Sensitivity matters. Comparing the use of multiple indicators and of a multidimensional poverty index in the evaluation of a poverty eradication program

Abstract This paper investigates the performance of the UNDP multidimensional poverty index (global MPI) and of Millennium Development Goals (MDGs) indicators in the impact evaluation of the SADA-Northern Ghana Millennium Village Project (MVP). We find that the project had a limited impact on MDG indicators and yet a large impact on the global MPI. We assess the robustness of the impact of MVP on the global MPI and we find that this was largely driven by changes in few MDG indicators. We conclude that the MVP had a limited impact on living standards, and that the global MPI should be used with caution in the evaluation of development programmes.