Q.15  “Incidence and intensity of poverty are most important in determining poverty based on income alone”. In this context analyze the latest United Nations Multi Poverty Index report.

Model Answer:

Introduction

Poverty measurement has traditionally relied heavily on income metrics, with the incidence and intensity being crucial indicators. However, this approach has evolved significantly with the introduction of multidimensional poverty metrics, such as the United Nations Multidimensional Poverty Index (MPI). 

The MPI goes beyond income to incorporate various deprivations, including health, education, and living standards. 

Body

Analysis of United Nations Multi Poverty Index report

Key Components of MPI 

• Health: Indicators include nutrition and child mortality.
• Education: Indicators include years of schooling and school attendance.
• Living Standards: Indicators include access to electricity, improved sanitation, safe drinking water, flooring, cooking fuel, and asset ownership.

Latest United Nations MPI Report (2023)

Global Findings

• Incidence of Poverty: Approximately 1.3 billion people are multidimensionally poor, representing about 16.4% of the global population.
• Intensity of Poverty: The average intensity of poverty (the average percentage of deprivations experienced by people living in multidimensional poverty) is around 50%.

Regional Insights

• Sub-Saharan Africa: The highest incidence of multidimensional poverty, with around 57.5% of the population affected.
• South Asia: Significant improvements, but still, around 31% of the population is multidimensionally poor.
• Latin America and the Caribbean: Lower incidence compared to other regions, but pockets of high poverty persist.

Conclusion

The United Nations' Multidimensional Poverty Index provides a nuanced understanding of poverty, highlighting the importance of considering both the incidence and intensity of poverty. This comprehensive approach is essential for designing effective policies to alleviate poverty and improve the quality of life for the world's poorest populations. 

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