Multidimensional Poverty Index : A Tool for Poverty Reduction Strategies

The unidimensional conventional approach to estimate poverty based on income or consumption failed to capture many of the critical deprivations in the life of an individual. Over the years many studies concluded that poverty reduction must be done at three different levels in an integrated manner. Firstly, at macro level aimed to reduce income poverty through capital formation affecting human and physical resources and achieving economic growth through fiscal incentives and expenditure. Secondly, at the community and village level which can create local infrastructure development through human capital generation. Lastly, for eradication at grassroot level, government should intervene to target upliftment at individual level by providing good health, nutrition and education at all levels.Therefore, economists at the global level looked forward for a better approach regarding poverty estimation resulting in the development of multidimensional Poverty index by UNDP and OPHI in 2010. Since then, it has been considered as a blueprint for growth, prosperity, happiness, and development of the people which could be achieved through global partnership.  This paper provides an overview based on review of literature that why we need Multidimensional Poverty Index to assess poverty.

Keywords:
Multidimensional Poverty Index, Sustainable Development Goals, Dimensions, Government Strategies