Multidimensional Poverty Changes in Malawi

For many years, the international development community has placed a high priority on reducing poverty as a key policy objective. Nevertheless, in Malawi, multidimensional poverty has remained alarmingly high exceeding 50% for the past decades. While previous research on poverty in Malawi has focused on income-based measures, little is known about the changes in multidimensional poverty and their underlying factors. This study employs the Alkire-Foster method to calculate the Multidimensional Poverty Index (M-MPI) for Malawi from 2010 to 2019, utilizing nationally representative data from the Integrated Household Panel Survey and the recently developed Malawi-specific M-MPI. The study utilizes unconditional quantile regression model and the Oaxaca-Blinder decomposition to understand the drivers and dynamics of multidimensional poverty in Malawi. The findings indicate that multidimensional poverty and its incidence have decreased over the study period moving from 70.4% in 2010 to 62.1% in 2019, with household income, the literacy and education level of the household head being among the main factors influencing this change. However, household size, experience of shocks, social protection programs, rural residency, and marriage were identified as factors leading to MPI increase over time. Access to credit had an ambiguous impact on poverty changes. The studys relevance extends beyond the borders of Malawi, offering pertinent insights for policymakers in other developing nations. The study findings furnish a valuable foundation for the formulation of targeted, cost-efficient interventions aimed at poverty alleviation and the optimization of economic growth trajectories across diverse global contexts.