i. Global Indicators
Some of the indices used to measure poverty are:
- Global Multidimensional Poverty Index (MPI): It is released by the United Nations Development Programme (UNDP) and the Oxford Poverty and Human Development Initiative (OPHI).
MPI integrates two factors of poverty
- Incidence of poverty: It is the percentage of people who are poor. This is the headcount ratio of multidimensional poverty (H).
- Intensity of poverty: It takes into account the average percentage of dimensions in which poor people are deprived(A).
The MPI is calculated by multiplying the poverty headcount by the intensity of poverty, MPI = H x A (Incidence x Intensity).
Global MPI 2022: India has the largest number of poor worldwide at 22.8 crore. Also, the incidence of poverty has fallen from 55% in 2005/06 to 16.4% in 2019/21 in India.
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Health (⅓) |
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Education (⅓) |
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Standard of Living (⅓) |
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- World Bank Poverty Line: At the international level the World Bank has set the international poverty line at $2.15 per person per day using 2017 prices.
- Poverty Gap Index: Developed by the World Bank. It measures the intensity of poverty by calculating the amount of money required by a poor household in order to reach the poverty line.
4. Poverty and Shared Prosperity Report, 2022: It is released by the World Bank. According to it, in 2