A new methodology for multidimensional poverty measurement based on the capability approach

We propose a methodology based on the use of clustering techniques derived from data analysis and multi-attribute decision analysis methods aiming at purposeful multidimensional poverty measurement. Our contribution to methodological knowledge insists on the necessity to build “meaningful measurements” for policy making and policy implementation. Our standpoint underlines the necessity to consider the problem of poverty measurement as a decision problem and to tackle its measurement issue with that in mind. We also show that such an exercise can be useful to develop a better operational definition of poverty and to solve the aggregation issues.