Human Poverty Index(HPI): Meaning, Measures, Calculation

The Human Poverty Index (HPI) is a measure developed by the United Nations Development Programme (UNDP) to assess and compare levels of poverty across countries. Unlike traditional poverty measures that focus solely on income, the HPI aims to capture the multidimensional nature of poverty by considering various aspects of human deprivation.

1. Human Poverty Index HPI

2. Introduction The Human Poverty Index (HPI) was developed by the United Nations Development Programme (UNDP) to complement the Human Development Index (HDI) by measuring the extent of poverty within a country. Origins : The HPI was introduced in the 1997 Human Development Report by the UNDP.

3. Purpose : The HPI aimed to measure the extent of deprivation in a society by assessing how people are deprived in multiple dimensions of well-being. It emphasized that poverty is multidimensional and cannot be fully understood through income measures alone.

4. Measuring the Human Poverty Index (HPI) The HPI was calculated differently for developed and developing countries, resulting in two distinct indices: HPI-1 and HPI-2.

5. HPI-1 for Developing Countries Longevity: Measured by the percentage of the population not expected to survive to age 40. Knowledge: Measured by the adult illiteracy rate. Standard of Living: Measured by the percentage of the population without access to an improved water source and the percentage of children underweight for their age.

6. The HPI-1 is calculated using the following formula: where: P1 = Probability at birth of not surviving to age 40. P2 = Adult illiteracy rate. P3 = Average of the percentage of people without access to safe water and the percentage of children underweight for age.  

7. HPI-2 for Developed Countries HPI-2 focuses on deprivations in four dimensions, acknowledging the different context of poverty in developed countries: Longevity : Measured by the percentage of the population not expected to survive to age 60. Knowledge : Measured by the percentage of adults lacking functional literacy skills. Standard of Living : Measured by the percentage of the population living below the poverty line (50% of median adjusted household disposable income). Social Exclusion : Measured by the rate of long-term unemployment (12 months or more).

8. The HPI-2 is calculation The HPI-2 is calculated similarly to HPI-1 but includes an additional dimension for social exclusion: where: P1 = Probability at birth of not surviving to age 60. P2 = Percentage of adults lacking functional literacy skills. P3= Percentage of people living below the income poverty line. P4 = Long-term unemployment rate.  

9. Categories of the Human Poverty Index (HPI) The HPI does not have specific categories like the HDI, but it provides a clear indication of the level of poverty and deprivation within a country. The interpretation of HPI scores can be summarized as follows: 1.Low HPI Score : Indicates low levels of poverty and deprivation. Countries with low HPI scores have better health, higher literacy rates, better access to essential services, and lower unemployment rates. 2.Medium HPI Score : Indicates moderate levels of poverty and deprivation. These countries may have significant portions of the population experiencing deprivation in one or more dimensions.

10. Continue… 3.High HPI Score : Indicates high levels of poverty and deprivation. Countries with high HPI scores face severe challenges in health, education, living standards, and social inclusion.

11. Replacement by the Multidimensional Poverty Index (MPI) In 2010, the HPI was replaced by the Multidimensional Poverty Index (MPI), which offers a more detailed and comprehensive measure of poverty by considering multiple deprivations at the household level across health, education, and standard of living indicators. The MPI provides a more nuanced understanding of poverty and better reflects the complex realities of people living in poverty. Despite its replacement, the HPI was instrumental in highlighting the multidimensional nature of poverty and influencing the development of more comprehensive poverty measures.