Home > Development Economics > Does being poor mean lack of income?

Does being poor mean lack of income?

MPIAn engaging article from The Economist suggesting that income is not the only aspect of life that people care about. There are other variables that have an impact on people’s lives. The Oxford Poverty and Human Development Initiative have devised the Multi-Dimensional Poverty Index (MPI) which asks 10 questions:

2 on education
2 on health
6 on household standard of living

Each of these is given a weighting in the overall index. A household is deemed poor if its hardship adds up to at least 33%. The index addresses other developments not just income per day. Nepal improved health and living standards but was slower to improve education or widen access to drinking water. In Rwanda the availability of water and sanitation accounted for a large part of its development. Ultimately the index focuses the importance of measuring standards of living away from consumer durables to that of drinking water, sanitation and health. Policymakers have in the past looked at statistics in a vacuum with a focus on purchasing power rather than other variables of equal importance.

  1. No comments yet.
  1. No trackbacks yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: