Multidimensional Poverty Index (MPI) for the Northeastern Afghanistan An approach to evaluate socio-economic development program impact in the northeastern Afghanistan area using Alkire-Foster’s multidimensional poverty index (MPI) approach

What is POVERTY?

People’s perception of poverty Quotations on poverty “The poor are the ones with empty stomach” “The poor are the ones who can not foresee what will happen tomorrow” “the poor are the ones who can be sick today and be dead the next day” The most common answers when speaking about poverty are related to a situation of material deprivation (food, land, livestock) Source: Study on Chronically Poor Women, MoWA

Money metric measure (income, cost of basic need etc.) How to measure poverty Money metric measure (income, cost of basic need etc.) For Afghanistan: 1,255 Afs. PPP month

NONPOOR (as per income) Ghulam Hasan’s HH Bamyan, Punjab Sufficient food to eat All male adults are employed 5 children (age 7-18) ; No children enrolled in school; 3 of them engaged in paid labor Wife died during last birth; didn’t have access to doctor, nurse or trained birth attended Collect drinking water from unprotected spring Income per month per person 1310 Afs. Mohammad Amir’s HH Bamyan, Punjab Sufficient food to eat All male adults are employed 5 children (age 7-18); 3 children enrolled and attend in school; 1 engaged in paid labor Wife had access to health service during pregnancy Collect drinking water from protected spring Income per month per person 1180 Afs. NONPOOR (as per income) POOR (as per income)

OK, Income poverty is incomplete So, To complement income poverty, let’s use a dashboard approach

Dashboard 1. 65% households deprived in food security. 2. 45% households do not have access to health facility. 3. 38% households do not have access to electricity. 4. Median number of months of household shortages of each food group in the preceding 12 months is 3. 5. 57% households owning the homes they live in most of the year. 6. 43% households do not have access to education. 7. Median number of each livestock type owned by households. 8. % of households that own trees. … 69. Individuals’ reasons for feeling unsafe in their community. 70. % of individuals who participate in community groups and networks by type (tailored to context). 71. % of women who have been outside in the home/village in the preceding 12 months (subject to context).

Dashboard Village Argo: HH deprivation Food Security Employment   Food Security Employment Children enrolment Maternal and child health 25% Village Kasish: HH deprivation   Food Security Employment Children enrolment Maternal and child health 25%

Dashboard Village A: HH deprivation Food Security Employment   Food Security Employment Children enrolment Maternal and child health HH1 1 HH2 HH3 HH4 25% Village K: HH deprivation   Food Security Employment Children enrolment Maternal and child health HH1 1 HH2 HH3 HH4 25%

Dashboard Village A: HH deprivation Food Security Employment   Food Security Employment Child enrolment Maternal and child health HH1 1 HH2 HH3 HH4 25% Village K: HH deprivation   Food Security Employment Child enrolment Maternal and child health HH1 1 HH2 HH3 HH4 25%

Dashboard Insensitive to distribution of deprivations Village A: HH deprivation   Food Security Employment Child enrolment Maternal and child health HH1 1 HH2 HH3 HH4 25% Village K: HH deprivation   Food Security Employment Child enrolment Maternal and child health HH1 1 HH2 HH3 HH4 25% Insensitive to distribution of deprivations Useless for measuring extreme forms of poverty

Is there better way?

Is there better way? “The need for a multidimensional view of poverty and deprivation,”Anand and Sen wrote in 1997, “guides the search for an adequate indicator of human poverty.”

Poverty is Multidimensional Is there better way? Poverty is Multidimensional UNDP has developed the Multidimensional Poverty Index (MPI) for more than 100 countries including all South Asian countries Many countries (e.g. Bhutan, Brazil, Colombia, China, Mexico and so on) developed their tailor- made MPI as part of Poverty Reduction Strategy

Why should we develop a Multidimensional Poverty Index Because poverty is multidimensional and it is important to be measured To complement existing impact indicators To provide senior managers a single multidimensional measurement of poverty to track development in a area effectively and efficiently

Example

Who is multi-dimensionally poor? Simple deprivation matrix with five indicators   Food Security Employment Child enrolment Maternal and child health Water HH1 HH2 1 HH3 HH4 HH5 HH6 Poor HH: Any household deprived in two or more indicators Poverty cut off

Who is multi-dimensionally poor?   Food Security Employment Child enrolment Maternal and child health Water Poverty status HH1 Nonpoor HH2 1 HH3 Poor HH4 HH5 HH6 Poor HH: Any household deprived in two or more indicators

Who is multi-dimensionally poor?   Food Security Employment Child enrolment Maternal and child health Water Poverty status HH1 Nonpoor HH2 1 HH3 Poor HH4 HH5 HH6 Poor HH: Any household deprived in two or more indicators The headcount ratio (H) of poverty = 4/6 =0.67 (67%)

What is the depth (or, intensity) of poverty   Food Security Employment Child enrolment Maternal and child health Water Depth of poverty among poor HH1 HH2 HH3 1 HH4 HH5 HH6 Poor HH: Any household deprived in two or more indicators The headcount ratio (H) of poverty = 4/6 =0.67 (67%)

What is the depth (or, intensity) of poverty   Food Security Employment Child enrolment Maternal and child health Water Depth of poverty among poor HH1 HH2 HH3 1 2/5 (40%) HH4 3/5 (60%) HH5 4/5 (80%) HH6 5/5 (100%) Poor HH: Any household deprived in two or more indicators The headcount ratio (H) of poverty = 4/6 =0.67 (67%) The average depth or intensity (A) of the poverty = (2/5+3/5+4/5+5/5)/4 =14/20 =0.70 (70%)

MPI for the program area

indicators selection for the Multidimensional Poverty Index (MPI)? Participatory for selecting indicators Best practices (UNDP, other countries) Available data

Dimensions and Indicators Five Dimensions Food security Employment Education Health Living Standard Food Security Child enrolment Years of Schooling Maternal and Child Health Antenatal Care House Ownership Household Assets Heating Source Floor cover Cooking fuel Drinking Water Sanitation Electricity Fourteen indicators

The MPI calculation A value calculated by multiplying the incidence or headcount ratio (H) of poverty: H=0.67 the average depth or intensity (A) of poverty: A= 0.70 MPI : H*A (0.67 * 0.70) = 0.469

Proportion of poor households’ deprivation across the indicators

Thank You