Thursday, June 19, 2014

Ethiopia ranks second poorest country in the world – Oxford University Study

According to The Global Multidimensional Poverty Index (MPI), published by Oxford University, Ethiopia ranks the second poorest country in the world just ahead of Niger. The study is based on analysis of acute poverty in 108 developing countries around the world. Despite making progress at reducing the percentage of destitute people, Ethiopia is still home to more than 76 million poor people, the fifth largest number in the world after India, China, Bangladesh and Pakistan. India has the world’s largest number of poor people at more than 647 million.
87.3% of Ethiopians are classified as MPI poor, while 58.1% are considered destitute. A person is identified as multidimensionally poor (or ‘MPI poor’) if they are deprived in at least one third of the weighted MPI indicators. The destitute are deprived in at least one-third of the same weighted indicators, The Global MPI uses 10 indicators to measure poverty in three dimensions: education, health and living standards.
In rural Ethiopia 96.3% are poor while in the urban area the percentage of poverty is 46.4%. Comparing the poverty rate by regions, Somali region has the highest poverty rate at 93% followed by Oromiya (91.2%) and Afar (90.9%). Amhara region has 90.1% poverty rate while Tigray has 85.4%.
Addis Ababa has the smallest percentage of poverty at 20% followed by Dire Dawa at 54.9% and Harar (57.9%).
Multidimensional Poverty Index Data bank. OPHI, University of Oxford
Ethiopia (MPI 0.564)
graph_mpi_nationals_headcont_loc
The boundaries and names shown and the designations used on this map do not imply official endorsement or acceptance by OPHI or the University of Oxford. This map is intended for illustrative purposes only.
Complementary data are taken from the closest available year to the year of the survey used to calculate the MPI. Income poverty is only shown where the data available are taken from a survey fielded within three years of the MPI survey year.
 graph_mpi_subnationals_decom

MPI – Overview

A person is identified as multidimensionally poor (or ‘MPI poor’) if they are deprived in at least one third of the weighted MPI indicators.
The proportion of the population that is multidimensionally poor is the incidence of poverty, or headcount ratio (H). The average proportion of indicators in which poor people are deprived is described as the intensity of their poverty (A). The MPI is calculated by multiplying the incidence of poverty by the average intensity of poverty across the poor (MPI = H x A).
If a person is deprived in 20-33.3% of the weighted indicators they are considered ‘Vulnerable to Poverty’, and if they are deprived inmore than 50% they are identified as being in ‘Severe Poverty‘. (The destitute) are deprived in at least one-third of the same weighted indicators, but according to more extreme criteria than those used to identify the MPI poor, while the level of inequality among the poor is calculated using a separate, decomposable inequality measure.
SurveyYearMultidimensional Poverty Index(MPI = HxA)Percentage of Poor People (H)
(k = 33.3%)
Average Intensity Across the Poor (A)Percentage of Population:Inequality Among the MPI Poor
Vulnerable to
Poverty
K=20%-33.3%
In Severe
Poverty
K=50%
Destitute
DHS20110.56487.3%64.6%6.8%71.1%58.1%0.290
graph_mpi_headcont_loc
graph_mpi_percnt_poor_deprvd
Population breakdown: Urban = 17.9% of population, Rural = 82.1% of population

MPI – Composition of Poverty

The Global MPI uses 10 indicators to measure poverty in three dimensions: education, health and living standards. This bar chart reports the proportion of the population that is poor and deprived in each indicator in the country selected. (The deprivation of non-poor people is not included.)
You can see the incidence of censored deprivation in each indicator at the national level, or compare the incidence in urban and rural areas by selecting ‘Urban/Rural’. (See the table below for the urban/rural population breakdown.)
Where subnational data are available, you can also compare the percentage contribution of each indicator to overall poverty across regions.
graph_mpi_deprivatn_each_ind
Percentage
of population
Multidimensional
Poverty Index (MPI)
=Percentage of Poor
People (H)
xAverage Intensity
Across the Poor (A)
Total100%0.564=87.3%x64.6%
Urban17.9%0.230=46.4%x49.5%
Rural82.1%0.637=96.3%x66.2%
graph_combined_mpi_contr_ovrall_povty_Abs
 graph_mpi_subnationals_decom_ind_wise
MPI – Intensity
A person who is deprived in 90% of the weighted MPI indicators has a greater intensity of deprivation, or poverty, than someone who is deprived in 40% of the indicators. The graphs below show the percentage of MPI poor people who are experiencing different intensities of deprivation, at the national level or in urban/rural areas. (See table above for the urban/rural population breakdown.)
In both graphs, people who are deprived in 50% or more of the indicators are identified as in ‘Severe Poverty‘.
 graph_mpi_intnsty_amng_poor
graph_mpi_prcnt_weghtd_ind_total (1)
Disclaimers:
This Databank presents the results of the Global Multidimensional Poverty Index (MPI) and explains key findings graphically. For an explanation of the MPI, along with more information, international comparisons and details of the resources available, please click here.
For information on the original MPI methodology and on the updates that took place in 2011, 2013 and 2014, please click here.
Please cite this data as: Oxford Poverty and Human Development Initiative (2014) Global Multidimensional Poverty Index Databank. OPHI, University of Oxford.

The Global MPI Database was last updated in June 2014.

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