Poverty Measurement and Multidimensional Poverty Index: A Case Study of Agricultural Households in Rural Malaysia
The main argument in this book is, if only one approach, i.e., financial approach is used, how do we ensure that government budget or assistance really reaches the targeted group and really coincides with what is needed by the group. For example, assume that there are 20 per cent of households which have less than the poverty line income. Does this mean that all 20 per cent of the households are eligible for the same amount of assistance from the government? The answer is certainly not. This is because not all out of the 20 per cent of the households need the same form of assistance. A certain proportion might need financial assistance whereas others might need other forms of assistance such as medical or skills training assistance. Therefore, the measurement of poverty must be based on several dimensions and must not be limited to only one dimension. By reading this monograph, one can know the poverty rates of households in rural area with the approach of one dimension and multi-dimensional, as well as the expected to be time taken by these poor households to exit from poverty trap.
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