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  • Context: The NITI Aayog will leverage the monitoring mechanism of the Global Multidimensional Poverty Index to push forward reforms in the country and in this regard, the government think-tank has also set up a coordination committee.

Analysis

  • The Global Multidimensional Poverty Index (MPI) is part of the government's decision to monitor the performance of the country on 29 select global indices.
  • The objective of the 'Global Indices to Drive Reforms and Growth (GIRG)' exercise is to fulfil the need to measure and monitor India's performance on various important social and economic parameters and enable the utilisation of these indices as tools for self-improvement, bring about reforms in policies, while improving last-mile implementation of government schemes.
  • NITI Aayog is the nodal agency for the MPI. It has also constituted a Multidimensional Poverty Index Coordination Committee (MPICC).

Global Multidimensional Poverty Index 

  • Global MPI is an international measure of multidimensional poverty covering 107 developing countries. 
  • It was first developed in 2010 by Oxford Poverty and Human Development Initiative (OPHI) and United Nations Development Programme (UNDP) for UNDP's Human Development Reports.

  • The index is released at the High-Level Political Forum (HLPF) on Sustainable Development of the United Nations in July every year.
  • Global MPI is computed by assigning scores for each surveyed household on 10 parameters. 
  • These are based on nutrition, child mortality, years of schooling, school attendance, cooking fuel, sanitation, drinking water, electricity, housing, and household assets.
  • It utilises the National Family Health Survey (NFHS), which is conducted under the Ministry of Health and Family Welfare (MoHFW) coordinated by International Institute for Population Sciences (IIPS).
  • In Global MPI 2020, India was 62nd among 107 countries, based on the NFHS-4 (2015-16) data. 
  • India saw the most people moving out of multidimensional poverty between 2005/06 and 2015/16.

The MPI is said to measure “acute” poverty. Does this differ from “extreme” poverty?

  • UNDP has described the MPI as a measure of “acute” poverty because it reflects overlapping deprivation in basic needs and also to avoid confusion with the World Bank’s measure of “extreme” poverty that captures those living on less than $1.90 (in 2011 $PPP) a day.