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NEDA introduces multidimensional poverty index approach

Published Sep 26, 2023 10:16 am

At A Glance

  • The National Economic and Development Authority (NEDA) introduced to international communities its approach using the Multidimensional Poverty Index (MPI) to gather data on poverty.<br>The Philippines adopted the MPI comprising 13 indicators across four dimensions: (1) education, (2) health and nutrition, (3) housing, water and sanitation, and (4) employment.<br>Edillon says that as the country expanded the definition of poverty, pivotal policies were enacted such as the 4Ps (Conditional Cash Transfer program), Universal Access to Quality Tertiary Education, and Universal Health Care Law.<br>NEDA assures the nation's commitment to using the MPI as a tool to drive policy actions, promote societal well-being, and reduce multidimensional poverty.

The National Economic and Development Authority (NEDA) introduced to international communities its approach using the Multidimensional Poverty Index (MPI) to gather data on poverty.

During the UN General Assembly in New York on Sept. 20, NEDA Undersecretary Rosemarie G. Edillon emphasized the importance of the MPI in capturing the multiple economic and social challenges in the country.

Edillon detailed the country's use of the MPI and discussed the country's efforts in refining its data approach, broadening the definition of poverty, and introducing pivotal policies that align with the objectives of the sustainable development goals and the 2030 Agenda.

"From 2015 to 2018, the Philippines adopted the MPI comprising 13 indicators across four dimensions: (1) education, (2) health and nutrition, (3) housing, water and sanitation, and (4) employment. Our findings underscored deeper deprivations, particularly in education," Edillon said.

"For the years 2019-2022, as with most countries, the Philippines was battling COVID-19. But even during that time, what we did was enhance our data approach by adding questions into the Family Income and Expenditure Survey (FIES)… and then merging it with the Labor Force Survey (LFS),” she added.

“Therefore, this one will give us reliable estimates down to provinces and highly urbanized cities, thereby being able to exact more accountability,” the NEDA undersecretary further said.

The FIES is a survey on family income and expenditure of households undertaken by the PSA across the country, while the LFS is used to calculate national and provincial employment and unemployment rates.

Meanwhile, the MPI, according to the World Bank, is an “index that measures the percentage of households in a country deprived along three dimensions –monetary poverty, education, and basic infrastructure services – to capture a more complete picture of poverty.”

Edillon also said that as the country expanded the definition of poverty, pivotal policies were enacted such as the 4Ps (Conditional Cash Transfer program), Universal Access to Quality Tertiary Education, and Universal Health Care Law.

"What we are trying to do now is to fortify our commitment towards achieving the SDGs, and especially on [SDG indicator] 1.2… Armed with a refined targeting mechanism, robust institutional platforms, and a comprehensive monitoring system, we know that we are now better equipped to reduce the headcount and severity of the multi-dimensionally poor, and consequently, accelerate the SDGs," Edillon said.

The event underscored the significance of political leadership in achieving SDGs.

NEDA assured the nation's commitment to using the MPI as a tool to drive policy actions, promote societal well-being, and reduce multidimensional poverty, all in line with the aspirations of the 2030 Agenda.

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National Economic and Development Authority (NEDA) Rosemarie Edillon
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