SEMESTER FALL 2017

DEVELOPMENT ECONOMICS (ECO501)

ASSIGNMENT
DUE DATE: NOVEMBER 16, 2017 MARKS: 10
The Case:

Poverty is a multifaceted and multidimensional phenomenon. Poverty and

deprivation can affect the people in various ways like lack of education and
healthcare facilities, improper housing, poor well-being, and insecure living
environment. Poverty level of any country or region can be measured
through different methods but the most efficient method is to compute
Multidimensional Poverty Index (MPI). The MPI was developed in year
2010 by the Oxford Poverty & Human Development Initiative (OPHI) and
the United Nations Development Programme. Pakistans first ever official
report on multidimensional poverty was launched in year 2016 by the
Ministry of Planning, Development and Reform. According to this report,
nearly 39% of Pakistanis live in multidimensional poverty, with the highest
rates of poverty in FATA and Baluchistan. Following table provides some
information of head count ratio and average intensity of deprivation of
Pakistans provinces/regions.

Province/Region Value
Head Count Intensity
Ratio (%) (%)
Punjab 31.4 48.4
Sindh 43.1 53.5
Khyber Pakhtunkhwa (KPK) 49.2 50.7
Baluchistan 71.2 55.3
Azad Jumo Kashmir (AJK) 24.9 46.3
Gilgit Baltistan (GB) 43.2 48.3
FATA 73.7 45.8
Overall Pakistan 38.8 50.9
Requirement:

1) Being student of the development economics, describe any two

indicators of Multidimensional Poverty Index (MPI).
2) From the table given above, compute Multidimensional Poverty Index
(MPI) for each province/region of Pakistan. (Note: Index value should
range between 0-1. Hint: Remove percentages first then compute with
the help of formula.)

Note: You are required to provide the answer of Part 2 in the form of
following table:

Province/Region Value
Head Count Intensity MPI
Ratio (%) (%)
Punjab 31.4 48.4 ?
Sindh 43.1 53.5 ?
Khyber Pakhtunkhwa (KPK) 49.2 50.7 ?
Balochistan 71.2 55.3 ?
Azad Jumo Kashmir (AJK) 24.9 46.3 ?
Gilgit Baltistan (GB) 43.2 48.3 ?
FATA 73.7 45.8 ?
Overall Pakistan 38.8 50.9 ?

(Marks: 2+8)

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