Multidimensional Poverty

REDEFINING POVERTY WITH MULTIDIMENSIONAL VIEW FOR PAKISTAN----A BASIC NEED FOR TARGETED POVERTY ALLEVIATION.

Taseer Salahuddin, Assistant Professor

University of Central Punjab Lahore,

salahuddin.taseer@gmail.com

042-3588007

Prof. Dr. Asad Zaman

Economics Department

International Islamic University Islamabad,

asaduzaman@gmail.com

051-9257936

ABSTRACT

Whereas Poverty has traditionally been understood as simply “lack of income,” recent research shows that it is in fact a complex and multidimensional phenomenon. Until the 70’s, there was consensus that if people are provided with sufficient income, they will take care of all their needs, so that poverty is equivalent to lack of income. Mahbob-ul-Haq (1973) and Sen (1975) argued that it is not money but the people who are the real wealth of a nation. Since then, many authors have argued that development is about enlarging human capabilities, rather than the acquisition of wealth. Insofar as it proceeds from an acknowledgement that poverty definition leads to its measurement technique and design, poverty alleviation programs’ success depends upon the correct pinpointing of poverty itself. The purpose of the research is to argue that multidimensional measures of poverty provide a better guide to policy than the unidimensional ones currently in use. This study utilizes the Alkire-Foster measure (2007) for multidimensional poverty, which is an adjusted head count ratio M₀ that has a range of desirable properties. This measure due to its depth and decomposability provides better dimensional picture and targeted policy guidelines to combat poverty.

Key Words: Poverty definition, Multidimensional poverty, Poverty alleviation.