UPSC Prelims 2012 Q32: Indian Economy – Human Development, Poverty & Employment Schemes
The Multi - dimensional Poverty Index developed by Oxford Poverty and Human Development
Initiative with UNDP support covers which of the following?
1. Deprivation of education, health, assets and services at household level
2. Purchasing power parity at national level
3. Extent of budget deficit and GDP growth rate at national level
Select the correct answer using the codes given below:
- (a) 1 only
- (b) 2 and 3 only
- (c) 1 and 3 only
- (d) 1, 2 and 3
Answer: (a) 1 only
Explanation
Multi-dimensional Poverty Index (MPI)
Developed in 2010 by the Oxford Poverty and Human Development Initiative with UNDP.
It looks at what poor households lack, not at their income.
| Statement | Verdict | Fact |
|---|---|---|
| 1. Deprivation of education, health, assets and services at household level | Correct | Exactly what the index measures |
| 2. Purchasing power parity at national level | Incorrect | Used in the Human Development Index, not the MPI |
| 3. Extent of budget deficit and GDP growth rate at national level | Incorrect | These are macroeconomic measures |
Three dimensions, ten indicators:
| Dimension | Indicators |
|---|---|
| Health | Nutrition, child mortality |
| Education | Years of schooling, school attendance |
| Living standards | Cooking fuel, sanitation, drinking water, electricity, housing, assets |
Who is poor: a household deprived in one-third or more of the weighted indicators.
India's own version is the National MPI of NITI Aayog, with twelve indicators.
Answer: (a) 1 only.
Why each option is right or wrong
- (a) CORRECT. The MPI covers household-level deprivation in education, health, assets and services.
- (b) Incorrect. Purchasing power parity and budget figures are not part of it.
- (c) Incorrect. Statement 3 on budget deficit and GDP growth is false.
- (d) Incorrect. Statements 2 and 3 are false.
Key point
MPI (OPHI and UNDP, 2010): health, education and living standards; ten indicators; household-level deprivation; poor if deprived in one-third or more.
Remember
MPI = 3 dimensions, 10 indicators, household level.
Common mistakes
- Mixing the MPI with the Human Development Index.
- Thinking poverty indices use national macro data.
- Forgetting the count: three dimensions, ten indicators.
Exam tip
MPI counts what a household lacks, not what a country earns.
Sources
- United Nations Development Programme — Global Multidimensional Poverty Index
- NITI Aayog — National Multidimensional Poverty Index: Baseline Report