Multi Dimensional Poverty Index

The Multi Dimensional Poverty Index (MPI) is a measure to assess the degree of poverty of a country that combines the traditional monetary aspect with
different deprivations that a poor person faces in regard to health, education and living standard. The MPI is developed by the Oxford Poverty & Human Development Initiative (OPHDI) in 2010 and gets updated on a yearly and sometimes semiannual basis. The MPI is acquired for over 100 development
countries on a national and subnational (regional) level.

More precisely, the MPI measures within the three dimensions health, education and living standards ten different indicators (see figure below) which are incorporated into the index with different weights. People are regarded as "MPI poor" when they are deprived in a third or more of the ten indicators. Furthermore, the intensity of the poverty is measured by the number of deprivations they are experiencing. The MPI further differentiates between people that
are "vulnerable to poverty", "poor" and "in severe poverty". To read more about the MPI visit the OPHDI's website.

Structure of the MPI: