What the HDI and MPI matrix mean for Somalia
August 11, 2024
![Somalia students walking on the streets Somalia students walking on the streets](/sites/g/files/zskgke326/files/2024-08/burtinle-road-25_52084049886_o_0.jpg)
By Saif Rahman
Somalia has been rebuilding state institutions and the economy since the end of the devastating conflict, with strong support from the international community. The protracted conflict in the country once led to a complete state collapse, with tremendous loss of human and physical capital.
The drivers of economic fragility in Somalia are diverse and complex. Understanding the recent economic development, and the possible outcomes that might be realistic in the context of the ongoing multiple transitions is critical. Somalia is heavily reliant on external grants, which are expected to decline significantly after the HIPC (Highly Indebted Poor Countries) Completion Point (CP). External grants finance roughly half of the budget, with the World Bank providing around 82 percent of total grants in 2022.
In a historic shift, Somalia has entered the global dashboard reporting and conversation on human development by securing a spot on the Human Development Index (HDI) for the first time since the report was first launched in 1990. This milestone marks a promising new chapter in Somalia’s journey towards sustainable growth, driven by a robust commitment to human capital development and significant international support.
Why publishing national HDI is crucial for Somalia
Firstly, it provides a comprehensive assessment of the country's progress in key human development areas, offering valuable data and insights that can guide policymaking and resource allocation.
Secondly, it’s also coincided with the ongoing preparation for both Somalia Centennial Vision 2060 and Somalia National Transformation Plan.
Thirdly, the report serves as a powerful advocacy tool, raising awareness about critical issues such as education, health, and income inequality.
Finally, the Human Development Report helps Somalia align its national development goals with global frameworks such as the Sustainable Development Goals (SDGs).
All these indices provide basslines and furnish policy makers with evidence- based perspectives to assess the efficiency of development policies.
While it is oblivious that Somalia is now ranked at the bottom of the HDI, the country can only move upwards in the coming years. The country’s efforts to build a robust data system, led by the Somalia National Bureau of Statistics (SNBS) and supported by international partners like UNESCO and UNDP, promise a clearer picture of developmental progress and challenges. This foundational work is expected to yield significant advancements in the coming years.
The launched of the Somalia aimed to enrich national dialogue and strategic discussions on addressing the challenges of this transition period HDI has sparked both positive and negative reaction. By focusing on human development in areas such as health, education, and freedom of choice, Somalia is aligning itself with the fundamental principles that the United Nations Development Programme (UNDP) has championed since the release of its first global Human Development Report in 1990.
The inclusion of Somalia into report has triggered both joy and sentiments during the launching of the report in the Human Capital Forum inaugurated by the PM. A Panel discussion during the launching of the report articulated the importance of the index. That was an important message.
The inclusion of HDI in 2024 report has stimulated open and genuine conversations in the country shaping the future development agenda with respect to human development as key pillar in human capital. Notably, to advance the human development agenda, the Prime Minister Office has established a taskforce team from SNBS, his office and other relevant line ministries, particularly ministry of Education and Planning to review the education statistics.
The objectives of the Taskforce Team are to improve data collection, analysis, and reporting processes related to human development indicators and to enhance collaboration and coordination among key stakeholders involved in the production of the HDI report.
Along similar line, another development is in the making. The Somalia National Bureau of Statistics has produced extensive data over the past few years, including the recent 2020 Household Survey supported by the World Bank, making 2024 an opportune time to compute the Multi-dimensional Poverty Index (MPI).
Poverty is defined in several ways. The simplest way to define poverty is by considering only the income -- those below less than $1.90 per day, for instance. This is termed ‘absolute poverty’. However, poverty doesn’t just mean having less money.
However, poverty doesn’t just mean having less money; it impacts several aspects of life -- social, health, etc. Further, poverty means different things in different locations. When one tries to define poverty in terms of not benefiting from facilities and services available to others, it is termed ‘relative poverty’. The Human Poverty Index (HPI) was developed as a composite measure of relative poverty.
The MPI was designed by the Oxford Poverty and Human Development Initiative (OPHI) and UNDP in its Human Development Reports since 2010.
The MPI uses ten indicators under three dimensions: two for health; two for education; and six for living standards. Each dimension and each indicator within a dimension are equally weighted. The MPI provides a poverty headcount.
The MPI also provides an intensity measure of multidimensional poverty in Somalia. This means the average proportion of indicators across which people experience deprivation.
The MPI assesses poverty at the individual level. If someone is deprived in a third or more of ten (weighted) indicators, the global index identifies them as ‘MPI poor’, and the extent – or intensity – of their poverty is measured by the percentage of deprivations they are experiencing.
The global MPI can be used to create a comprehensive picture of people living in poverty, and permits comparisons both across countries and world regions, and within countries by ethnic group, urban/rural area, subnational region, and age group, as well as other key household and community characteristics.
UNDP Somalia Country Office in collaboration with the HDR Team, Somalia National Bureau of Statistics (SNBS), team and UNESCO Institute for Statistics (UIS) will continue engaging in bringing Somalia to Global reporting. The immediate next goal for Somalia include, improving the education statistics and computing the gender parity.
The Somalia MPI will be featured in 2025 UNDP Human Development Report. This will mark another milestone for the country’s journey in global reporting.
The author is Economic Advisor at UNDP Somalia. Follow him at X platform @SaifSudan3. Read more about UNDP’s ongoing programming and partnerships in Somalia: www.undp.org/somalia