ECLAC and UNDP Present New Multidimensional Poverty Index for Latin America

This tool seeks to measure poverty with standards specifically tailored to the region's reality, enabling comparisons between countries.

The Economic Commission for Latin America and the Caribbean (ECLAC) and the United Nations Development Programme (UNDP) jointly launched the Multidimensional Poverty Index for Latin America, a tool that incorporates dimensions other than income into the measurement of well-being and tailors its standards to the region's particular reality.

The Index uses criteria appropriate to countries with intermediate levels of development and contemplates key aspects of well-being, such as the quality of employment, access to social protection, the lack of labor participation due to domestic responsibilities, and Internet connectivity - representing a significant advance over prior measurements based mainly on extreme deprivations.

Furthermore, it complements the traditional poverty measurement using income by reflecting deprivations along four critical dimensions of well-being: housing, health, education and employment. By combining both approaches, a more complete and accurate view of the reality of poverty in Latin America can be obtained, facilitating the design of comprehensive public policies to address it.

The document was presented by José Manuel Salazar-Xirinachs, ECLAC's Executive Secretary, and Michelle Muschett, UNDP Regional Director for Latin America and the Caribbean, in the framework of the eighth meeting of the Forum of the Countries of Latin America and the Caribbean on Sustainable Development, which is taking place through Friday, April 4 in Santiago, Chile.

The launch featured comments made by Luis-Felipe López Calva, Director of the Poverty and Equity Global Practice at the World Bank; Alejandra Botero, Manager of Planning and Development Impact at the Development Bank of Latin America and the Caribbean (CAF); and Ana María Ibáñez, Vice President for Sectors and Knowledge at the Inter-American Development Bank - IDB (virtual).

"The Index we are presenting today is a key tool for governments and interested entities to monitor the multiple dimensions of poverty, stressing in particular the profound structural inequalities that limit social and economic progress. Comprehensively addressing these dimensions is essential, not just for economic and social reasons, but also to increase the capacity of democracies to implement effective policies, meet expectations, and reduce social discontent and polarization, all of which also helps to strengthen democracies and democratic governance in the region," José Manuel Salazar-Xirinachs affirmed during the presentation of the document.

He further noted that the metrics centered solely on economic growth leave out important dimensions of well-being that do not depend exclusively on income, they disregard internal inequalities within countries and they do not take into sufficient account the negative effects of unsustainable environmental practices, which jeopardize the living conditions of present and future generations.

"That is why it is critical to have more comprehensive measurement tools that would allow for properly assessing social development and poverty, but also improving and optimizing public policy decisions to ensure more efficient use of fiscal resources," ECLAC's Executive Secretary said.

Michelle Muschett, UNDP Regional Director for Latin America and the Caribbean, emphasized that one of the structural, persistent and pending challenges in Latin America is the vulnerability to poverty. This, she added, means that the region is distinctive and disproportionately susceptible to the impacts of crises that, in a context of dizzying changes, are increasingly on the rise.

"With the presentation of this Index, we reaffirm the commitment and capacity we have to provide analysis, evidence and support in designing and implementing public policies that would enable us to translate the data, and the intentions, into concrete actions for transforming and improving the lives of all people, which is what is at the center of not only UNDP's mandate but of the mandate of the entire United Nations system," she stated.

According to ECLAC's figures, between 2008 and 2023, multidimensional poverty in Latin America declined considerably, falling from 45.8% to 25.4%. This trend of annual declines, of approximately 1.4 percentage points, was only interrupted in 2020 due to the COVID-19 pandemic. This reduction has been driven mainly by improvements in access to the Internet, adult education and sanitation.

The incidence of multidimensional poverty varies significantly by age, place of residence and ethnic background. For example, in 2023, multidimensional poverty affected 57.0% of the population in rural areas versus 15.5% in urban areas.

In terms of life stages, the greatest incidence of poverty is seen in childhood (31%), followed by older adults (21%) and adults between 18 and 59 years of age (20%). The indigenous population has an especially high incidence, with 50.6% versus 18.5% in the non-indigenous population.

With regard to gender gaps, the Index carried out an analysis at the individual level for the population between 20 and 59 years of age. The results reveal significant inequalities, mainly attributable to the difficulties that women face in accessing the labor market, the poor quality of employment and their limited economic autonomy, all of which are directly linked to the unequal burden of unpaid domestic and care tasks.

Related content

Related event

Type

Get ECLAC press releases by email