Poverty measurement, poverty trends and the Millennium Development Goals

Precise poverty measurement is crucial for adequate policies. But what is poverty? The most commonly used indicator is income. But the poor often lack opportunities to monetarily satisfy their needs. In response, UNDP introduced the “Multidimensional Poverty Index” (MPI), which aggregates different kinds of deprivations. It disregards, however, differences in the severity of deprivations suffered by the poor (i.e. inequality) as well as correlations between these deprivations.

At the German Development Institute / Deutsches Institut für Entwicklungspolitik (DIE), the “Correlation Sensitive Poverty Index” (CSPI) has been developed: a multidimensional poverty index that differentiates the poor according to the severity of deprivations that they face, thus accounting for inequality. A different approach is applied in the case of the Millennium Development Goals (MDGs) that capture different poverty dimensions by a system of indicators, thereby, however, concealing the correlations between these dimensions.

DIE’s research asks: How should poverty be measured? How do extent and shape of global poverty change according to different poverty measures? Which components should indices like MPI and CSPI or indicator systems like the MDGs include? How could a development agenda after 2015 look like?

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Constructing well-being and poverty dimensions on political grounds

Burchi, Francesco / Pasquale De Muro / Eszter Kollar (2017)
published on Social Indicators Research 4 April 2017 (online first)

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Poverty and shared prosperity 2016: taking on inequality
World Bank Group in collaboration with Mario Negre et al. (2016)
Washington, DC: World Bank Publications

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A measured approach to ending poverty and boosting shared prosperity: concepts, data, and the twin goals
Jolliffe, Dean / Peter Lanjouw / Shaohua Chen / Aart Kraay / Christian Meyer / Mario Negre / Espen Prydz / Renos Vakis / Kyla Wethli (2015)

Washington, D.C.: World Bank Group
ISBN: 978-1-4648-0361-1

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Introduction to "Capability approach and multidimensional well-being in high-income countries"
Burchi, Francesco / Pasquale De Muro (2015)

published on Forum for Social Economics, Special Issue, DOI: 10.1080/07360932.2014.995195

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Verteilungsgerechtigkeit in der Armutsmessung
Rippin, Nicole (2015)

in: Aus Politik und Zeitgeschichte 65 (10), 47-54