Measuring poverty is more complex than a simple calculation of income. While income is a crucial factor, it paints an incomplete picture, especially in the context of international rural development like the work of Plant With Purpose. 

Here's why a one-dimensional statistic like income falls short of adequately measuring poverty:

Income isn't the only story. Access to assets like land, livestock, or tools can significantly impact a household's ability to meet basic needs. Soil health paints a picture of a farming family’s long-term outlook. Conversely, debt can trap families in a cycle of poverty. A simple income measure wouldn't capture these crucial details.

Cost of living. Even with a defined needs basket, the cost of living varies significantly between countries and communities. A dollar buys a lot more in a rural village than in a bustling city. Poverty lines, often based on national averages, may not reflect the reality faced by a farmer struggling to afford basic necessities in a remote location.

Poverty isn’t static. A seemingly stable income can be wiped out by a sudden illness, drought, or natural disaster. These vulnerabilities are often overlooked by income-based measures.

What are basic needs? Sometimes our understanding of poverty changes based on what we consider basic needs. Is it just food and shelter? Or does it include healthcare, education, and access to sanitation? What's considered basic in one setting might be a luxury in another. In rural areas, access to services like healthcare and education may be limited, further exacerbating poverty. The ability to grow food or have access to clean water can be crucial aspects not always captured by income statistics.

Women and children. Poverty often disproportionately affects women and children. Measuring poverty just by using income data may not reveal the unequal distribution of resources within a family, masking the specific challenges faced by these vulnerable groups. Gathering accurate data in remote rural areas is difficult and expensive. Surveys may not capture the full picture. 

Multidimentional Poverty Index

To understand poverty in rural development contexts, a multidimensional approach is needed. This could involve considering factors like access to services, vulnerability, and ownership of assets alongside income data. Additionally, qualitative research can shed light on the experiences of those living in conditions of poverty.

By recognizing the limitations of income-based measurements, we move toward a more nuanced understanding of poverty, particularly in the complex context of rural development. That’s why  Plant With Purpose applies a Multidimensional Poverty Index (MPI) to assess the challenges and progress of people and communities.

Plant With Purpose is not alone in using MPI to better understand conditions of poverty. The 2010s in particular saw the development of many indexes to capture the complexity of poverty in different settings. The most prolific example is the UN Development Programme (UNDP) partnering with Oxford University to develop the Multidimensional Poverty Index (MPI). This index, looking beyond income, considers factors like health, education, and access to basic necessities. This approach gained traction. Institutions like the World Bank also started incorporating multidimensional measures. The MPI has become a valuable tool for understanding poverty beyond a single statistic, informing policy decisions for tackling poverty in its various forms.

The MPI used by Plant With Purpose varies slightly from the UN’s tool for measuring poverty to be more tailored for the specific rural, agriculturally-based settings in which we operate.

There are twelve indicators that comprise Plant With Purpose’s model.

• Do you grow at least four different crops?
• Do you apply at least two sustainable agriculture techniques?
• How healthy is your soil? (on a scale of 1-5)
• Do you have a dirt floor in your house?
• How many rooms are in your house?
• Does your family eat at least two meals a day?
• Do you have a balanced diet (based on a nutrition index)?
• Do you own land?
• Do you save cash?
• Does it take more than 30 minutes to get water?
• If your family has a daughter of secondary school age, does she go to school?

Some of these may feel more closely related to the familiar metrics of income and finances, while others may appear more novel. However, each is important.

Ecosystem and Food Security

Ecosystem health is important to rural residents who must rely on the long-term productivity of their land. Questions about land, soil, and crops can tell us about food security, health, and income. For every ten people living in poverty around the world, at least eight of them rely on growing food for their livelihood.

Planting a variety of crops protects farmers. If one crop fails due to disease or drought, others can still produce income and sustain the family. This diversity also allows farmers to adjust to changing market demands and potentially increase income streams.

Healthy soil, rich in nutrients and organic matter, is like a savings account for farmers. It holds water better, requiring less irrigation. It also improves crop yields and reduces reliance on expensive fertilizers. By nurturing their soil, farmers invest in long-term productivity and economic security.

In development contexts, a limited diet lacking variety and essential nutrients is a strong indicator of poverty. Families struggling to afford food often prioritize calorie intake over nutrient content, leading to deficiencies that impact health, growth, and work capacity. This cycle of poor nutrition and low productivity can trap families in poverty for generations. Growing a greater diversity of food, versus a single “cash crop” is often a simple solution.

Measures of a person’s diet and housing situation help describe their physical well-being and safety. These indicators are often negatively affected by poverty.

LIving Conditions

One of the earliest investments families make when escaping poverty is improving the condition of their house. For families in poverty, a dirt floor can be a major health hazard, increasing exposure to parasites and respiratory illnesses. Upgrading to a material like concrete improves hygiene, reduces medical expenses, and creates a healthier environment for children, allowing them to attend school and contribute to future income.

A family all living in a single room can also elevate risk factors so an increased number of rooms enables the separation of food prep/consumption and other activities from sleeping.

Financial Security

When it comes to measuring poverty, we also look at asset building and financial risk to better understand a person’s economic security.

In rural development, saving and income diversification are crucial tools for breaking the cycle of poverty. Savings act as a safety net against unexpected events like illness or crop failure. Having money stored allows families to weather these storms without falling deeper into debt. Diversifying income goes beyond just farming. Raising small livestock, engaging in crafts, or offering local services can provide additional income streams, reducing dependence on one potentially volatile source. This two-pronged approach of saving and diversification empowers rural families to build resilience and chart a path toward a more secure future.

Finally, questions about the time it takes to secure water or whether or not girls are in school create a snapshot of time and opportunity costs. In development, choices have hidden costs. Building a well might free time for income-generating activities, but that time comes at the expense of other tasks. Understanding these time/opportunity costs helps program planners design interventions that minimize disruption and maximize benefits for communities.

Solutions to Mulitdimensional poverty are possible

The good news is that poverty is beatable! In fact, based on our most recent impact data, Plant With Purpose families are slashing their levels of poverty in half! In some cases, even more. 

What this means is that in cases where families were below the poverty threshold for 8 of these 12 indicators at the start of their partnership, most have made enough strides to reduce that number to 4.

Poverty is more than just a lack of money. It's about social exclusion, lack of opportunity, and a constant struggle for survival. These experiences go unseen in a single statistic.