Consider the following statements about Multidimensional Poverty Index (MPI):

Question

Consider the following statements about Multidimensional Poverty Index (MPI):

1. MPI is calculated using Alkire-Foster methodology.

2. MPI calculated by NITI Aayog has a total of twelve indicators.

3. Maternal Health and Bank Account are common indicators in the MPI of NITI Aayog and MPI of United Nations Development Programme (UNDP).

Which of the statements given above is/are correct?

1. A. 1 and 2 only (Correct answer)
2. B. 1, 2 and 3
3. C. 1 and 3 only
4. D. 2 only

Correct Answer

Option A — A

Detailed Solution & Explanation

The correct answer is Option A.

Key Points

• Statement 1 is correct: the Multidimensional Poverty Index (MPI) is computed using the Alkire-Foster methodology (developed at OPHI, Oxford), which identifies who is poor across multiple deprivations and by how much.
• Statement 2 is correct: NITI Aayog's National MPI uses twelve indicators across three equally weighted dimensions — Health, Education and Standard of Living.
• Statement 3 is incorrect, and is the key: 'Maternal Health' and 'Bank Account' are indicators in NITI Aayog's national MPI but are not part of the global UNDP MPI — so they are not 'common' indicators. The global MPI uses nutrition and child mortality (health), years of schooling and attendance (education), and standard-of-living assets.
• India's National MPI adapts the global framework and adds India-specific indicators such as maternal health, bank accounts and (in updates) antenatal care.

Exam Tip

• distinguish the global UNDP-OPHI MPI from NITI Aayog's National MPI — the extra India-specific indicators are exactly where questions plant errors.