Context:

As per the Global Multidimensional Poverty Index (MPI), 415 million people were lifted out of poverty in India within a 15-year span (2005-2006 to 2019-2021).

About Multidimensional Poverty Index (MPI):

• Released by:  It was released by the United Nations Development Programme (UNDP) and the Oxford Poverty and Human Development Initiative (OPHI).

Image Source: Human Development Reports

Image Source: Human Development Reports

Findings of the Report: 

• Reduction of MPI: It revealed that 25 countries, including India, successfully halved their global MPI values in the span of 15 years. 
  • Example: Other countries that achieved this include Cambodia, China, Congo, Honduras, Indonesia, Morocco, Serbia, and Vietnam. 
• India vs China: India surpassed China to become the world’s most populous nation in April, yet successfully reduced its MPI value. 
  • Example: This reduction in poverty is noteworthy given the increasing population (142.86 crore people).
• High Prevalence: 534 million of the 1.1 billion poor people live in Sub-Saharan Africa.
• Severe Poverty: 485 million poor people live in severe poverty, experiencing 50–100% of weighted deprivations.
• Acute Poverty: Approximately 1.1 billion people across 110 countries live in acute multidimensional poverty.
  • Example: Nearly two-thirds of all poor people (730 million people) live in middle-income countries. 
• Children under 18: Children under the age of 18 account for half of MPI-poor people (566 million). 
  • Example: The poverty rate among children is 27.7%, while among adults, it is 13.4%. 

Poverty Reduction in India: 

• Significant Progress: Poverty incidence in India fell from 55.1% in 2005-2006 to 16.4% in 2019-2021, representing a significant decrease. 
  • Example: Approximately 645 million people lived in multidimensional poverty in India in 2005-2006, which decreased to about 230 million by 2019-2021. 
• Deprivation in all Indicators: All indicators i.e., nutrition, child mortality, cooking fuel, sanitation, drinking water, electricity, and housing) declined in India during this period. 
  • Example: Child mortality fell from 4.5% to 1.5% between 2005-2006 and 2019-2021. 
• Particulars’ Progress: The reduction of poverty was consistent across different states and groups, including children and people in disadvantaged caste groups. 
  • Example: The rate of people deprived of cooking fuel fell from 52.9% to 13.9% during this period. 

Impacts of COVID-19 on Poverty Reduction:

• Challenge for Assessment: The lack of comprehensive data during the COVID-19 pandemic poses challenges in assessing immediate prospects for poverty reduction. 
  • Example: Data from only a few countries, such as Mexico, Madagascar, Cambodia, Peru, and Nigeria, collected during the pandemic years is available. 

Way Forward:

• There should be context-specific multidimensional poverty indices that reflect national definitions of poverty.
• India needs to intensify its efforts in combating the pandemic’s effects and focus on rebuilding the economy, strengthening social protection measures, and prioritizing healthcare and education systems. 
• By doing so, India can work towards achieving more positive results in poverty reduction and overall development in the future.

News Source: Human Development Reports