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Source- This post on Multidimensional Vulnerability Index has been created based on the article “UN launches new way to measure nations’ economic vulnerability” published in “The Hindu” on 19 August 2024.
Why in News?
Recently, the UN General Assembly officially launched the “Multidimensional Vulnerability Index” (MVI) aimed at providing small island states and developing nations with better access to low-interest financing.
About Multidimensional Vulnerability Index (MVI)
| Aspects | Description |
| About | 1) The Multidimensional Vulnerability Index (MVI) is a newly established international quantitative benchmark. 2) It is designed to measure structural vulnerability and the lack of structural resilience across various dimensions of sustainable development at the national level. The United Nations is actively collaborating with SIDS to develop and implement the MVI. |
| Purpose | 1) The MVI is designed to complement traditional development metrics like GDP. 2) It aims to address the specific needs of small island developing states (SIDS) and other developing nations that face unique vulnerabilities but do not qualify for low-interest development financing based on GDP per capita alone. |
| Key Indicators in the MVI | The MVI incorporates a range of indicators reflecting a state’s structural vulnerabilities and lack of resilience, including: i) Import dependency ii) Exposure to extreme weather events and pandemics iii) Impacts of regional violence and refugee crises iv) Demographic pressure v) Availability of water and arable land resources vi) Child mortality under the age of five |
| Limitations of Traditional Measures | 1) Traditional metrics, such as Gross National Income (GNI), often fail to adequately capture the vulnerabilities faced by SIDS. 2) These traditional measures make it difficult for SIDS to access necessary financing for development. |
| Applications of the MVI | The MVI will play a crucial role in guiding: i) Programmatic support for SIDS ii) Viable debt service payment strategies iii) Financing for sustainable development initiatives tailored to the specific challenges of SIDS. |
UPSC Syllabus: Index
