Current Debates from a Comparative Perspective on the Measurement of Multidimensional Poverty As a Composite Indicator
Since 2015, Chile has adopted a multidimensional measure of poverty, which is currently being re-evaluated due to the post-pandemic social and economic situation. It uses the Encuesta de Caracterización Socioeconómica Nacional, Chile's largest household survey. Fostered by debates in economics, sociology and public policy, civil society organizations also boost this discussion.
The presentation focuses on two axes. First, from a theoretical point of view, the paper refers to international debates in the framework of the rights-based approach and Sen's capabilities theory. It also refers to the contributions of The Oxford Poverty and Human Development Initiative (OPHI), based on the Alkire-Foster Method. This, applied to 110 countries, shows that 1.1 billion people live in multiple poverty. Second, we discuss from a technical point of view the use of relative unidimensional indicators, such as the OECD's (half the median household income), which facilitate international comparisons, versus composite indicators. These enable comparing and harmonizing quantitative data sources. However, they cease to be comparable when different variables are used. Data availability is a very important question in southern countries. In this last debate, it is strategic to decide which dimensions and indicators of deprivation to include. Three dimensions are central (health, education, and living standards). Some countries, though, have added other dimensions, for example, in Chile, work and social protection, as well as social networks and social cohesion, to design more effective strategies to address multiple inequalities.