About Multidimensional Poverty Index (MPI) - Prelims MCQs

 

1)  Consider the following statements about Multidimensional Poverty Index (MPI):

1.   MPI is calculated using Alkire-Foster methodology.

2.   MPI calculated by NITI Aayog has a total of twelve indicators.

3.   Maternal Health and Bank Account are common indicators in the MPI of NITI Aayog and MPI of United Nations Development Programme (UNDP).

Which of the statements given above is/are correct?

a)  1 and 2 only

b)  1, 2 and 3

c)   1 and 3 only

d)  2 only

  

Correct Answer: (a) 1 and 2 only

Explanation:

• Statement 1 is correct: Both the Global MPI and India's National MPI are based on the robust Alkire-Foster (AF) methodology, developed by the Oxford Poverty and Human Development Initiative (OPHI). This methodology measures poverty not just by income, but by capturing overlapping deprivations that individuals face at the same time across health, education, and living standards.
• Statement 2 is correct: The National MPI, constructed by NITI Aayog, is tailored to the Indian context and consists of exactly twelve indicators across three equally weighted dimensions (Health, Education, and Standard of Living).
• Statement 3 is incorrect: This is the trap. The Global MPI (published by UNDP and OPHI) uses only 10 indicators. When NITI Aayog developed the National MPI, it retained these 10 global indicators but added two new ones specific to India's policy priorities: Maternal Health (under the Health dimension) and Bank Account (under the Standard of Living dimension). Therefore, they are not common to both; they are exclusive to NITI Aayog's MPI.

 

Strategy: If you know that NITI Aayog customized the Global MPI specifically to better reflect Indian realities, it logically follows that they must have added or changed indicators. Knowing that Maternal Health and Bank Accounts were the specific Indian additions immediately invalidates Statement 3. Eliminating Statement 3 removes options (b) and (c), leaving you to confirm that the 12-indicator fact for NITI Aayog is correct to land on option (a).