Nepal oxford poverty & human dev initiative-2013

Nepal OPHI Country Briefing 2013
Oxford Poverty and Human Development Initiative (OPHI)
www.ophi.org.uk
Oxford Dept of International Development,
Queen Elizabeth House, University of Oxford

Country Briefing: Nepal
Multidimensional Poverty Index (MPI) At a Glance
For an explanation of the MPI and details of the resources available in the MPI Data Bank, please see the last page of the briefing.
This Country Briefing presents the results of the Multidimensional Poverty Index (MPI) and explains key findings graphically. More
information, international comparisons and MPI resources are available at www.ophi.org.uk/multidimensional-poverty-index/.
The MPI was constructed by OPHI for UNDP’s 2013 Human Development Report (http://hdr.undp.org/en/).
Please cite this document as: Oxford Poverty and Human Development Initiative (2013). “Nepal Country Briefing”, Multidimensional Poverty
Index Data Bank. OPHI, University of Oxford. Available at: www.ophi.org.uk/multidimensional-poverty-index/mpi-country-briefings/.
For information on the original MPI methodology, see the revised paper, Alkire, S. and Santos, M.E. (2013), “Measuring Acute Poverty in the Developing World:
Robustness and Scope of the Multidimensional Poverty Index”, OPHI Working Paper 59. Available at www.ophi.org.uk/wp-content/uploads/ophi-wp-59.pdf.
For information on updates that took place in 2011, see Alkire, S., Roche, J.M., Santos, M.E. and Seth, S. (2011), “Multidimensional Poverty Index 2011: Brief
Methodological Note”. Available at: www.ophi.org.uk/wp-content/uploads/MPI_2011_Methodology_Note_4-11-2011_1500.pdf.
For information on updates that took place in 2013, see Alkire, S., Conconi, A. and Roche, J.M. (2013), “Multidimensional Poverty Index 2013 : Brief Methodological
Note and Results”. Available at: www.ophi.org.uk/multidimensional-poverty-index/.

Inside the MPI
The MPI has three dimensions and 10 indicators, which are shown in the box below. Each dimension is equally weighted, each
indicator within a dimension is also equally weighted, and these weights are shown in brackets within the diagram.

Country Profile Nepal-DHS-2011
1
Country: 3 Nepal 68 Year: 2011 Survey: DHS
Region: South Asia
1
Multidimensional Poverty Index (MPI)
The MPI reflects both the incidence or headcount ratio (H) of poverty – the proportion of the population that is multidimensionally poor – and
the average intensity (A) of their poverty – the average proportion of indicators in which poor people are deprived. The MPI is calculated by
multiplying the incidence of poverty by the average intensity across the poor (H×A). A person is identified as poor if he or she is deprived in at
least one third of the weighted indicators. The following table shows the multidimensional poverty rate (MPI) and its two components: incidence of
poverty (H) and average intensity of deprivation faced by the poor (A). The first and second columns of the table report the survey and year used to
generate the MPI results. Those identified as "Vulnerable to Poverty" are deprived in 20% - 33% of weighted indicators and those identified as in
"Severe Poverty" are deprived in 50% or more.

Percentage of
Percentage of Average Percentage of
Multidimensional Poverty Index Population
Survey Year Poor People Intensity Across Population in
(MPI = H×A) Vulnerable to
(H) the Poor (A) Severe Poverty
Poverty

DHS 2011 0.217 44.2% 49.0% 17.4% 20.8%

www.ophi.org.uk Page 1


Comparing the MPI with Other Poverty Measures
Chart A compares the poverty rate using the MPI with three other commonly used poverty measures. The height of the first column denotes the
percentage of people who are MPI poor (also called the incidence or headcount ratio). The second and third columns denote the percentages of
people who are poor according to the $1.25 a day income poverty line and $2.00 a day line, respectively. The final column denotes the percentage
of people who are poor according to the national income poverty line. The table on the right-hand side reports various descriptive statistics for the
country. The monetary poverty statistics are taken from the year closest to the year of the survey used to calculate the MPI. The year is provided
below each column in chart A.

A. Comparative Poverty Measures
Summary
70.0% Multidimensional Poverty Index 0.217
MPI (H) US$1.25 US$2 a day
57.3% Percentage of MPI Poor (H)
a day National Poverty Line 44.2%
Proportion of Poor People

60.0%

50.0%
44% 25% 57% 25% Average Intensity of Deprivation (A) 49.0%
44.2%

40.0%
Percentage of Income Poor ($1.25 a day) ‡ 24.8%
30.0% 24.8% 25.2%
‡
Percentage of Income Poor ($2.00 a day) 57.3%
20.0%
Percentage of Poor (National Poverty Line )‡ 25.2%
10.0%

0.0%
MPI (H) US$1.25 a day US$2 a day National Poverty
Line ‡ The World Bank (2012). “The World DataBank”. Washington, DC. [available at
2011 2010 2010 2011 http://databank.worldbank.org/data/home.aspx, accessed September 2012]

Poverty Measure

Comparing the Headcount Ratios of MPI Poor and $1.25/day Poor
Chart B shows the percentage of people who are MPI poor (also called the incidence or headcount ratio) in the developing countries analysed. The
column denoting this country is dark, with other countries shown in light grey. The dark dots denote the percentage of people who are income
poor according to the $1.25 a day poverty line in each country. Chart A tells you the year this data comes from for this country. Dots are only
shown where the income poverty data available are taken from a survey fielded within three years of the MPI survey year.

Percentage of Poor People
B. Headcounts of MPI Poor and $1.25/day Poor
100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%
Occupied Palestinian Territories
Senegal

Philippines
Nepal

Djibouti

Turkey

Maldives

Hungary

Czech Republic

Uruguay

United Arab Emirates
Burkina Faso

Guinea

Mozambique
Sierra Leone

DR Congo

Uganda
Rwanda

Tanzania
Zambia
Chad
Mauritania
Cote d'Ivoire
Gambia
Bangladesh

India
Cameroon

Pakistan

Cambodia

Republic of Congo
Namibia

Lesotho

Nicaragua

Bolivia
Swaziland
Tajikistan

South Africa
Mongolia

Iraq

China
Morocco
Suriname
Guyana
Estonia

Trinidad and Tobago

Colombia
Sri Lanka
Azerbaijan

Kyrgyzstan

Croatia
Viet Nam

Argentina
Tunisia

Jordan
Uzbekistan

Moldova

Thailand
Latvia

Albania
Russian Federation
Serbia

Georgia
Kazakhstan

Slovakia
Slovenia
Niger

Madagascar

Syrian Arab Republic

Ecuador
Honduras

Paraguay

Dominican Republic
Mali
Burundi

Malawi

Haiti

Brazil

Belarus
Sao Tome and Principe

Bosnia and Herzegovina
Ethiopia

Liberia

Somalia

Benin

Timor-Leste

Togo
Nigeria

Yemen

Kenya
Lao

Zimbabwe

Ghana
Vanuatu

Bhutan
Guatemala
Indonesia

Peru

Egypt

Belize

Mexico

Ukraine
Macedonia

Montenegro

Armenia

Percentage of MPI Poor 36 36 Percentage of Income Poor (living on less than $1.25 a day)



Incidence of Deprivation in Each of the MPI Indicators
The MPI uses 10 indicators to measure poverty in three dimensions: education, health and living standards. The bar chart to the left reports the
proportion of the population that is poor and deprived in each indicator. We do not include the deprivation of non-poor people. The spider
diagram to the right compares the proportions of the population that are poor and deprived across different indicators. At the same time it
compares the performance of rural areas and urban areas with that of the national aggregate. Patterns of deprivation may differ in rural and urban
areas. The MPI is also the weighted sum of these deprivation counts, which makes it useful for monitoring change.

C. Deprivations in each Indicator D. Percentage of the Population MPI Poor and
Deprived
Education

Years of Schooling

School Attendance Years of Schooling
50.0%
45.0%
Assets 40.0% School Attendance
35.0%
Health

Child Mortality
30.0%
Nutrition 25.0%
20.0%
Cooking Fuel 15.0% Child Mortality
10.0%
5.0%
Electricity 0.0%
Living Standards

Sanitation
Floor Nutrition
Drinking Water

Floor

Cooking Fuel Drinking Water Electricity

Assets Sanitation

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0% 50.0%

Percentage of the Population who are MPI poor and deprived in each indicator National Urban Rural

Composition of the MPI
The MPI can be broken down to see directly how much each indicator contributes to multidimensional poverty. The following figure shows the
composition of the MPI using a pie chart. Each piece of the pie represents the percentage contribution of each indicator to the overall MPI of the
country. The larger the slice of the pie chart, the bigger the weighted contribution of the indicator to overall poverty.

Assets
6%
Years of Schooling
Education
E. Contribution of Indicators to the MPI

School Attendance
Years of Schooling
Cooking Fuel 16%
11%
School Attendance Child Mortality
6% Health
Nutrition
Floor
11% Electricity

Sanitation
Drinking Water
2% Drinking Water
Sanitation Living
10% Child Mortality Floor standards
14%
Nutrition
19% Cooking Fuel

Electricity Assets
5%


Decomposition of MPI by Region
The MPI can be decomposed by different population subgroups, then broken down by dimension, to show how the composition of poverty differs
between different regions or groups. On the left-hand side of column chart F, the height of each of the three bars shows the level of MPI at the
national level, for urban areas, and for rural areas, respectively. Inside each bar, different colours represent the contribution of different weighted
indicators to the overall MPI. On the right-hand side of column chart F, the colours inside each bar denote the percentage contribution of each
indicator to the overall MPI, and all bars add up to 100%. This enables an immediate visual comparison of the composition of poverty across
regions.
F. Contribution of Indicators to the MPI at the National Level, for Urban Areas, and for Rural Areas

0.300 100%

YS, 15.6% YS, 17.5% YS, 15.5%
90%

0.250
80% SA, 6.2% SA, 6.2%
SA, 5.5%

YS
70% CM, 14.3% CM, 14.1%
0.200 YS CM, 18.6%

Percentage Contribution to MPI
SA
60%
SA
CM
N, 19.4% N, 19.3%
MPI Value

0.150 CM 50% N, 21.9%

N E, 5.3%
E, 5.2%
N 40%

S, 9.7% E, 1.9% S, 9.7%
0.100 E
E 30% S, 9.8%
S DW, 2.2% DW, 2.2%
S
DW DW, 2.8% F, 10.8%
DW YS F, 10.7%
20%
SA F
0.050 F CM F, 8.6%
N CF, 11.0% CF, 11.1%
E CF 10%
CF S
CF, 9.8%
DW
F
A CF A A, 5.6% A, 3.5% A, 5.6%
0.000 A 0%
National Urban Rural National Urban Rural
YS = Years of Schooling CM = Child Mortality E = Electricity DW = Drinking Water CF = Cooking Fuel

SA = School Attendance N = Nutrition S = Sanitation F = Floor A = Assets

Intensity of Multidimensional Poverty

Recall that i) a person is considered poor if they are deprived in at least one third of the weighted indicators and ii) the intensity of poverty denotes
the proportion of weighted indicators in which they are deprived. A person who is deprived in 90% has a greater intensity of poverty than someone
deprived in 40%. The following figures show the percentage of MPI poor people who experience different intensities of poverty. The pie chart
below breaks the poor population into groups based on the intensity of their poverty. For example, the first slice shows deprivation intensities of
greater than 33% but strictly less than 40%. It shows the proportion of poor people whose intensity (the percentage of indicators in which they are
deprived) falls into each group. The column chart H reports the proportion of the population in a country that is poor in that percentage of
indicators or more. For example, the number over the 40% bar represents the percentage of people who are deprived in 40% or more weighted
indicators.

H. Percentage of People Deprived in X%
80%-89.9% 90%-100% 40%
33% 50% 60% 70% 80% 90% 100% of the MPI Weighted Indicators
or more
70%-79.9%
Percentage of MPI Poor

per 0.442 0.276 0.208 0.101
50.0% 0.047 0.014 0.005 0.000
44.2%
0.558 0.724 0.792 0.899
45.0% 0.953 0.986 0.995 1.000
40.0%
33%-39.9% 40%-49.9%
50%-59.9%
60%-69.9%
70%-79.9%80%-89.9%
90%-100%
35.0%
60%-69.9% 0.166 0.068 0.107 0.054 0.032 0.009 0.005
30.0% 27.6%
33%-39.9%
25.0% 20.8%
20.0%

50%-59.9% 15.0%
10.1%
10.0%
4.7%
40%-49.9% 5.0% 1.4% 0.5% 0.0%
0.0%
33% 40% 50% 60% 70% 80% 90% 100%

Intensity of Poverty
G. Intensity of Deprivation Among MPI Poor



Multidimensional Poverty at the Sub-national Level
In addition to providing data on multidimensional poverty at the national level, the MPI can also be 'decomposed' by sub-national regions to show
disparities in poverty within countries. This analysis can be easily performed when the survey used for the MPI is representative at the sub-national
level. The following table shows the MPI value and its two components at the sub-national level: the incidence of poverty (H) and the average
intensity of deprivation faced by the poor (A). The fifth and sixth columns present the percentage of the population vulnerable to multidimensional
poverty and living in severe poverty, respectively. The last column presents the population share of each region, which has been obtained by using
the sampling weight in the respective survey dataset, applied to the final sample used for the computation of the reported poverty statistics in this
country profile. All figures in Table I, including the population-weighted regional MPIs, headcount ratios (H), and intensities (A), sum to the
national figures. The map following the table shows visually how the MPI varies across regions; a darker colour indicates higher MPI and therefore
greater poverty. For each region, we also provide the incidence of deprivation indicators, and the composition of MPI poor. These are found in the
Excel tables and the interactive maps available at http://www.ophi.org.uk/multidimensional-poverty-index/.

I. Multidimensional Poverty across Sub-national Regions

Percentage of
Multidimensional Average Percentage of
Incidence of Population Population
Region Poverty Index Intensity Across Population in
Poverty (H) Vulnerable to Share
(MPI = H×A) the Poor (A) Severe Poverty
Poverty

Central 0.233 46.2% 50.4% 15.6% 23.5% 32.5%
Eastern 0.177 37.4% 47.3% 19.4% 15.9% 23.7%
Far-western 0.281 57.7% 48.8% 21.1% 27.8% 10.3%
Mid-western 0.299 59.1% 50.6% 18.3% 29.2% 12.4%
Western 0.156 33.4% 46.9% 15.5% 13.7% 21.0%

J. Mapping Poverty Rates at the Sub-national Level

The boundaries and names shown and the designations used on this map do not imply official endorsement or acceptance by OPHI or
the University of Oxford. This map is intended for illustrative purposes only.


Comparing MPI over time

Updated MPI estimations use the maximum information available in the survey on which the
estimation is based (Alkire, Conconi and Roche 2013). As a result, improvements in the
questionnaire or survey design imply improvements in the MPI estimation.

While this methodological strategy allows us to produce the most accurate estimation for a given
year, it creates challenges of comparability over time between published MPI values. In order to
compare the trends in MPI over time, we have systematically assessed and standardized the MPI
parameters for 22 countries for which changes in the DHS survey design may affect
comparability across time. Note that we do not at this moment attempt to compare countries’
MPIs over time if both estimates do not use DHS datasets.

Tables with the outputs of this analysis can be found on the OPHI website, and the full analysis
is available in Alkire, S. and Roche, J.M. (2013) ‘How Successful are Countries in Reducing
Multidimensional Poverty? Insights from Inter-Temporal Analyses of Twenty-two Countries’.

We provide here a summary of adjustments to facilitate an interpretation over time.

Nepal (2006–2011):

 Published MPI figures indicate a fall from .350 to .217 between these years and are
comparable.

 The only difference between the surveys is that the 2006 survey does not include a
question on the “source of non-drinking water”, but when a 2011 adjusted MPI was
computed excluding this indicator, the results remained unchanged.

Multidimensional Poverty Index
~ Global Multidimensional Poverty Index 2013 ~
covering 104 countries and sub-national regions of 65 countries

The Multidimensional Poverty Index (MPI for short) is an international measure of acute
poverty covering 104 developing countries. The MPI complements income-based poverty
measures by reflecting the multiple deprivations that people face at the same time. The MPI
identifies deprivations across health, education and living standards, and shows the number of
people who are multidimensionally poor and the deprivations that they face at the household
level. It uses ten indicators across three dimensions, as the diagram below shows.

Each dimension is equally weighted, and each indicator within each dimension is equally
weighted. A person is identified as multidimensionally poor if he or she is deprived in at least
one third of the dimensions; one deprivation alone may not represent poverty.

Used as an analytical tool, the MPI shows:
Incidence of poverty: the percentage of multidimensionally poor people or headcount ratio, H;
Intensity of poverty: the average number of deprivations poor people face at the same time, A;
Composition of poverty: by each of the 10 indicators and their weighted contributions.
These statistics (H, A, indicators) may also be analysed by subnational regions, ethnic groups and
rural/urban areas.

The global MPI was developed and applied by OPHI for the United Nations Development
Programme’s flagship Human Development Report, and has featured in the HDR since 2010. It
mainly uses the most recent Demographic and Health or Multiple Indicator Cluster surveys
available from 2002 to 2012.

The MPI implements a rigorous technique for multidimensional measurement created by Sabina
Alkire and James Foster. The same method can be used with different indicators, weights and
cutoffs to develop national MPIs that reflect the priorities of individual countries.

OPHI’s MPI Data Bank
www.ophi.org.uk/multidimensional-poverty-index/

OPHI’s global MPI Data Bank contains a wealth of resources on multidimensional poverty in
more than 100 developing countries, enabling users to see how poverty is experienced in
different parts of the world, zoom in on sub-national regions, or explore the character of poverty
by different indicators. Follow the links below to find out more.

 MPI Country Briefings: Short, country-specific summaries on the results of the MPI
analyses. A number of the briefings include data at the sub-national level.

 MPI Map: An interactive world map that enables you to navigate the world according to
either the MPI as a whole or by individual dimensions and indicators of MPI poverty.
Static maps are available for download and use in presentations.

 MPI Data Tables - Main MPI Results: A table which presents the basic MPI results
and sorts 104 countries from low to high.

 MPI Data Tables – MPI at the Sub-national Level: This table reports the MPI, its
two components - the Headcount Ratio and the Intensity of Deprivation among the
poor - and other indicators of multidimensional poverty for 663 regions of 65 countries.

 MPI Data Tables – MPI over Time: This table shows the value and confidence
intervals for the main MPI results of 22 countries for which we have comparable data
over time.

 MPI Methodology: OPHI’s MPI methodological notes explain how the global MPI is
calculated and shares the updates that have taken place since it was first reported in 2010.

 MPI Resources: MPI publications collected in one place, including the key academic
papers and exchanges, and training material for producing a global or national MPI.

 MPI FAQs: All your questions on MPI answered.

 MPI Background: A brief history of the MPI, including how it came to be developed
for publication in UNDP’s Human Development Report, and how it is being used now.

 MPI Case Studies: Stories of people who are poor according to the MPI in their
country: their hopes, strengths and challenges.

 MPI Podcasts: A series of interviews with OPHI researchers, leading academics
working on poverty measurement, statisticians and others.

 Making your own MPI: Adaptations of the global MPI for other purposes, such as
national poverty measurement, targeting, child poverty measurement and empowerment.

 Online training portal: Resources on multidimensional measurement techniques,
including video and audio files, lecture slides, exercises and reading lists.

Nepal oxford poverty & human dev initiative-2013

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