With reference to 'Multi-Dimensional Poverty Index', which of the following statements is/are correct?

Question

With reference to 'Multi-Dimensional Poverty Index', which of the following statements is/are correct?

1. It was developed and introduced in 2010.

2. It measures extreme poverty and includes those living on less than one dollar per day.

Select the correct answer using the code given below:

1. A. Only 2
2. B. Neither 1 nor 2
3. C. Both 1 and 2
4. D. Only 1 (Correct answer)

Correct Answer

Option D — Only 1

Detailed Solution & Explanation

The correct answer is Only 1.

Key Points

• Statement 1 is correct. The Multidimensional Poverty Index (MPI) was developed and introduced in 2010 by the Oxford Poverty and Human Development Initiative (OPHI) together with the UNDP, and first appeared in the Human Development Report 2010.
• Statement 2 is incorrect. The MPI does not measure poverty by income at all. The "living on less than a dollar a day" criterion is the World Bank's monetary poverty line — precisely what the MPI was created to move beyond.
• Only statement 1 holds, giving option (d).

Additional Information

• The global MPI uses 10 indicators across three dimensions, each weighted equally at one-third:
  • Health — nutrition, child mortality
  • Education — years of schooling, school attendance
  • Standard of living — cooking fuel, sanitation, drinking water, electricity, housing, assets
• A person is identified as multidimensionally poor if deprived in at least one-third of the weighted indicators.
• MPI = H × A, where H is the headcount ratio (incidence) and A the average intensity of deprivation.
• NITI Aayog publishes India's National MPI using 12 indicators, adding maternal health and bank accounts to the global list.