into four tiers of human development . A country scores a higher level of HDI when the lifespan is higher, the education level is higher, and the gross national income GNI (PPP) per capita is higher. It was developed by Pakistani economist Mahbub ul-Haq and was further used to measure a country's development by

1035-481: The lowest and highest values the variable x {\displaystyle x} can attain, respectively. The Human Development Index (HDI) then represents the uniformly weighted sum with 1 ⁄ 3 contributed by each of the following factor indices: The Human Development Report 2023/24 by the United Nations Development Programme was released on 13 March 2024; the report calculates HDI values based on data collected in 2022. Ranked from 1 to 69 in

1080-488: The planetary pressures-adjusted HDI ), social inequality (which got addressed by the inequality-adjusted HDI ), unemployment or democracy . Economists Hendrik Wolff, Howard Chong and Maximilian Auffhammer discuss the HDI from the perspective of data error in the underlying health, education and income statistics used to construct the HDI. They have identified three sources of data error which are: (i) data updating, (ii) formula revisions and (iii) thresholds to classify

1125-1222: The 2010 Human Development Report calculated the HDI combining three dimensions: In its 2010 Human Development Report, the UNDP began using a new method of calculating the HDI. The following three indices are used: 1. Life Expectancy Index (LEI) = LE − 20 85 − 20 = LE − 20 65 {\displaystyle ={\frac {{\textrm {LE}}-20}{85-20}}={\frac {{\textrm {LE}}-20}{65}}} 2. Education Index (EI) = MYSI + EYSI 2 {\displaystyle ={\frac {{\textrm {MYSI}}+{\textrm {EYSI}}}{2}}} 3. Income Index (II) = ln ⁡ ( GNIpc ) − ln ⁡ ( 100 ) ln ⁡ ( 75 , 000 ) − ln ⁡ ( 100 ) = ln ⁡ ( GNIpc ) − ln ⁡ ( 100 ) ln ⁡ ( 750 ) {\displaystyle ={\frac {\ln({\textrm {GNIpc}})-\ln(100)}{\ln(75,000)-\ln(100)}}={\frac {\ln({\textrm {GNIpc}})-\ln(100)}{\ln(750)}}} Finally,

1170-632: The HDI and the MPI have been criticized by economists such as Ratan Lal Basu for not taking the "moral/emotional/spiritual dimensions" of poverty into consideration. It has been attempted to capture these additional factors in the "Global Happiness Index". According to reports, the COVID-19 pandemic impacted education, employment and social protection of people in countries which have higher levels of multidimensional poverty such as Zambia . Oxford Poverty and Human Development Initiative The Oxford Poverty and Human Development Initiative (OPHI)

1215-522: The HDI is the geometric mean of the previous three normalized indices: LE: Life expectancy at birth MYS: Mean years of schooling (i.e. years that a person aged 25 or older has spent in formal education) EYS: Expected years of schooling (i.e. total expected years of schooling for children under 18 years of age, incl. young men and women aged 13–17) GNIpc: Gross national income at purchasing power parity per capita The HDI combined three dimensions last used in its 2009 report: This methodology

1260-506: The MPI for country X is: 0.667 × 0.417 = 0.278 {\displaystyle 0.667\times 0.417=0.278} The Human Development Index (HDI) was developed by Mahbub ul Haq and Amartya Sen in 1990, and was also developed by the UNDP . It is calculated as the geometric mean of the normalized indices of the three dimensions of human development; it takes into account: health, education and standard of living. UNDP has

1305-664: The Secretariat of the Multidimensional Poverty Peer Network (MPPN) , a South-South initiative that supports policymakers to develop multidimensional poverty measures. It promotes the use of such measures for more effective poverty eradication efforts at the global, national and local levels. OPHI aims to build and advance a more systematic methodological and economic framework for reducing multidimensional poverty, grounded in people's experiences and values. OPHI works towards this by: OPHI's work

1350-499: The Wolff et al. paper. The Human Development Report Office states that they undertook a systematic revision of the methods used for the calculation of the HDI, and that the new methodology directly addresses the critique by Wolff et al. in that it generates a system for continuously updating the human-development categories whenever formula or data revisions take place. In 2013, Salvatore Monni and Alessandro Spaventa emphasized that in

1395-408: The different types of deprivation that individuals experience at the same time, such as a lack of education or employment, or poor health or living standards. These deprivation profiles are analysed to identify who is poor and then used to construct a multidimensional index of poverty (MPI). The most common way of measuring poverty is to calculate the percentage of the population who are poor, known as

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1440-416: The focus of development economics from national income accounting to people-centered policies ". He believed that a simple composite measure of human development was needed to convince the public, academics and politicians that they can, and should, evaluate development not only by economic advances but also improvements in human well-being . Published on 4 November 2010 (and updated on 10 June 2011),

1485-524: The following ten indicators with the following cutoffs. The indicators selected for other MPI-oriented studies vary according to the availability of data and the context, as well as the theoretical considerations of the researchers. The Alkire-Foster (AF) method is a way of measuring multidimensional poverty developed by OPHI's Sabina Alkire and James Foster . Building on the Foster-Greer-Thorbecke poverty measures, it involves counting

1530-479: The headcount ratio ( H ). Having identified who is poor, the AF methodology generates a unique class of poverty measures ( Mα ) that goes beyond the simple headcount ratio. Three measures in this class are of high importance: M0 can be calculated with ordinal as well as cardinal data, which is why it is most often used. Cardinal data are required to calculate M1 and M2 . The AF Method is unique in that by measuring intensity it can distinguish between, for example,

1575-418: The incidence, intensity and depth of poverty. The depth of poverty is the 'gap' (G) between poverty and the poverty line (M1 = H x A x G). M2: This measures reflects the incidence, intensity, depth of poverty and inequality among the poor (the squared gap, S) (M2 = H x A x S). M0 can be calculated with ordinal and cardinal data. Cardinal data are required to calculate M1 and M2. The Alkire Foster Method

1620-454: The indicators included and weightings attributed to them can change MPI scores and the resulting poverty evaluation. The Global MPI uses three standard dimensions: Health; Education; Standard of Living and ten indicators. These mirror the Human Development Index (HDI). Multidimensional Poverty Indices used for purposes other than global comparison have sometimes used different dimensions, including income and consumption. The Global MPI uses

1665-461: The maximum level of HDI) that could be achieved if there was no inequality." The index is based on the human development approach, developed by Mahbub ul-Haq, anchored in Amartya Sen 's work on human capabilities, and often framed in terms of whether people are able to "be" and "do" desirable things in life. Examples include — being: well-fed, sheltered, and healthy; doing: work, education, voting, participating in community life. The freedom of choice

1710-523: The potential to misguide politicians, investors, charity donors and the public who use the HDI at large. In 2010, the UNDP reacted to the criticism by updating the thresholds to classify nations as low, medium, and high human development countries. In a comment to The Economist in early January 2011, the Human Development Report Office responded to an article published in the magazine on 6 January 2011 which discusses

1755-508: The purpose of the measure. Common purposes include national poverty measures that reflect changes over time, targeting of services or conditional cash transfers and monitoring and evaluation. At a glance, multidimensional measures present an integrated view of the situation. We can also examine poverty by population group, or study the composition of deprivation for different groups. Multidimensional metrics are rigorous, easy to use, flexible, and adaptable to different contexts. OPHI has developed

1800-450: The ranking of some of the most developed countries , such as the G7 members and others. The origins of the HDI are found in the annual Human Development Reports produced by the Human Development Report Office of the United Nations Development Programme (UNDP). These annual reports were devised and launched by Pakistani economist Mahbub ul-Haq in 1990, and had the explicit purpose "to shift

1845-473: The world and within countries by ethnic group, urban/rural location, as well as other key household and community characteristics. MPIs are useful as an analytical tool to identify the most vulnerable people – the poorest among the poor, revealing poverty patterns within countries and over time, enabling policymakers to target resources and design policies more effectively. Critics of this methodology have pointed out that changes to cutoffs and thresholds, as well as

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1890-480: The world define poverty by income. Yet poor people themselves define their poverty much more broadly, to include lack of education, health, housing, empowerment, humiliation, employment, personal security and more. No one indicator, such as income, is uniquely able to capture the multiple aspects that contribute to poverty. Multidimensional poverty encompasses a range of deprivations that a household may suffer. The number of indicators and specific indicators used depend on

1935-598: The world to test and improve the modules and to produce new data and qualitative and quantitative analyses on the missing dimensions. Currently, OPHI and partners are fielding a nationally representative survey in Chad, and the first nationally representative dataset and analyses were conducted in Chile. Projects have also be conducted in Philippines, Nigeria and Sri Lanka, plus a first smaller project in Chad. Most countries of

1980-503: The year 2022, the following countries are considered to be of "very high human development": The list below displays the top-ranked country from each year of the Human Development Index. Norway has been ranked the highest sixteen times, Canada eight times, and Switzerland, Japan, and Iceland have each ranked twice. The year represents the time period from which the statistics for the index were derived. In parentheses

2025-570: Was used by the UNDP until their 2011 report. The formula defining the HDI is promulgated by the United Nations Development Programme ( UNDP ). In general, to transform a raw variable , say x {\displaystyle x} , into a unit-free index between 0 and 1 (which allows different indices to be added together), the following formula is used: where a {\displaystyle a} and b {\displaystyle b} are

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