Free-Market Poverty Solutions: A Better Poverty Measurement Is A Good Step

Michelle Kaffenberger /

Missing in news reports on the recent release of the United Nations 2010 Human Development Report is any mention of a significant addition to the report.  For the first time, the HDR includes the Multidimensional Poverty Index, which measures poverty based on components other than income and GDP.  The Index rates countries’ poverty levels based on health, education, and living standards, including elements such as nutrition, child mortality, years of schooling, access to water, electricity, and more.  The MPI measures a total of 10 indicators and ranks countries accordingly.

To avoid the developing world falling into the same welfare trap that much of the developed world is in, the key to poverty alleviation must be empowering individuals.  (more…)