Multidimensional Poverty Index (MPI)

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Like development, poverty is multidimensional — but this is traditionally ignored by headline figures. The Multidimensional Poverty Index (MPI), published for the first time in the 2010 Report, complements money-based measures by considering multiple deprivations and their overlap. The index identifies deprivations across the same three dimensions as the HDI and shows the number of people who are multidimensionally poor (suffering deprivations in 33% of weighted indicators) and the number of deprivations with which poor households typically contend. It can be deconstructed by region, ethnicity and other groupings as well as by dimension, making it an apt tool for policymakers.

About 1.7 billion people in the 109 countries covered by the MPI—a third of their population — live in multidimensional poverty — that is, with at least 33 percent of the indicators reflecting acute deprivation in health, education and standard of living. This exceeds the estimated 1.3 billion people in those countries who live on $1.25 a day or less (though it is below the share who live on $2 or less).