UPSC Prelims 2012 · Question 32 of 98

UPSC Prelims 2012 question on Multidimensional Poverty Index

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. 1 only
  2. 2 and 3 only
  3. 1 and 3 only
  4. 1, 2 and 3
Show answer

Answer: A. 1 only

Verdict

Correct Answer: 1 only

Only Statement 1 is correct because MPI measures household-level deprivations in health, education and living standards, not PPP, GDP growth or budget deficit.

Analysis

The Multidimensional Poverty Index measures poverty through household-level deprivations in basic human development indicators. It is not based on income, GDP or macroeconomic indicators.

Statement by statement

1. Deprivation of education, health, assets and services at household level — Correct

MPI measures poverty by looking at household-level deprivations.

It covers indicators related to health, education and standard of living, such as nutrition, child mortality, schooling, sanitation, drinking water, electricity, housing and assets.

2. Purchasing power parity at national level — Incorrect

Purchasing Power Parity is used for comparing income or economic output across countries.

MPI is a non-monetary poverty measure and does not use PPP as its basis.

3. Extent of budget deficit and GDP growth rate at national level — Incorrect

Budget deficit and GDP growth rate are macroeconomic indicators.

MPI does not measure national fiscal performance or economic growth; it measures direct deprivations faced by households.

Extra UPSC info

* Global MPI was developed by OPHI with UNDP support.

* It replaced the Human Poverty Index in 2010.

* MPI has three dimensions: health, education and standard of living.

* A person is considered multidimensionally poor if deprived in one-third or more of the weighted indicators.

* India’s National MPI is released by NITI Aayog.

* National MPI may include additional indicators suited to Indian conditions.

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