The new Multidimensional Poverty Index (MPI) reveals that over 18% people live in acute multidimensional poverty across 110 countries, accounting to 1.1 billion out of 6.1 billion. Sub-Saharan Africa (534 million) and South Asia (389 million) are home to approximately five out of every six poor people.

The latest update of the report was released by the United Nations Development Programme (UNDP) and the Oxford Poverty and Human Development Initiative (OPHI) and shows that countries halved their MPI in periods as short as four to 12 years, demonstrating the feasibility of the Sustainable Development Goal (SDG) target of halving poverty within 15 years, however, limited data during the COVID-19 pandemic makes it difficult to assess immediate prospects.

 "As we reach the mid- point of the 2030 Agenda for Sustainable Development, we can clearly see that there was steady progress in multidimensional poverty reduction before the pandemic. However, the negative impacts of the pandemic in dimensions such as education are significant and can have long-lasting consequences. It is imperative that we intensify efforts to comprehend the dimensions most negatively affected, necessitating strengthened data collection and policy efforts to get poverty reduction back on track." noted Pedro Conceição, Director of the Human Development Report Office.

The report also reveals that nearly two-thirds of all poor people (730 million people) live in middle-income countries, making action in these countries vital for reducing global poverty. Although low-income countries constitute only 10% of the population included in the MPI, these are where 35% of all poor people reside.

Globally, children under 18 years old account for half of MPI-poor people (566 million). The poverty rate among children is 27.7%, while among adults it is 13.4%. Poverty predominantly affects rural areas, with 84% of all poor people living in rural areas. Rural areas are poorer than urban areas across all regions of the world.

Based on the most recent data available from 2012, included in the global Multidimensional Poverty Index (MPI), the Republic of Moldova has a value of 0.004. In terms of absolute poverty, the country has a rate of 24.5% as of 2021, with the majority of impoverished individuals residing in rural areas (32.8%) compared to urban areas (11.9%). 

In Moldova, women face a higher risk of poverty, with 26.3% of them living in absolute poverty, while the corresponding figure for men is 23.6%. The highest rate of absolute poverty is observed in households with three or more children, reaching 36.9%.

Moldova is among the countries experiencing significant repercussions from the global cost-of-living crisis triggered by the conflict in Ukraine. Data from the first half of 2022 indicate a slowdown in economic growth, and estimates suggest that the war in Ukraine could lead to an economic loss of 2 to 10% of Moldova's GDP, depending on the duration, intensity, and territorial coverage of the conflict.

According to UNDP estimates, over 60% of households in Moldova are considered energy poor, and the Energy Vulnerability Reduction Fund, through which targeted on-bill compensations were offered, has supported over 800,000 poor households in Moldova, with a positive impact on energy and monetary poverty. For instance, the impact assessment revealed that energy poverty has been reduced by 10 to 70% for households, depending on their vulnerability category.

To learn more about the 2023 Multidimensional Poverty Index, visit: hdro.undp.org and ophi.org.uk