From Poverty to Power - How should a post-2015 agreement measure poverty?
...a poverty measure must identify people who cannot fulfil their basic needs defined globally, i.e. absolute deprivation. Several contributions – Martin Ravallion, Stephan Klasen and Lant Pritchett – make clear that poverty is relative as well as absolute, and that a societal reference point is needed. People should be able to live not only free from starvation and disease, but in accordance with social norms – what Adam Smith labelled centuries ago the ability to appear in public without shame.
One major strand of debate arises between advocates of an income poverty measure (Ravallion, Pritchett, Klasen) and those of a complementary multidimensional ‘MPI 2.0’ index (Alkire). Pointing to little correlation between measures of extreme income poverty and other types of deprivation, Alkire argues for also focusing directly on multiple dimensions of illbeing – for instance, the lack of adequate housing, improved sanitation, education, and, in extreme cases, the likelihood of survival.