Indian state of Andhra Pradesh releases its first Multidimensional Poverty Index Report

Andhra Pradesh’s Chief Minister N. Chandrababu Naidu and Finance Minister Yanamala Rama Krishnudu launched on March 13, 2018 the Multidimensional Poverty Index (MPI) Report 2017 for the state, the first of its kind in India. The MPI report was elaborated by the State Planning Department in collaboration with the Oxford Poverty and Human Development Initiative (OPHI), based at the University of Oxford, in the UK.

Andhra Pradesh, one of India’s 29 states, is located on the southeastern coast of the country with a population of almost 50 million people.

According to the report, Andhra Pradesh’s MPI identifies 21% of its population as living in multidimensional poverty.

The State-level MPI in Andhra Pradesh uses the same structure as the Global MPI which was co-designed by OPHI and the UNDP. It monitors 10 indicators, such as school attendance, nutrition and safe drinking water, grouped into three dimensions: education, health and standard of living. The indicators are analysed using the Alkire Foster counting approach to multidimensional measurement.

Across countries, India is home to the largest number of MPI poor people in the world. According to the most recent data (2011/12), 41% of people are poor and the MPI value stands at 0.191. Andhra Pradesh’s MPI, in contrast, is 0.0825. The MPI ranges from 0 to 1; 0 being the best and 1 being the worst, and reflects the percentage of possible deprivations that are actually being experienced by poor persons in Andhra Pradesh today. The Andhra Pradesh’s MPI value falls between that of Sao Tome & Principe and Bolivia.

Within the Andhra Pradesh state, East Godavari has the lowest MPI among the districts, with a value of 0.047, while Vizianagaram has the highest, with a value of 0.127.

The multidimensional poverty headcount ratio of the State, which gives the proportion of people living in multidimensional poverty, fell from 41.6% in 2005-06 to 21% in 2016-17. The rural headcount ratio stands at 22% while for urban areas it is 19%.

By conducting this study, Andhra Pradesh has become the first state in the country to perform a household survey exclusively to estimate MPI at state and district levels, disaggregated by social categories and urban-rural areas. The end-to-end process, including sampling, data processing & analysis and estimation of headcount and Index values, was conducted with OPHI’s technical support.

Dr. Christian Oldiges, Research Officer from OPHI, was present at the launch. “OPHI has been in communication with the very motivated team in Andhra Pradesh since the start of this project. We are impressed by their innovation and dedication”, said Dr.  Oldiges. “Our hope is that the MPI will be used to energise state-level policies and accelerate Andhra Pradesh’s progress in meeting many Sustainable Development Goals, and thus reducing poverty in all its forms and dimensions.”

The MPI development project was led by Alen John (Senior Associate), Bhaskar Somayaji (Consultant) and Soumya Guha (Associate) under the supervision and guidance of Prathima Reddy, Director at the Vision Management Unit, AP State Development Planning Society, Planning Department.