Family Development Index

Multi-Dimensional Tool for Identification, Selection, Adoption and Support

INTRODUCTION

The Society of St Vincent de Paul (SSVP) with its head office in Paris, is present on 5 continents in 153 locations (each with
its own National Council and Area Councils). It has 800,000 active members, over one million volunteers in local grassroot
teams called “Conferences”, forming a vast network of Charity around the world to support the poor and needy.

To achieve this, SSVP through one of its core initiatives adopts poor and needy families at the local grassroot conference
level. These families are assisted with food rations, medical and educational support. In India, through its 70,000+
members in 7,000+ conferences, SSVP reaches out and supports over 35,000+ poor and needy families at the grass root
level. The assistance provided to these families is funded at each conference level by local community contributions.

Poor and needy families in each conference are referred to by members of the conference and/or the community. The
families referred to the conference are visited jointly by 2 or more members and an investigation form is completed. The
investigation form and the visit, is discussed in the conference meeting, following which, conference members decide to
“adopt” and support the family.

Anecdotal issues such as adopted families being dependent on SSVP support for years together, ill-feeling between
members within the conference on the decision to support or not support a particular family, dis-agreements between
members of a conference on the quantum and/or type of support extended, frequent differences of opinion between the
SSVP Conference and the community on allocation/use of funds and/or selection and support to particular families, lack
of data on poverty alleviation numbers etc., are common throughout conferences.

These issues can be reduced or eliminated by using a robust objective tool to empower SSVP in identification, selection,
adoption and support. If SSVP members and volunteers match the vigor with which they pursue our Vincentian vocation
with equal rigor of process and due diligence - SSVP can eradicate poverty, bring out systemic change and achieve self-
sufficiency for the adopted families.
FAMILY DEVELOPMENT INDEX

The Family Development Index (FDI) is an exclusive SSVP tool that can assist conferences to implement the core activity
of adopting families by focusing on…

Family Development Index (FDI) is a multi-dimensional household index that provides an estimation of poverty and its
various dimensions at the household level. FDI measures the nature and intensity of poverty, based on the profile of
the overlapping dimensions that each poor household experiences. It aggregates these into meaningful scores that can
be used for identification, selection, adoption and support of poor and needy families. Importantly, it provides an
objective basis to foster rational discussion and long-term decision making. Solutions can be arrived at, to alleviate
poverty in a holistic manner by tackling all the interlinked dimensions of poverty and development.

At its essence, FDI supports the global recognition that poverty has many forms and dimensions. It looks beyond income,
to recognize that households experience poverty in multiple, simultaneous and inter-linked ways. FDI therefore measures
poverty or the development gap at the household level through 20 indicators across 3 dimensions:

FDI generates scores for each of the three equal weighted dimensions, an overall household score and a development
map for each of the 20 indicators measured. Each of these 20 indicators are also aligned to United Nations Sustainable
Development Goals (SDG).
The 3 dimensions with their weights, the 20 indicators within these dimensions with their respective weights and the
United Nations SDGs that they are aligned to, are all graphically presented below.

FDI has been developed incapsulating the following principles:

1) Conforms to “common sense and current” notions of poverty;

2) Aligns to United Nations Sustainable Development Goals;
3) Applies international practice and methodology;
4) Index is technically robust, practically replicable and operationally viable;
5) Index can be measured, tracked and monitored over time;

FDI MODEL METHODOLOGY

FDI in its present form is an excel tool that seeks responses at the household level through a number based multiple
choice questionnaire on 20 indicators:
 DIMENSION INDICATORS DEVELOPMENT GAP IF…..

INCOME INCOME Household income is less than required minimum per capita consumption expenditure (MPCE) at household level

BASIC EDUCATION If any member of the household between the ages of 6 and 18 is not currently studying
ADULT EDUCATION If any member of the household between the ages of 18 and 65 has not completed junior college
HEALTH & EDUCATION MEDICAL ATTENTION If any member of the household suffers from terminal or chronic or serious illnesses or is handicapped
MEDICAL TREATMENT If the household does not have access to medical facilities
ADDICTION If any member of the household suffers from any form of addiction

DOCUMENTS If any member of the household does not hold any government identification document
MARITAL STATUS If any member of the household is widowed or separated
HOUSE OWNERSHIP If the household does not own/rent a house
HOUSE STRUCTURE If the household does not live in a pucca structure
LATRINE If the household does not have access to sanitation at home/community
DRINKING WATER If the household does not have access to clean drinking water at home/community
CLEANING WATER If the household does not have access to cleaning water at home/community
LIVING CONDITIONS
BUS STOP If the household does not have access to a bus-stop within walking distance
REFRIGERATOR If the household does not own a refrigerator
CABLE / DISH TELEVISION If the household does not own a television
PHONE If the household or any member of the household does not own phone
ELECTRICITY If the household does not have access to electricity
COOKING / HEATING GAS If the household does not use LPG for cooking and/or heating
OWN VEHICLE If the household or any member of the household does not own any vehicle

Income Dimension: weighted 1/3rd in the FDI, is measured by using Minimum Per Capita Expenditure (MPCE). This MPCE
number indicates the minimum monthly expenditure that an individual in an urban city requires to spend to survive. MPCE
accounts for both food (cereal, pulses, milk, meat, oil, sugar, vegetables, fruits, beverages, spices etc.) and non-food items
(clothing, housing, fuel, medicines, conveyance, toiletries, non-consumables, entertainment, consumer taxes etc.). The
MPCE number used in the FDI model is as per the Government of India National Sample Survey of 2012 - adjusted for
inflation upto 2018. This adjusted MPCE number, is multiplied by the number of persons to calculate the MPCE for the
entire household. The MPCE for the household serves as the maximum value for this dimension. The minimum value for
this dimension is set at zero (or no household income). The actual aggregate household income is compared to the MPCE
of the household (maximum value) to assess gap in the income dimension. Income dimension score of less than 100%
indicates a gap in this dimension. The score is also color coded to indicate severity.

Health & Education Dimension: has 5 equal weighted indicators aggregating to 1/3rd of the overall FDI. Of the 5 indicators
in this dimension, 4 (except medical treatment) are scored on a binary basis. If any member of the household does not
meet the criteria in the four indicators, the score for that indicator is set at 1 (minimum). If the criteria for an indicator is
met, the score for that indicator is 2 (maximum). For medical treatment, there are 3 multiple choice responses with the
minimum set at 1 and the maximum set at 3. The maximum overall points a household can secure on this dimension is 11
points [maximum of 2 points on each of the 4 indicators and maximum of 3 points on 1 indicator]. The minimum overall
score in this dimension is 5 [minimum score of 1 for each of the 5 indicators]. The actual score of the household is
compared to the maximum score that can be achieved to ascertain the development gap in this dimension. Health &
Education dimension score of less than 100% indicates a gap in this dimension. The score is also color coded to indicate
severity.

Living Conditions Dimension: has 14 equal weighted indicators aggregating to 1/3rd of the overall FDI. Responses to 5 of
the indicators is binary i.e. minimum score 1 and maximum score 2. For the other 9 indicators, there are 3 multiple choice
responses with the minimum set at 1 and the maximum set at 3. The overall minimum score for this dimension is 14
[minimum of 1 point for each indicator]. The maximum overall score in this dimension is 33 [maximum score of 2 points
for each of the 5 indicators and maximum of 3 points on each of the residual 9 indicators]. The actual score of the
household is compared to the maximum score that can be achieved to ascertain the development gap in this dimension.
Living Conditions dimension score of less than 100% indicates a gap in this dimension. The score is also color coded to
indicate severity.

Family Development Index: the overall household Family Development Index is calculated by taking the geometric mean
of the 3 dimension scores. Family Development Index of less than 100% indicates development gap. The score is also color
coded to indicate severity.
Scores: The 3 dimension scores and the Family Development Index are color coded and classified into three categories to
indicate severity or intensity.

ACUTE = < 33%

SEVERE 34% to 67%
VULNERABLE = > 67%

“ACUTE” (RED): Score equal to or less than 33%, signifies a development gap where the household is deprived more than
2/3rd in that particular dimension and/or the overall index.

“SEVERE” (ORANGE): Score between 34% and 67%, signifies a development gap where the household is deprived more
than 1/3rd but less than 2/3rd in that particular dimension and/or the overall index.

“VULNERABLE” (YELLOW): Score greater than 67%, signifies a development gap where the household is deprived 1/3rd or
less in that particular dimension and/or the overall index.

Development Gap Summary: This summary output maps the 20 indicators surveyed and if the maximum score is not
attained on any indicator, a cross mark is displayed against that indicator. This reflects in a summarized manner,
development gap in any of the 20 indicators. It is worthwhile to note that, until maximum points required for a particular
indicator are not scored, the indicator will still reflect a gap, notwithstanding an improvement in circumstance (although
index and dimension scores will change and will be positively impacted).

For each household surveyed, the excel tool automatically generates in the same excel file:

1) Dimension score, color coded for each of the 3 dimensions (less than 100% indicates a gap)
2) Overall Family Development Index - color coded (less than 100% indicates a gap)
3) Gap Analysis for each of the 20 indicators (cross against any indicator signifies gap)

For impact measurement and monitoring, the FDI questionnaire needs to be updated periodically i.e. minimum once a
year OR in the event of any material change in the household’s circumstances, whichever is earlier.

FDI MODEL MEASUREMENT

Indicator Scores: the first step in the calculation methodology is normalizing the scores for each of the indicator by setting
up minimum and maximum values (goal posts).

Indicator Score = [actual value – minimum value]

[maximum value – minimum value]

The normalized score i.e. value between 0 and 1 for each indicator is multiplied by its relative weight to calculate the
weighted normalized score for each indicator.

Weights: the next step is to define the weights that each indicator will have in each dimension. In the FDI, the three
dimensions are equally weighted, so that each of three dimensions receives a 1/3rd weight. The indicators within each
dimension are also equally weighted. The income dimension has only the income indicator and as such has 1/3rd weight.
Each of the 5 indicators within the health and education dimension, receive a weight of 1/5th of the dimension weight of
1/3rd. Similarly, each of the 14 indicators, in the living standards dimension, receives a weight of 1/14th of the dimension
weight of 1/3rd.

Dimension Scores: the summation of all the weighted normalized indicator scores in that dimension as a percentage of
the overall dimension weight of 33.33% is the dimension score.
Family Development Index: Geometric mean of the three-dimension scores is calculated to generate the overall Family
Development Index for a household. Geometric mean instead of simple average or arithmetic mean is used to account for
interdependencies and distribution inequalities.

FDI = Family Development Index; INC = Income Dimension Score; LC = Living Conditions Dimension Score; H&E = Health & Education Dimension Score

It is vitally important to remember that there are real human stories and human suffering behind the numbers and the
scores are just a starting point. Understanding the profile, demographic and context of the household is critical to
interpreting the scores and identifying solutions.

CONCLUSION

The Family Development Index tool can be used to survey any household that needs any form of assistance.

➢ FDI as a multi-dimensional tool objectively and holistically assesses the needs of the household;
➢ FDI quantitatively represents qualitative data categorized by indicators, dimensions and overall index. Each of
these components provide an insight on development gaps;
➢ FDI is easy to use based on a simple 20-point number based multiple choice questionnaire which assesses current
state of the household;
➢ FDI is easy to interpret with Dimension Scores, Family Development Index and Development Gap Summary for
each of the 20 indicators;
➢ FDI provides an objective empathy based starting point for discussion and decision making to identify, select,
adopt and support poor and needy families;
➢ FDI with its indicator level mapping and dimension scores can be used to provide need based targeted assistance.
As income cannot be the sole indicator of poverty, monthly funding of the adopted families cannot be the sole
solution to alleviate poverty and deprivation of the household;
➢ FDI can be used as a firm basis to justify existing funding to adopted families, optimally direct funding to satisfy
real development gaps and raise incremental funding to maximize reach and impact [For instance, assuming
35,000 families all over India are supported by SSVP through a funding contribution of ₹1,000 per family each
month. SSVP would annually spend ₹42 crores towards supporting adopted families. By using this tool, SSVP can
optimally direct its funding and potentially save at least 10% of its annual expenditure on adopted families or ₹4.2
crores. With this saving, SSVP can potentially support 3,500 more families per year or approximately 15,000 more
beneficiaries (assuming average urban household size of 4.2 as per Government of India data)];
➢ FDI Index and Dimension data can be aggregated and analyzed at conference, area, central and national level to
assess, budget and allocate funding to drive long term policy driven solutions;

Christopher Peter
chrisjpeter@gmail.com

References:(1) SSVP Data: SSVP India Annual Report 2016-2017 (2) Global Multi-Dimensional Poverty Index: Oxford Poverty and Human
Development Initiative (3) Global Sustainable Development Goals: United Nations Development Programme (4) Minimum Per Capita
Consumer Expenditure: National Sample Survey, Government of India, Ministry of Statistics & Program Implementation.

To facilitate ease of access, flexibility and usability, FDI will eventually migrate from an excel based tool to a web enabled tool.
 CASE STUDY

CASE BACKGROUND
Mr. Sad (age 35) and Mrs. Sad (age 32) have two sons, Happy (age 10) and Lucky (age 8) and a daughter Smiley (age 6).
The family lives in a rented one room pucca house in a chawl like tenement on the outskirts of city limits. The tenement
is located about 3 kms from the main road. There is no tar road or street lights between the main road and the
tenement. During monsoons, the connecting dirt road is mucky, potholed and flooded. All the residents of the
tenement “borrow” electricity from the temple located in the vicinity. There is no water connection to any of the
residents. Both drinking and cleaning water are brought at ₹20/can. The residents do not have any sanitation facility
and use the barren land in the surrounding hillocks for defecation. Mr. Sad and his family have mobile phones, use LPG
gas for cooking and have cable television. The household does not own a refrigerator or a personal vehicle. For medical
care, the family visits a general physician located on the main road. All the members of the family have a government
issued identity card.

Mr. Sad, uneducated but skilled, works as a cook in a restaurant earning a monthly salary of ₹12,500 per month. He
has been given a two-wheeler by his employer which is used to drop his children to the main road, get to work and run
domestic errands. Both Happy and Lucky go to a vernacular medium public school by public transportation. Mrs. Sad
is a housewife taking care of her youngest daughter. Smiley will start her schooling next year and will join her siblings
in the same school. Mrs. Sad, uneducated and unskilled, expects to start working as a housemaid from next year to
supplement the household income.

CASE SCORE & INDEX

Family Development Index, Dimension Scores and Development Summary for the Sad family is below:

INCOME LEVEL (Value < 100% reflects Development Gap ; Value = 100% reflects Adequacy) 62%
LIVING CONDITION (Value < 100% reflects Development Gap ; Value = 100% reflects Adequacy) 54%
HEALTH & EDUCATION (Value < 100% reflects Development Gap ; Value = 100% reflects Adequacy) 80%
FAMILY DEVELOPMENT INDEX (FDI) (Value < 100% reflects Development Gap ; Value = 100% reflects Adequacy) 64%
***MINIMUM VALUE = 1%; ACUTE < = 33% ; SEVERE 34% to 67% ; VULNERABLE = > 67%

Income Dimension (62%): The minimum monthly household expenditure required for this household with 4 members
is ₹20,323.
(a) 2018 MPCE = ₹4,064.52 (derived from government data)
(b) Household Members = 5
(c) Household MPCE (a * b) = ₹20,323
(d) Household Income = ₹12,500
(e) Surplus / (Deficit) = (₹7,823)
(f) Income Dimension Score = 62% (normalized and weighted 1/3rd)

Living Condition (54%): Mr. Sad and his family live in a rental pucca house, have no marital issues and all members have
government issued documentation. They however have no access to drinking water, cleaning water, sanitation, public
transportation, own transportation and refrigerator. The household scores 24 points out of the maximum 33 points
that can be scored in this dimension.

Health & Education (80%): The household scores well in this dimension as all members are in good health, school going
aged children are going to school and there are no addiction issues in the family. The only indicator in this dimension
where the household does not score points is adult education since both Mr. Sad and Mrs. Sad are uneducated. The
household scores 10 points out of the maximum 11 points that can be scored in this dimension.
CASE POTENTIAL SOLUTIONS
Based on the profile of the household, the index level, dimension scores and development gaps, solutions to elevate
the household’s standard of living can be assessed and implemented. The 2 dimensions that can be addressed are:
➢ Income Dimension: Mrs. Sad is uneducated and unskilled and she will be ready to join the work-force within
the next 12 months. As a housemaid, she can expect to earn ₹4,000 to ₹6,000 per month. There is potential to
skill Mrs. Sad in tailoring and other semi-skilled jobs which could potentially increase her earning capacity. As
Mr. Sad is a cook, together the household can also set-up evening/week-end food stall. With initiatives such as
these, the incremental household income can bridge the current monthly income deficit of ₹7,823.
➢ Living Condition Dimension: The core issue in this dimension appears is housing related. If the household can
be relocated, such that they have access to – at least community-based drinking water, cleaning water and
sanitation with access to public transportation, the score in this dimension will be positively impacted.
Furthermore, relocation could also assist the school going children (change to an English medium school or at
least provide better access to school transportation).

Assuming these solutions are implemented, the revised Family Development Index, Dimension Scores and
Development Summary for the Sad family will be as follows:

INCOME LEVEL (Value < 100% reflects Development Gap ; Value = 100% reflects Adequacy) 100%
LIVING CONDITION (Value < 100% reflects Development Gap ; Value = 100% reflects Adequacy) 71%
HEALTH & EDUCATION (Value < 100% reflects Development Gap ; Value = 100% reflects Adequacy) 80%
FAMILY DEVELOPMENT INDEX (FDI) (Value < 100% reflects Development Gap ; Value = 100% reflects Adequacy) 83%
***MINIMUM VALUE = 1%; ACUTE < = 33% ; SEVERE 34% to 67% ; VULNERABLE = > 67%

CASE CONCLUSION
The Sad family is not as sad anymore, with the Income Dimension now scoring 100% and the Living Condition Dimension
score increasing from 54% to 71%. The overall index improves from 64% to 83%. The intensity level has also changed
with color codes changing from orange (severe) to yellow (vulnerable) in the two dimensions impacted and the overall
index. As far as the development summary is concerned, the number of indicators that require attention has reduced
from 9 to 7 (income adequacy and public transportation fully attained). As noted earlier, until maximum points required
for a particular indicator are not scored, the indicator will still reflect a gap, notwithstanding an improvement in
circumstance. In this case, since income level is attained with Mrs. Sad supplementing the household income, that
particular indicator is now no a longer a gap. However drinking water, cleaning water and sanitation although improved
from “no access” to “community source”, the gap still remains. The maximum points for these indicators can only be
scored, when these facilities are available “within the house”. Comparative summary of changes in dimension scores,
index and indicators on pre-solution and post-solution basis is presented below: