June 17, 2014
According to The Global Multidimensional Poverty Index (MPI), published by Oxford University, Ethiopia ranks the second poorest country in the world just ahead of Niger. The study is based on analysis of acute poverty in 108 developing countries around the world. Despite making progress at reducing the percentage of destitute people, Ethiopia is still home to more than 76 million poor people, the fifth largest number in the world after India, China, Bangladesh and Pakistan. India has the world’s largest number of poor people at more than 647 million.
87.3% of Ethiopians are classified as MPI poor, while 58.1% are considered destitute. A person is identified as multidimensionally poor (or ‘MPI poor’) if they are deprived in at least one third of the weighted MPI indicators. The destitute are deprived in at least one-third of the same weighted indicators, The Global MPI uses 10 indicators to measure poverty in three dimensions: education, health and living standards.
In rural Ethiopia 96.3% are poor while in the urban area the percentage of poverty is 46.4%. Comparing the poverty rate by regions, Somali region has the highest poverty rate at 93% followed by Oromiya (91.2%) and Afar (90.9%). Amhara region has 90.1% poverty rate while Tigray has 85.4%.
Addis Ababa has the smallest percentage of poverty at 20% followed by Dire Dawa at 54.9% and Harar (57.9%).
Multidimensional Poverty Index Data bank. OPHI, University of Oxford
Ethiopia (MPI 0.564)
The boundaries and names shown and the designations used on this map do not imply official endorsement or acceptance by OPHI or the University of Oxford. This map is intended for illustrative purposes only.
Complementary data are taken from the closest available year to the year of the survey used to calculate the MPI. Income poverty is only shown where the data available are taken from a survey fielded within three years of the MPI survey year.
MPI – Overview
A person is identified as multidimensionally poor (or ‘MPI poor’) if they are deprived in at least one third of the weighted MPI indicators.
The proportion of the population that is multidimensionally poor is the incidence of poverty, or headcount ratio (H). The average proportion of indicators in which poor people are deprived is described as the intensity of their poverty (A). The MPI is calculated by multiplying the incidence of poverty by the average intensity of poverty across the poor (MPI = H x A).
If a person is deprived in 20-33.3% of the weighted indicators they are considered ‘Vulnerable to Poverty’, and if they are deprived inmore than 50% they are identified as being in ‘Severe Poverty‘. (The destitute) are deprived in at least one-third of the same weighted indicators, but according to more extreme criteria than those used to identify the MPI poor, while the level of inequality among the poor is calculated using a separate, decomposable inequality measure.
| Survey | Year | Multidimensional Poverty Index(MPI = HxA) | Percentage of Poor People (H) (k = 33.3%) | Average Intensity Across the Poor (A) | Percentage of Population: | Inequality Among the MPI Poor | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Vulnerable to Poverty K=20%-33.3% | In Severe Poverty K=50% | Destitute | |||||||||||
| DHS | 2011 | 0.564 | 87.3% | 64.6% | 6.8% | 71.1% | 58.1% | 0.290 | |||||
Population breakdown: Urban = 17.9% of population, Rural = 82.1% of population
MPI – Composition of Poverty
The Global MPI uses 10 indicators to measure poverty in three dimensions: education, health and living standards. This bar chart reports the proportion of the population that is poor and deprived in each indicator in the country selected. (The deprivation of non-poor people is not included.)
You can see the incidence of censored deprivation in each indicator at the national level, or compare the incidence in urban and rural areas by selecting ‘Urban/Rural’. (See the table below for the urban/rural population breakdown.)
Where subnational data are available, you can also compare the percentage contribution of each indicator to overall poverty across regions.
| Percentage of population | Multidimensional Poverty Index (MPI) | = | Percentage of Poor People (H) | x | Average Intensity Across the Poor (A) | |
|---|---|---|---|---|---|---|
| Total | 100% | 0.564 | = | 87.3% | x | 64.6% |
| Urban | 17.9% | 0.230 | = | 46.4% | x | 49.5% |
| Rural | 82.1% | 0.637 | = | 96.3% | x | 66.2% |
MPI – Intensity
A person who is deprived in 90% of the weighted MPI indicators has a greater intensity of deprivation, or poverty, than someone who is deprived in 40% of the indicators. The graphs below show the percentage of MPI poor people who are experiencing different intensities of deprivation, at the national level or in urban/rural areas. (See table above for the urban/rural population breakdown.)
In both graphs, people who are deprived in 50% or more of the indicators are identified as in ‘Severe Poverty‘.
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