Previous Year Question
United Nations Development Programme (UNDP) has identified following categories of poverty. Which one is correct?
Income poverty
Human poverty
Both (a) and (b)
None of the above
Correct Answer: C
Detailed Solution
The United Nations Development Programme (UNDP) recognises both Income Poverty and Human Poverty in the assessment of poverty. These concepts aim to understand poverty not merely as a shortage of economic resources but also in terms of deprivation of basic human needs, capabilities, and opportunities.
Income Poverty refers to the income or consumption expenditure of an individual or household falling below a specified Poverty Line. It represents the inadequacy of economic resources, which may limit access to food, clothing, housing, and other essential goods and services.
Human Poverty is associated not only with a lack of income but also with deprivation of the capabilities and opportunities necessary to live a long and healthy life, acquire education, and maintain a decent standard of living. Conditions relating to health, nutrition, literacy, access to essential services, and social participation are important in this concept.
In the Human Development Report 1997, UNDP explained the distinction between Income Poverty and Human Poverty under the theme Human Development to Eradicate Poverty. The report also introduced the Human Poverty Index (HPI), which assessed deprivations in essential dimensions of human life.
The HPI primarily included three dimensions—
Longevity: The probability of dying at a relatively early age.
Knowledge: Deprivation relating to literacy and education.
Decent Standard of Living: Lack of essential facilities such as safe drinking water, healthcare services, and adequate nutrition.
In 2010, UNDP and the Oxford Poverty and Human Development Initiative (OPHI) introduced the Multidimensional Poverty Index (MPI), which replaced the HPI in global Human Development Reports. MPI assesses poverty through several indicators related to health, education, and living standards.
The distinction between Income Poverty and Human Poverty is important because access to healthcare, education, or essential public services may remain limited even when an individual's income increases. Similarly, improvements in public facilities can reduce Human Poverty even without a corresponding proportional increase in income.