The Progress out of Poverty Index® (PPI®) is a poverty measurement tool for organizations and businesses with a mission to serve the poor. The PPI is statistically-sound, yet simple to use: the answers to 10 questions about a household’s characteristics and asset ownership are scored to compute the likelihood that the household is living below the poverty line – or above by only a narrow margin. With the PPI, organizations can identify the clients, customers, or employees who are most likely to be poor or vulnerable to poverty, integrating objective poverty data into their assessments and strategic decision-making.
How does the PPI work?
Unlike other poverty measurement methods, the PPI was designed with the budgets and operations of real organizations in mind; its simplicity means that it requires fewer resources to use. The PPI is a set of 10 easy-to-answer questions that a household member can answer in 5 to 10 minutes. The questions are simple – “What material is your roof made out of? How many of your children are in school?” The scored answers provide the likelihood that the survey respondent’s household is living below the national poverty line and other internationally-recognized poverty lines. The PPI is country-specific. There are PPIs for 45 countries, and a similar poverty scorecard with a different creation methodology exists for use in China. All together, Grameen Foundation offers poverty measurement tools for the countries that are home to 90 percent of the people in the world who fall under $1.25/day 2005 PPP.