Economy August 14, 2023 | 3:42 pm

Dominican Republic reduced its Global Multidimensional Poverty Index by 21%, although poverty still persists

Santo Domingo.- Global indicators show that from 2007 to 2014, the Dominican Republic managed to reduce its Global Multidimensional Poverty Index (MPI) by half, becoming one of the 19 countries to achieve this milestone. The index dropped from 0.030 in 2007 to 0.014 in 2014. In the year 2019, the index further decreased to 0.011, marking a 21.4% reduction between 2014 and 2019. This overall period of 2007-2019 witnessed a 63.3% reduction in the country’s global MPI.

During these years, the government’s efforts, led by the Dominican Liberation Party, specifically the administrations of Leonel Fernández (2008-2012) and Danilo Medina (2012-2020), played a significant role in achieving these poverty reduction results.

Multidimensional poverty takes into account various factors in households, including living standards, education, access to healthcare, clean water, and more. The Multidimensional Poverty Index (MPI) measures these multiple deprivations that poor individuals face simultaneously.

Recently, the United Nations Development Program and the Oxford Poverty and Human Development Initiative presented the updated Global MPI, revealing that 25 countries, including the Dominican Republic, managed to halve multidimensional poverty within a 15-year span. While progress has been made, there are still 1.1 billion people in poverty worldwide.

The MPI considers various non-monetary indicators to capture the complexity of poverty and emphasize the importance of extensive public services to enhance people’s quality of life. The dimensions covered include health, education, and living standards. It is noted that the majority of multidimensional poverty (65%) exists in middle-income countries, with only 3% in Latin America and the Caribbean, suggesting that eliminating multidimensional poverty is achievable in this region.

It’s also highlighted that children under 18 years old constitute half of the poor population, and rural areas are more affected by poverty compared to urban areas. The MPI provides insights into the complexity of poverty, where different indicators contribute to variations in experiences of poverty across regions, national subregions, and communities.

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Paul Tierney
August 16, 2023 11:05 am

Let’s be truthful, the poverty levels have not changed to any real degree. What has changed is the formulas for data collection. The formulas give the perception of positive changes. It is sort of like the design of lowering the threshold of school passing grades levels to give the appearance of more students getting through courses.

It asks the question of what is the RD doing in order to lower the poverty index by 21% when the cost of living and inflation is rising? There is no income or income increases presented to keep up with the inflation. The latter causes more stress on the poor’s ability to handle their impoverished situations and while at the same time pushing the lower middle class to the fringes of hardships? Poverty index lowered by 21% is very questionable.