Oxford Poverty and Human Development Initiative

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Oxford Poverty and Human Development Initiative (OPHI)
AbbreviationOPHI
Formation1 May 2007 (2007-05-01)
Legal statusInitiative
Purpose Human development economic research centre
Professional title
Oxford Poverty and Human Development Initiative
Headquarters University of Oxford
Coordinates 51°45′21″N1°15′05″W / 51.755875°N 1.251386°W / 51.755875; -1.251386
Director
Sabina Alkire
Parent organization
Oxford Department of International Development, University of Oxford
Website ophi.org.uk
RemarksOPHI's advisory committee: Sudhir Anand, Tony Atkinson Amartya Sen and Frances Stewart

The Oxford Poverty and Human Development Initiative (OPHI) is an economic research centre within the Oxford Department of International Development at the University of Oxford, England, that was established in 2007. [1]

Contents

History

The centre was established in 2007. [2] In 2010, OPHI developed the Multidimensional Poverty Index for the United Nations Development Programme's Human Development Report. [3] Since then OPHI has published a Global Multidimensional Poverty Index (MPI) annually. OPHI also serves as the Secretariat of the Multidimensional Poverty Peer Network (MPPN), a South-South initiative that supports policymakers to develop multidimensional poverty measures. It promotes the use of such measures for more effective poverty eradication efforts at the global, national and local levels.

About

OPHI aims to build and advance a more systematic methodological and economic framework for reducing multidimensional poverty, grounded in people's experiences and values. OPHI works towards this by: [4]

OPHI's work is grounded in Amartya Sen's capability approach. [5] OPHI works to implement this approach by creating real tools that inform policies to reduce poverty. OPHI's team members are involved in a wide range of activities and collaborations around the world, including survey design and testing, quantitative and qualitative data collection, training and mentoring, and advising policy makers.

As per OPHI, if a person is deprived in at least one third of the weighted Multidimensional Poverty Index (MPI) indicators, globally, they are considered multidimensionally poor. [6]

Missing dimensions of poverty

Money alone is an incomplete measure of 'poverty'. Human development is more about giving people the opportunities to live lives they value, and enable them to achieve their own destiny. This goes beyond material resources – as people value many other aspects of life – and also focuses on what people are able to be and to do. OPHI has identified five 'Missing Dimensions' of poverty that deprived people cite as important in their experiences of poverty. [7] To call attention to these 'missing dimensions', and to use them as a guide to policy, better data are needed.

Objective

OPHI promotes collection and analysis of data on five 'missing dimensions' of poverty: [8]

To date, these dimensions have been largely overlooked in large-scale quantitative work on poverty and human development. OPHI has designed five 8-10 minute questionnaire modules that can be integrated into national household surveys to obtain these data. [9]

Criteria

The following criteria were used to identify suitable indicators for inclusion in individual or household surveys.

Progress

OPHI has ongoing collaboration with teams around the world to test and improve the modules and to produce new data and qualitative and quantitative analyses on the missing dimensions. Currently, OPHI and partners are fielding a nationally representative survey in Chad, and the first nationally representative dataset and analyses were conducted in Chile. Projects have also be conducted in Philippines, Nigeria and Sri Lanka, plus a first smaller project in Chad.

Multidimensional poverty

Most countries of the world define poverty by income. Yet poor people themselves define their poverty much more broadly, to include lack of education, health, housing, empowerment, humiliation, employment, personal security and more. No one indicator, such as income, is uniquely able to capture the multiple aspects that contribute to poverty. Multidimensional poverty encompasses a range of deprivations that a household may suffer. The number of indicators and specific indicators used depend on the purpose of the measure. Common purposes include national poverty measures that reflect changes over time, targeting of services or conditional cash transfers and monitoring and evaluation. [10]

At a glance, multidimensional measures present an integrated view of the situation. We can also examine poverty by population group, or study the composition of deprivation for different groups. Multidimensional metrics are rigorous, easy to use, flexible, and adaptable to different contexts. OPHI has developed a methodology for measuring multidimensional poverty known as the Alkire Foster (AF) method. [6] OPHI researchers apply the AF method and related multidimensional measures to a range of different countries and contexts. Their analyses span a number of different topics, such as changes in multidimensional poverty over time, comparisons in rural and urban poverty, and inequality among the poor.

Alkire Foster method

Sabina Alkire and James Foster created a new method for measuring multidimensional poverty. It includes identifying 'who is poor' by considering the range of deprivations they suffer, and aggregating that information to reflect societal poverty in a way that is robust and decomposable.

Contemporary methods of measuring poverty and wellbeing commonly generate a statistic for the percentage of the population who are poor, a head count (H). The Alkire Foster Method generates a headcount and also a unique class of poverty measures (Mα):

M0: An 'adjusted head count'. This reflects both the incidence (the percentage of the population who are poor) and intensity of poverty (the number of deprivations suffered by each household, A). It is calculated by multiplying the proportion of people who are poor by the percentage of dimensions in which they are deprived (M0 = H x A). [11]

M1: This measure reflects the incidence, intensity and depth of poverty. The depth of poverty is the 'gap' (G) between poverty and the poverty line (M1 = H x A x G). [12]

M2: This measures reflects the incidence, intensity, depth of poverty and inequality among the poor (the squared gap, S) (M2 = H x A x S). [13]

M0 can be calculated with ordinal and cardinal data. Cardinal data are required to calculate M1 and M2. [14]

The Alkire Foster Method is unique in that it can distinguish between, for example, a group of poor people who suffer only one deprivation on average and a group of poor people who suffer three deprivations on average at the same time.

This flexible approach can be employed in a variety of situations by choosing different dimensions (e.g. education), indicators (e.g. how many years of education a person has) and cutoffs (e.g. a person with fewer than five years of education is considered deprived).

Common uses

Advantages

The Alkire Foster method is a single societal poverty measure, but it can be broken down and analysed in a powerful way to inform policy. It can be used to:

See also

Related Research Articles

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Extreme poverty is the most severe type of poverty, defined by the United Nations (UN) as "a condition characterized by severe deprivation of basic human needs, including food, safe drinking water, sanitation facilities, health, shelter, education and information. It depends not only on income but also on access to services". Historically, other definitions have been proposed within the United Nations.

Quality of life (QOL) is defined by the World Health Organization as "an individual's perception of their position in life in the context of the culture and value systems in which they live and in relation to their goals, expectations, standards and concerns".

<span class="mw-page-title-main">Gross National Happiness</span> Guiding philosophy of the government of Bhutan

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<span class="mw-page-title-main">Capability approach</span> Normative approach to human welfare

The capability approach is a normative approach to human welfare that concentrates on the actual capability of persons to achieve lives they value rather than solely having a right or freedom to do so. It was conceived in the 1980s as an alternative approach to welfare economics.

The Human Poverty Index (HPI) was an indication of the poverty of community in a country, developed by the United Nations to complement the Human Development Index (HDI) and was first reported as part of the Human Development Report in 1997. It is developed by United Nations Development Program which also publishes indexes like HDI It was considered to better reflect the extent of deprivation in deprived countries compared to the HDI. In 2010, it was supplanted by the UN's Multidimensional Poverty Index.

<span class="mw-page-title-main">Human Development Report</span> Annual report by the Human Development Report Office of the United Nations Development Programme

The Human Development Report (HDR) is an annual Human Development Index report published by the Human Development Report Office of the United Nations Development Programme (UNDP).

The Indices of deprivation 2004 is a deprivation index at the small area level, created by the British Department for Communities and Local Government(DCLG).

<span class="mw-page-title-main">Poverty in India</span>

Poverty in India remains a major challenge despite overall reductions in the last several decades as its economy grows. According to an International Monetary Fund paper, extreme poverty, defined by the World Bank as living on US$1.9 or less in purchasing power parity (PPP) terms, in India was as low as 0.8% in 2019, and the country managed to keep it at that level in 2020 despite the unprecedented COVID-19 outbreak. According to World Bank, extreme poverty has reduced by 12.3% between 2011 and 2019 from 22.5% in 2011 to 10.2% in 2019. A working paper of the bank said rural poverty declined from 26.3% in 2011 to 11.6% in 2019. The decline in urban areas was from 14.2% to 6.3% in the same period.The poverty level in rural and urban areas went down by 14.7 and 7.9 percentage points, respectively. According to United Nations Development Programme administrator Achim Steiner, India lifted 271 million people out of extreme poverty in a 10-year time period from 2005–2006 to 2015–2016. A 2020 study from the World Economic Forum found "Some 220 million Indians sustained on an expenditure level of less than Rs 32 / day—the poverty line for rural India—by the last headcount of the poor in India in 2013."

<span class="mw-page-title-main">Measuring poverty</span> Overview about the measure of poverty

Poverty is measured in different ways by different bodies, both governmental and nongovernmental. Measurements can be absolute, which references a single standard, or relative, which is dependent on context. Poverty is widely understood to be multidimensional, comprising social, natural and economic factors situated within wider socio-political processes. The capabilities approach argues that capturing the perceptions of poor people is fundamental to understanding poverty.

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<span class="mw-page-title-main">Multidimensional Poverty Index</span> Range of poverty indicators

Multidimensional Poverty Indices use a range of indicators to calculate a summary poverty figure for a given population, in which a larger figure indicates a higher level of poverty. This figure considers both the proportion of the population that is deemed poor, and the 'breadth' of poverty experienced by these 'poor' households, following the Alkire & Foster 'counting method'. The method was developed following increased criticism of monetary and consumption based poverty measures, seeking to capture the deprivations in non-monetary factors that contribute towards well-being. While there is a standard set of indicators, dimensions, cutoffs and thresholds used for a 'Global MPI', the method is flexible and there are many examples of poverty studies that modify it to best suit their environment. The methodology has been mainly, but not exclusively, applied to developing countries.

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<span class="mw-page-title-main">Sabina Alkire</span> Philosopher (born 1969)

Sabina Alkire is the director of the Oxford Poverty and Human Development Initiative (OPHI), an economic research centre within the Oxford Department of International Development at the University of Oxford, England, which was established in 2007. She is a fellow of the Human Development and Capability Association. She has worked with organizations such as the Commission on the Measurement of Economic Performance and Social Progress, the United Nations Human Development Programme Human Development Report Office, the European Commission, and the UK's Department for International Development.

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<span class="mw-page-title-main">James Foster (economist)</span>

James Eric Foster is Professor of Economics and International Affairs at the George Washington University, in the Elliott School of International Affairs, researching welfare economics and poverty measurement. He is known for developing the Alkire Foster Method, with University of Oxford professor and OPHI Director Sabina Alkire. He is a board member for the World Bank.

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References

  1. "Oxford Poverty & Human Development Initiative". Oxford Poverty & Human Development Initiative. Retrieved 4 August 2010. The Oxford Poverty and Human Development Initiative (OPHI) is an economic research centre within the Oxford Department of International Development at the University of Oxford. Established in 2007, the centre is led by Sabina Alkire.
  2. "Oxford Poverty & Human Development Initiative (OPHI) Launch". International Development Research Centre . Retrieved 6 August 2010. OPHI, a research initiative of the University of Oxford's Department of International Development, Queen Elizabeth House, was launched in May 2007 with a series of events including a lecture delivered by Nobel Laureate Amartya Sen, two workshops and three public seminars.
  3. "A wealth of data. A useful new way to capture the many aspects of poverty". The Economist . 29 July 2010. Retrieved 4 August 2010. 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.
  4. "Oxford Poverty & Human Development Initiative". Oxford Poverty & Human Development Initiative. Retrieved 21 May 2013. OPHI aims to build and advance a more systematic methodological and economic framework for reducing multidimensional poverty, grounded in people's experiences and values. OPHI works towards this by.
  5. "Oxford Poverty & Human Development Initiative". Oxford Poverty & Human Development Initiative. Retrieved 21 May 2013. OPHI's work is grounded in Amartya Sen's capability approach.
  6. 1 2 "Human Development Index: Bangladesh moves 2 notches up, remains 5th in South Asia". Dhaka Tribune . 21 December 2020.
  7. "Oxford Poverty & Human Development Initiative". Oxford Poverty & Human Development Initiative. Retrieved 21 May 2013. OPHI has identified five 'Missing Dimensions' of poverty that deprived people cite as important in their experiences of poverty.
  8. "Oxford Poverty & Human Development Initiative". Oxford Poverty & Human Development Initiative. Retrieved 21 May 2013. OPHI promotes collection and analysis of data on five 'missing dimensions' of poverty
  9. "Oxford Poverty & Human Development Initiative". Oxford Poverty & Human Development Initiative. Retrieved 21 May 2013. OPHI has designed five short, 8-10 minute questionnaire modules that can be integrated into national household surveys to obtain these data.{{cite web}}: External link in |quote= (help)
  10. "Multidimensional Poverty". Oxford Poverty & Human Development Initiative (OPHI). Retrieved 21 May 2013. Common purposes include national poverty measures that reflect changes over time, targeting of services or conditional cash transfers and monitoring and evaluation.
  11. "Alkire Foster Method". Oxford Poverty & Human Development Initiative (OPHI). Retrieved 21 May 2013. M0 An 'adjusted head count'. This reflects both the incidence (the percentage of the population who are poor) and intensity of poverty (the number of deprivations suffered by each household, A). It is calculated by multiplying the proportion of people who are poor by the percentage of dimensions in which they are deprived (M0 = H x A).
  12. "Alkire Foster Method". Oxford Poverty & Human Development Initiative (OPHI). Retrieved 21 May 2013. M1 This measure reflects the incidence, intensity and depth of poverty. The depth of poverty is the 'gap' (G) between poverty and the poverty line (M1 = H x A x G).
  13. "Alkire Foster Method". Oxford Poverty & Human Development Initiative (OPHI). Retrieved 21 May 2013. M2 This measures reflects the incidence, intensity, depth of poverty and inequality among the poor (the squared gap, S) (M2 = H x A x S).
  14. "Alkire Foster Method". Oxford Poverty & Human Development Initiative (OPHI). Retrieved 21 May 2013. M0 can be calculated with ordinal and cardinal data. Cardinal data are required to calculate M1 and M2.