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UPSC Prelims 2012 Q32: Indian Economy – Human Development, Poverty & Employment Schemes

UPSC Prelims 2012, General Studies Paper I · Indian Economy

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:
  1. (a) 1 only
  2. (b) 2 and 3 only
  3. (c) 1 and 3 only
  4. (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.

StatementVerdictFact
1. Deprivation of education, health, assets and services at household levelCorrectExactly what the index measures
2. Purchasing power parity at national levelIncorrectUsed in the Human Development Index, not the MPI
3. Extent of budget deficit and GDP growth rate at national levelIncorrectThese are macroeconomic measures

Three dimensions, ten indicators:

DimensionIndicators
HealthNutrition, child mortality
EducationYears of schooling, school attendance
Living standardsCooking 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

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

Exam tip

MPI counts what a household lacks, not what a country earns.

Sources

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