At Duncan Green’s blog, there is a fascinating back-and-forth on the UN’s new Multidimensional Poverty Index (MPI) between its co-creator, Sabina Alkire, and the World Bank’s Martin Ravallion. This is very much a live debate in development circles. The MPI is a descendant of the earlier Human Development Index and is similar to the various Unsatisfied Basic Needs indices long used in many countries.
I agree wholeheartedly with Martin’s critique, but Sabina does offer a spirited (and highly hyperlinked) defense. Martin’s emphasizes two points: 1) what’s the point of aggregating a bunch of indicators into a single index? and 2) the choice of weights for such an index is inherently problematic.