Why in the news?

  • The latest Global Multidimensional Poverty Index Report of 2025 highlights that almost 80% of the world’s poor reside in areas vulnerable to climate-related hazards.

Global Multidimensional Poverty Index (MPI) 2025 Report

  • What is it?:
    • The Global MPI is an international measure of acute multidimensional poverty that captures multiple deprivations faced by individuals across health, education, and living standards.
    • It was developed in 2010 by the Oxford Poverty and Human Development Initiative (OPHI) and the United Nations Development Programme (UNDP).
  • Structure of Global MPI:
    • Has got 10 indicators across three Dimensions-
      • Health: Nutrition, and Child Mortality indicators with ⅙ weightage
      • Education: Years of Schooling and School Attendance indicators, each with ⅙ weightage
      • Living Standards: Cooking Fuel, Sanitation, Drinking Water, Electricity, Housing and Assets as indicators, each with 1/18 weightage.
    • A person is identified as “multidimensionally poor” if they are deprived in at least one-third (33%) of the weighted indicators.
    • MPI ranges from 0 to 1
  • What is new in MPI 2025:
    • The Global MPI 2025 report introduces a critical new dimension: overlapping hardships of poverty and climate hazards. 
    • This marks the first time the MPI has overlaid climate hazard data with multidimensional poverty measurements.
    • The report assessed the exposure to High Heat, Drought, Flood and Air Pollution.
  • Major Findings:
    • Climate Exposure: Nearly 80% of poor people face at least one climate hazard.
    • Geographic Distribution: Sub-Saharan Africa and South Asia account for 83.2% of all multidimensionally poor people.
    • Lower-middle-income countries are most exposed to climate-poverty overlap.
  • India’s Performance:
    • India successfully halved their MPI values within 15 years.
    • Nutrition deprivation declined from 44.3% to 11.8% (2005-06 to 2019-21).