The MPI is an index of acute multidimensional poverty. It reflects deprivations in very rudimentary services and core human functioning for people across 104 countries. Although deeply constrained by data limitations, MPI reveals a different pattern of poverty than income poverty, as it illuminates a different set of deprivations. The MPI has three dimensions: health, education, and standard of living. These are measured using ten indicators. Poor households are identified and an aggregate measure constructed using the methodology proposed by Alkire and Foster. Each dimension and each indicator within a dimension is equally weighted.
The following ten indicators are used to calculated the MPI:
- Education (each indicator is weighted equally at 1/6)
- Years of Schooling: deprived if no household member has completed five years of schooling
- Child Enrolment: deprived if any school-aged child is not attending school in years 1 to 8
- Health (each indicator is weighted equally at 1/6)
- Child mortality: deprived if any child has died in the family
- Nutrition: deprived if any adult or child for whom there is nutritional information is malnourished
- Standard of Living (each indicator is weighted equally at 1/18)
- Electricity: deprived if the household has no electricity
- Sanitation: deprived if they do not have an improved toilet or if their toilet is shared (MDG Definition)
- Drinking water: deprived if the household does not have access to clean drinking water or clean water is more than 30 minutes walk from home (MDG Definition)
- Floor: deprived if the household has dirt, sand or dung floor
- Cooking fuel: deprived if they cook with wood, charcoal or dung
- Assets: deprived if the household does not own more than one of: radio, TV, telephone, bike, or motorbike
A person is considered poor if they are deprived in at least 30% of the weighted indicators. The intensity of poverty denotes the proportion of indicators in which they are deprived.
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