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Multidimensional Indices of  Achievements and Poverty: What Do We Gain and What Do We Lose? Image

Promoting Inclusive Markets and Financial Systems

Multidimensional Indices of Achievements and Poverty: What Do We Gain and What Do We Lose?

Summary

Poverty and well-being are multidimensional. Nobody questions that deprivations and achievements go beyond income. There is, however, sharp disagreement on whether the various dimensions of poverty and well-being can be aggregated into a single, multidimensional index in a meaningful way. Is aggregating dimensions of poverty and well-being useful? Is it sensible? Here I summarize and contrast three key papers that respond to these questions in strikingly different ways. The papers are “The HDI 2010: New Controversies, Old Critiques” by Jeni Klugman, Francisco Rodríguez and Hyung-Jin Choi;  “Understandings and Misunderstandings of Multidimensional Poverty Measurement” by Sabina Alkire and James Foster; and “On Multidimensional Indices of Poverty” by Martin Ravallion.

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