Multidimensional Poverty Index for Latin America : ECLAC Methodologies No. 7

Latin America reexamines poverty measurement with a multidimensional index that merges income metrics, unmet basic needs, and rights-based perspectives. The framework enhances regional comparisons and informs public policies aimed at effectively addressing diverse poverty realities and closing important gaps.

Latin American countries have developed official multidimensional poverty indices, which are essential for evaluating and designing national poverty reduction policies. However, these measurements are not mutually comparable. Multidimensional poverty indicators designed to allow for international comparability also exist, but their standards are not always adequately adjusted to the Latin American context. Following the tradition of the Economic Commission for Latin America and the Caribbean (ECLAC), which in the 1980s promoted the method of unmet basic needs for measuring poverty, this publication presents a multidimensional poverty index for Latin America. Based on capabilities and rights approaches, the index complements income-based poverty measurement and offers a more comprehensive view for the design of effective public policies. The Economic Commission for Latin America and the Caribbean hopes that the methodology presented here will facilitate a comparative perspective on poverty in the region, within the constraints imposed by differences in information sources, and serve as a reference for updating and improving multidimensional poverty measurements in the countries.