In News:

• The United Nations Development Programme (UNDP) and the Oxford Poverty and Human Development Initiative (OPHI) released the Global Multidimensional Poverty Index (MPI) 2025 Report, titled “Overlapping Hardships: Poverty and Climate Hazards”.
• The report provides an evidence-based assessment of poverty that goes beyond income measures, highlighting how climate vulnerability and multidimensional deprivation reinforce each other.

About the Global MPI

• Nature of Index: The MPI is a global composite measure of acute poverty, capturing simultaneous deprivations in health, education, and standard of living through 10 indicators.
• Introduced: First featured in the 2010 Human Development Report.
• Published by: Jointly by UNDP Human Development Report Office and OPHI, annually since 2010.
• Objective: To assess:
  • Who is poor
  • How they are poor
  • How deprivations overlap across households
  • Enabling policymakers to align development strategies with SDG-1 (No Poverty).
• Methodology Highlights:
  • 3 Dimensions: Health, Education, Living Standards.
  • 10 Indicators: Nutrition, child mortality, years of schooling, school attendance, cooking fuel, sanitation, drinking water, electricity, housing, assets.

Global Trends in the MPI 2025

Poverty Headcount & Severity

• Out of 6.3 billion people assessed across 109 countries, 1.1 billion (18.3%) live in acute multidimensional poverty.
• 43.6% of the poor (≈501 million) experience severe poverty—being deprived in half or more indicators.

Regional Distribution of Poverty

• Sub-Saharan Africa (565 million) and South Asia (390 million) account for 83% of global poverty.
• Sub-Saharan Africa alone contains 49.2% of the world’s multidimensionally poor.

Children Disproportionately Affected

• Children form 33.6% of the global population but 51% of those living in multidimensional poverty.
• Malnutrition and disruption in schooling are primary drivers of child deprivation.

Middle-Income Countries as Core Contributors

• Nearly 740 million of the global poor live in middle-income countries, highlighting inadequacies of income-based poverty classifications.

Rural Concentration

• 83.5% of all multidimensionally poor live in rural areas, despite these areas comprising only 55% of total population.

Climate Hazard Exposure

• Nearly 80% of poor populations live in climate-vulnerable areas.
• Climate hazards include droughts, floods, extreme heat, and erratic precipitation patterns.
• South Asia has the highest number of poor people living in climate hazard zones.

Poverty & Climate Vulnerability in SIDS

• 22 Small Island Developing States (SIDS) show a combined poverty rate of 23.5%, higher than the developing world average.
• Rising sea levels (projected up to 70 cm by 2080–2099) threaten livelihoods in nations such as Belize, Comoros, and Samoa.

Post-Pandemic Stagnation

• Poverty reduction has slowed, with many countries witnessing stagnation or reversal due to:
  • Inflation
  • Conflict
  • Climate shocks
  • Post-pandemic economic disruptions

India in Global MPI 2025

Significant Poverty Reduction

• India reduced multidimensional poverty from 55.1% (2005–06) to 16.4% (2019–21).
• Over 414 million people moved out of multidimensional poverty.
• India's progress is among the fastest globally.

Persistent Child Poverty

• Children continue to face high deprivation, particularly in:
  • Nutrition
  • Sanitation
  • Housing
  • Cooking fuel

Climate Vulnerability and Poverty Link

• Nearly 99% of India’s poor live in climate-exposed regions.
• Heatwaves, floods, droughts, and air pollution intensify hardship and threaten livelihood security.

Drivers of MPI Improvement

India’s poverty reduction correlates with large-scale welfare and infrastructure missions:

• Swachh Bharat Mission – sanitation improvement
• PM Ujjwala Yojana – access to clean cooking fuel
• PM-Awas Yojana – housing for rural and urban poor
• Jal Jeevan Mission – access to clean drinking water
• Universal electrification initiatives

Key Challenges

• Rural–Urban Divide: 83% of the multidimensionally poor live in rural regions.
• Climate shocks: Frequent floods and droughts reverse development gains.
• Data Gaps: Lack of updated household-level data limits monitoring and policy targeting.
• Gender disparities: Women face inequalities in nutrition, education, healthcare, and asset ownership.
• Financial constraints: Several states struggle with fiscal capacity, affecting social protection and climate adaptation.

Policy Recommendations

• Integrate Climate & Poverty Policy: Adopt climate-resilient strategies combining:
  • Green infrastructure
  • Social protection
  • Disaster risk reduction
• Localised Poverty Tracking: Develop district-level MPI dashboards for real-time, granular monitoring.
• Promote Green Livelihoods: Expand employment in:
  • Renewable energy
  • Organic farming
  • Circular economy sectors
• Enhance Global Support: Strengthen access to:
  • Climate finance 
• • Concessional aid
  • Technology transfers
• Gender and Child-Focused Interventions: Reinforce programs for:
  • Nutrition
  • Maternal health
  • Education
  • Clean cooking energy