Alkire Foster Methodology: Understanding

multidimensional poverty

Definition:

The Alkire Foster (AF) Methodology, developed by economists Sabina Alkire and James Foster, is a comprehensive approach for measuring multidimensional poverty. It captures the multiple deprivations that individuals or households experience in different aspects of their lives.

Key Features:

Multidimensional Approach: Unlike traditional poverty measures focusing solely on income, the AF method considers various dimensions like health, education, and living standards.

Indicators and Dimensions: Poverty is assessed across selected dimensions, each represented by specific indicators.

Dual Cutoffs: It involves two cutoffs - a poverty cutoff (defining what it means to be poor in each dimension) and a dimensional cutoff (determining how many dimensions a person must be deprived in to be considered multidimensionally poor).

Application:

Identification: Individuals are identified as multidimensionally poor if their deprivation score, calculated from the weighted sum of deprivations, exceeds a predefined threshold.

Aggregation: The AF method aggregates data to provide an overall picture of poverty, which includes both the incidence (headcount ratio) and intensity (average deprivation score) of poverty.

Importance in Policy:

Comprehensive Analysis: This methodology allows policymakers to understand the interplay of various factors contributing to poverty.

Targeted Interventions: It helps in designing targeted interventions by identifying the specific dimensions and indicators where deprivations are most severe.

Use in India’s MPI:

Customized Indicators: In India’s National MPI, the AF methodology is adapted to include locally relevant indicators, covering a broader spectrum of deprivations.

Policy Guidance: The results guide the government in focusing on critical areas for poverty alleviation, contributing to more effective policymaking.

Conclusion:

The Alkire Foster Methodology provides a nuanced view of poverty, emphasizing its multifaceted nature and guiding targeted, effective interventions for poverty reduction.

SRIRAM’s