Hindu Editorial Analysis : 15-July-2023
The Global Multidimensional Poverty Index (MPI) report, jointly published by the UN Development Programme (UNDP) and the Oxford Poverty and Human Development Initiative, offers valuable insights into the state of poverty reduction worldwide. This essay explores the key findings of the MPI 2023 report, highlighting the reduction in poverty levels in various countries, with a special focus on India. It also discusses the challenges that persist, particularly in terms of nutrition and addressing the needs of the vulnerable population.
The Global Multidimensional Poverty Index (MPI):
Data Compilation and Objective: The MPI report compiles data from 110 developing countries, encompassing 6.1 billion people, which accounts for 92 percent of the population in developing countries. Its purpose is to shed light on the prevalence of poverty worldwide, provide insights into the lives of the poor, and facilitate efforts to end poverty in all its forms.
Reduction in Global MPI Values:
Success Stories: The MPI 2023 report highlights the rapid progress achieved in poverty reduction, with 25 countries, including India, successfully halving their global MPI values within 15 years. Noteworthy examples include Cambodia, China, Congo, Honduras, Indonesia, Morocco, Serbia, and Vietnam. These success stories demonstrate that poverty reduction is indeed attainable.
India’s Progress:
Substantial Reduction in Poverty: The report reveals that India has made significant strides in poverty reduction, with 415 million people lifted out of poverty between 2005-06 and 2019-21. This accounts for a substantial fraction of India’s population, estimated to be over 1.4 billion. Notably, the proportion of people lacking cooking fuel decreased from 52.9% to 13.9%, while those without proper sanitation decreased from 50.4% to 11.3%.
Inclusive Progress:
The MPI report emphasizes that poverty and deprivation indicators have declined across all segments of society in India. The poorest states and marginalized groups, including children and disadvantaged caste groups, have experienced the fastest progress. These findings highlight the importance of targeted poverty relief efforts.
Lack of Data During the COVID-19 Pandemic:
Challenges in Assessment: While the report showcases the achievability of poverty reduction, it also acknowledges the challenges posed by the lack of comprehensive data during the COVID-19 pandemic. Assessing the immediate prospects and impact of the pandemic on poverty reduction becomes difficult due to this data gap.
Global Poverty Distribution:
Concentration in Specific Regions: The MPI 2023 release reveals that approximately 18% of the global population, equivalent to 1.1 billion people, live in acute multidimensional poverty across 110 countries. Sub-Saharan Africa and South Asia account for five out of every six poor individuals. Middle-income countries house two-thirds of the global poor, while low-income countries accommodate 35% of the impoverished population.
Significance of India’s Success:
Government Initiatives and Economic Growth: India’s success in poverty reduction can be partly attributed to the social development schemes implemented by the government. Despite criticisms of rapid economic expansion not benefiting the poor, these estimates demonstrate that fast growth is indeed improving the lives of the most disadvantaged. While the pandemic may have affected poverty reduction, the lack of adequate data hinders conclusive assessments. Thus, India must continue its poverty-relief efforts alongside economic growth.
Challenges for India:
Persistent Under-Nutrition: Although poverty levels have not worsened, under-nutrition remains a significant concern in India. The rate of improvement in this area has not accelerated notably between the National Family Health Surveys (NFHS-3, NFHS-4, and NFHS-5). Moreover, the MPI primarily reflects the pre-COVID situation due to the majority of NFHS-5 interviews being conducted before the pandemic.
Focus on the Vulnerable Population:
India still has over 230 million people living in poverty. The MPI report emphasizes the importance of addressing the “vulnerable” population, which consists of individuals who are not poor but experience deprivations in 20-33.3 percent of weighted indicators. India has approximately 18.7 percent of its population falling under this category, necessitating targeted efforts.
Why In News
Estimates of poverty reduction by a United Nations agency offer cause for great satisfaction, as they not only highlight progress in alleviating global poverty but also underscore the effectiveness of international cooperation in achieving this vital goal. However, the report also serves as a reminder that continued efforts and innovative strategies are necessary to ensure sustainable and inclusive economic growth for all vulnerable communities worldwide.
MCQs about Multidimensional Poverty Index
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Who publishes the Global Multidimensional Poverty Index (MPI) annually?
A. United Nations Educational, Scientific and Cultural Organization (UNESCO)
B. World Bank
C. United Nations Development Programme (UNDP)
D. International Monetary Fund (IMF)
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What is one of the challenges mentioned in the essay for India’s poverty reduction efforts?
A. Lack of adequate funding for poverty relief initiatives
B. Slow economic growth and recession
C. High levels of under-nutrition despite poverty reduction
D. Inadequate data on poverty during the COVID-19 pandemic
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Which country is one of the 25 countries that successfully halved its global MPI value within 15 years?
A. Indonesia
B. Mexico
C. Japan
D. Brazil
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