Multidimensional Poverty Declined

Analysis and Explanation of the News

·      The recent discussion paper by NITI Aayog highlights a significant decline in multidimensional poverty in India, with the poverty rate dropping from 29.17% in 2013-14 to 11.28% in 2022-23.

·      This translates to approximately 248.2 million people escaping poverty during this period. The decline in multidimensional poverty is a crucial indicator of India’s progress in improving the quality of life for its citizens.

Understanding Multidimensional Poverty

• Multidimensional Poverty goes beyond the traditional monetary measure of poverty. It includes various deprivations faced by individuals and households across different dimensions such as education, health, and living standards.
• The Multidimensional Poverty Measure (MPM) is used to assess these multiple deprivations. It includes factors like access to education, health services, clean water, sanitation, and housing, alongside monetary income.
• The Alkire Foster (AF) Methodology is utilized to compute the Multidimensional Poverty Index (MPI), which captures overlapping deprivations in three core dimensions: health, education, and living standards.

Key Findings

• Rapid Reduction in Poverty: The decline in multidimensional poverty from 29.17% to 11.28% indicates significant progress. This reduction is largely attributed to improvements in basic infrastructure services such as access to clean cooking fuel, sanitation, electricity, and banking services.
• Government Initiatives: The improvement in living standards has been driven by various government schemes such as the Pradhan Mantri Ujjwala Yojana (PMUY), Swachh Bharat Mission (SBM), and Jal Jeevan Mission (JJM). These programs have directly impacted the quality of life, especially in rural areas.

National Multidimensional Poverty Index (MPI)

• Developed by NITI Aayog in collaboration with UNDP and OPHI, the National MPI offers a more comprehensive view of poverty in India by focusing on multiple dimensions rather than just income.
• Indicators: The National MPI includes 12 indicators across three dimensions—health, education, and standard of living. Two additional indicators specific to India are maternal health and access to a bank account.
• Dual Cutoffs: The MPI uses dual cutoffs to identify poverty—first, a poverty cutoff that defines what it means to be poor in each dimension, and second, a dimensional cutoff that determines how many dimensions a person must be deprived in to be considered multidimensionally poor.

Factors Contributing to Poverty Reduction

• Improved Infrastructure: The rapid expansion of infrastructure, such as access to electricity, sanitation, and clean cooking fuel, has been a major factor in reducing multidimensional poverty.
• Financial Inclusion: Initiatives like the Pradhan Mantri Jan Dhan Yojana (PMJDY) have increased financial inclusion, providing more people with access to banking services.
• Health and Education: Programs like Poshan Abhiyan and Anaemia Mukt Bharat have improved health outcomes, while education-focused schemes like Samagra Shiksha have enhanced educational access and quality.

Challenges and the Way Forward

• Sustaining Progress: While significant progress has been made, sustaining this momentum will require continued focus on infrastructure development, health, and education.
• Addressing Regional Disparities: Efforts must be made to address regional disparities in poverty reduction, ensuring that progress is uniform across all states and regions.
• Innovation in Policy Implementation: The success of poverty reduction efforts will depend on innovative policy implementation that addresses the diverse needs of India’s population.

Conclusion

The reduction in multidimensional poverty in India is a significant achievement, reflecting the effectiveness of targeted government interventions. However, continued efforts are necessary to sustain this progress, particularly in addressing the remaining pockets of poverty and ensuring equitable development across all regions. The National MPI provides a valuable tool for monitoring and guiding these efforts, contributing to India’s overall socio-economic development.

Mains Question and Answer

Discuss the significance of the decline in multidimensional poverty in India as reported by NITI Aayog. What factors have contributed to this decline, and what challenges remain in achieving sustainable poverty alleviation across the country?

Answer:

Introduction:

The recent discussion paper by NITI Aayog reveals a significant decline in multidimensional poverty in India, with the poverty rate decreasing from 29.17% in 2013-14 to 11.28% in 2022-23. This represents a substantial improvement in the living standards of millions of Indians, driven by targeted government interventions and improvements in basic infrastructure.

Significance of the Decline in Multidimensional Poverty:

• Holistic Improvement in Living Standards: The decline in multidimensional poverty indicates an overall improvement in various aspects of life, including health, education, and living standards. Unlike traditional measures of poverty that focus solely on income, multidimensional poverty takes a broader view, incorporating multiple deprivations that affect quality of life.
• Progress Towards Sustainable Development Goals (SDGs): This decline aligns with India’s commitment to the SDGs, particularly the goal of reducing poverty in all its forms. The reduction in multidimensional poverty is a crucial step towards achieving the SDG target of eradicating extreme poverty by 2030.
• Reduction in Inequality: The reduction in multidimensional poverty also suggests a decrease in inequality, particularly in access to basic services such as clean water, sanitation, and electricity. This is essential for ensuring inclusive growth and social stability.

Factors Contributing to the Decline:

• Government Initiatives: Several government schemes have played a pivotal role in reducing multidimensional poverty. The Pradhan Mantri Ujjwala Yojana (PMUY) has provided clean cooking fuel to millions of households, while the Swachh Bharat Mission (SBM) has improved sanitation facilities across the country. The Jal Jeevan Mission (JJM) has ensured access to clean drinking water, further improving health outcomes.
• Improved Access to Financial Services: The Pradhan Mantri Jan Dhan Yojana (PMJDY) has significantly increased financial inclusion by providing banking access to millions of previously unbanked individuals. This has enabled better financial planning and access to credit, which are critical for poverty alleviation.
• Focus on Health and Education: Programs like Poshan Abhiyan and Anaemia Mukt Bharat have contributed to better health outcomes, particularly for women and children. Initiatives under Samagra Shiksha have enhanced access to education, which is vital for long-term poverty reduction.

Challenges in Achieving Sustainable Poverty Alleviation:

• Regional Disparities: Despite the overall decline, significant regional disparities in poverty reduction remain. Certain states and regions continue to lag behind, necessitating targeted interventions to ensure uniform progress across the country.
• Sustainability of Progress: Sustaining the momentum of poverty reduction requires continuous investment in infrastructure, health, and education. The challenge lies in maintaining these efforts amid changing economic conditions and emerging challenges such as climate change.
• Addressing Urban Poverty: While much progress has been made in rural areas, urban poverty remains a significant challenge. Rapid urbanization has led to the growth of informal settlements with inadequate access to basic services, necessitating focused urban poverty alleviation strategies.
• Ensuring Inclusive Growth: To prevent a relapse into poverty, it is crucial to ensure that economic growth is inclusive and benefits all sections of society. This requires addressing structural inequalities and creating more opportunities for marginalized communities.

Conclusion:

The decline in multidimensional poverty in India is a significant achievement, reflecting the effectiveness of government policies and initiatives aimed at improving living standards. However, to achieve sustainable poverty alleviation, it is essential to address the remaining challenges, particularly regional disparities and urban poverty. Continued focus on inclusive growth, innovation in policy implementation, and targeted interventions will be crucial in sustaining and furthering this progress.

MCQs

1.     What is the primary focus of the Multidimensional Poverty Measure (MPM)?

A) To assess poverty solely based on income

B) To evaluate poverty based on access to education, health, and infrastructure

C) To measure the effectiveness of government policies

D) To assess the economic growth rate of a country

Answer: B) To evaluate poverty based on access to education, health, and infrastructure

2.     Which government scheme has significantly contributed to reducing deprivation in access to clean cooking fuel in India?

A) Pradhan Mantri Awas Yojana (PMAY)

B) Pradhan Mantri Jan Dhan Yojana (PMJDY)

C) Pradhan Mantri Ujjwala Yojana (PMUY)

D) Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA)

Answer: C) Pradhan Mantri Ujjwala Yojana (PMUY)

3.     What is the method used in India's National Multidimensional Poverty Index (MPI) to measure poverty?

A) Gini Coefficient

B) Human Development Index (HDI)

C) Alkire-Foster (AF) Methodology

D) Lorenz Curve Analysis

Answer: C) Alkire-Foster (AF) Methodology

4.     Which of the following indicators is not included in the National Multidimensional Poverty Index (MPI) for India?

A) Education

B) Health

C) Monetary poverty

D) Military expenditure

Answer: D) Military expenditure

5.     Which initiative by the Indian government primarily focuses on improving access to sanitation facilities?

A) Jal Jeevan Mission (JJM)

B) Swachh Bharat Mission (SBM)

C) Pradhan Mantri Garib Kalyan Yojana (PMGKY)

D) Make in India

Answer: B) Swachh Bharat Mission (SBM)