The Multidimensional Poverty Measure (MPM) seeks to understand poverty beyond just a monetary dimension by including access to education and basic infrastructure along with the monetary headcount ratio at the $1.90 poverty line. The World Bank’s measure takes inspiration and guidance from other prominent multidimensional measures, particularly the Multidimensional Poverty Index (MPI) developed by UNDP and Oxford University but differs from them in one important aspect: it includes Monetary poverty (measured as having a daily consumption less than $1.90 in 2011 PPP) as one of the dimensions.
While monetary poverty is strongly correlated with deprivations in other domains, this correlation is far from perfect. The Poverty and Shared Prosperity 2020 (World Bank, 2020) report shows that over a third of those experiencing multidimensional poverty are not captured by the monetary headcount ratio, in line with the findings of the previous edition of the report (World Bank, 2018). A country’s MPM is at least as high as or higher than the monetary poverty, reflecting the
additional role of nonmonetary dimensions in increasing multidimensional poverty and their importance to general well-being.