In 2010 the Human Development Report introduced the Multidimensional Poverty Index (MPI), a measure based on the counting approach of Alkire and Foster (2011)[i]. The MPI is currently being calculated for over 100 developing countries. However, developed countries were not covered, leaving a false impression that there are no multidimensional deprivations in these countries.
With the universality aspect of the Sustainable Development Goals, the need for a measure of overlapping deprivations for developed countries became important. This paper proposes a new experimental composite index, the Multidimensional Deprivation Index (MDI), aiming at filling this gap by exploring and assessing the simultaneous human deprivations in developed countries. It is based on the same counting approach as the MPI. Similarly, all the indicators needed to construct the MDI must come from the same survey. The experimental MDI proposed here is based on 14 indicators and identifies households and individuals that are acutely deprived in 5 dimensions: education, health, material standard of living, environment and housing, and work.
What is the difference between multidimensional poverty and multidimensional deprivations? Multidimensional poverty refers to individuals lacking multiple basic needs such as access to improved drinking water or improved sanitation facilities. This concept is more appropriate for developing countries. On the other hand, we prefer to use the term multidimensional deprivations to refer to individuals suffering deprivations in aspects that are not basic but that can be no less debilitating to the choices of the individuals and families experiencing the deprivations. Even though a household can have access to improved drinking water and improved sanitation facilities, it can still suffer a deprivation if it cannot keep the home adequately warm or if it cannot pay bills on time. This concept is more appropriate for developed countries. Applying the same methodology to developed and developing countries would give the false impression that there are no multidimensional deprivations in developed countries.
[1] Sabina Alkire and James Foster (2011). Counting and Multidimensional Poverty Measurement.” Journal of Public Economics, 95, 476-487.
About the Presenter:
Cecilia Calderón‘s topics of research include multidimensional poverty, with particular interest in analyzing multidimensional poverty in children, the Human Development Index, inequalities in education and income, and gender inequalities.
Before joining the Human Development Report Office at the United Nations Development Programme, Cecilia has worked at the Population Council, the Inter-American Development Bank and the Center for Distributive, Labor and Social Studies at the Universidad Nacional de La Plata (CEDLAS), Argentina. Cecilia holds a Ph.D. and a master’s degree in Demography from the University of Pennsylvania and a master’s in Economics from the Universidad Nacional de La Plata, Argentina. Her Ph.D. dissertation analyses the relationship between the nutritional status of the mothers and its impact of the growth and development of their children.
About the Moderator:
James E. Foster is the Oliver T. Carr, Jr. Professor of International Affairs, Professor of Economics, and Co-Director of the Institute for International Economic Policy at the George Washington University. He is also a Research Associate at the Oxford Poverty and Human Development Initiative at Oxford University. Professor Foster’s research focuses on welfare economics — using economic tools to evaluate and enhance the wellbeing of people. His work underlies many well-known social indices including the global Multidimensional Poverty Index (MPI) published annually by the UNDP in the Human Development Report, dozens of national MPIs used to guide domestic policy against poverty, the Women’s Empowerment in Agriculture Index (WEAI) at USAID, the Gross National Happiness Index of Bhutan, the Better Jobs Index of the InterAmerican Development Bank, and the Statistical Performance Index of the World Bank. Prof. Foster received his PhD in Economics from Cornell University and has a Doctorate Honoris Causa from Universidad Autonoma del Estado Hidalgo (Mexico).
Pedro Conceição has been Director of the Human Development Report Office and lead author of the Human Development Report since 1 January 2019. Prior to this, Pedro served as Director, Strategic Policy, at the Bureau for Policy and Programme Support (from October 2014), and Chief Economist and Head of the Strategic Advisory Unit at the Regional Bureau for Africa (from 1 December 2009). Before that, he was Director of the Office of Development Studies (ODS) from March 2007 to November 2009, and Deputy Director of ODS, from October 2001 to February 2007. His work on financing for development and on global public goods was published by Oxford University Press in books he co-edited (The New Public Finance: Responding to Global Challenges, 2006; Providing Global Public Goods: Managing Globalization, 2003). He has published on inequality, the economics of innovation and technological change, and development in, amongst other journals, the African Development Review, Review of Development Economics, Eastern Economic Journal, Ecological Economics, Environmental Economics and Policy Studies, Food Policy, and Technological Forecasting and Social Change. He co-edited several books including: Innovation, Competence Building, and Social Cohesion in Europe- Towards a Learning Society (Edward Elgar, 2002) and Knowledge for Inclusive Development (Quorum Books, 2001). Prior to coming to UNDP, he was an Assistant Professor at the Instituto Superior Técnico, Technical University of Lisbon, Portugal, teaching and researching on science, technology and innovation policy. He has degrees in Physics from Instituto Superior Técnico and in Economics from the Technical University of Lisbon and a Ph. D. in Public Policy from the Lyndon B. Johnson School of Public Affairs at the University of Texas at Austin, where he studied with a Fulbright scholarship.
About the Discussants:
Fanni Kovesdi is a Research Analystat the Oxford Poverty and Human Development Initiative (OPHI), where she is supporting research focused on the global MPI, moderate poverty and wellbeing, and technical work with national governments. Prior to joining OPHI, she has worked on research projects at the University of Oxford, the Centre for Social Sciences at the Hungarian Academy of Sciences, and the regional office of Terre des Hommes in Central and South East Europe. Previously, she worked on the “Changes over Time” project which harmonized global MPI data across 80 countries to analyze trends in poverty. She has also supported previous releases of the global MPI through data work and report writing along with leading the ethnicity disaggregation of the measure in 2019. Kovesdi holds a bachelor’s degree in Politics and Sociology from the University of Bristol, and a Master’s degree in Sociology from the University of Oxford. Her primary research interests are in multidimensional poverty measurement and analysis, wellbeing, and ethnicity and migration, particularly in the European context.
Mauricio Apablaza is the Research Director at the School of Government at Universidad del Desarrollo. He is also a Research Associate at the Oxford Poverty and Human Development Initiative (OPHI). Previously, he worked as Research Officer and Outreach Coordinator at OPHI, at the University of Oxford. He holds a PhD in Economics from the University of Nottingham, United Kingdom and a Master in Public Policies from the University del Desarrollo (Chile). He has been regional director for civil society organizations and consultant to international businesses and agencies (MEDSTAT/OECD, UNICEF, UNDP, SADC, WORLD BANK). He has led training programs for OPHI in South Africa, Malaysia, Indonesia, Jordan, Egypt, Hungary, Brasil, Chile, the Netherlands, Barbados, US, Vietnam, Nicaragua and Thailand, among others. His areas of research include institutions, poverty dynamics, international migration and commerce.