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2019 Multidimensional Poverty Index: Illuminating Inequalities

Publicado el: July 11th, 2019 Por MPPN

This year’s MPI results show that more than two-thirds of the multidimensionally poor—886 million people—live in middle-income countries. A further 440 million live in low-income countries. In both groups, data show, simple national averages can hide enormous inequality in patterns of poverty within countries. For instance, in Uganda 55 percent of the population experience multidimensional poverty—similar to the average in Sub-Saharan Africa. But Kampala, the capital city, has an MPI rate of six percent, while in the Karamoja region, the MPI soars to 96 percent—meaning that parts of Uganda span the extremes of Sub-Saharan Africa.

There is even inequality under the same roof. In South Asia, for example, almost a quarter of children under five live in households where at least one child in the household is malnourished but at least one child is not.

“We need—even amongst those living in poverty—to understand people’s different experiences of deprivation. Are they malnourished? Can they go to school? Only then will poverty reduction policies be both efficient and effective,“ says Pedro Conceição, Director of the Human Development Report Office at UNDP.

There is also inequality among the poor. Findings of the 2019 global MPI paint a detailed picture of the many differences in how – and how deeply – people experience poverty. Deprivations among the poor vary enormously: in general, higher MPI values go hand in hand with greater variation in the intensity of poverty.

Results also show that children suffer poverty more intensely than adults and are more likely to be deprived in all 10 of the MPI indicators, lacking essentials such as clean water, sanitation, adequate nutrition or primary education.

Even more staggering, worldwide, one in three children is multidimensionally poor, compared to one in six adults. That means that nearly half of the people living in multidimensional poverty—663 million— are children, with the youngest children bearing the greatest burden. But new data also shows a positive trend: those furthest behind are moving up the fastest. “We looked at data for a group of ten middle- and low-income countries and we found encouraging news that the bottom 40 percent were moving faster than the rest,” says Sabina Alkire, OPHI Director. “A pro-poor pattern that reduces inequalities in several Sustainable Development Goals.”

Within these ten countries, data show that 270 million people moved out of multidimensional poverty from one survey to the next. This progress was largely driven by South Asia: in India there were 271 million fewer people in poverty in 2016 than in 2006, while in Bangladesh the number dropped by 19 million between 2004 and 2014. In other countries there was less—or no—absolute reduction, with numbers of multidimensionally poor rising by 28 million across the three African countries considered. In part this was because of rapid population growth, which outstripped reductions in poverty. In fact, poverty rates (as a percentage of the population) declined in most of the countries.

The 2019 global MPI paints a detailed picture of poverty for 101 countries and 1,119 subnational regions covering 76 percent of the global population, going beyond simple income-based measures to look at how people experience poverty every day.

 

Access full data: http://hdr.undp.org/en/2019-MPI and https://ophi.org.uk/global-mpi-2019/ 

Multidimensional Poverty Index 2019: Illuminating Inequalities

Table 1: Multidimensional Poverty Index Developing Countries

 

Key findings

  • Across 101 countries, 1.3 billion people—23.1 percent—are multidimensionally poor.
  • Two-thirds of multidimensionally poor people live in middle-income countries.
  • There is massive variation in multidimensional poverty within countries. For example, Uganda’s national multidimensional poverty rate (55.1 percent) is similar to the Sub-Saharan Africa average (57.5 percent), but the incidence of multidimensional poverty in Uganda’s provinces ranges from 6.0 percent to 96.3 percent, a range similar to that of national multidimensional poverty rates in Sub-Saharan Africa (6.3–91.9 percent).
  • Half of the 1.3 billion multidimensionally poor people are children under age 18. A third are children under age 10.
  • This year’s spotlight on child poverty in South Asia reveals considerable diversity. While 10.7 percent of South Asian girls are out of school and live in a multidimensionally poor household, that average hides variation: in Afghanistan 44.0 percent do.
  • In South Asia 22.7 percent of children under age 5 experience intrahousehold inequality in deprivation in nutrition (where at least one child in the household is malnourished and at least one child in the household is not). In Pakistan over a third of children under age 5 experience such intrahousehold inequality.
  • Of 10 selected countries for which changes over time were analysed, India and Cambodia reduced their MPI values the fastest—and they did not leave the poorest groups behind.
  • There is wide variation across countries in inequality among multidimensionally poor people—that is, in the intensity of poverty experienced by each poor person. For example, Egypt and Paraguay have similar MPI values, but inequality among multidimensionally poor people is considerably higher in Paraguay.
  • There is little or no association between economic inequality (measured using the Gini coefficient) and the MPI value.
  • In the 10 selected countries for which changes over time were analysed, deprivations declined faster among the poorest 40 percent of the population than among the total population.

 

Source: UNDP/OPHI.

Presentations from the 2019 MPPN Annual Meeting

Publicado el: July 10th, 2019 Por MPPN

Oxford University launches social enterprise to help business fight poverty

Publicado el: March 26th, 2019 Por MPPN

sOPHIa’s goal is to provide businesses with tools to measure and respond to poverty amongst their employees and their families, contractors, and in their supply chain. In addition, sOPHIa plans to offer companies the ability to be audited to verify that they have met standards in implementing the bMPI and programs to impact the poverty of employees. Companies meeting the standards will receive a seal to demonstrate their commitment to ending poverty.

Since 2014, OPHI had partnered with Horizonte Positivo to help the Costa Rican Government develop its National MPI, with the bMPI following in 2017 with a launch in Costa Rica. The bMPI initiative began when the Chairman of BAC Credomatic Bank, Costa Rica, Ernesto Castegnaro, asked at a meeting of the Horizonte Positivo Board, if there might be any multidimensional poverty in his bank and an initial survey revealed more employee household poverty than expected. The same result was received in two other pilot companies, Purdy Motors, Costa Rica’s Toyota dealer and the public relations agency CCK Central America. Horizonte Positivo then tested and applied the bMPI in the private sector. Horizonte Positivo now provides assistance to 39 companies involved across business sectors of Costa Rica.

sOPHIa is currently being funded from individuals in the UK and USA and in Costa Rica to date the bMPI is funded by fees from companies. The Costa Rica program expects to work with 100 companies in 2019.

Federico Odio, Country Manager BAC Credomatic Costa Rica, said:

“We are particularly proud of our initiatives to eradicate poverty within our staff and reduce it significantly in our country. BAC Credomatic was the first bank in the world to apply Oxford’s Multidimensional Poverty Index with its staff, identifying that 12 percent of them were living under poverty conditions. BAC Possibilities is a program designed by the bank to eradicate poverty within its staff. It consists of subsidised loans—supported by donations from its own managers; psychological support; financial coaching, and a care network for elderly, disabled or very young family members. The bank hopes that this program will be exported to its corporate clients so that they, in turn, can eradicate poverty within their staffs and have significant impacts on the financial wellbeing of the country’s population.”

Jamie Coats, President of sOPHIa Oxford, said:

“Corporate leaders pursuing purpose and profits want objective measures to be able to manage against and be efficient as they respond to poverty within their companies. The Oxford University developed Business Multidimensional Poverty Index is a new tool for company information systems to help align corporate values and operations. In Costa Rica we have seen it be both effective and inspiring for employees and managers.”

The creation of the sOPHIa Oxford and its licence from Oxford were supported by the Oxford Department of International Development and the University’s innovation arm, Oxford University Innovation (OUI).  OUI launched the social enterprise option in September 2018 to offer Oxford’s academics the opportunity to create companies which put people before profit. Since the launch of the programme, OUI has rapidly built up a pipeline of 30 social enterprises which it intends to launch over the coming months and years.

Dr Mark Mann, Innovation Lead for Humanities and Social Sciences, Oxford University Innovation, said:

“This is the University’s first social enterprise spinout, the first of a rapidly growing pipeline which comes from all academic divisions of the University. If you look at the breadth and depth of the research the University publishes, there are many potential solutions to the world’s problems that can be rolled out. Social Enterprise can be a great vehicle for delivering impact to people in need and I am particularly excited about the potential of sOPHIa to bring people out of poverty across Latin America and beyond.”

Basil Postan, a UK-based donor to sOPHIa, added:

“Over the ten years that I have been an external supporter of OPHI I have seen their pioneering work on the multi-dimensional measurement of poverty, led by Sabina Alkire, become increasingly recognised as a standard for multi-national and national policy makers. Coming from the world of finance and investment I have always thought that OPHI’s methodologies could also be naturally extended as powerful management tools for good governance in the private sector: to allow companies to identify dimensions of poverty and deprivation among their employees and their families; and to promote corrective policies and actions.

The creation of sOPHIa Oxford, as a social enterprise start-up venture, plans to do just this – licensing OPHI’s proprietary know-how to corporate clients, and establishing it as an internationally recognised benchmark for good corporate practice. I am thrilled, and honoured, to have been asked to be one of the initial funders of sOPHIa Oxford and would encourage others to join me in supporting this remarkable and very timely venture, to carry the innovative work being done at Oxford University into the global social marketplace.”

Javier Quirós, President Grupo Purdy Motor, Toyota Dealer Costa Rica, said:

“Purdy Motor Group has maintained itself over time as a great leader because, from the beginning, our organisation detected that the most important asset is the human talent of the Purdy People. Through the implementation of Business Multidimensional Poverty Index we have managed to know the family situations of our employees and thus be able to develop different projects dedicated to improving their quality of life from an integral perspective. The responsible entrepreneur is anyone who understands the impact that their operation has on the community, on the environment and mainly on their people. That is why I want to invite the representatives of the private sector to use the Business Multidimensional Poverty Index as a tool that will allow them to focus on what will really provide a long-term benefit for your employees and their families.”

Jose Aguilar Berrocal, Executive Director, Asociación Horizonte Positivo, said:

“The instrumental power of the bMPI model, consists in its ability to trigger action with generosity, empathy, and a strategic approach, based on rigorous data and measurable indicators that will not just guide the program design and resource allocation, but also enhance the corporate leaders with the possibility to continuously improve their programs through a precise monitoring of each project’s impact in each of their workers situation

It’s the best of both worlds, (1) The Brain: rigorous data driven work, clear methodologies, measurable programs and impact: (2) The Heart: empathy towards those who work in your corporation, helping you create value and true wealth. Employees, very often, silently endure hardships, that now can be known, and properly addressed.”

sOPHIa Oxford is receiving probono legal support from the Boston based law firm Goulston & Storrs. Partner Karin Rivard said:

“Goulston & Storrs fully supports sOPHIa Oxford’s mission.  We believe that implementing the multi-dimensional index licensed by sOPHIa Oxford from Oxford University is an important mechanism to enable businesses and other stakeholders to more effectively respond to the root causes of poverty.”

 

Video! Multidimensional Poverty Indicator as a Tool for the SDGs

Publicado el: February 12th, 2019 Por MPPN

Regional Workshop on Multidimensional Poverty Measurement (in Spanish): Panama, 25-29 March 2019

Publicado el: December 18th, 2018 Por MPPN

More information available in Spanish here.