MPI Nepal 2010

Nepal OPHI Country Briefing 2010

Oxford Poverty and Human Development Initiative (OPHI)

http://ophi.qeh.ox.ac.uk www.ophi.org.uk

Oxford Dept of International Development,

Queen Elizabeth House, University of Oxford

Country Briefing:Multidimensional Poverty Index (MPI) At a Glance

The MPI was constructed by OPHI for the UNDP’s 2010 Human Development Report (http://hdr.undp.org/en/).

Country Profile Nepal-DHS-2006

Country: 3 Nepal 66 Year: 2006 Survey: DHS

Region:

Multidimensional Poverty Index (MPI)

Year

2006

www.ophi.org.uk

Nepal

July 2010

This Country Briefing presents the results of the Multidimensional Poverty Index (MPI) and explains key findings

graphically. Further information as well as international comparisons are available at

www.ophi.org.uk/policy/multidimensional-poverty-index/.

0.350

For more information on the MPI please see Alkire, Sabina & Maria Emma Santos. “Acute Multidimensional Poverty: a new index for

developing countries” OPHI Working Paper 38 and UNDP Research Paper Series.

Survey

DHS

Multidimensional Poverty

Index (MPI = H×A)

Average Intensity

Across the Poor (A)

Incidence of

Poverty (H)

South Asia

The MPI reflects both the incidence (H) of poverty – the proportion of the population that is multidimensionally poor – and the average intensity

(A) of their deprivation – the average proportion of indicators in which they are deprived. The MPI is calculated by multiplying the incidence of

poverty by the average intensity across the poor. A person is identified as poor if he or she is deprived in at least 30 percent of the weighted

indicators. The following table shows the multidimensional poverty rate (MPI) and its two components: incidence of poverty (H) and average

intensity of deprivation faced by the poor (A). The first and second columns of the table report the survey and year which was used to generate the

MPI results.

64.7% 54.0%

Citation: Alkire, Sabina & Maria Emma Santos. 2010. Nepal Country Briefing. Oxford Poverty & Human Development

Initiative (OPHI) Multidimensional Poverty Index Country Briefing Series. Available at:

www.ophi.org.uk/policy/multidimensional-poverty-index/mpi-country-briefings/.

Nepal

http://ophi.qeh.ox.ac.uk/

http://www.ophi.org.uk/


Comparing the MPI with Other Poverty Measures

0.350

0.647

MPI (H) U$1.25 a dayU$2 a day National Poverty Linehpi109valueAverage Intensity of Deprivation (A) 0.540

65% 55% 78% 31% 32% 18.3

55%

Percentage of Income Poor ($2.00 a day) 78%

Percentage of Poor (National Poverty Line) 31%

Population* (in millions) 28.3

0.553

29

Medium

Comparing the MPI with Other Poverty Measures

20 20

www.ophi.org.uk

Human Development Index

HDI rank (104 countries)

HDI category

Columnchart B. shows the percentage of people who are MPI poor (also called the incidence or headcount) in the 104 developing countries

analysed.The column denoting this country is dark, with other countries shown in light grey.The line across the column chart denotes the

percentage of people who are income poor according to the $1.25 a day poverty line in each country.

Column chart A. compares the poverty rate using the MPI with three other commonly used poverty measures. The height of the first column

denotes the percentage of people who are MPI poor (also called the incidence or headcount). The second and third columns denote the

percentages of people who are poor according to the $1.25 a day poverty line and $2.00 a day poverty line, respectively. The final column denotes

the percentage of people who are poor according to the national poverty line. The table on the right hand side reports various descriptive statistics

of the country.

Multidimensional Poverty Index

Summary

Number of MPI Poor People (in millions)

Percentage of Income Poor ($1.25 a day)

Percentage of MPI Poor (H)

* Human Development Report 2009, Statistical Annex L

65%

55%

78%

31%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

MPI (H) U$1.25 a day U$2 a day National Poverty Line

A. Comparative poverty measuresProportion

Poverty Measure

Proportion

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Nig

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Buru

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Percentage of Poor People

Percentage of MPI Poor Percentage of Income Poor (living on less than $1.25 a day)

B. Headcounts of MPI poor and $1.25/day Poor


Incidence of Deprivation in Each of the MPI Indicators

Composition of the MPI

www.ophi.org.uk

The MPI can be broken down to see directly how much each indicator contributes to multidimensional poverty. The following figure shows the

composition of MPI using a pie-chart. Each piece of the pie represents the percentage contribution of each indicator to the overall MPI of the

country. The larger the contribution, the bigger is the weighted share of the indicator to the overall poverty.

The MPI uses 10 indicators to measure poverty in three dimensions: education, health and living standard. The bar chart to the left reports the

proportion of the population that is poor and deprived in each indicator. We do not include the deprivation of non-poor people. The spider

diagram to the right compares the proportions of the population that are poor and deprived across different indicators. At the same time it

compares the performance of rural areas and urban areas with that of the national aggregate. Patterns of deprivation may differ in rural and urban

areas.

Schooling

Child Enrolment

Child Mortality

Nutrition

Electricity

Sanitation

Drinking Water

Floor

Cooking Fuel

AssetsSchooling

Child Enrolment

Child Mortality

Nutrition

Electricity

Sanitation

Drinking Water

Floor

Cooking Fuel

Assets

Co

ntr

ibu

tio

n o

f in

dic

ato

rs t

o t

he M

PI

Education

Health

Living standard

Assets, 46.7%

Cooking Fuel, 63.4%

Floor, 60.1%

Drink. Water, 14%

Sanitation, 56.3%

Electricity, 43.4%

Nutrition, 40.3%

Child Mortality, 30%

C. Enrolment, 15.6%

Schooling, 29.2%

0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0%

Liv

ing

Sta

nd

ard

Healt

hE

du

cati

on

Percentage of the Population who are MPI poor and deprived in each

Schooling

Child Enrolment

Child Mortality

Nutrition

Electricity

Sanitation

Drinking Water

Floor

Cooking Fuel

Assets

National Urban Rural

D. Percentage of the Population MPI poor and DeprivedC. Deprivations in each Indicator


Decomposition of MPI by Region

Intensity of Multidimensional Poverty

30% 40% 50% 60% 70% 80% 90% 100%

per 0.647 0.476 0.335 0.238 0.115 0.042 0.020 0.005

0.353 0.524 0.665 0.762 0.885 0.958 0.980 0.995

30%-40% 40%-50% 50%-60% 60%-70% 80%-90% 90%-100%30%-40%

0.171 0.141 0.096 0.123 0.073 0.022 0.015

www.ophi.org.uk

Recall that i) a person is considered poor if they are deprived in at least 30% of the weighted indicators and ii) the intensity of poverty denotes the

proportion of indicators in which they are deprived. A person who is deprived in 100% of the indicators has a greater intensity of poverty than

someone deprived in 40%. The following figures show the percentage of people who experience different intensities of poverty. The pie chart to

the left breaks the poor population into seven groups based on the intensity of their poverty. It shows the proportion of poor people whose

intensity (the percentage of indicators in which they are deprived) falls into each group. The column chart to the right, reports the proportion of

the population in a country that is poor in that percentage of indicators or more. For example, the number over the 40% bar represents the

percentage of people who are deprived in 40% or more indicators.

E. Contribution of Indicators to the MPI at the national level, for urban areas, and for rural areas

The MPI can be decomposed by different population subgroups, then broken down by dimension, to show how the composition of poverty

differs between different regions or groups. In the column chart to the left, the height of each of the three bars shows the level of MPI at the

national level, for urban areas, and for rural areas, respectively. Inside each bar, different colours represent the contribution of different indicators

to the overall MPI. In the column chart to the right the colours inside each bar denote the percentage contribution of each indicator to the overall

MPI, and all bars add up to 100%. This enables an immediate visual comparison of the composition of poverty across regions.

AssetsAssets

Assets

Cooking Fuel

Cooking Fuel

Cooking Fuel

Floor

Floor

FloorDrinking Water

Drinking Water

Drinking WaterSanitation

Sanitation

Sanitation

Electricity

Electricity

Electricity

Nutrition

Nutrition

Nutrition

Child Mortality

Child Mortality

Child MortalityChild Enrolment

Child Enrolment

Child EnrolmentSchooling

Schooling

Schooling

0.000

0.050

0.100

0.150

0.200

0.250

0.300

0.350

0.400

0.450


MP

I V

alue

30%-40%

40%-50%

50%-60%

60%-70%

80%-90%

90%-100%

64.7%

47.6%

33.5%

23.8%

11.5%

4.2%2.0% 0.5%

0%

10%

20%

30%

40%

50%

60%

70%

30% 40% 50% 60% 70% 80% 90% 100%

Per

cen

tage

of

MP

I P

oo

r

Intensity of Poverty

G. Percentage of people deprived in X% or more of the MPI weighted indicators

7.4% 6.4% 7.5%

10.1%9.6%

10.1%

9.5%7.8%

9.6%

2.3%

1.6%

2.3%

8.9%

9.0%

8.9%

6.9%

3.7%

7.1%

19.2%

22.5%

19.0%

14.3%

16.0%

14.2%

7.4%8.3%

7.4%

13.9% 15.3% 13.8%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%


F. Intensity of Deprivation Among MPI Poor

MPI Nepal 2010

Documents

Transcript of MPI Nepal 2010