UPSC Mains Answer: “The incedence and intensity of poverty are more important in determining poverty based on income alone”. In this context analyse the latest United Nations Multidimensional Poverty Index Report.

Difficulty Level: Hard

Pre-requisite: Foundational understanding of poverty measurement methodologies, including: 1. Income-Based Poverty Lines: Historical context of the World Bank’s $1.90/day threshold and its limitations.
2. Capabilities Approach: Amartya Sen’s framework, which

Sub-category: Social Justice (Poverty, Inclusion, and Welfare Schemes)

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The traditional income-based approach to measuring poverty, while straightforward, often fails to capture the multifaceted nature of deprivation. The United Nations Multidimensional Poverty Index (MPI) addresses this limitation by assessing poverty through multiple dimensions—health, education, and standard of living—thus providing a more holistic understanding of poverty’s incidence and intensity. This approach aligns with the assertion that the incidence (proportion of people experiencing poverty) and intensity (average deprivation among the poor) are more critical than income alone in determining true poverty levels.
Historically, poverty measurement relied heavily on income thresholds, such as the World Bank’s $1.90-a-day line. However, this method overlooks non-monetary deprivations, such as lack of access to healthcare, education, or basic utilities like clean water and electricity. The MPI, introduced by the UNDP and the Oxford Poverty and Human Development Initiative (OPHI), rectifies this by incorporating ten indicators across three dimensions. For instance, a household may earn above the income poverty line but still suffer from malnutrition, illiteracy, or inadequate sanitation—conditions that perpetuate intergenerational poverty.
The latest MPI Report (2020) reveals stark disparities. Globally, 1.3 billion people are multidimensionally poor, with Sub-Saharan Africa and South Asia accounting for the highest concentrations. In India, while income poverty has declined, multidimensional poverty persists, particularly in rural areas, where deprivations in nutrition and schooling remain acute. The report also highlights the disproportionate impact on marginalized groups, such as women, children, and indigenous populations, underscoring the need for targeted policy interventions.
Forward-looking, the MPI’s emphasis on intensity and incidence advocates for policies that go beyond cash transfers. Investments in healthcare, education, and infrastructure are essential to break the cycle of poverty. For India, this means strengthening schemes like Ayushman Bharat, improving school enrollment rates, and ensuring universal access to basic amenities. By adopting a multidimensional lens, policymakers can design more effective strategies to eradicate poverty in its entirety, rather than merely alleviating its symptoms.