Q. With reference to ‘Multi-Dimensional Poverty Index’, which of the following statements is/are correct?
1. It was developed and introduced in 2010.
2. It measures extreme poverty and includes those living on less than one dollar per day.
Select the correct answer using the code given below :
a) Only 2
b) Neither 1 nor 2
c) Both 1 and 2
d) Only 1
Correct Answer: d) Only 1
Question from UPPSC Prelims 2025
Explanation:
Statement 1 is correct: The Global Multi-Dimensional Poverty Index (MPI) was developed by OPHI with UNDP and was first launched in the UNDP Human Development Report 2010, replacing the Human Poverty Index.
Statement 2 is incorrect: MPI does not use an income/consumption threshold (such as the World Bank’s “$1 a day” line); it identifies acute multidimensional poverty via deprivations in health, education, and living standards (e.g., nutrition, child mortality, years of schooling, school attendance, electricity, sanitation, drinking water, flooring, cooking fuel, and assets) with a 1/3 deprivation cutoff. The $1/day measure is a separate monetary poverty line.
Hence, only Statement 1 is correct.