Promoting Inclusive Markets and Financial Systems
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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