Q. With reference to the UNDP Multidimensional Poverty Index, consider the following statements:

1. This index assesses three vital dimensions of poverty viz. education, health and living standard
2. It uses micro-data from household surveys such as deprivation of toilet, drinking water and sanitation

Which of the following is / are correct statements?
Answer: Both 1 & 2
Notes: The Multidimensional Poverty Index – 2018 was released recently.  The UNDP views poverty as a state of multiple deprivations and measures it with a multidimensional poverty index (MPI). This approach recognizes that the poor experience several forms of deprivation for example poor health, lack of education, inadequate living standard, lack of income, social exclusion, disempowerment, poor quality of work and lack of security from exploitation and violence etc. etc. Thus, UNDP assesses three vital dimensions of poverty viz. education, health, and living standard – through ten indicators and provides both the extent and nature of simultaneous deprivations people are facing. It uses micro data from household surveys, as basis of deprivation of Cooking fuel, Toilet, Water, Electricity, Floor, Assets. Each person in a given household is classified as poor or non-poor depending on the number of deprivations his or her household experiences. These data are then aggregated into the national measure of poverty.