The Multidimensional Poverty Index (MPI)

The MPI – a relative poverty measurement approach practiced in developed nations will be adopted to complement the absolute income-based measurement of the PLI (11MPpg 3-22)

There is a detailed description of the MPI on pg 3-23

This shift from singular or one dimension approach to a multidimensional is the most significant development on poverty measurement in the 11MP. This also means that there is be a rightful thrust in 11MP towards urban poverty and low income families as captured in the B40 approach.

The PLI takes a basket of goods approach is measuring poverty from the most basic of human need. In the MPI income is measured using the mean monthly household income measurement.

The mean monthly household income is RM2,537 (2014) and the target is to raise this to  double to RM 5,270.00 by 2020 (11MP pg 3-17)

Critical question- 

Is it better to use the median or middle value rather than the mean or average value?

However what is really significant is the additional dimensions adopted to an early income only measurement. In 11MP, three other dimensions are added in the measurement index namely education, health and living standards

There is in the MPI 4 dimensions and 11 indicators for measurement (11MP pg 3-23, Box 3-2)

Critical question- 

Why is crime or social issues not included as an indicator? We do note that crime, gangs &violence, alcoholism, drug abuse, and substance abuse, domestic violence and dysfunctional families and high risk youth indicators- lepak, night riders/motor cycle racing not use. Social science research clearly shows a close correlations between urban poverty, deprivation, dysfunctional and anti-social behaviour as clear manifestations of the new poor syndrome 

Also some of the 11 specific indicators not relevant to urban poor and therefore new indicators of relative poverty and living standards should be introduced especially which is relevant to flat dwellers.