The MPI was created by using a technique developed by Sabina Alkire and James Foster.
The Multidimensional Poverty Index (MPI) was published for the first time in the 2010 Report.
The index identifies deprivations across the same three dimensions as the HDI and shows the number of people who are multi-dimensionally poor (suffering deprivations in 33% or more of weighted indicators) and the number of deprivations with which poor households typically contend with.
The MPI can help the effective allocation of resources by making possible the targeting of those with the greatest intensity of poverty; it can help address MDGs (Million Development Goals) strategically and monitor impacts of policy intervention.
The MPI can be adopted for national poverty eradication programs, and it can be used to study changes over time.
The MPI replaced the HPI, which appeared in the HDR from 1997-2009.
Pioneering in its day, the HPI used country averages to reflect aggregate deprivations in health, education, and standards of living. It could not identify specific individuals, households or larger groups of people as jointly deprived.
The Global MPI addresses this shortcoming by capturing how many people experience overlapping deprivations (incidence) and how many deprivations they face on average (intensity).