Who is Deprived and Why? Understanding Regional Disparities in Multidimensional Poverty Across Agro-Climatic Zones in Punjab

Abstract

Multidimensional Poverty Index reflects the multifaceted nature of poverty that goes beyond merely income through incorporating multiple deprivations that people experience simultaneously. While the inequalities in living standards between high-income and low-income countries are widely recognized, the causes of these discrepancies are still debated, with geography and institutional frameworks frequently cited as key determinants. Influenced by a variety of structural and contextual elements, the composition and extent of poverty can vary significantly depending on the geographical location. Particularly in areas with high levels of deprivation, understanding regional variations in multidimensional poverty can provide key insights into the factors leading to deprivation and help develop targeted initiatives for the eradication of poverty. This study uses data from the Pakistan Social and Living Standards Measurement Survey and employs the Alkire-Foster method to explore the spatial distribution of multidimensional poverty across agro-climatic zones in Punjab, Pakistan. Furthermore, the study evaluates the validity of poverty estimates across multiple dimensions using four different weighting structures. The results support earlier findings regarding Barani Punjab, which continues to be the least deprived region even when assessed from a multidimensional perspective. This study, however, identifies Low Intensity Punjab as the most deprived region in a multidimensional context, in contrast to earlier studies that focus on income-based poverty measures. A thorough examination of the Multidimensional Poverty Index reveals that, while their relative significance varies by region, deprivations in cooking fuel, years of schooling, health, housing, and sanitation significantly contribute to overall poverty across all zones in Punjab. These results highlight the need for policy interventions that are tailored to specific region, with a focus on allocating resources to the most critical dimensions that have the greatest contribution in overall poverty.