<<–2/”>a >h4 style=”text-align: center;”>Human POVERTY Index (HPI)
The Human Poverty Index (HPI) was first introduced into the Human Development Report by the United Nations Development Programme (UNDP) in 1997 in an attempt to bring together in a composite index the different features of deprivation in the Quality Of Life to arrive at an aggregate judgement on the extent of poverty in a community.
There are two indices; the HPI – 1, which measures poverty in developing countries, and the HPI-2, which measures poverty in OCED developed economies.
Calculation of HPI-1 for Developing countries:-The following three dimensions are taken into account:
- deprivation of longevity, measured as a Percentage of the individuals with a life expectancy lower than 40 years (P1).
- deprivation of knowledge, expressed as a percentage of illiterate adults (P2).
- deprivation of decent living standards (P3). This last indicator is made up by the simple Average of three basic variables:
- the percentage of the Population without access to drinking water (P31),
- the percentage of population without access to Health Services (P32) and lastly,
- the percentage of underweight children aged less than five (P33).
The indicator P3, referred to the living standard, is then obtained as an average of the three indicators, in this way:
[(P31 + P32 + P33) / 3
The global index HPI-1 is obtained by combining these three dimensions into one single measure giving a greater weight to the most disadvantaged situation.
The formula is:
HPI-1 = [(P13 + P23 + P33 ) / 3]1/3
While HPI-2 is calculated as follows:-
Multi Dimensional Indian poverty index
Poverty is a multi-dimensional issue and various experts/committees and institutions estimate poverty based on different perceptions/definitions. However, Planning Commission is the nodal agency in the Government of India to estimate poverty in the country. TheMultidimensional Poverty Index (MPI) was developed in 2010 by the Oxford Poverty & Human Development Initiative (OPHI) and the United Nations Development Programme. and uses different factors to determine poverty beyond income-based lists. It replaced the previous Human Poverty Index.
Various dimentions of MPI are:-
| Dimension | Indicators |
|---|---|
| Health |
|
| Education |
|
| Living Standards |
|
Life expectancy at birth: Number of years a newborn infant could expect to live if prevailing patterns of age-specific mortality rates at the time of birth stay the same throughout the infant’s life.
Expected years of schooling: Number of years of schooling that a child of school entrance age can expect to receive if prevailing patterns of age-specific enrolment rates persist throughout the child’s life.
Mean years of schooling: Average number of years of education received by people ages 25 and older, converted from education attainment levels using official durations of each level.
Gross NATIONAL INCOME (GNI) per capita: Aggregate income of an economy generated by its production and its ownership of factors of production, less the incomes paid for the use of factors of production owned by the rest of the world, converted to international dollars using PPP rates, divided by midyear population.,
The Human Poverty Index (HPI) is a composite statistic of life expectancy, Literacy, education, and standard of living indicators used by the United Nations to measure the extent of poverty in a country. The HPI was developed by the United Nations Development Programme (UNDP) as a way to measure the extent of poverty in a country that went beyond income poverty. The HPI is based on the premise that poverty is a multidimensional phenomenon that includes not only income poverty, but also deprivation in other areas such as health, education, and standard of living.
The HPI is calculated for each country by combining four indicators:
- Life expectancy at birth measures the average number of years that a newborn is expected to live.
- Adult literacy rate measures the percentage of the population aged 15 and above who can read and write.
- Under-five mortality rate measures the number of deaths per 1,000 live births among children under the age of five.
- Mean years of schooling measures the average number of years of schooling that a person has completed.
The HPI is calculated for each country by giving each indicator a weight and then combining the weighted indicators into a single index. The weights are chosen to reflect the importance of each indicator in measuring poverty. The HPI is then ranked from 0 to 1, with 0 representing the lowest level of poverty and 1 representing the highest level of poverty.
The HPI has been criticized for a number of reasons. One criticism is that the HPI is based on a limited number of indicators. Another criticism is that the HPI does not take into account the distribution of poverty within a country. Despite these criticisms, the HPI remains an important tool for measuring poverty.
The Multidimensional Indian Poverty Index (MPI) is a measure of Poverty in India that was developed by the National Statistical Office (NSO) of India. The MPI is based on the premise that poverty is a multidimensional phenomenon that includes not only income poverty, but also deprivation in other areas such as health, education, and standard of living.
The MPI is calculated for each state in India by combining ten indicators:
- Child mortality rate measures the number of deaths per 1,000 live births among children under the age of five.
- Maternal mortality rate measures the number of deaths per 100,000 live births among Women aged 15-49.
- Undernourishment measures the percentage of the population that is undernourished.
- Literacy rate measures the percentage of the population aged 7 and above who can read and write.
- School attendance measures the percentage of children aged 6-14 who are enrolled in school.
- Access to electricity measures the percentage of households that have access to electricity.
- Access to improved sanitation measures the percentage of households that have access to improved sanitation facilities.
- Access to drinking water measures the percentage of households that have access to improved drinking water facilities.
- Household assets measures the value of household assets.
- Household landholding measures the size of household landholding.
The MPI is calculated for each state in India by giving each indicator a weight and then combining the weighted indicators into a single index. The weights are chosen to reflect the importance of each indicator in measuring poverty. The MPI is then ranked from 0 to 1, with 0 representing the lowest level of poverty and 1 representing the highest level of poverty.
The MPI has been criticized for a number of reasons. One criticism is that the MPI is based on a limited number of indicators. Another criticism is that the MPI does not take into account the distribution of poverty within a state. Despite these criticisms, the MPI remains an important tool for measuring poverty in India.
What is the Human Development index (HDI)?
The Human Development Index (HDI) is a composite statistic of life expectancy, education, and per capita income indicators, which are used to rank countries into four tiers of human development. A country’s HDI value is a summary measure of its achievements in key areas of human development: a long and healthy life, being knowledgeable, and having a decent standard of living.
What are the components of the HDI?
The HDI is calculated as a geometric mean of three indices: life expectancy at birth, expected years of schooling for children under 15, and gross national income per capita adjusted for purchasing power parity.
How is the HDI calculated?
The HDI is calculated as follows:
HDI = (longevity à education à income)1/3
where:
- longevity is life expectancy at birth,
- education is expected years of schooling for children under 15, and
- income is gross national income per capita adjusted for purchasing power parity.
What are the limitations of the HDI?
The HDI has been criticized for a number of reasons, including the following:
- It does not take into account inequality within countries.
- It does not measure non-economic aspects of well-being, such as environmental quality and social inclusion.
- It is based on a limited number of indicators.
What are some alternative measures of human development?
Some alternative measures of human development include the following:
- The Genuine Progress Indicator (GPI) is a measure of economic well-being that takes into account environmental and social costs.
- The Human Development Index Plus (HDI+) is an extension of the HDI that includes indicators of inequality and environmental sustainability.
- The Multidimensional Poverty Index (MPI) is a measure of poverty that takes into account multiple deprivations in people’s lives.
What are the implications of the HDI for policy?
The HDI can be used to track progress in human development over time and to compare the performance of different countries. It can also be used to identify areas where countries need to improve their performance. For example, a country with a low HDI may need to focus on improving its health care system or its education system.
What are some of the challenges to achieving human development?
Some of the challenges to achieving human development include the following:
- Poverty: Poverty is a major obstacle to human development. People who are poor often lack access to basic necessities such as food, water, shelter, and education.
- Inequality: Inequality is another major obstacle to human development. Inequalities in income, wealth, and opportunity can prevent people from reaching their full potential.
- Conflict: Conflict can also hinder human development. War and violence can disrupt economies, destroy Infrastructure-2/”>INFRASTRUCTURE, and displace people.
- Environmental Degradation: Environmental degradation can also undermine human development. Deforestation, pollution, and Climate change can lead to food shortages, water scarcity, and health problems.
What are some of the successes in human development?
Despite the challenges, there have been some significant successes in human development in recent decades. For example, the number of people living in extreme poverty has declined by more than half since 1990. Life expectancy has increased in most countries, and literacy rates have also improved.
What are the prospects for human development in the future?
The prospects for human development in the future are mixed. On the one hand, there are reasons to be optimistic. The global economy is growing, and there is a growing consensus on the importance of investing in human development. On the other hand, there are also reasons to be concerned. The world is facing a number of challenges, such as Climate Change, conflict, and inequality. These challenges will need to be addressed if we are to achieve sustainable human development.
The Human Poverty Index (HPI) is a composite statistic of life expectancy, education, and income indicators used to rank countries by level of human development. The HPI was developed by the United Nations Development Programme (UNDP) as a complement to the Human Development Index (HDI).
The Multidimensional Poverty Index (MPI) is a measure of poverty that captures both income and non-income dimensions of poverty. The MPI was developed by the Oxford Poverty and Human Development Initiative (OPHI) in collaboration with the United Nations Development Programme (UNDP).
The MPI is calculated for 101 countries, and is based on 10 indicators grouped into three dimensions: health, education, and living standards. The MPI is a composite index that ranges from 0 to 1, with 0 representing no poverty and 1 representing the most severe poverty.
The MPI is a useful tool for measuring poverty and tracking progress in reducing poverty. The MPI can be used to identify the poorest people and areas, and to target Resources to those who need them most. The MPI can also be used to track progress in reducing poverty over time.
The MPI has been criticized for its focus on income and non-income dimensions of poverty. Some critics argue that the MPI should also include indicators of social exclusion and vulnerability. Other critics argue that the MPI is too complex and difficult to understand.
Despite these criticisms, the MPI is a valuable tool for measuring poverty and tracking progress in reducing poverty. The MPI can be used to identify the poorest people and areas, and to target resources to those who need them most. The MPI can also be used to track progress in reducing poverty over time.
The following are some of the advantages of the MPI:
The MPI is a composite index that captures both income and non-income dimensions of poverty.
- The MPI is calculated for a large number of countries.
- The MPI is based on a set of internationally comparable indicators.
- The MPI is a useful tool for identifying the poorest people and areas.
The MPI can be used to track progress in reducing poverty over time.
The following are some of the disadvantages of the MPI:
The MPI is complex and difficult to understand.
- The MPI is based on a set of assumptions that may not be accurate in all countries.
- The MPI is not a perfect measure of poverty.
The MPI does not capture all dimensions of poverty.
Overall, the MPI is a valuable tool for measuring poverty and tracking progress in reducing poverty. The MPI has some advantages and disadvantages, but it is a useful tool for policymakers and researchers.
The following are some of the ways in which the MPI can be used:
To identify the poorest people and areas.
- To target resources to those who need them most.
- To track progress in reducing poverty over time.
- To compare poverty levels across countries.
To assess the impact of policies and programs on poverty.
The MPI is a valuable tool for policymakers and researchers. The MPI can be used to identify the poorest people and areas, to target resources to those who need them most, to track progress in reducing poverty over time, to compare poverty levels across countries, and to assess the impact of policies and programs on poverty.