The MPI is a tool that measures poverty by looking at three main dimensions rather than just income. Think of it like checking a student’s performance in a school: you look at attendance, grades, and participation to get a full picture. The MPI does the same for households, giving a richer view of poverty.
| Dimension | Indicators | Weight |
|---|---|---|
| Health | Child mortality, nutrition, access to clean water | 1/3 |
| Education | School attendance, literacy, access to learning materials | 1/3 |
| Living Standards | Housing quality, electricity, sanitation, cooking fuel | 1/3 |
1. Identify deprived indicators for each household.
2. Compute the deprivation score (s) – the proportion of indicators a household is deprived in.
3. Compute the MPI (M) using the formula:
\$M = \frac{1}{3} \times (H + E + W)\$
Where H, E, and W are the weighted deprivation scores for Health, Education, and Living Standards respectively. A higher MPI means more severe poverty.
Exam Tip: When answering questions on MPI, remember to:
Key Terms to Remember
Imagine a village where 60% of children are malnourished, 70% of schools lack basic supplies, and 80% of homes have no electricity. Using MPI, the government can see that living standards are the biggest issue and allocate funds to improve electricity and sanitation first, before tackling education or health.