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UNDP Global Multidimensional Poverty Index (MPI): Dimensions and Indicators

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UNDP Global Multidimensional Poverty Index (MPI)

UNDP Global Multidimensional Poverty Index (MPI)

The Global Multidimensional Poverty Index (MPI) is a vital, non-monetary measure of acute poverty released annually by the United Nations Development Programme (UNDP) and the Oxford Poverty and Human Development Initiative (OPHI). Unlike traditional income-based measures, the MPI captures the multiple, overlapping deprivations that people living in poverty face simultaneously in health, education, and living standards.

The MPI is calculated by combining two key factors:

  1. Incidence ($H$): The proportion of the population who are multidimensionally poor (the headcount ratio).

  2. Intensity ($A$): The average proportion of weighted deprivations suffered by poor people.

The MPI value is their product: $\text{MPI} = H \times A$. A person is considered multidimensionally poor if they are deprived in at least one-third (33.3%) of the weighted indicators.

UNDP Global Multidimensional Poverty Index (MPI)

Dimensions and Indicators of the Global MPI

The index is structured around three equally-weighted dimensions, which are broken down into ten indicators. A household is deprived in an indicator if it does not meet a specific threshold or cutoff.

Dimension (Weight: 1/3)Indicator (Weight)Deprived if Household/Person...
HealthNutrition (1/6)Any adult under 70 or any child is undernourished.
Child Mortality (1/6)A child under 18 has died in the family in the five years preceding the survey.
EducationYears of Schooling (1/6)No eligible household member has completed at least six years of schooling.
School Attendance (1/6)Any school-aged child is not attending school up to the age at which they would complete class 8.
Standard of LivingCooking Fuel (1/18)Uses solid fuel (e.g., dung, wood, charcoal, coal) for cooking.
Sanitation (1/18)Has an unimproved or no sanitation facility, or a facility that is improved but shared.
Drinking Water (1/18)Does not have access to safe drinking water, or safe water is a 30-minute or longer walk (roundtrip).
Electricity (1/18)Has no electricity.
Housing (1/18)Has inadequate housing materials in any of the three components: floor, roof, or walls.
Assets (1/18)Does not own more than one of these assets: radio, TV, telephone, computer, animal cart, bicycle, motorbike, or refrigerator, and does not own a car or truck.

Key Findings of the Latest Global MPI (2025 Report)

The most recent report, "Overlapping Hardships: Poverty and Climate Hazards" (2025), is significant as it, for the first time, explicitly analyzes the intersection of multidimensional poverty and exposure to climate hazards.

Global Poverty Statistics (Based on data from 109 countries, covering 6.3 billion people):

  • 1.1 billion people (18.3% of the population surveyed) are living in acute multidimensional poverty.

  • Children are disproportionately affected: While they are only about a third of the global population, they represent 51% of all multidimensionally poor people (584 million children).

  • Middle-Income Countries as Hotspots: Nearly two-thirds of all poor people (740 million) reside in middle-income countries, highlighting the limitation of using only national income averages to understand deprivation.

  • Geographical Concentration: Sub-Saharan Africa and South Asia account for 83% of the world's poor.

Poverty and Climate Interlinkages:

  • Vast Exposure: Nearly 80% of the world's poor—887 million people—live in regions exposed to at least one of four major climate hazards: high heat, drought, floods, or air pollution.

  • Overlapping Hazards: 651 million poor people endure two or more climate hazards, and 309 million face a "triple or quadruple burden" of three or four simultaneous climate shocks.

  • Future Risk: Countries with higher current levels of multidimensional poverty are predicted to experience the greatest increases in temperatures by the end of the century, exacerbating the unequal burden of climate-related hazards.

Sample Global MPI Data Table

The following is an illustrative table structure using indicative recent data for a few countries to demonstrate the components of the MPI. Note: Actual year and values may vary based on the specific survey data used in the official report release.

Country (Survey Year)Incidence (H) (% of Population in MPI Poverty)Intensity (A) (Average Deprivations Score)MPI Value (H×A)Population in Severe Poverty (%)*Population Vulnerable to Poverty (%)**
Nigeria (2018)51.4%48.7%0.25035.5%20.8%
India (2019/2021)16.4%42.0%0.0692.8%18.2%
Bangladesh (2019)10.4%40.0%0.0421.8%15.6%
Vietnam (2022)1.4%37.0%0.0050.2%3.5%

Definitions for Table:

  • *Severe Poverty: Those deprived in 50% or more of the weighted indicators.

  • **Vulnerable to Poverty: Those deprived in 20% to less than 33.3% of the weighted indicators (i.e., those not poor but at high risk).

The MPI provides a powerful tool for policymakers, allowing them to identify the poorest groups and understand how they are poor (e.g., whether the primary deprivation is in education, sanitation, or cooking fuel) to enable more targeted, effective, and cross-sectoral interventions that address the specific combination of hardships faced by the most vulnerable populations.


The Health Dimension in the Global Multidimensional Poverty Index (MPI)

The Health Dimension in the Global Multidimensional Poverty Index (MPI)

The Global Multidimensional Poverty Index (MPI) is an international measure of acute poverty developed by the Oxford Poverty & Human Development Initiative (OPHI) and the United Nations Development Programme (UNDP). It goes beyond simple income-based measures to capture the severe deprivations in health, education, and living standards that a person faces simultaneously.

The Global MPI is structured around three equally weighted dimensions: Health, Education, and Standard of Living. Each dimension is further broken down into specific indicators, with the overall MPI combining two key components: the incidence of poverty (the proportion of the population who are poor, $H$) and the intensity of poverty (the average proportion of deprivations poor people experience, $A$). The final MPI value is the product of these two: $\text{MPI} = H \times A$.

The Health dimension is crucial, as poor health is both a consequence and a cause of poverty. It is assigned a one-third (1/3) weight of the total MPI score, reflecting its equal importance compared to the other two dimensions.

Dimensions and Indicators of the Global MPI: Health

The Health dimension is comprised of two indicators, each contributing equally to the dimension's overall weight (1/2 of $1/3$, or 1/6 of the total MPI weight). A household is identified as deprived in an indicator if it meets the corresponding deprivation cutoff. The two indicators are Nutrition and Child Mortality.

The table below outlines the dimension, its indicators, the deprivation cutoffs used for identification, and the assigned weight.

DimensionIndicatorDeprived if living in a household where...Indicator Weight (Fraction of Total MPI)
Health (Total Weight: $1/3$)NutritionAny person under 70 years of age for whom there is nutritional information is undernourished.$1/6$
Child MortalityAny child under the age of 18 years has died in the family in the five-year period preceding the survey.$1/6$

Note: Undernourishment is typically defined using measures like Body Mass Index (BMI) for adults and age-specific metrics (e.g., stunting or wasting) for children.

Significance of the Health Indicators

The selection of these two health indicators focuses on severe, fundamental deprivations:

  • Nutrition: This indicator addresses a core function of human well-being—being properly nourished. Undernourishment compromises an individual's physical and cognitive development, immune system, and overall ability to function, acting as a significant brake on human capability and future potential.

  • Child Mortality: The tragic loss of a child is one of the most acute deprivations a household can face. This indicator serves as a proxy for the most extreme shortfalls in health care, environment, and well-being experienced by the household, reflecting inadequate access to healthcare, clean water, sanitation, and sufficient nutrition.

By using these two measures, the Global MPI captures a comprehensive snapshot of the health challenges faced by the poor, contributing to a more nuanced understanding of poverty beyond purely economic terms. The index is used by policymakers to design targeted interventions that address the overlapping deprivations experienced by the most vulnerable populations.


The Education Dimension of the Global Multidimensional Poverty Index (MPI)

The Education Dimension of the Global Multidimensional Poverty Index (MPI)

The Global Multidimensional Poverty Index (MPI) is an international measure of acute poverty developed by the Oxford Poverty & Human Development Initiative (OPHI) and the United Nations Development Programme (UNDP). It goes beyond income by identifying multiple, simultaneous deprivations a person experiences in health, education, and standard of living.

The MPI is composed of three equally weighted dimensions: Health, Education, and Standard of Living, each contributing one-third ($1/3$) to the overall MPI score. Within the Education dimension, there are two indicators, meaning each indicator accounts for one-sixth ($1/6$) of the total MPI weight.

The two indicators within the Education dimension capture two distinct, yet related, aspects of educational deprivation at the household level: the stock of human capital (years of schooling) and the flow into it (school attendance).

Dimensions and Indicators of the Global MPI: Education

The table below details the Education dimension's components, the deprivation cutoffs used to determine if a household is deprived in that indicator, and the weight each indicator contributes to the final MPI value.

Dimension (Weight)Indicator (Weight)Deprived if living in a household where...
Education ($\frac{1}{3}$)Years of Schooling ($\frac{1}{6}$)No household member aged 'school entrance age + six' years or older has completed at least six years of schooling.
School Attendance ($\frac{1}{6}$)Any school-aged child (up to the age at which they would complete class 8) is not attending school.

Understanding the Education Indicators

The education dimension aims to capture the lack of educational attainment and current access to schooling, both of which are critical for future opportunities and well-being.

Years of Schooling

This indicator reflects the stock of education in the household. A household is deprived if no one has completed at least six years of formal education. This threshold is roughly equivalent to completing primary school in most educational systems, reflecting a minimum, fundamental level of human capital necessary to escape poverty.

School Attendance

This indicator measures the flow of education, focusing on whether children in the household are currently in school. Deprivation here signifies that a school-aged child is missing out on their right to education, which can perpetuate the cycle of poverty for the next generation. The cut-off is typically for children up to the age at which they would complete the equivalent of grade 8.

The MPI's Identification of Poverty

A person is identified as multidimensionally poor if the weighted sum of their household's deprivations is one-third ($33.3\%$) or more of the total possible weighted deprivations. Since the Education dimension is weighted at $\frac{1}{3}$, a household deprived in both education indicators ($\frac{1}{6} + \frac{1}{6} = \frac{2}{6} = \frac{1}{3}$) would be identified as multidimensionally poor even if they were not deprived in any other indicator in the Health or Standard of Living dimensions. This equal weighting emphasizes the critical role of education as a distinct pillar of human development and poverty measurement.



The Standard of Living in the Global MPI


The Standard of Living in the Global MPI

The Global Multidimensional Poverty Index (MPI), jointly published by the United Nations Development Programme (UNDP) and the Oxford Poverty & Human Development Initiative (OPHI), offers a comprehensive view of poverty that goes far beyond a simple lack of income. It measures acute deprivation across three equally weighted dimensions: Health, Education, and Standard of Living.

The Standard of Living dimension, with its six constituent indicators, acts as a critical measure of the most basic infrastructure and assets required for a life of minimal dignity. It is assigned a total weight of $\frac{1}{3}$ in the overall MPI calculation, with each individual indicator contributing a weight of $\frac{1}{18}$. For a person to be classified as multidimensionally poor, their household must be deprived in at least $\frac{1}{3}$ of the total weighted indicators across all three dimensions.

The table below details the six essential threads that make up the Fabric of Dignity—the indicators used to define deprivation in the standard of living.

Dimensions and Indicators of the Global MPI: Standard of Living

Dimension (Total Weight: 31​)Indicator (Weight: 181​ each)Deprivation Cutoff: The Household is Deprived if...
Standard of LivingCooking FuelThe household relies on solid fuels such as dung, wood, charcoal, or coal.
SanitationThe household has an unimproved sanitation facility or a facility that is improved but shared with other households.
Drinking WaterThe primary source of drinking water is unimproved or the improved source is a 30-minute or longer walk (roundtrip).
ElectricityThe household has no electricity access.
HousingThe dwelling has inadequate roofing, walls, or flooring materials (e.g., natural or rudimentary materials in any of the three components).
AssetsThe household does not own more than one basic asset (radio, TV, telephone, computer, animal cart, bicycle, motorbike, or refrigerator) and does not own a car or truck.

The Policy Focus

By breaking down the Standard of Living into these six distinct areas, the Global MPI provides a powerful tool for policymakers. It moves beyond identifying that a person is poor to showing how they are poor. For example, a household might not be deprived in Electricity or Assets, but may suffer from severe deprivation in Sanitation and Cooking Fuel.

This granular detail allows governments to prioritize specific, targeted interventions, such as subsidized clean cookstoves, investments in rural water infrastructure, or improved housing schemes, ensuring that resources are directed to mend the most frayed and critical threads in the lives of the poor.


The Two Key Factors That Determine the MPI Index

The Two Key Factors That Determine the MPI Index 

The Global Multidimensional Poverty Index (MPI), developed by the United Nations Development Programme (UNDP) and the Oxford Poverty and Human Development Initiative (OPHI), is a comprehensive measure that goes beyond income to capture the multiple deprivations people face at the same time. The MPI is calculated using the Alkire-Foster method, which combines two crucial components:

Key Factor 1: The Incidence of Poverty ($H$)

The first factor in calculating the MPI is the Incidence of Poverty ($H$), which is simply the percentage of the population who are multidimensionally poor. It is often referred to as the Headcount Ratio.

How Incidence is Determined:

  1. Dimensions and Indicators: The global MPI uses ten indicators grouped into three equally weighted dimensions (Health, Education, and Standard of Living).

  2. Deprivation Score: For each person, a deprivation score is calculated by summing up the weighted indicators in which their household is deprived.

  3. Poverty Cutoff: A person is identified as multidimensionally poor if their household's deprivation score is equal to or greater than the specified poverty cutoff, typically one-third ($\frac{1}{3}$) of the total weighted indicators.

  4. The Calculation: The incidence ($H$) is then the number of poor people ($q$) divided by the total population ($n$).

$$H = \frac{q}{n}$$

This factor tells policymakers how many people are poor in a country.

Key Factor 2: The Intensity of Poverty ($A$)

The second factor is the Intensity of Poverty ($A$), which measures how poor the poor are—that is, the average proportion of weighted deprivations that poor people experience.

How Intensity is Calculated:

  • The intensity ($A$) is calculated by taking the average of the deprivation scores among all people identified as multidimensionally poor.

  • It answers the question: "Of the total possible deprivations they could face, what percentage does the average poor person actually face?"

This factor is critical because it captures the depth and severity of poverty. A country where the poor are deprived in 8 out of 10 indicators has a higher intensity of poverty than one where the poor are deprived in 4 out of 10, even if the total number of poor people (the incidence) is the same.

The Final MPI Value

The final Global Multidimensional Poverty Index ($MPI$) is the product of these two factors:

$$\mathbf{MPI = H \times A}$$

The MPI is also known as the Adjusted Headcount Ratio ($M_0$) because it is the traditional headcount ratio ($H$) adjusted by the intensity of poverty ($A$). This gives a single, combined measure that reflects both the breadth and depth of acute poverty.

FactorDescriptionFormula ComponentPolicy Relevance
Incidence of Poverty ($H$)The proportion of the population that is multidimensionally poor (the Headcount Ratio).$\frac{\text{Number of Poor People}}{\text{Total Population}}$Identifies how many people are poor.
Intensity of Poverty ($A$)The average proportion of weighted deprivations experienced by the poor.$\frac{\text{Sum of Poor People's Deprivation Scores}}{\text{Number of Poor People}}$Identifies how poor the poor are on average.
MPI ($M_0$)The final index value, combining both factors.$H \times A$Provides a complete picture of acute multidimensional poverty.

By combining the Incidence ($H$) and Intensity ($A$) of poverty into a single index ($MPI$), the Global Multidimensional Poverty Index offers a robust and detailed picture of human deprivation. This dual focus ensures that policy interventions can be effectively targeted not only to reduce the number of people living in poverty, but also to address the severe, overlapping deprivations they experience, aligning efforts with the comprehensive targets of the Sustainable Development Goals (SDGs).


The Global Multidimensional Poverty Index (MPI): Data Sources and Methodology

The Global Multidimensional Poverty Index (MPI): Data Sources and Methodology

The Global Multidimensional Poverty Index (MPI) is an international measure of acute poverty developed by the Oxford Poverty and Human Development Initiative (OPHI) at the University of Oxford and the United Nations Development Programme (UNDP) Human Development Report Office. It goes beyond monetary poverty to capture the multiple, simultaneous deprivations—in health, education, and living standards—that people face at the household level.

The MPI is calculated using the Alkire-Foster method and utilizes microdata from nationally representative household surveys. This reliance on household-level data is crucial as it allows for the analysis of overlapping deprivations, providing a detailed and accurate picture of poverty.

Primary Data Sources for the Global MPI

The Global MPI primarily relies on high-quality, internationally comparable household survey data, ensuring consistency and methodological rigor across the more than 100 developing countries covered. The main types of surveys used are:

Data Source CategoryPrimary Surveys UsedDescriptionMPI Indicators Covered
Demographic and Health Surveys (DHS)DHSLarge-scale, nationally representative household surveys conducted in developing countries, providing data on health, nutrition, education, and household assets.All 10 MPI indicators (Health, Education, and Living Standards)
Multiple Indicator Cluster Surveys (MICS)MICSSurveys developed by UNICEF to assist countries in collecting internationally comparable data on a wide range of indicators on the situation of children and women.All 10 MPI indicators (Health, Education, and Living Standards)
Other National SurveysNational Family Health Surveys (NFHS, India), Living Standards Measurement Surveys (LSMS), and other nationally-driven, high-quality household surveys.Various country-specific surveys that meet the strict data requirements for the MPI methodology, ensuring comparability of indicators.All 10 MPI indicators (Health, Education, and Living Standards)
Auxiliary/Complementary DataOther official statistics (e.g., climate hazard data, conflict data, census data for subnational disaggregation).Used for supplementary analysis, such as linking multidimensional poverty with environmental vulnerability or conflict exposure, as seen in recent MPI reports.Contextual analysis and specialized reports (e.g., climate, conflict)

Key Characteristics of MPI Data

  • Microdata Focus: The MPI requires microdata—raw, individual-level, and household-level data—to determine if a person is simultaneously deprived in multiple indicators.

  • 10 Indicators, 3 Dimensions: The data collected must cover the 10 specific indicators grouped into three equal dimensions:

    • Health (1/3 weight): Nutrition, Child Mortality.

    • Education (1/3 weight): Years of Schooling, School Attendance.

    • Standard of Living (1/3 weight): Cooking Fuel, Sanitation, Drinking Water, Electricity, Housing, Assets.

  • Comparability: While using national surveys, OPHI and UNDP apply harmonized methodology and deprivation cutoffs to ensure the results are comparable across countries and over time.

Conclusion

The robustness and policy relevance of the Global Multidimensional Poverty Index are fundamentally rooted in its meticulous use of high-quality, internationally standardized household survey microdata, primarily from the DHS and MICS programs. By leveraging this granular data, the MPI moves past simple income measures to paint a precise and comprehensive picture of acute poverty—highlighting who is poor, how they are poor, and the overlapping deprivations they face.

This data-driven approach, grounded in the systematic collection of household information across health, education, and living standards, serves as a vital tool. It enables policymakers to formulate more targeted, multi-sectoral interventions essential for achieving the Sustainable Development Goal 1 (SDG 1: End poverty in all its forms everywhere) and ensuring that efforts to reduce global poverty effectively reach the most deprived populations.

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