The MPI Multidimensional Poverty Index of the Oxford and the UN  put the Ethiopia the 2 poorest country in the world while the Economist put it 1st,  based on demographic morbidity and growth index. According United States Agency for International Development Ethiopia is one of the poorest and most food-insecure countries in the world. And the African capital  Addis Ababa is the   6th   out 25 Most Dirtiest Cities In The World. The famine has become a disese with no cure in  Ethiopia and the recurring famine shows  the same story, same pictures since mid  1970. Ethiopia is rulled by Live Aid funded rebels who came to power robing the Aid money and they hold on to power by the same endemic in human  catastrophe they keep on provoking  as a means to keep power. Ethiopia Needs international intervention blockage to stop Melese Zenawie, but  not finical Aid to perpetuate his dictatorship.

According to MPI Multidimensional Poverty Index put Ethiopia on the 2nd place in the contrary to Melese Zenawies double digit Index.

The MPI goes beyond previous international measures of poverty to according to Oxford:

• Show all the deprivations that impact someone’s life at the same time – so it can inform a holistic response.

• Identify the poorest people. Such information is vital to target people living in poverty so they benefit from key interventions.

• Show which deprivations are most common in different regions and among different groups, so that resources can be allocated and policies designed to address their particular needs.

• Reflect the results of effective policy interventions quickly. Because the MPI measures outcomes directly, it will immediately reflect changes such as school enrolment, whereas it can take time for this to affect income.

• Integrate many different aspects of poverty related to the MDGs into a single measure, reflecting interconnections among deprivations and helping to identify poverty traps.

According to a new index developed by Oxford University and the UN, Ethiopia under Prime Minister Meles Zenawi is ranked the second poorest country on earth.

The new measurement known as the Multidimensional Poverty Index, or MPI, will replace the Human Poverty Index in the United Nations’ annual Human Development Report. The new report says Ethiopia has the second highest percentage of people who are MPI poor in the world, with only the west African nation of Niger fairing worse. This comes as more international analysts have also began to question the accuracy of the Meles government’s double digit economic growth claims and similar disputed government statistics referred by institutions like the IMF.

PM Meles says it is possible for Ethiopia to double its …

In 2009, the percentage of Ethiopians who are in chronic need of food aid tripled to nearly 20 percent of the population compared to 1990 when the country was ruled by the pro-Soviet communist government of Mengistu Haile Mariam. Despite the reportedly worsening economic and political situation  Zenawi government continues to receive billions in aid from the US and other western nations.

10 POOREST COUNTRIES IN THE WORLD

1. Niger
2. Ethiopia
3. Mali
4. Burkina Faso
5. Burundi
6. Somalia
7. Central African Republic
8. Liberia
9. Guinea
10. Sierra Leone

Multidimensional Poverty Index

OPHI and the UNDP Human Development Report launch the Multidimensional Poverty Index or MPI – an innovative new measure that gives a vivid “multidimensional” picture of people living in poverty. The MPI will be featured in the 20th Anniversary edition of the UNDP Human Development Report and complements income by reflecting a range of deprivations that afflict a person’s life at the same time. The measure assesses the nature and intensity of poverty at the individual level in education, health outcomes, and standard of living. OPHI has just concluded a first ever estimate and analysis of global multidimensional poverty across 104 developing countries, and is releasing these results in advance of the Report’s October publication.
What is the MPI?

The MPI can be used to create a vivid picture of people living in poverty, both across countries, regions and the world and within countries by ethnic group, urban/rural location, or other key household characteristics. It is the first international measure of its kind, and offers an essential complement to income poverty measures because it measures deprivations directly. The MPI can be used as an analytical tool to identify the most vulnerable people, show aspects in which they are deprived and help to reveal the interconnections among deprivations. This enables policy makers to target resources and design policies more effectively. Other dimensions of interest, such as work, safety, and empowerment, could be incorporated into the MPI in the future as data become available.

The MPI reports acute poverty for 104 developing countries, which are home to 78% of the world’s people.
What does the MPI measure?

The MPI uses 10 indicators to measure three critical dimensions of poverty at the household level: education, health and living standard in 104 developing countries. These directly measured deprivations in health and educational outcomes as well as key services such as water, sanitation, and electricity reveal not only how many people are poor but also the composition of their poverty. The MPI also reflects the intensity of poverty – the sum of weighted deprivations that each household faces at the same time. A person who is deprived in 70% of the indicators is clearly worse off than someone who is deprived in 40% of the indicators.
Why is the MPI useful?

The MPI is a high resolution lens on poverty – it shows the nature of poverty better than income alone. Knowing not just who is poor but how they are poor is essential for effective human development programs and policies. This straightforward yet rigorous index allows governments and other policymakers to understand the various sources of poverty for a region, population group, or nation and target their human development plans accordingly. The index can also be used to show shifts in the composition of poverty over time so that progress, or the lack of it, can be monitored.

The measure, called the Multidimensional Poverty Index, or MPI, will replace the Human Poverty Index in the United Nations’ upcoming Human Development Report.

For the past 13 years, the U.N.’s annual report has used the Human Poverty Index, which employs three basic dimensions — length of life, knowledge and standard of living — to measure poverty in developing nations.

But this year, the U.N. will use Oxford’s Index: a “multidimensional picture of people living in poverty” that complements income measurements “by reflecting a range of deprivations that afflict a person’s life,” including whether a household has a decent toilet, clean water to drink within 30 minutes on foot, electricity, school-aged children enrolled in school and whether any member of a household is malnourished, say researchers.

A household is counted as “multidimensionally poor” if it is deprived of over 30 percent of the ten indicators used by the MPI. Of the 25 poorest countries researchers surveyed, 24 are located in Africa.

The countries below are, according to the MPI, the 10 poorest countries in the world:

Economics focus

A wealth of data

A useful new way to capture the many aspects of poverty

Jul 29th 2010

WHAT IS poverty and when is a person poor? Most would agree that poverty involves not having enough of certain things, or doing without others that richer people take for granted. But what is “enough”, which goods and services really matter, and who should decide these questions—researchers, governments or international agencies—are less tractable issues. Perhaps the poor themselves should have the final word. But this presents its own problems. Tabitha, a 44-year-old woman from a slum outside Nairobi, told researchers from Oxford University that going without meals was “normal for us”. Diminished expectations are only one of the effects of dire poverty.

In the world of international development, most have rallied around the “dollar-a-day” poverty line (or more precisely, the $1.25-a-day measure) and its less acute cousin, $2-a-day poverty. These World Bank measures judge a person to be poor if his income falls short of a given level, adjusted for differences in purchasing power. In principle poverty rates based on these measures count the fraction of people in a country who lack the resources to buy a notional, basic basket of goods.

Despite the many merits of the $1-a-day measure—not least its simplicity—some argue that looking only at income risks impoverishing the debate about poverty. Such complaints can be overdone. Income clearly matters: it determines how much people can buy and therefore whether they can afford to do the things, like eat enough, that critics of income-based measures think are more important. But rising incomes do not always translate into better health, say, or better nutrition. So there is clearly scope for measures of poverty that directly capture the many different ways in which, to quote Amartya Sen, “human lives are battered and diminished”.

A new set of internationally comparable data put together by researchers at the Oxford Poverty and Human Development Initiative at the University of Oxford tries to take Mr Sen’s ideas about “the need for a multidimensional view of poverty and deprivation” seriously*. Aided by the improved availability of survey data about living conditions for households in over 100 developing countries, the researchers have come up with a new index, called the Multidimensional Poverty Index (MPI), which the United Nations Development Programme (UNDP) will use in its next “Human Development Report” in October.

The index seeks to build up a picture of the prevalence of poverty based on the fraction of households who lack certain basic things. Some of these are material. Does a family home have a dirt or dung floor? Does it lack a decent toilet? Must members of the household travel more than 30 minutes on foot to get clean water to drink? Do they live without electricity? Others relate to education, such as whether any school-age children are not enrolled or whether nobody in the family has finished primary school. Still others concern health, such as whether any member of a household is malnourished. A household is counted as poor if it is deprived on over 30% of the ten indicators used. Researchers can then calculate the percentage of people in each country who are “multidimensionally poor”.

Looking at many aspects of poverty at once has several benefits. One problem with considering just one indicator is that some deprivations may be a matter of choice. As Mr Sen has argued in his work on poverty, what matters is not whether a person eats “enough” but whether he eats whatever he does out of choice. Fasting is fine; involuntary starvation is not. Some, for instance, may prefer the earthiness of a mud floor to the coldness of a concrete one. But the number of people choosing to be malnourished, illiterate, lacking in basic possessions and drinkers of dirty water all at once is probably fleetingly small. A person deprived along many of these dimensions surely counts as poor.

Measure for measure

By and large, as the chart shows, countries’ poverty rates as calculated using the MPI differ quite a lot from those based on their $1-a-day rates. In India, for instance, many more people lack basic things, as measured using the MPI, than earn less than $1.25 a day. The opposite, however, is true of Tanzania, which is doing better at getting its people fed, housed and educated than its income-based poverty rate would suggest.

Since the MPI is calculated by adding lots of different things up, it is possible to work backwards and see what contributes the most to poverty in specific places. In sub-Saharan Africa, the material measures contribute much more to poverty than in South Asia, where the biggest contributor is malnutrition. The authors argue that having this information readily accessible makes it easier for development agencies and governments to decide what to focus on. The MPI also does a better job of uncovering long-term trends. Successful reforms in health or education increase earnings only many years into the future but will show up quickly in the MPI poverty rate.

Much remains to be done to refine the idea. For a start, the things the MPI measures are not particularly useful for middle-income countries, which have figured out how to get their people clean water and enough food but where other kinds of poverty still exist. But the principles on which the MPI is based are simple and easily adapted. An index for areas within a single country could draw on more data and could paint an even more nuanced picture: the Mexican government is already using a variant of the index to help monitor the results of its anti-poverty programmes. Measuring poverty is not the same as alleviating it, of course. But the MPI is a step forward.

* “Acute Multidimensional Poverty: A New Index for Developing Countries”, by Sabina Alkire and Emma Maria Santos. OPHI Working Paper 38, July 2010

Finance and Economics