{"id":125459,"date":"2024-08-09T19:20:27","date_gmt":"2024-08-09T13:50:27","guid":{"rendered":"https:\/\/pwonlyias.com\/stage\/?post_type=current-affairs&#038;p=125459"},"modified":"2025-02-13T15:59:51","modified_gmt":"2025-02-13T10:29:51","slug":"multidimensional-poverty-declined","status":"publish","type":"current-affairs","link":"https:\/\/pwonlyias.com\/stage\/current-affairs\/multidimensional-poverty-declined","title":{"rendered":"Multidimensional Poverty Declined"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Recently, A discussion paper by <a href=\"https:\/\/pwonlyias.com\/stage\/niti-aayog-a-policy-think-tank-of-india\/\">NITI Aayog<\/a>, <\/span><b>Multidimensional poverty in india since 2005-06<\/b><span style=\"font-weight: 400;\">, found that multidimensional poverty <\/span><b>declined to 11.28 per cent in 2022-23 <\/b><span style=\"font-weight: 400;\">from <\/span><b>29.17 per cent in 2013-14<\/b><\/p>\n<ul>\n<li aria-level=\"1\"><span style=\"font-weight: 400;\">This implies <\/span><b>248.2 million<\/b><span style=\"font-weight: 400;\"> people have escaped <\/span><b>poverty in the nine-year period.<\/b><\/li>\n<\/ul>\n<h2><span style=\"font-size: 18pt;\"><b>About Multidimensional Poverty Measure (MPM)<\/b><\/span><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Poverty:<\/b><span style=\"font-weight: 400;\"> According to the <a href=\"https:\/\/pwonlyias.com\/stage\/upsc-notes\/world-bank\/\">World Bank<\/a>, Poverty is <\/span><b>pronounced deprivation<\/b><span style=\"font-weight: 400;\"> in well-being, and <\/span><b>comprises many dimensions<\/b><span style=\"font-weight: 400;\">. It includes<\/span><b> low incomes <\/b><span style=\"font-weight: 400;\">and the inability to acquire the <\/span><b>basic goods and services necessary for survival with dignity<\/b><span style=\"font-weight: 400;\">.\u00a0<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Poverty also encompasses<\/span><b> low levels of health and education, poor access to clean water and sanitation, inadequate physical security, lack of voice, and insufficient capacity and opportunity to better one&#8217;s life.<\/b><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Multidimensional Poverty Measure (MPM): It <\/b><span style=\"font-weight: 400;\">seeks to understand poverty beyond monetary deprivations (which remain the focal point of the World Bank\u2019s monitoring of global poverty) by including access to education and basic infrastructure along with the monetary headcount ratio at the $2.15 international poverty line.<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Alkire Foster (AF) Methodology:<\/b><span style=\"font-weight: 400;\"> In 2010, the Multidimensional Poverty Index (MPI), developed by<\/span><b> Sabina Alkire and James Foster<\/b><span style=\"font-weight: 400;\">, was adopted by the United Nations Development Programme (UNDP) in their Human Development Report. It captures overlapping deprivations in <\/span><b>health, education and living standards (UNDP, 2010).<\/b><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Multidimensional Poverty Index:<\/b><span style=\"font-weight: 400;\"> An index that measures the<\/span><b> percentage of households <\/b><span style=\"font-weight: 400;\">in a country deprived along<\/span><b> three dimensions<\/b><span style=\"font-weight: 400;\"> &#8211; Monetary poverty, Education, and Basic infrastructure services \u2013 to capture a <\/span><b>more complete picture of poverty<\/b><\/li>\n<\/ul>\n<p style=\"text-align: center;\"><span class=\"vc_button\"><a href=\"https:\/\/www.pw.live\/batches\/upsc?utm_source=seo+upsc+batch&#038;utm_medium=seo+upsc&#038;utm_campaign=seo&#038;utm_id=upsc\" target=\"_blank\" rel=\"noopener\">Enroll now for UPSC Online Course<\/a><\/span><\/p>\n<h2><span style=\"font-size: 18pt;\"><b>National Multidimensional Poverty Index<\/b><\/span><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>About: <\/b><span style=\"font-weight: 400;\">NITI Aayog in collaboration with <\/span><b>United Nations Development Programme (UNDP)<\/b><span style=\"font-weight: 400;\">, and <\/span><b>Oxford Poverty and Human Development Initiative (OPHI) <\/b><span style=\"font-weight: 400;\">developed the<\/span><b> National Multidimensional Poverty Index (MPI)<\/b><span style=\"font-weight: 400;\"> that offers a <\/span><b>multi-dimensional perspective on poverty<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">\u00a0It complements<\/span><b> income poverty <\/b><span style=\"font-weight: 400;\">measurements because it measures and <\/span><b>compares deprivations directly.\u00a0<\/b><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Various Level: <\/b><span style=\"font-weight: 400;\">The National MPI is a robust, and nuanced public policy tool that can be used to monitor multidimensional poverty at the national, state, and district levels in India.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Sustainable Development Goals (SDGs): <\/b><span style=\"font-weight: 400;\">India\u2019s National MPI is a contribution towards measuring progress for <\/span><b>target 1.2 of the Sustainable Development Goals (SDGs)<\/b><span style=\"font-weight: 400;\"> that aims to reduce \u201c<\/span><b>at least by half the proportion of men, women and children of all ages living in poverty in all its dimensions according to national definitions<\/b><span style=\"font-weight: 400;\">\u201d by <\/span><b>2030.<\/b><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Methodology<\/b><span style=\"font-weight: 400;\">: The<\/span><b> dual cut-off<\/b> <b>Alkire-Foster (AF) methodolog<\/b><span style=\"font-weight: 400;\">y \u2013 the one used in the Global MPI Report \u2013 was considered suitable for the <\/span><b>national context<\/b><span style=\"font-weight: 400;\">.\u00a0<\/span><\/li>\n<\/ul>\n<table style=\"width: 100.1%;\">\n<tbody>\n<tr>\n<th style=\"border-style: solid; border-color: #000000; background-color: rgba(184, 165, 217, 0.53); text-align: left; vertical-align: middle; width: 100%;\">\n<h3><span style=\"font-size: 16pt; color: #000000;\"><b>Dual Cutoffs<\/b><\/span><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"color: #000000;\"><span style=\"font-weight: 400;\">It involves two cutoffs &#8211; <\/span><b>a poverty cutoff <\/b><span style=\"font-weight: 400;\">(defining what it means to be poor in each dimension) and <\/span><b>a dimensional cutoff <\/b><span style=\"font-weight: 400;\">(determining how many dimensions a person must be deprived in to be considered multidimensionally poor).<\/span><\/span><\/li>\n<\/ul>\n<\/th>\n<\/tr>\n<\/tbody>\n<\/table>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">MPI captures broad qualitative aspects of people\u2019s life across 3 dimensions \u2013 <\/span><b>Health, Education, and Standard of living.<\/b><span style=\"font-weight: 400;\">\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>2 new indicators:<\/b><span style=\"font-weight: 400;\"> The national MPI largely follows the global methodology. India\u2019s national MPI <\/span><b>retained 10 indicators<\/b><span style=\"font-weight: 400;\"> from the Global MPI and has added<\/span><b> 2 new indicators<\/b><span style=\"font-weight: 400;\">, namely <\/span><b>Maternal Health (in the dimension of Health) and Bank Account (in the dimension of Standard of Living)<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<\/ul>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-125464\" src=\"https:\/\/pwonlyias.com\/stage\/wp-content\/uploads\/2024\/08\/92-66b61c9e0198a.webp\" alt=\"Poverty \" width=\"504\" height=\"546\" srcset=\"https:\/\/pwonlyias.com\/stage\/wp-content\/uploads\/2024\/08\/92-66b61c9e0198a.webp 607w, https:\/\/pwonlyias.com\/stage\/wp-content\/uploads\/2024\/08\/92-66b61c9e0198a-277x300.webp 277w\" sizes=\"(max-width: 504px) 100vw, 504px\" \/><\/p>\n<h2><span style=\"font-size: 18pt;\"><b>Computing the MPI<\/b><\/span><\/h2>\n<ul>\n<li><b>Building a deprivation profile for each household: <\/b><span style=\"font-weight: 400;\">Each household is assigned a deprivation score based on its deprivation in each of the 12 indicators.<\/span><\/li>\n<li><b>Identifying the poor: <\/b><span style=\"font-weight: 400;\">If the deprivation score of a household is <\/span><b>above 33%, <\/b><span style=\"font-weight: 400;\">they are <\/span><b>multidimensionally poor.<\/b><\/li>\n<li aria-level=\"1\"><b>Indices of MPI:<\/b>\n<ul>\n<li><b>Headcount ratio (H): How many are poor?<\/b>\n<ul>\n<li><span style=\"font-weight: 400;\">Proportion of multidimensionally poor in the population, which is arrived at by <\/span><b>dividing the number of multidimensionally poor persons by total population.<\/b><\/li>\n<\/ul>\n<\/li>\n<li><b>Intensity of poverty (A):\u00a0 How poor are the poor?<\/b>\n<ul>\n<li><b>Average proportion of deprivations<\/b><span style=\"font-weight: 400;\"> which is experienced by multidimensionally poor individuals. To compute intensity, the<\/span><b> weighted deprivation scores of all poor p<\/b><span style=\"font-weight: 400;\">eople are summed and then <\/span><b>divided by the total number of poor people.<\/b><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<li><b>Formulae:<\/b><span style=\"font-weight: 400;\"> MPI is arrived at by <\/span><b>multiplying headcount ratio (H) and intensity of poverty (A).<\/b>\n<ul>\n<li aria-level=\"2\"><b>MPI = H x A<\/b><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p style=\"text-align: center;\"><span class=\"vc_button\"><a href=\"https:\/\/store.pw.live\/govt-entrance-exams\/upsc-books\/upsc-textbooks?utm_source=SEO&#038;utm_medium=PW+Live&#038;utm_campaign=UPSC+Textbooks\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Check Out UPSC NCERT Textbooks From PW Store<\/span><\/a><\/span><\/p>\n<table style=\"width: 99.8996%;\">\n<tbody>\n<tr>\n<th style=\"border-style: solid; border-color: #000000; background-color: rgba(184, 165, 217, 0.53); text-align: left; vertical-align: middle; width: 100%;\">\n<h3><span style=\"font-size: 16pt; color: #000000;\"><b>How Did India Reduce Multidimensional Poverty So Fast?<\/b><\/span><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"color: #000000;\"><b>Areas of reduction:<\/b><span style=\"font-weight: 400;\"> India achieved such rapid poverty reduction lies in the data about the <\/span><b>seven standard-of-living sub-indicators<\/b><span style=\"font-weight: 400;\">\u2014 cooking fuel, sanitation, drinking water, housing, electricity, assets, and bank accounts\u2014 rather than in the indicators for health and education.<\/span><\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"color: #000000;\"><span style=\"font-weight: 400;\">For instance, the National Multidimensional Poverty Index: A Progress of Review 2023\u2032 by\u00a0 NITI Aayog report shows that around <\/span><b>58 percent of Indians <\/b><span style=\"font-weight: 400;\">were <\/span><b>deprived of clean cooking fuel in 2015-16,<\/b><span style=\"font-weight: 400;\"> but by <\/span><b>2019-2021, it was only 44\u00a0 per cent.<\/b><\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"color: #000000;\"><span style=\"font-weight: 400;\">Similarly, the percentage of i<\/span><b>ndividuals lacking adequate sanitation <\/b><span style=\"font-weight: 400;\">facilities dropped from<\/span><b> 51.88 per cent to 30.13 per cen<\/b><span style=\"font-weight: 400;\">t, <\/span><b>electricity deprivation<\/b><\/span><span style=\"font-weight: 400;\"><span style=\"color: #000000;\"> went from 12 per cent to 3.27 per cent, and the percent<\/span>age of people lacking a<\/span><b>ccess to banking<\/b><span style=\"font-weight: 400;\"> reduced from 9.66 percent to 3.69 per cent.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/th>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2><span style=\"font-size: 18pt;\"><b>Government Initiatives For Poverty Alleviation<\/b><\/span><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Health: <\/b><span style=\"font-weight: 400;\">Flagship programmes like the <\/span><b>Poshan Abhiyan and Anaemia Mukt Bharat h<\/b><span style=\"font-weight: 400;\">ave contributed to reduced deprivations in<\/span><b> health.<\/b><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Sanitation:<\/b><span style=\"font-weight: 400;\">\u00a0 Initiatives such as<\/span><b> Swachh Bharat Mission (SBM) and Jal Jeevan Mission (JJM)<\/b><span style=\"font-weight: 400;\"> have improved <\/span><b>sanitation<\/b><span style=\"font-weight: 400;\"> across the country.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>The<\/b><span style=\"font-weight: 400;\"> impact of these efforts is evident in the swift <\/span><b>21.8 percentage points improvement in sanitation deprivations.\u00a0<\/b><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Cooking fuel : <\/b><span style=\"font-weight: 400;\">The provision of <\/span><b>subsidized cooking<\/b><span style=\"font-weight: 400;\"> fuel through the<\/span><b> Pradhan Mantri Ujjwala Yojana (PMUY) <\/b><span style=\"font-weight: 400;\">has positively <\/span><b>transformed lives, <\/b><span style=\"font-weight: 400;\">with a<\/span><b> 14.6 percentage <\/b><span style=\"font-weight: 400;\">points improvement in<\/span><b> cooking fuel deprivations.\u00a0<\/b><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Other Initiatives: <\/b><span style=\"font-weight: 400;\">Like<\/span><b> Saubhagya, Pradhan Mantri Awas Yojana (PMAY), Pradhan Mantri Jan Dhan Yojana (PMJDY), and Samagra Shiksha <\/b><span style=\"font-weight: 400;\">have also played a major role in significantly <\/span><b>reducing multidimensional poverty in the country.\u00a0<\/b>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Pradhan Mantri Awas Yojana (PMAY): <\/b><span style=\"font-weight: 400;\">To provide affordable housing for all by the year 2022. The scheme aims to address the housing shortage among the economically weaker sections, low-income groups, and middle-income groups.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Pradhan Mantri Jan Dhan Yojana (PMJDY): <\/b><span style=\"font-weight: 400;\">To provide universal access to banking facilities, with at least one basic banking account for every household. The scheme also aims to promote financial inclusion by providing access to financial services like savings accounts, credit, insurance, and pension.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Rural Employment Generation Programme (REGP):<\/b><span style=\"font-weight: 400;\"> Implemented by The <\/span><b>Khadi and Village Industries Commission;. <\/b><span style=\"font-weight: 400;\">One can get <\/span><b>financial assistanc<\/b><span style=\"font-weight: 400;\">e in the form of bank loans to set up small industries.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Prime Minister Rozgar Yojana (PMRY): <\/b><span style=\"font-weight: 400;\">The educated <\/span><b>unemployed from low-income familie<\/b><span style=\"font-weight: 400;\">s in rural and urban areas can get financial help to set up any kind of <\/span><b>enterprise that generates employment.<\/b><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Mahatma Gandhi National Rural Employment Guarantee Act: <\/b><span style=\"font-weight: 400;\">Adult volunteers can d<\/span><b>o\u00a0 unskilled manual work <\/b><span style=\"font-weight: 400;\">for a <\/span><b>minimum of 100 days in a year.<\/b><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Swarnajayanti Gram Swarozgar Yojana (SGSY): <\/b><span style=\"font-weight: 400;\">Now has been restructured as <\/span><b>National Rural Livelihoods Mission (NRLM)<\/b>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"3\"><span style=\"font-weight: 400;\">The Government provides partial financial assistance to<\/span><b> SHGs which then decide whom the loan<\/b><span style=\"font-weight: 400;\"> is to be given to for<\/span><b> self-employment activities.\u00a0<\/b><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p style=\"text-align: center;\"><span class=\"vc_button\"><a href=\"https:\/\/www.pw.live\/batches\/upsc\/pw-only-ias?utm_source=seo+upsc+batch&#038;utm_medium=seo+upsc&#038;utm_campaign=seo&#038;utm_id=upsc\" target=\"_blank\" rel=\"noopener\">Enroll now for UPSC Online Classes<\/a><\/span><\/p>\n<table style=\"width: 100.029%;\">\n<tbody>\n<tr>\n<td style=\"width: 137.929%; 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