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Poverty | Definition, Causes, Types, & Facts | Britannica
Poverty | Definition, Causes, Types, & Facts | Britannica
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poverty
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IntroductionCyclical povertyCollective povertyConcentrated collective povertyCase poverty
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Category:
History & Society
Key People:
Hannah More
Saint Joseph Calasanz
Johann Friedrich Oberlin
Saint Jean-Baptiste de La Salle
St. John Bosco
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food insecurity
food desert
bottom of the pyramid
case poverty
collective poverty
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view archival footage of the impoverished American population in the aftermath of the stock market crash of 1929“The unemployed, the soup kitchens, the grinding poverty, and the despair”—the worldwide consequences of the Great Depression, from The Second World War: Prelude to Conflict (1963), a documentary by Encyclopædia Britannica Educational Corporation.(more)See all videos for this articlepoverty, the state of one who lacks a usual or socially acceptable amount of money or material possessions. Poverty is said to exist when people lack the means to satisfy their basic needs. In this context, the identification of poor people first requires a determination of what constitutes basic needs. These may be defined as narrowly as “those necessary for survival” or as broadly as “those reflecting the prevailing standard of living in the community.” The first criterion would cover only those people near the borderline of starvation or death from exposure; the second would extend to people whose nutrition, housing, and clothing, though adequate to preserve life, do not measure up to those of the population as a whole. The problem of definition is further compounded by the noneconomic connotations that the word poverty has acquired. Poverty has been associated, for example, with poor health, low levels of education or skills, an inability or an unwillingness to work, high rates of disruptive or disorderly behaviour, and improvidence. While these attributes have often been found to exist with poverty, their inclusion in a definition of poverty would tend to obscure the relation between them and the inability to provide for one’s basic needs. Whatever definition one uses, authorities and laypersons alike commonly assume that the effects of poverty are harmful to both individuals and society.Although poverty is a phenomenon as old as human history, its significance has changed over time. Under traditional (i.e., nonindustrialized) modes of economic production, widespread poverty had been accepted as inevitable. The total output of goods and services, even if equally distributed, would still have been insufficient to give the entire population a comfortable standard of living by prevailing standards. With the economic productivity that resulted from industrialization, however, this ceased to be the case—especially in the world’s most industrialized countries, where national outputs were sufficient to raise the entire population to a comfortable level if the necessary redistribution could be arranged without adversely affecting output.
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Causes of the Great Depression
Several types of poverty may be distinguished depending on such factors as time or duration (long- or short-term or cyclical) and distribution (widespread, concentrated, individual).(Read Indira Gandhi’s 1975 Britannica essay on global underprivilege.) Cyclical poverty Cyclical poverty refers to poverty that may be widespread throughout a population, but the occurrence itself is of limited duration. In nonindustrial societies (present and past), this sort of inability to provide for one’s basic needs rests mainly upon temporary food shortages caused by natural phenomena or poor agricultural planning. Prices would rise because of scarcities of food, which brought widespread, albeit temporary, misery. In industrialized societies the chief cyclical cause of poverty is fluctuations in the business cycle, with mass unemployment during periods of depression or serious recession. Throughout the 19th and early 20th centuries, the industrialized nations of the world experienced business panics and recessions that temporarily enlarged the numbers of the poor. The United States’ experience in the Great Depression of the 1930s, though unique in some of its features, exemplifies this kind of poverty. And until the Great Depression, poverty resulting from business fluctuations was accepted as an inevitable consequence of a natural process of market regulation. Relief was granted to the unemployed to tide them over until the business cycle again entered an upswing. The experiences of the Great Depression inspired a generation of economists such as John Maynard Keynes, who sought solutions to the problems caused by extreme swings in the business cycle. Since the Great Depression, governments in nearly all advanced industrial societies have adopted economic policies that attempt to limit the ill effects of economic fluctuation. In this sense, governments play an active role in poverty alleviation by increasing spending as a means of stimulating the economy. Part of this spending comes in the form of direct assistance to the unemployed, either through unemployment compensation, welfare, and other subsidies or by employment on public-works projects. Although business depressions affect all segments of society, the impact is most severe on people of the lowest socioeconomic strata because they have fewer marginal resources than those of a higher strata.
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Collective poverty In contrast to cyclical poverty, which is temporary, widespread or “collective” poverty involves a relatively permanent insufficiency of means to secure basic needs—a condition that may be so general as to describe the average level of life in a society or that may be concentrated in relatively large groups in an otherwise prosperous society. Both generalized and concentrated collective poverty may be transmitted from generation to generation, parents passing their poverty on to their children. Collective poverty is relatively general and lasting in parts of Asia, the Middle East, most of Africa, and parts of South America and Central America. Life for the bulk of the population in these regions is at a minimal level. Nutritional deficiencies cause disease seldom seen by doctors in the highly developed countries. Low life expectancy, high levels of infant mortality, and poor health characterize life in these societies. Collective poverty is usually related to economic underdevelopment. The total resources of many developing nations in Africa, Asia, and South and Central America would be insufficient to support the population adequately even if they were equally divided among all of the citizens. Proposed remedies are twofold: (1) expansion of the gross national product (GNP) through improved agriculture or industrialization, or both, and (2) population limitation. Thus far, both population control and induced economic development in many countries have proved difficult, controversial, and at times inconclusive or disappointing in their results. An increase of the GNP does not necessarily lead to an improved standard of living for the population at large, for a number of reasons. The most important reason is that, in many developing countries, the population grows even faster than the economy does, with no net reduction in poverty as a result. This increased population growth stems primarily from lowered infant mortality rates made possible by improved sanitary and disease-control measures. Unless such lowered rates eventually result in women bearing fewer children, the result is a sharp acceleration in population growth. To reduce birth rates, some developing countries have undertaken nationally administered family-planning programs, with varying results. Many developing nations are also characterized by a long-standing system of unequal distribution of wealth—a system likely to continue despite marked increases in the GNP. Some authorities have observed the tendency for a large portion of any increase to be siphoned off by persons who are already wealthy, while others claim that increases in GNP will always trickle down to the part of the population living at the subsistence level. Concentrated collective poverty In many industrialized, relatively affluent countries, particular demographic groups are vulnerable to long-term poverty. In city ghettos, in regions bypassed or abandoned by industry, and in areas where agriculture or industry is inefficient and cannot compete profitably, there are found victims of concentrated collective poverty. These people, like those afflicted with generalized poverty, have higher mortality rates, poor health, low educational levels, and so forth when compared with the more affluent segments of society. Their chief economic traits are unemployment and underemployment, unskilled occupations, and job instability. Efforts at amelioration focus on ways to bring the deprived groups into the mainstream of economic life by attracting new industry, promoting small business, introducing improved agricultural methods, and raising the level of skills of the employable members of the society.
Case poverty Similar to collective poverty in relative permanence but different from it in terms of distribution, case poverty refers to the inability of an individual or family to secure basic needs even in social surroundings of general prosperity. This inability is generally related to the lack of some basic attribute that would permit the individual to maintain himself or herself. Such persons may, for example, be blind, physically or emotionally disabled, or chronically ill. Physical and mental handicaps are usually regarded sympathetically, as being beyond the control of the people who suffer from them. Efforts to ameliorate poverty due to physical causes focus on education, sheltered employment, and, if needed, economic maintenance. The Editors of Encyclopaedia Britannica This article was most recently revised and updated by Adam Augustyn.
Poverty in the Philippines: Causes, Constraints and Opportunities | Asian Development Bank
Poverty in the Philippines: Causes, Constraints and Opportunities | Asian Development Bank
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Poverty in the Philippines: Causes, Constraints and Opportunities
Poverty in the Philippines: Causes, Constraints and Opportunities
Publication | December 2009
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Poverty and inequality in the Philippines remains a challenge. In the past 4 decades, the proportion of households living below the official poverty line has declined slowly and unevenly.
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Economic growth has gone through boom and bust cycles, and recent episodes of moderate economic expansion have had limited impact on the poor. Great inequality across income brackets, regions, and sectors, as well as unmanaged population growth, are considered some of the key factors constraining poverty reduction efforts.
Note: See the latest available poverty data on the Philippines.
Causes of Poverty
The main causes of poverty in the country include the following:
low to moderate economic growth for the past 40 years;
low growth elasticity of poverty reduction;
weakness in employment generation and the quality of jobs generated;
failure to fully develop the agriculture sector;
high inflation during crisis periods;
high levels of population growth;
high and persistent levels of inequality (incomes and assets), which dampen the positive impacts of economic expansion; and
recurrent shocks and exposure to risks such as economic crisis, conflicts, natural disasters,and "environmental poverty."
Key Findings
The report's key findings include the following:
Economic growth did not translate into poverty reduction in recent years;
Poverty levels vary greatly by regions;
Poverty remains a mainly rural phenomenon though urban poverty is on the rise;
Poverty levels are strongly linked to educational attainment;
The poor have large families, with six or more members;
Many Filipino households remain vulnerable to shocks and risks;
Governance and institutional constraints remain in the poverty response;
There is weak local government capacity for implementing poverty reduction programs;
Deficient targeting in various poverty programs;
There are serious resource gaps for poverty reduction and the attainment of the MDGs by 2015;
Multidimensional responses to poverty reduction are needed; and
Further research on chronic poverty is needed.
The report comprehensively analyzes the causes of poverty and recommends ways to accelerate poverty reduction and achieve more inclusive growth. In the immediate and short term there is a need to enhance government's poverty reduction strategy and involve key sectors for a collective and coordinated response to the problem. In the medium and long term the government should continue to pursue key economic reforms for sustained and inclusive growth.
Contents
List of Tables, Figures, Boxes and Appendixes
Acknowledgments
Abbreviations
Part 1 Executive Summary
Part 2 Introduction
Part 3 Poverty Profile
Part 4 Causes of Poverty
Part 5 Impacts of Poverty on Economic Growth and Development
Part 6 Institutions and Governance in the Poverty Response
Part 7 Summary of Key Findings and Recommendations
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Poverty Statistics | Philippine Statistics Authority | Republic of the Philippines
Poverty Statistics | Philippine Statistics Authority | Republic of the Philippines
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Poverty Statistics
Preliminary 2023 First Semester Official Poverty StatisticsRelease Date: Friday, December 22, 2023
Reference Number: 2023-391The first semester 2023 poverty incidence among population or the proportion of poor Filipinos whose per capita income is not sufficient to meet their basic food and non-food needs was estimated at 22.4 percent or 25.24 million Filipinos. On the average, a family of five members will need at least PhP13,797 per month to meet their minimum basic food and non-food needs in the first semester of 2023. On the other hand, subsistence incidence among Filipinos or the proportion of Filipinos whose income is not enough to buy even the basic food needs was registered at 8.7 percent or about 9.79 million Filipinos in the first semester of 2023. On the average, the monthly food threshold for a family of five in the same period was estimated at PhP 9,550. (Figure 1, and Tables 2, 4, 6, and 8) Among families, the First Semester 2023 poverty incidence was estimated at 16.4 percent, which was equivalent to 4.51 million poor families. Meanwhile, the subsistence incidence among families was recorded at 5.9 percent or about 1.62 million food poor families in the first semester of 2023. (Tables 1, 3, 5, and 7) CLAIRE DENNIS S. MAPA, PhD UndersecretaryNational Statistician and Civil Registrar General See more at the Poverty Statistics landing page
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Poverty
The World Bank Group is committed to fighting poverty in all its dimensions. We use the latest data, evidence and analysis to help countries develop policies to improve people's lives, with a focus on the poorest and most vulnerable.
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Almost 700 million people around the world live today in extreme poverty – they subsist on less than $2.15 per day, the extreme poverty line. Just over half of these people live in Sub-Saharan Africa. After several decades of continuous global poverty reduction, a period of significant crises and shocks resulted in around three years of lost progress between 2020-2022. Low-income countries, which saw poverty increase during this period, have not yet recovered and are not closing the gap. At the mid-point of the SDGs, the world is off track. At current rates of progress, the world will likely not meet the global goal of ending extreme poverty by 2030, with estimates indicating nearly 600 million people will still be struggling in extreme poverty by then. Extreme poverty is concentrated in places where it will be hardest to eradicate—parts of Sub-Saharan Africa, conflict-affected areas, and in rural areas. The outlook is also grim for almost half of the world’s population, which lives on less than $6.85 a day – the measure used for upper-middle-income countries. Children are more than twice as likely as adults to live in extreme poverty. They comprise more than half of those living in extreme poverty, yet their share of the total population is just 31 percent. It is critical to tackle poverty in all its dimensions. Countries cannot adequately address poverty and inequality without also improving people’s well-being, including through more equitable access to health, education and basic infrastructure. Inequality remains unacceptably high around the world. 2020 was a turning point, when global inequality rose for the first time in decades, as the poorest people bore the steepest costs of the pandemic. Income losses of the world’s poorest were twice as high as the richest. The poorest also faced large setbacks in health and education which, if left unaddressed by policy action, will have lasting consequences for their future income prospects. Inequalities of income, education, and opportunity are all interconnected and must be addressed together. Reducing inequalities of opportunity and of incomes among individuals, populations, and regions can foster social cohesion and boost general well-being. Policymakers must intensify efforts to grow their economies, while protecting the most vulnerable. Jobs and employment are the surest way to reduce poverty and inequality. Impact is further multiplied in communities and across generations if we purposefully empower women and girls, and young people.
Last Updated: Oct 17, 2023
Strategies to reach the least well-off must be tailored to each country’s context, considering the latest data and analysis, and the needs of the population. How the world responds to major challenges today will have a direct bearing on whether the current reversals in global poverty reduction can be turned around.The World Bank provides recommendations for a complementary two-track approach: responding effectively to the urgent crisis in the short run, while continuing to focus on foundational development problems, including conflict and climate change.Closing the gaps between policy aspiration and attainmentToo often, there is a wide gap between policies as articulated and their attainment in practice—between what citizens rightfully expect, and what they experience daily. Policy aspirations can be laudable, but there is likely to be considerable variation in the extent to which they can be realized, and in which groups benefit from them. For example, at the local level, those who have the least influence in a community might not be able to access basic services. It is critical to forge implementation strategies that can rapidly and flexibly respond to close the gaps.Enhancing learning, improving dataFrom information gathered in household surveys to pixels captured by satellite images, data can inform policies and spur economic activity, serving as a powerful weapon in the fight against poverty. More data is available today than ever before, yet its value is largely untapped. Data is also a double-edged sword, requiring a social contract that builds trust by protecting people against misuse and harm, and works toward equal access and representation.Investing in preparedness and preventionThe COVID-19 pandemic demonstrated that years of progress in reducing poverty can quickly disappear when a crisis strikes. Prevention measures often have low political payoff, with little credit given for disasters averted. Over time, populations with no lived experience of calamity can become complacent, presuming that such risks have been eliminated or can readily be addressed if they happen. COVID-19, together with climate change and enduring conflicts, reminds us of the importance of investing in preparedness and prevention measures comprehensively and proactively.Expanding cooperation and coordinationContributing to and maintaining public goods require extensive cooperation and coordination. This is crucial for promoting widespread learning and improving the data-driven foundations of policymaking. It is also important for forming a sense of shared solidarity during crises and ensuring that the difficult policy choices by officials are both trusted and trustworthy.Overall, with more than 60 percent of the world’s extreme poor living in middle-income countries, we cannot focus solely on low-income countries if we want to end extreme poverty. We need to focus on the poorest people, regardless of where they live, and work with countries at all income levels to invest in their well-being and their future.The goal to end extreme poverty works hand in hand with the World Bank Group’s goal to promote shared prosperity, focused on increasing income growth among the bottom 40 percent in every country. Boosting shared prosperity broadly translates into improving the welfare of the least well-off in each country and includes a strong emphasis on tackling persistent inequalities that keep people in poverty from generation to generation.Our work at the World Bank Group is based on strong country-led programs to improve living conditions—to drive growth, raise median incomes, create jobs, fully incorporate women and young people into economies, address environmental and climate challenges, and support stronger, more stable economies for everyone.We continue to work closely with countries to help them find the best ways to improve the lives of their least advantaged citizens.
Last Updated: Oct 17, 2023
The World Bank Group works to end poverty in several ways:Funding projects that can have transformational impacts on communities.Collecting and analyzing the critical data and evidence needed to target these programs to reach the poorest and most vulnerable.Helping governments create more inclusive, effective policies that can benefit entire populations and lay the groundwork for prosperity for future generations. Some examples:Cambodia has achieved remarkable progress in reducing poverty and boosting shared prosperity, but key reforms are needed to sustain pro-poor growth. The World Bank is supporting Cambodia to help address the country’s challenges of limited economic diversification, rapidly increasing urbanization, human capital deficiencies, and infrastructure gaps.Mexico has experienced high income inequality and concentration of poverty in a few states. The World Bank Group has supported Mexico’s efforts to develop a more inclusive, effective, and integrated social protection system including relaunching a conditional cash transfer program to help improve access to higher education and formal employment.In one of India’s poorest states, Bihar, a program financed by the World Bank has transformed livelihoods by mobilizing almost 10 million rural women into self-help groups and granting them access to finance and markets to start and expand their businesses.A pilot program in Ecuador used text messages to relay information and encouragement to caregivers in an impoverished region of the country and saw a significant improvement in the nutrition and health of children.Since 2007, a team of experts from the World Bank has been helping Kenya strengthen statistical capacity by reshaping its National Bureau of Statistics. With World Bank’s support, the bureau implemented a range of surveys to update key indicators of official statistics and improved the data ecosystem. The project is funded by $50 million from the World Bank’s International Development Association (IDA).In-depth maps in countries such as Afghanistan, Bangladesh, Croatia, Republic of Serbia, and Vietnam show where economic diversity and gaps in services exist within a country. This, as part of the poverty assessment process, helps policymakers better target policies and programs to reach and benefit the poor.Yemen’s high malnutrition rates have drawn global attention, highlighting the impact the country’s five-and-half-year civil war has had on its population. The Emergency Crisis Response Project gives pregnant women and women with children under the age of five money to buy food and teaches them about child nutrition. It has been able to reach more than 165,000 pregnant or lactating women and 175,000 children so far.Conflict-affected communities in Mindanao are among the poorest in the Philippines, suffering from poor infrastructure and lack of basic services. The World Bank along with other partners have aimed to enhance access to services and economic opportunities and build social cohesion. These projects have help build water systems, community centers, sanitation facilities, access roads, post-harvest facilities, and farming and fishing equipment, benefiting 650,000 people in 284 villages in a decade.An innovative series of rapid survey methodologies were pioneered in Somalia, one of the poorest countries in Sub-Saharan Africa. The surveys overcame significant security and implementation obstacles to yield the most comprehensive analysis of the welfare of the Somali people in decades and is now being used in other countries.
Last Updated: Nov 30, 2022
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1Definitions and etymology
2Measuring poverty
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2.1Absolute poverty
2.2Relative poverty
2.3Other aspects
2.3.1Secondary poverty
2.4Variability
2.5Global prevalence
3Characteristics
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3.1Health
3.1.1Hunger
3.1.2Mental health
3.2Education
3.3Shelter
3.4Utilities
3.4.1Water and sanitation
3.4.2Energy
3.5Financial services
3.6Prejudice and exploitation
4Poverty reduction
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4.1Increasing the supply of basic needs
4.1.1Improving technology
4.1.2State funding
4.1.3Improving access to available basic needs
4.1.4Preventing overpopulation
4.2Increasing personal income
4.2.1Income grants
4.2.2Economic freedoms
4.2.3Financial services
4.2.4Education and vocational training
5Antipoverty institutions
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5.1United Nations
5.2Development banks
5.3Private sector
6Perspectives
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6.1Economic theories
6.2Environmentalism
6.3Spirituality
7See also
8References
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8.1Citations
8.2Sources
9Further reading
10External links
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Poverty
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From Wikipedia, the free encyclopedia
Lack of financial assets or possessions
"Poor" redirects here. For other uses, see Poor (disambiguation) and Poverty (disambiguation).
Clockwise from top left: a homeless man in Toronto, Canada; a disabled man begging in the streets of Beijing, China; waste pickers in Lucknow, India; A mother with her malnourished child in a clinic near Dadaab, Kenya;
Poverty is a state or condition in which one lacks the financial resources and essentials for a certain standard of living. Poverty can have diverse environmental, legal, social, economic, and political causes and effects.[1] When evaluating poverty in statistics or economics there are two main measures: absolute poverty compares income against the amount needed to meet basic personal needs, such as food, clothing, and shelter;[2] relative poverty measures when a person cannot meet a minimum level of living standards, compared to others in the same time and place. The definition of relative poverty varies from one country to another, or from one society to another.[2]
Statistically, as of 2019[update], most of the world's population live in poverty: in PPP dollars, 85% of people live on less than $30 per day, two-thirds live on less than $10 per day, and 10% live on less than $1.90 per day.[3] According to the World Bank Group in 2020, more than 40% of the poor live in conflict-affected countries.[4] Even when countries experience economic development, the poorest citizens of middle-income countries frequently do not gain an adequate share of their countries' increased wealth to leave poverty.[5] Governments and non-governmental organizations have experimented with a number of different policies and programs for poverty alleviation, such as electrification in rural areas or housing first policies in urban areas. The international policy frameworks for poverty alleviation, established by the United Nations in 2015, are summarized in Sustainable Development Goal 1: "No Poverty".
Social forces, such as gender, disability, race and ethnicity, can exacerbate issues of poverty—with women, children and minorities frequently bearing unequal burdens of poverty. Moreover, impoverished individuals are more vulnerable to the effects of other social issues, such as the environmental effects of industry or the impacts of climate change or other natural disasters or extreme weather events. Poverty can also make other social problems worse; economic pressures on impoverished communities frequently play a part in deforestation, biodiversity loss and ethnic conflict. For this reason, the UN's Sustainable Development Goals and other international policy programs, such as the international recovery from COVID-19, emphasize the connection of poverty alleviation with other societal goals.[6]
Definitions and etymology[edit]
The word poverty comes from the old (Norman) French word poverté (Modern French: pauvreté), from Latin paupertās from pauper (poor).[7]
There are several definitions of poverty depending on the context of the situation it is placed in. It usually references a state or condition in which a person or community lacks the financial resources and essentials for a certain standard of living.
United Nations: Fundamentally, poverty is a denial of choices and opportunities, a violation of human dignity. It means lack of basic capacity to participate effectively in society. It means not having enough to feed and clothe a family, not having a school or clinic to go to, not having the land on which to grow one's food or a job to earn one's living, not having access to credit. It means insecurity, powerlessness and exclusion of individuals, households and communities. It means susceptibility to violence, and it often implies living in marginal or fragile environments, without access to clean water or sanitation.[8]
World Bank: Poverty is pronounced deprivation in well-being, and comprises many dimensions. It includes low incomes and the inability to acquire the basic goods and services necessary for survival with dignity. Poverty also encompasses low levels of health and education, poor access to clean water and sanitation, inadequate physical security, lack of voice, and insufficient capacity and opportunity to better one's life.[9]
European Union (EU): The European Union's definition of poverty is significantly different from definitions in other parts of the world, and consequently policy measures introduced to combat poverty in EU countries also differ from measures in other nations. Poverty is measured in relation to the distribution of income in each member country using relative income poverty lines.[10] Relative-income poverty rates in the EU are compiled by the Eurostat, in charge of coordinating, gathering, and disseminating member country statistics using European Union Survey of Income and Living Conditions (EU-SILC) surveys.[10]
Measuring poverty[edit]
The number of people below different poverty lines
Main article: Measuring poverty
See also: Poverty threshold and Individual Deprivation Measure
Absolute poverty[edit]
Poverty headcount ratio at $1.90 a day (2011 PPP) (% of population). Based on World Bank data ranging from 1998 to 2018.[11]
Main article: Extreme poverty
See also: Purchasing power and Asset poverty
Absolute poverty, often synonymous with 'extreme poverty' or 'abject poverty', refers to a set standard which is consistent over time and between countries. This set standard usually refers to "a condition characterized by severe deprivation of basic human needs, including food, safe drinking water, sanitation facilities, health, shelter, education and information. It depends not only on income but also on access to services."[12][13][14] Having an income below the poverty line, which is defined as an income needed to purchase basic needs, is also referred to as primary poverty.
The "dollar a day" poverty line was first introduced in 1990 as a measure to meet such standards of living. For nations that do not use the US dollar as currency, "dollar a day" does not translate to living a day on the equivalent amount of local currency as determined by the exchange rate.[15] Rather, it is determined by the purchasing power parity rate, which would look at how much local currency is needed to buy the same things that a dollar could buy in the United States.[15] Usually, this would translate to having less local currency than if the exchange rate were used.[15]
From 1993 through 2005, the World Bank defined absolute poverty as $1.08 a day on such a purchasing power parity basis, after adjusting for inflation to the 1993 US dollar[16] In 2009, it was updated as $1.25 a day (equivalent to $1.00 a day in 1996 US prices)[17][18] and in 2015, it was updated as living on less than US$1.90 per day,[19] and moderate poverty as less than $2 or $5 a day.[20] Similarly, 'ultra-poverty' is defined by a 2007 report issued by International Food Policy Research Institute as living on less than 54 cents per day.[21] The poverty line threshold of $1.90 per day, as set by the World Bank, is controversial. Each nation has its own threshold for absolute poverty line; in the United States, for example, the absolute poverty line was US$15.15 per day in 2010 (US$22,000 per year for a family of four),[22] while in India it was US$1.0 per day[23] and in China the absolute poverty line was US$0.55 per day, each on PPP basis in 2010.[24] These different poverty lines make data comparison between each nation's official reports qualitatively difficult. Some scholars argue that the World Bank method sets the bar too high,[25] others argue it is too low.
Children of the Depression-era migrant workers, Arizona, United States, 1937
There is disagreement among experts as to what would be considered a realistic poverty rate with one considering it "an inaccurately measured and arbitrary cut off".[26] Some contend that a higher poverty line is needed, such as a minimum of $7.40 or even $10 to $15 a day. They argue that these levels are a minimum for basic needs and to achieve normal life expectancy.[27]
One estimate places the true scale of poverty much higher than the World Bank, with an estimated 4.3 billion people (59% of the world's population) living with less than $5 a day and unable to meet basic needs adequately.[28] Philip Alston, a UN special rapporteur on extreme poverty and human rights, stated the World Bank's international poverty line of $1.90 a day is fundamentally flawed, and has allowed for "self congratulatory" triumphalism in the fight against extreme global poverty, which he asserts is "completely off track" and that nearly half of the global population, or 3.4 billion, lives on less than $5.50 a day, and this number has barely moved since 1990.[29] Still others suggest that poverty line misleads because many live on far less than that line.[23][30][31]
Other measures of absolute poverty without using a certain dollar amount include the standard defined as receiving less than 80% of minimum caloric intake whilst spending more than 80% of income on food, sometimes called ultra-poverty.[32]
Relative poverty[edit]
See also: Relative deprivation, Economic inequality, and Wealth concentration
Graphical representation of the Gini coefficient, a common measure of inequality. The Gini coefficient is equal to the area marked A divided by the sum of the areas marked A and B, that is, Gini = A/(A + B).
Relative poverty views poverty as socially defined and dependent on social context. It is argued that the needs considered fundamental is not an objective measure[33][34] and could change with the custom of society.[35][33] For example, a person who cannot afford housing better than a small tent in an open field would be said to live in relative poverty if almost everyone else in that area lives in modern brick homes, but not if everyone else also lives in small tents in open fields (for example, in a nomadic tribe). Since richer nations would have lower levels of absolute poverty,[36][37] relative poverty is considered the "most useful measure for ascertaining poverty rates in wealthy developed nations"[38][39][40][41][42] and is the "most prominent and most-quoted of the EU social inclusion indicators".[43]
Usually, relative poverty is measured as the percentage of the population with income less than some fixed proportion of median income. This is a calculation of the percentage of people whose family household income falls below the Poverty Line. The main poverty line used in the Organisation of Economic Cooperation and Development (OECD) and the European Union (EU) is based on "economic distance", a level of income set at 60% of the median household income.[44] The United States federal government typically regulates this line to three times the cost of an adequate meal.[45]
There are several other different income inequality metrics, for example, the Gini coefficient or the Theil Index.
Global share of wealth by wealth group —Credit Suisse, 2021
The Gini coefficient, a measure of income inequality. Based on World Bank data ranging from 1992 to 2018.[46]
Other aspects[edit]
World map of countries by Human Development Index categories in increments of 0.050 (based on 2019 data, published in 2020) ≥ 0.900 0.850–0.899 0.800–0.849 0.750–0.799 0.700–0.749 0.650–0.699 0.600–0.649 0.550–0.599 0.500–0.549 0.450–0.499 0.400–0.449 ≤ 0.399 Data unavailable
Rather than income, poverty is also measured through individual basic needs at a time. Life expectancy has greatly increased in the developing world since World War II and is starting to close the gap to the developed world.[47] Child mortality has decreased in every developing region of the world.[48] The proportion of the world's population living in countries where the daily per-capita supply of food energy is less than 9,200 kilojoules (2,200 kilocalories) decreased from 56% in the mid-1960s to below 10% by the 1990s. Similar trends can be observed for literacy, access to clean water and electricity and basic consumer items.[49]
An early morning outside the Opera Tavern in Stockholm, with beggars waiting for scraps from the previous day. Sweden, 1868.
Poverty may also be understood as an aspect of unequal social status and inequitable social relationships, experienced as social exclusion, dependency, and diminished capacity to participate, or to develop meaningful connections with other people in society.[50][51][52] Such social exclusion can be minimized through strengthened connections with the mainstream, such as through the provision of relational care to those who are experiencing poverty. The World Bank's "Voices of the Poor", based on research with over 20,000 poor people in 23 countries, identifies a range of factors which poor people identify as part of poverty. These include abuse by those in power, dis-empowering institutions, excluded locations, gender relationships, lack of security, limited capabilities, physical limitations, precarious livelihoods, problems in social relationships, weak community organizations and discrimination. Analysis of social aspects of poverty links conditions of scarcity to aspects of the distribution of resources and power in a society and recognizes that poverty may be a function of the diminished "capability" of people to live the kinds of lives they value. The social aspects of poverty may include lack of access to information, education, health care, social capital or political power.[53][54] Relational poverty is the idea that societal poverty exists if there is a lack of human relationships. Relational poverty can be the result of a lost contact number, lack of phone ownership, isolation, or deliberate severing of ties with an individual or community. Relational poverty is also understood "by the social institutions that organize those relationships...poverty is importantly the result of the different terms and conditions on which people are included in social life".[55]
In the United Kingdom, the second Cameron ministry came under attack for its redefinition of poverty; poverty is no longer classified by a family's income, but as to whether a family is in work or not.[56] Considering that two-thirds of people who found work were accepting wages that are below the living wage (according to the Joseph Rowntree Foundation[57]) this has been criticised by anti-poverty campaigners as an unrealistic view of poverty in the United Kingdom.[56]
Secondary poverty[edit]
Main article: Secondary poverty
Secondary poverty refers to those that earn enough income to not be impoverished, but who spend their income on unnecessary pleasures, such as alcoholic beverages, thus placing them below it in practice.[58] In 18th- and 19th-century Great Britain, the practice of temperance among Methodists, as well as their rejection of gambling, allowed them to eliminate secondary poverty and accumulate capital.[59] Factors that contribute to secondary poverty includes but are not limited to: alcohol, gambling, tobacco and drugs. Substance abuse means that the poor typically spend about 2% of their income educating their children but larger percentages of alcohol and tobacco (for example, 6% in Indonesia and 8% in Mexico).[60]
Variability[edit]
Poverty levels are snapshot pictures in time that omits the transitional dynamics between levels. Mobility statistics supply additional information about the fraction who leave the poverty level. For example, one study finds that in a sixteen-year period (1975 to 1991 in the US) only 5% of those in the lower fifth of the income level were still at that level, while 95% transitioned to a higher income category.[61] Poverty levels can remain the same while those who rise out of poverty are replaced by others. The transient poor and chronic poor differ in each society. In a nine-year period ending in 2005 for the US, 50% of the poorest quintile transitioned to a higher quintile.[62]
Global prevalence[edit]
See also: List of countries by percentage of population living in povertyWorlds regions by total wealth (in trillions USD), 2018
According to Chen and Ravallion, about 1.76 billion people in developing world lived above $1.25 per day and 1.9 billion people lived below $1.25 per day in 1981. In 2005, about 4.09 billion people in developing world lived above $1.25 per day and 1.4 billion people lived below $1.25 per day (both 1981 and 2005 data are on inflation adjusted basis).[63][64] The share of the world's population living in absolute poverty fell from 43% in 1981 to 14% in 2011.[65] The absolute number of people in poverty fell from 1.95 billion in 1981 to 1.01 billion in 2011.[66] The economist Max Roser estimates that the number of people in poverty is therefore roughly the same as 200 years ago.[66] This is the case since the world population was just little more than 1 billion in 1820 and the majority (84% to 94%)[67] of the world population was living in poverty. According to one study, the percentage of the world population in hunger and poverty fell in absolute percentage terms from 50% in 1950 to 30% in 1970.[68] According to another study the number of people worldwide living in absolute poverty fell from 1.18 billion in 1950 to 1.04 billion in 1977.[69] According to another study, the number of people worldwide estimated to be starving fell from almost 920 million in 1971 to below 797 million in 1997.[70] The proportion of the developing world's population living in extreme economic poverty fell from 28% in 1990 to 21% in 2001.[65] Most of this improvement has occurred in East and South Asia.[71]
In 2012 it was estimated that, using a poverty line of $1.25 a day, 1.2 billion people lived in poverty.[72] Given the current economic model, built on GDP, it would take 100 years to bring the world's poorest up to the poverty line of $1.25 a day.[73] UNICEF estimates half the world's children (or 1.1 billion) live in poverty.[74] The World Bank forecasted in 2015 that 702.1 million people were living in extreme poverty, down from 1.75 billion in 1990.[75] Extreme poverty is observed in all parts of the world, including developed economies.[76][77] Of the 2015 population, about 347.1 million people (35.2%) lived in Sub-Saharan Africa and 231.3 million (13.5%) lived in South Asia. According to the World Bank, between 1990 and 2015, the percentage of the world's population living in extreme poverty fell from 37.1% to 9.6%, falling below 10% for the first time.[78] During the 2013 to 2015 period, the World Bank reported that extreme poverty fell from 11% to 10%, however they also noted that the rate of decline had slowed by nearly half from the 25 year average with parts of sub-saharan Africa returning to early 2000 levels.[79][80] The World Bank attributed this to increasing violence following the Arab Spring, population increases in Sub-Saharan Africa, and general African inflationary pressures and economic malaise were the primary drivers for this slow down.[81][82] Many wealthy nations have seen an increase in relative poverty rates ever since the Great Recession, in particular among children from impoverished families who often reside in substandard housing and find educational opportunities out of reach.[83] It has been argued by some academics that the neoliberal policies promoted by global financial institutions such as the IMF and the World Bank are actually exacerbating both inequality and poverty.[84][85]
In East Asia the World Bank reported that "The poverty headcount rate at the $2-a-day level is estimated to have fallen to about 27 percent [in 2007], down from 29.5 percent in 2006 and 69 percent in 1990."[86] The People's Republic of China accounts for over three quarters of global poverty reduction from 1990 to 2005, which according to the World Bank is "historically unprecedented".[87] China accounted for nearly half of all extreme poverty in 1990.[88]
In Sub-Saharan Africa extreme poverty went up from 41% in 1981 to 46% in 2001,[89] which combined with growing population increased the number of people living in extreme poverty from 231 million to 318 million.[90] Statistics of 2018 shows population living in extreme conditions has declined by more than 1 billion in the last 25 years. As per the report published by the world bank on 19 September 2018 world poverty falls below 750 million.[91]
In the early 1990s some of the transition economies of Central and Eastern Europe and Central Asia experienced a sharp drop in income.[92] The collapse of the Soviet Union resulted in large declines in GDP per capita, of about 30 to 35% between 1990 and the through year of 1998 (when it was at its minimum). As a result, poverty rates tripled,[93] excess mortality increased,[94] and life expectancy declined.[95] Russian President Boris Yeltsin's IMF-backed rapid privatization and austerity policies resulted in unemployment rising to double digits and half the Russian population falling into destitution by the early to mid 1990s.[96] By 1999, during the peak of the poverty crisis, 191 million people were living on less than $5.50 a day.[97] In subsequent years as per capita incomes recovered the poverty rate dropped from 31.4% of the population to 19.6%.[98][99] The average post-communist country had returned to 1989 levels of per-capita GDP by 2005,[100] although as of 2015 some are still far behind that.[101] According to the World Bank in 2014, around 80 million people were still living on less than $5.00 a day.[97]
World Bank data shows that the percentage of the population living in households with consumption or income per person below the poverty line has decreased in each region of the world except Middle East and North Africa since 1990:[102][103]
In July 2023, a group of over 200 economists from 67 countries, including Jayati Ghosh, Joseph Stiglitz and Thomas Piketty, sent a letter to the United Nations secretary general António Guterres and World Bank president Ajay Banga warning that "extreme poverty and extreme wealth have risen sharply and simultaneously for the first time in 25 years."[104] In 2024, Oxfam reported that roughly five billion people have become poorer since 2020 and warned that current trends could postpone global poverty eradication for 229 years.[105]
Region
$2.15 per day[106]
1981
1990
2000
2010
2018
2019
East Asia and Pacific
83.5%
65.8%
39.5%
13.3%
1.6%
1.2%
Europe and Central Asia
—
—
9.1%
4.1%
2.3%
2.3%
Latin America and the Caribbean
15.1%
16.8%
13.5%
6.4%
4.3%
4.3%
Middle East and North Africa
—
6.5%
3.5%
1.9%
9.6%
—
South Asia
58%
49.8%
—
26%
10.1%
8.6%
Sub-Saharan Africa
—
53.8%
56.5%
42.2%
35.4%
34.9%
World
43.6%
37.9%
29.3%
16.3%
9%
8.5%
Characteristics[edit]
Life expectancy has been increasing and converging for most of the world. Sub-Saharan Africa has recently seen a decline, partly related to the AIDS epidemic. Graph shows the years 1950–2005.
The effects of poverty may also be causes as listed above, thus creating a "poverty cycle" operating across multiple levels, individual, local, national and global.A Somali boy receiving treatment for malnourishment at a health facility
Health[edit]
Main articles: Diseases of poverty and Disability and poverty
Life expectancy, 2016
One-third of deaths around the world—some 18 million people a year or 50,000 per day—are due to poverty-related causes. People living in developing nations, among them women and children, are over represented among the global poor and these effects of severe poverty.[107][108][109] Those living in poverty suffer disproportionately from hunger or even starvation and disease, as well as lower life expectancy.[110][111] According to the World Health Organization, hunger and malnutrition are the single gravest threats to the world's public health and malnutrition is by far the biggest contributor to child mortality, present in half of all cases.[112]
Almost 90% of maternal deaths during childbirth occur in Asia and sub-Saharan Africa, compared to less than 1% in the developed world.[113] Those who live in poverty have also been shown to have a far greater likelihood of having or incurring a disability within their lifetime.[114] Infectious diseases such as malaria and tuberculosis can perpetuate poverty by diverting health and economic resources from investment and productivity; malaria decreases GDP growth by up to 1.3% in some developing nations and AIDS decreases African growth by 0.3–1.5% annually.[115][116][117]
Studies have shown that poverty impedes cognitive function although some of these findings could not be replicated in follow-up studies.[118] One hypothesised mechanism is that financial worries put a severe burden on one's mental resources so that they are no longer fully available for solving complicated problems. The reduced capability for problem solving can lead to suboptimal decisions and further perpetuate poverty.[119] Many other pathways from poverty to compromised cognitive capacities have been noted, from poor nutrition and environmental toxins to the effects of stress on parenting behavior, all of which lead to suboptimal psychological development.[120][121] Neuroscientists have documented the impact of poverty on brain structure and function throughout the lifespan.[122]
Infectious diseases continue to blight the lives of the poor across the world. 36.8 million people are living with HIV/AIDS, with 954,492 deaths in 2017.[123]
Poor people often are more prone to severe diseases due to the lack of health care, and due to living in non-optimal conditions. Among the poor, girls tend to suffer even more due to gender discrimination. Economic stability is paramount in a poor household; otherwise they go in an endless loop of negative income trying to treat diseases. Often when a person in a poor household falls ill it is up to the family members to take care of them due to limited access to health care and lack of health insurance. The household members often have to give up their income or stop seeking further education to tend to the sick member. There is a greater opportunity cost imposed on the poor to tend to someone compared to someone with better financial stability.[124] Increased access to healthcare and improved health outcomes help prevent individuals from falling into poverty due to medical expenses.[125][126]
Hunger[edit]
Percentage of population suffering from hunger, World Food Programme, 2020
Main article: Hunger
See also: Malnutrition
It is estimated that 1.02 billion people go to bed hungry every night.[127] According to the Global Hunger Index, Sub-Saharan Africa had the highest child malnutrition rate of the world's regions over the 2001–2006 period.[128]
Poor people spend a greater portion of their budgets on food than wealthy people and, as a result, they can be particularly vulnerable to increases in food prices. For example, in late 2007, increases in the price of grains[129] led to food riots in some countries.[130][131][132] Threats to the supply of food may also be caused by drought and the water crisis.[133] Intensive farming often leads to a vicious cycle of exhaustion of soil fertility and decline of agricultural yields.[134] Approximately 40% of the world's agricultural land is seriously degraded.[135][136] Goal 2 of the Sustainable Development Goals is the elimination of hunger and undernutrition by 2030.[137]
Mental health[edit]
A Venezuelan eating from garbage during the crisis in Bolivarian Venezuela
A psychological study has been conducted by four scientists during inaugural Convention of Psychological Science. The results find that people who thrive with financial stability or fall under low socioeconomic status (SES) tend to perform worse cognitively due to external pressure imposed upon them. The research found that stressors such as low income, inadequate health care, discrimination, and exposure to criminal activities all contribute to mental disorders. This study also found that children exposed to poverty-stricken environments have slower cognitive thinking.[138] It is seen that children perform better under the care of their parents and that children tend to adopt speaking language at a younger age. Since being in poverty from childhood is more harmful than it is for an adult, it is seen that children in poor households tend to fall behind in certain cognitive abilities compared to other average families.[139]
For a child to grow up emotionally healthy, the children under three need "A strong, reliable primary caregiver who provides consistent and unconditional love, guidance, and support. Safe, predictable, stable environments. Ten to 20 hours each week of harmonious, reciprocal interactions. This process, known as attunement, is most crucial during the first 6–24 months of infants' lives and helps them develop a wider range of healthy emotions, including gratitude, forgiveness, and empathy. Enrichment through personalized, increasingly complex activities".[citation needed] In one survey, 67% of children from disadvantaged inner cities said they had witnessed a serious assault, and 33% reported witnessing a homicide.[140] 51% of fifth graders from New Orleans (median income for a household: $27,133) have been found to be victims of violence, compared to 32% in Washington, DC (mean income for a household: $40,127).[141] Studies have shown that poverty changes the personalities of children who live in it. The Great Smoky Mountains Study was a ten-year study that was able to demonstrate this. During the study, about one-quarter of the families saw a dramatic and unexpected increase in income. The study showed that among these children, instances of behavioral and emotional disorders decreased, and conscientiousness and agreeableness increased.[142]
Education[edit]
See also: Social determinants of health in poverty § Education, and Disability and poverty § Education
Research has found that there is a high risk of educational underachievement for children who are from low-income housing circumstances. This is often a process that begins in primary school. Instruction in the US educational system, as well as in most other countries, tends to be geared towards those students who come from more advantaged backgrounds. As a result, children in poverty are at a higher risk than advantaged children for retention in their grade, special deleterious placements during the school's hours and not completing their high school education.[143] Advantage breeds advantage.[144] There are many explanations for why students tend to drop out of school. One is the conditions in which they attend school. Schools in poverty-stricken areas have conditions that hinder children from learning in a safe environment. Researchers have developed a name for areas like this: an urban war zone is a poor, crime-laden district in which deteriorated, violent, even warlike conditions and underfunded, largely ineffective schools promote inferior academic performance, including irregular attendance and disruptive or non-compliant classroom behavior.[145] Because of poverty, "Students from low-income families are 2.4 times more likely to drop out than middle-income kids, and over 10 times more likely than high-income peers to drop out."[146]
For children with low resources, the risk factors are similar to others such as juvenile delinquency rates, higher levels of teenage pregnancy, and economic dependency upon their low-income parent or parents.[143]
Families and society who submit low levels of investment in the education and development of less fortunate children end up with less favorable results for the children who see a life of parental employment reduction and low wages. Higher rates of early childbearing with all the connected risks to family, health and well-being are major issues to address since education from preschool to high school is identifiably meaningful in a life.[143]
Out of school child
Poverty often drastically affects children's success in school. A child's "home activities, preferences, mannerisms" must align with the world and in the cases that they do not do these, students are at a disadvantage in the school and, most importantly, the classroom.[147] Therefore, it is safe to state that children who live at or below the poverty level will have far less success educationally than children who live above the poverty line. Poor children have a great deal less healthcare and this ultimately results in many absences from school. Additionally, poor children are much more likely to suffer from hunger, fatigue, irritability, headaches, ear infections, flu, and colds.[147] These illnesses could potentially restrict a student's focus and concentration.[148]
In general, the interaction of gender with poverty or location tends to work to the disadvantage of girls in poorer countries with low completion rates and social expectations that they marry early, and to the disadvantage of boys in richer countries with high completion rates but social expectations that they enter the labour force early.[149] At the primary education level, most countries with a completion rate below 60% exhibit gender disparity at girls' expense, particularly poor and rural girls. In Mauritania, the adjusted gender parity index is 0.86 on average, but only 0.63 for the poorest 20%, while there is parity among the richest 20%. In countries with completion rates between 60% and 80%, gender disparity is generally smaller, but disparity at the expense of poor girls is especially marked in Cameroon, Nigeria and Yemen. Exceptions in the opposite direction are observed in countries with pastoralist economies that rely on boys' labour, such as the Kingdom of Eswatini, Lesotho and Namibia.[149]
Shelter[edit]
See also: Slums, Street children, Orphanages, and Gentrification
Homeless family in Kolkata, India
Street child in Bangladesh. Aiding relatives financially unable to but willing to take in orphans is found to be more effective by cost and welfare than orphanages.[150]
The right to housing is argued to be a human right.[151][152] Higher density and lower cost housing affords low-income families and first-time homebuyers with more and less expensive shelter opportunities, reducing economic inequality.[153][154]
The geographic concentration of poverty is argued to be a factor in entrenching poverty. William J. Wilson's "concentration and isolation" hypothesis states that the economic difficulties of the very poorest African Americans are compounded by the fact that as the better-off African Americans move out, the poorest are more and more concentrated, having only other very poor people as neighbors. This concentration causes social isolation, Wilson suggests, because the very poor are now isolated from access to the job networks, role models, institutions, and other connections that might help them escape poverty.[155] Gentrification means converting an aging neighborhood into a more affluent one, as by remodeling homes. Landlords then increase rent on newly renovated real estate; the poor people cannot afford to pay high rent, and may need to leave their neighborhood to find affordable housing.[156] The poor also get more access to income and services, while studies suggest poor residents living in gentrifying neighbourhoods are actually less likely to move than poor residents of non-gentrifying areas.[157]
Poverty increases the risk of homelessness.[158] Slum-dwellers, who make up a third of the world's urban population, live in a poverty no better, if not worse, than rural people, who are the traditional focus of the poverty in the developing world, according to a report by the United Nations.[159]
There are over 100 million street children worldwide.[160] Most of the children living in institutions around the world have a surviving parent or close relative, and they most commonly entered orphanages because of poverty.[150] It is speculated that, flush with money, for-profit orphanages are increasing and push for children to join even though demographic data show that even the poorest extended families usually take in children whose parents have died.[150] Many child advocates maintain that this can harm children's development by separating them from their families and that it would be more effective and cheaper to aid close relatives who want to take in the orphans.[150]
Utilities[edit]
Affordable household toilets near Jaipur, Rajasthan
The poor tend to pay more for access to utilities and ensuring the availability of water, sanitation, energy, and telecommunication services such as broadband internet service[161] help in reducing poverty in general.[162][163]
Water and sanitation[edit]
As of 2012, 2.5 billion people lack access to sanitation services and 15% practice open defecation.[164] Even while providing latrines is a challenge, people still do not use them even when available. Bangladesh had half the GDP per capita of India but has a lower mortality from diarrhea than India or the world average, with diarrhea deaths declining by 90% since the 1990s. By strategically providing pit latrines to the poorest, charities in Bangladesh sparked a cultural change as those better off perceived it as an issue of status to not use one. The vast majority of the latrines built were then not from charities but by villagers themselves.[165]
Water utility subsidies tend to subsidize water consumption by those connected to the supply grid, which is typically skewed towards the richer and urban segment of the population and those outside informal housing. As a result of heavy consumption subsidies, the price of water decreases to the extent that only 30%, on average, of the supplying costs in developing countries is covered.[166][167]
This results in a lack of incentive to maintain delivery systems, leading to losses from leaks annually that are enough for 200 million people.[166][168]
This also leads to a lack of incentive to invest in expanding the network, resulting in much of the poor population being unconnected to the network. Instead, the poor buy water from water vendors for, on average, about 5 to 16 times the metered price.[166][169] However, subsidies for laying new connections to the network rather than for consumption have shown more promise for the poor.[167]
Energy[edit]
This section is an excerpt from Energy poverty.[edit]
Homes without reliable access to energy such as electricity, heating, cooling, etc.
In developing countries and some areas of more developed countries, energy poverty is lack of access to modern energy services in the home.[170] Today, 759 million people lack access to consistent electricity and 2.6 billion people use dangerous and inefficient cooking systems.[171] Their well-being is negatively affected by very low consumption of energy, use of dirty or polluting fuels, and excessive time spent collecting fuel to meet basic needs.
Predominant indices for measuring the complex nature of energy poverty include the Energy Development Index (EDI), the Multidimensional Energy Poverty Index (MEPI), and Energy Poverty Index (EPI). Both binary and multidimensional measures of energy poverty are required to establish indicators that simplify the process of measuring and tracking energy poverty globally.[172] Energy poverty often exacerbates existing vulnerabilities amongst underprivileged communities and negatively impacts public and household health, education, and women's opportunities.[173]
According to the Energy Poverty Action initiative of the World Economic Forum, "Access to energy is fundamental to improving quality of life and is a key imperative for economic development. In the developing world, energy poverty is still rife."[174] As a result of this situation, the United Nations (UN) launched the Sustainable Energy for All Initiative and designated 2012 as the International Year for Sustainable Energy for All, which had a major focus on reducing energy poverty.
The term energy poverty is also sometimes used in the context of developed countries to mean an inability to afford energy in the home. This concept is also known as fuel poverty or household energy insecurity.[170]
Financial services[edit]
See also: Predatory lending and Loan shark
For low-income individuals and families, access to credit can be limited, predatory, or both, making it difficult to find the financial resources they need to invest in their futures.[175][176]
Prejudice and exploitation[edit]
See also: criminalization of poverty
The urban poor buy water from water vendors for, on average, about 5 to 16 times the metered price.[166]Cultural factors, such as discrimination of various kinds, can negatively affect productivity such as age discrimination, stereotyping,[177] discrimination against people with physical disability,[178] gender discrimination, racial discrimination, and caste discrimination. Children are more than twice as likely to live in poverty as adults.[179] Women are the group suffering from the highest rate of poverty after children, in what is referred to as the feminization of poverty. In addition, the fact that women are more likely to be caregivers, regardless of income level, to either the generations before or after them, exacerbates the burdens of their poverty.[180] Those in poverty have increased chances of incurring a disability which leads to a cycle where disability and poverty are mutually reinforcing.
Max Weber and some schools of modernization theory suggest that cultural values could affect economic success.[181][182] However, researchers[who?] have gathered evidence that suggest that values are not as deeply ingrained and that changing economic opportunities explain most of the movement into and out of poverty, as opposed to shifts in values.[183] A 2018 report on poverty in the United States by UN special rapporteur Philip Alston asserts that caricatured narratives about the rich and the poor (that "the rich are industrious, entrepreneurial, patriotic and the drivers of economic success" while "the poor are wasters, losers and scammers") are largely inaccurate, as "the poor are overwhelmingly those born into poverty, or those thrust there by circumstances largely beyond their control, such as physical or mental disabilities, divorce, family breakdown, illness, old age, unlivable wages or discrimination in the job market."[184] Societal perception of people experiencing economic difficulty has historically appeared as a conceptual dichotomy: the "good" poor (people who are physically impaired, disabled, the "ill and incurable," the elderly, pregnant women, children) vs. the "bad" poor (able-bodied, "valid" adults, most often male).[185]
According to experts, many women become victims of trafficking, the most common form of which is prostitution, as a means of survival and economic desperation.[186] Deterioration of living conditions can often compel children to abandon school to contribute to the family income, putting them at risk of being exploited.[187] For example, in Zimbabwe, a number of girls are turning to sex in return for food to survive because of the increasing poverty.[188] According to studies, as poverty decreases there will be fewer and fewer instances of violence.[189]
Poverty reduction [edit]
Main article: Poverty reduction
See also: Aid and Development aid
This section duplicates the scope of other articles, specifically Poverty reduction. Please discuss this issue and help introduce a summary style to the section by replacing the section with a link and a summary or by splitting the content into a new article. (January 2023)
Logo of the Sustainable Development Goal 1 of the United Nations, to "end poverty in all its forms, everywhere" by 2030[190]
Various poverty reduction strategies are broadly categorized based on whether they make more of the basic human needs available or whether they increase the disposable income needed to purchase those needs.[191] Some strategies such as building roads can both bring access to various basic needs, such as fertilizer or healthcare from urban areas, as well as increase incomes, by bringing better access to urban markets.[192][193]
Reducing relative poverty would also involve reducing inequality. Oxfam, among others,[194] has called for an international movement to end extreme wealth concentration arguing that the concentration of resources in the hands of the top 1% depresses economic activity and makes life harder for everyone else—particularly those at the bottom of the economic ladder.[195][196] And they say that the gains of the world's billionaires in 2017, which amounted to $762 billion, were enough to end extreme global poverty seven times over.[197] Methods to reduce inequality and relative poverty include progressive taxation, which involves increasing tax rates on high-income earners,[198][199] wealth taxes, which involve taxing a portion of an individual's net worth above a certain threshold,[200][201][202] reducing payroll taxes, which are taxes on employees and employers and reducing this provides workers greater take-home pay and allows employers to spend more on wages and salaries,[203][204][205] and increasing the labor share, which is the proportion of business income paid as wages and salaries instead of allocated to shareholders as profit.[206][207]
Increasing the supply of basic needs[edit]
Improving technology[edit]
Spreading fertilizer on a field of rapeseed near Barton-upon-Humber, England
Agricultural technologies such as nitrogen fertilizers, pesticides, new seed varieties and new irrigation methods have dramatically reduced food shortages in modern times by boosting yields past previous constraints.[208] Before the Industrial Revolution, poverty had been mostly accepted as inevitable as economies produced little, making wealth scarce.[209] Geoffrey Parker wrote that "In Antwerp and Lyon, two of the largest cities in western Europe, by 1600 three-quarters of the total population were too poor to pay taxes, and therefore likely to need relief in times of crisis."[210] The initial industrial revolution led to high economic growth and eliminated mass absolute poverty in what is now considered the developed world.[211] Mass production of goods in places such as rapidly industrializing China has made what were once considered luxuries, such as vehicles and computers, inexpensive and thus accessible to many who were otherwise too poor to afford them.[212][213]
Other than technology, advancements in sciences such as medicine help provide basic needs better. For example, Sri Lanka had a maternal mortality rate of 2% in the 1930s, higher than any nation today, but reduced it to 0.5–0.6% in the 1950s and to 0.6% in 2006 while spending less each year on maternal health because it learned what worked and what did not.[214][215] Knowledge on the cost effectiveness of healthcare interventions can be elusive and educational measures have been made to disseminate what works, such as the Copenhagen Consensus.[216] Cheap water filters and promoting hand washing are some of the most cost effective health interventions and can cut deaths from diarrhea and pneumonia.[217][218] Fortification with micronutrients was ranked the most cost effective aid strategy by the Copenhagen Consensus.[219] For example, iodised salt costs 2 to 3 cents per person a year while even moderate iodine deficiency in pregnancy shaves off 10 to 15 IQ points.[220]
State funding[edit]
See also: Political corruption, Tax havens, Transfer mispricing, Developing countries' debt, and Conditionality
Hardwood surgical tables are commonplace in rural Nigerian clinics.
Certain basic needs are argued to be better provided by the state. Universal healthcare can reduce the overall cost of providing healthcare by having a single payer negotiating with healthcare providers and minimizing administrative costs.[125][126] It is also argued that subsidizing essential goods such as fuel is less efficient in helping the poor than providing that same money as income grants to the poor.[221]
Government revenue can be diverted away from basic services by corruption.[222][223] Funds from aid and natural resources are often sent by government individuals for money laundering to overseas banks which insist on bank secrecy, instead of spending on the poor.[224] A Global Witness report asked for more action from Western banks as they have proved capable of stanching the flow of funds linked to terrorism.[224]
Illicit capital flight, such as corporate tax avoidance,[225] from the developing world is estimated at ten times the size of aid it receives and twice the debt service it pays,[226] with one estimate that most of Africa would be developed if the taxes owed were paid.[227] About 60 per cent of illicit capital flight from Africa is from transfer mispricing, where a subsidiary in a developing nation sells to another subsidiary or shell company in a tax haven at an artificially low price to pay less tax.[228] An African Union report estimates that about 30% of sub-Saharan Africa's GDP has been moved to tax havens.[229] Solutions include corporate "country-by-country reporting" where corporations disclose activities in each country and thereby prohibit the use of tax havens where no effective economic activity occurs.[228]
Developing countries' debt service to banks and governments from richer countries can constrain government spending on the poor.[230] For example, Zambia spent 40% of its total budget to repay foreign debt, and only 7% for basic state services in 1997.[231] One of the proposed ways to help poor countries has been debt relief. Zambia began offering services, such as free health care even while overwhelming the health care infrastructure, because of savings that resulted from a 2005 round of debt relief.[232] Since that round of debt relief, private creditors accounted for an increasing share of poor countries' debt service obligations. This complicated efforts to renegotiate easier terms for borrowers during crises such as the COVID-19 pandemic because the multiple private creditors involved say they have a fiduciary obligation to their clients such as the pension funds.[233][234]
The World Bank and the International Monetary Fund, as primary holders of developing countries' debt, attach structural adjustment conditionalities in return for loans which are generally geared toward loan repayment with austerity measures such as the elimination of state subsidies and the privatization of state services. For example, the World Bank presses poor nations to eliminate subsidies for fertilizer even while many farmers cannot afford them at market prices.[235] In Malawi, almost 5 million of its 13 million people used to need emergency food aid but after the government changed policy and subsidies for fertilizer and seed were introduced, farmers produced record-breaking corn harvests in 2006 and 2007 as Malawi became a major food exporter.[235] A major proportion of aid from donor nations is tied, mandating that a receiving nation spend on products and expertise originating only from the donor country.[236] US law requires food aid be spent on buying food at home, instead of where the hungry live, and, as a result, half of what is spent is used on transport.[237]
Distressed securities funds, also known as vulture funds, buy up the debt of poor nations cheaply and then sue countries for the full value of the debt plus interest which can be ten or 100 times what they paid.[238] They may pursue any companies which do business with their target country to force them to pay to the fund instead.[238] Considerable resources are diverted on costly court cases. For example, a court in Jersey ordered the Democratic Republic of the Congo to pay an American speculator $100 million in 2010.[238] Now, the UK, Isle of Man and Jersey have banned such payments.[238]
A family planning placard in Ethiopia. It shows some negative effects of having too many children.
Improving access to available basic needs[edit]
Main articles: Reverse brain drain and Human capital flight
Even with new products, such as better seeds, or greater volumes of them, such as industrial production, the poor still require access to these products. Improving road and transportation infrastructure helps solve this major bottleneck. In Africa, it costs more to move fertilizer from an African seaport 100 kilometres (60 mi) inland than to ship it from the United States to Africa because of sparse, low-quality roads, leading to fertilizer costs two to six times the world average.[239] Microfranchising models such as door-to-door distributors who earn commission-based income or Coca-Cola's successful distribution system[240][241] are used to disseminate basic needs to remote areas for below market prices.[242][243]
The loss of basic needs providers emigrating from impoverished countries has a damaging effect.[244] As of 2004, there were more Ethiopia-trained doctors living in Chicago than in Ethiopia[245] and this often leaves inadequately less skilled doctors to remain in their home countries.[246] Proposals to mitigate the problem include compulsory government service for graduates of public medical and nursing schools[244] and promoting medical tourism so that health care personnel have more incentive to practice in their home countries.[247] Telehealth is the use of telecommunication technologies to deliver health services. For remotes communities in Alaska, telehealth has been found to reduce travel costs alone for the state by $13 million in 2021[248] and, according to one study, reduced the life expectancy gap between whites and American Indian population in Alaska from eight to five years.[249]
Preventing overpopulation[edit]
Main articles: Demographic transition and family planning
Map of countries and territories by fertility rate as of 2020
Poverty and lack of access to birth control can lead to population increases that put pressure on local economies and access to resources, amplifying other economic inequality and creating increase poverty.[250][90][251] Better education for both men and women, and more control of their lives, reduces population growth due to family planning.[252][253] According to United Nations Population Fund (UNFPA), those who receive better education can earn money for their lives, thereby strengthening economic security.[254]
Increasing personal income[edit]
The following are strategies used or proposed to increase personal incomes among the poor. Raising farm incomes is described as the core of the antipoverty effort as three-quarters of the poor today are farmers.[255] Estimates show that growth in the agricultural productivity of small farmers is, on average, at least twice as effective in benefiting the poorest half of a country's population as growth generated in nonagricultural sectors.[256]
Income grants[edit]
Main articles: Guaranteed minimum income, Social security, and Welfare
Afghan girl begging in Kabul
A guaranteed minimum income ensures that every citizen will be able to purchase a desired level of basic needs. One method is through a basic income (or negative income tax), which is a system of social security, that periodically provides each citizen, rich or poor, with a sum of money that is sufficient to live on.[257] Studies of large cash-transfer programs in Ethiopia, Kenya, and Malawi show that the programs can be effective in increasing consumption, schooling, and nutrition, whether they are tied to such conditions or not.[258][259][260] Employment subsidies are conditional subsidies that go to those already employed and this has shown to have little effect on those at the lowest income levels.[203][261][262] Proponents argue that a basic income is more economically efficient than a minimum wage and unemployment benefits, as the minimum wage effectively imposes a high marginal tax on employers, causing losses in efficiency. In 1968, Paul Samuelson, John Kenneth Galbraith and another 1,200 economists signed a document calling for the US Congress to introduce a system of income guarantees.[263] Winners of the Nobel Prize in Economics, with often diverse political convictions, who support a basic income include Herbert A. Simon,[264] Friedrich Hayek,[265] Robert Solow,[264] Milton Friedman,[266] Jan Tinbergen,[264] James Tobin[267][268][269]
and James Meade.[264]
Income grants are argued to be vastly more efficient in extending basic needs to the poor than subsidizing supplies whose effectiveness in poverty alleviation is diluted by the non-poor who enjoy the same subsidized prices.[221] With cars and other appliances, the wealthiest 20% of Egypt uses about 93% of the country's fuel subsidies.[270] In some countries, fuel subsidies are a larger part of the budget than health and education.[270][271] A 2008 study concluded that the money spent on in-kind transfers in India in a year could lift all India's poor out of poverty for that year if transferred directly.[272] The primary obstacle argued against direct cash transfers is the impractically for poor countries of such large and direct transfers. In practice, payments determined by complex iris scanning are used by war-torn Democratic Republic of Congo and Afghanistan,[273] while India is phasing out its fuel subsidies in favor of direct transfers.[274] Additionally, in aid models, the famine relief model increasingly used by aid groups calls for giving cash or cash vouchers to the hungry to pay local farmers instead of buying food from donor countries, often required by law, as it wastes money on transport costs.[275][276]
Economic freedoms[edit]
See also: Economic freedom and Red tape
Corruption often leads to many civil services being treated by governments as employment agencies to loyal supporters[277] and so it could mean going through 20 procedures, paying $2,696 in fees, and waiting 82 business days to start a business in Bolivia, while in Canada it takes two days, two registration procedures, and $280 to do the same.[278] Such costly barriers favor big firms at the expense of small enterprises, where most jobs are created.[279] Often, businesses have to bribe government officials even for routine activities, which is, in effect, a tax on business.[280] Noted reductions in poverty in recent decades has occurred in China and India mostly as a result of the abandonment of collective farming in China and the ending of the central planning model known as the License Raj in India.[281][282][283]
The World Bank concludes that governments and feudal elites extending to the poor the right to the land that they live and use are 'the key to reducing poverty' citing that land rights greatly increase poor people's wealth, in some cases doubling it.[284] Providing secure tenure to land ownership creates incentives to improve the land and thus improves the welfare of the poor.[285] It is argued that those in power have an incentive to not secure property rights as they are able to then more easily take land or any small business that does well to their supporters.[286]
Greater access to markets brings more income to the poor. Road infrastructure has a direct impact on poverty.[287][288] Additionally, migration from poorer countries resulted in $328 billion sent from richer to poorer countries in 2010, more than double the $120 billion in official aid flows from OECD members. In 2011, India got $52 billion from its diaspora, more than it took in foreign direct investment.[289]
Financial services[edit]
See also: Microfinance and Microcredit
Information and communication technologies for development help to fight poverty.
Microloans, made famous by the Grameen Bank, is where small amounts of money are loaned to farmers or villages, mostly women, who can then obtain physical capital to increase their economic rewards. However, microlending has been criticized for making hyperprofits off the poor even from its founder, Muhammad Yunus,[290] and in India, Arundhati Roy asserts that some 250,000 debt-ridden farmers have been driven to suicide.[291][292][293]
Those in poverty place overwhelming importance on having a safe place to save money, much more so than receiving loans.[294] Additionally, a large part of microfinance loans are spent not on investments but on products that would usually be paid by a checking or savings account.[294] Microsavings are designs to make savings products available for the poor, who make small deposits. Mobile banking uses the wide availability of mobile phones to address the problem of the heavy regulation and costly maintenance of saving accounts.[294] This usually involves a network of agents of mostly shopkeepers, instead of bank branches, would take deposits in cash and translate these onto a virtual account on customers' phones. Cash transfers can be done between phones and issued back in cash with a small commission, making remittances safer.[295]
Education and vocational training[edit]
Early childhood education through USAID in Ziway, Ethiopia
Free education through public education or charitable organizations rather than through tuition, from early childhood education through the tertiary level provides children from low-income families who may not otherwise have the financial resources with better job prospects and higher earnings and promotes social mobility.[296][297][298][299] Job training and vocational education programs that target training in technical skills in specific industries or occupations that are in high demand can reduce poverty and wealth concentration.[300][301]
Strategies to provide education cost effectively include deworming children, which costs about 50 cents per child per year and reduces non-attendance from anemia, illness and malnutrition, while being only a twenty-fifth as expensive as increasing school attendance by constructing schools.[302] Schoolgirl absenteeism could be cut in half by simply providing free sanitary towels.[303] Paying for school meals is argued to be an efficient strategy in increasing school enrollment, reducing absenteeism and increasing student attention.[304]
Desirable actions such as enrolling children in school or receiving vaccinations can be encouraged by a form of aid known as conditional cash transfers.[305] In Mexico, for example, dropout rates of 16- to 19-year-olds in rural area dropped by 20% and children gained half an inch in height.[306] Initial fears that the program would encourage families to stay at home rather than work to collect benefits have proven to be unfounded. Instead, there is less excuse for neglectful behavior as, for example, children stopped begging on the streets instead of going to school because it could result in suspension from the program.[306]
Antipoverty institutions[edit]
United Nations[edit]
See also: Sustainable Development Goals
In 2015 all UN Member States adopted the 17 Sustainable Development Goals as part of the Post-2015 Development Agenda, which sought to create a future global development framework to succeed the Millennium Development Goals, which were goals set in 2000 and were meant to be achieved by 2015.[307] Most targets are to be achieved by 2030, although some have no end date.[308] Goal 1 is to "end poverty in all its forms everywhere".[309] It aims to eliminate extreme poverty for all people measured by daily wages less than $1.25 and at least half the total number of men, women, and children living in poverty. In addition, social protection systems must be established at the national level and equal access to economic resources must be ensured.[310] Strategies have to be developed at the national, regional and international levels to support the eradication of poverty.[311]
Development banks[edit]
Main article: Development bank
A development financial institution, also known as a development bank, is a financial institution that provides risk capital for economic development projects on a non-commercial basis. They are often established and owned by governments to finance projects that would otherwise not be able to get financing from commercial lenders. These include international financial institutions such as the World Bank, which is the largest development bank.
Private sector[edit]
See also: Nongovernmental organization
The private sector includes nonprofit nongovernmental organizations as well as for-profit institutions involved in combating poverty. In recent decades, the number of nongovernmental organizations has increased dramatically. The High level forums on aid effectiveness that was coordinated by the OECD found that this leads to fragmentation where too many agencies were financing too many small projects using too many different procedures and that the civil service of the donor countries were overstretched producing reports for each.[312]
The Poverty industrial complex refers to for-profit companies taking over roles previously held by government agencies. The incentive for profit in such companies has been argued to interfere with efficiently providing the needed services.
Perspectives[edit]
Economic theories[edit]
See also: Causes of poverty
Data shows substantial social segregation correlating with economic income groups.[313] However, social connectedness to people of higher income levels is a strong predictor of upward income mobility.[313]
The cause of poverty is a highly ideologically charged subject, as different causes point to different remedies. Very broadly speaking, the socialist tradition locates the roots of poverty in problems of distribution and the use of the means of production as capital benefiting individuals, and calls for redistribution of wealth as the solution, whereas the neoliberal school of thought holds that creating conditions for profitable private investment is the solution. Neoliberal think tanks have received extensive funding,[314] and the ability to apply many of their ideas in highly indebted countries in the global South as a condition for receiving emergency loans from the International Monetary Fund.
The existence of inequality is in part due to a set of self-reinforcing behaviors that all together constitute one aspect of the cycle of poverty. These behaviors, in addition to unfavorable, external circumstances, also explain the existence of the Matthew effect, which not only exacerbates existing inequality, but is more likely to make it multigenerational. Widespread, multigenerational poverty is an important contributor to civil unrest and political instability.[315] For example, Raghuram G. Rajan, former governor of the Reserve Bank of India and former chief economist at the International Monetary Fund, has blamed the ever-widening gulf between the rich and the poor, especially in the US, to be one of the main fault lines which caused the financial institutions to pump money into subprime mortgages—on political behest, as a palliative and not a remedy, for poverty—causing the financial crisis of 2007–2009. In Rajan's view the main cause of the increasing gap between high income and low income earners was lack of equal access to higher education for the latter.[316]
A data based scientific empirical research, which studied the impact of dynastic politics on the level of poverty of the provinces, found a positive correlation between dynastic politics and poverty; i.e. the higher proportion of dynastic politicians in power in a province leads to higher poverty rate.[317] There is significant evidence that these political dynasties use their political dominance over their respective regions to enrich themselves, using methods such as graft or outright bribery of legislators.[318]
Most economic historians believe that throughout most of human history, extreme poverty was the norm for roughly 90% of the population, and only with the emergence of industrialization in the 19th century were the masses of people lifted out of it.[319][320]: 1 This narrative is advanced by, among others, Martin Ravallion,[321] Nicholas Kristof,[322] and Steven Pinker.[323]
Some academics, including Dylan Sullivan and Jason Hickel have challenged this contemporary mainstream narrative on poverty, arguing that extreme poverty was not the norm throughout human history, but emerged during "periods of severe social and economic dislocation", including high European feudalism and the apex of the Roman Empire, and that it expanded significantly after 1500 with the emergence of colonialism and the beginnings of capitalism, stating that "the expansion of the capitalist world-system caused a dramatic and prolonged process of impoverishment on a scale unparalleled in recorded history." Sullivan and Hickel assert that only with the rise of anti-colonial and socialist political movements in the 20th century did human welfare begin to see significant improvement.[319] However, all scholars and intellectuals, including Hickel, agree that the incomes of the poorest people in the world have increased since 1981.[320] Nevertheless, Sullivan and Hickel argue that poverty persists under contemporary global capitalism (in spite of it being highly productive) because masses of working people are cut off from common land and resources, have no ownership or control over the means of production, and have their labor power "appropriated by a ruling class or an external imperial power," thereby maintaining extreme inequality.[319]
Marian L. Tupy, a senior fellow of the Cato Institute, a right-libertarian think tank, criticized Hickel's claim that people before industrialization lived well without a lot of monetary income, stating that "The evidence from contemporary accounts and academic research" shows that "Compared to today, Western European living standards prior to industrialization were miserably low.", that "poverty was widespread and it was precisely the onset of industrialization and global trade … which led to poverty alleviation first in the West and then in the Rest."[324] and that both Karl Marx and Friedrich Engels, while advocating for socialism, recognized that the capitalist system developing around them had improved people's material conditions.[324]
Environmentalism[edit]
Main article: Environmentalism of the poor
See also: Climate change and poverty
A sewage treatment plant that uses solar energy, located at Santuari de Lluc monastery, Majorca
Important studies such as the Brundtland Report concluded that poverty causes environmental degradation, while other theories like environmentalism of the poor conclude that the global poor may be the most important force for sustainability.[325] Either way, the poor suffer most from environmental degradation caused by reckless exploitation of natural resources by the rich.[326] This unfair distribution of environmental burdens and benefits has generated the global environmental justice movement.[327]
A report published in 2013 by the World Bank, with support from the Climate & Development Knowledge Network, found that climate change was likely to hinder future attempts to reduce poverty. The report presented the likely impacts of present day, 2 °C and 4 °C warming on agricultural production, water resources, coastal ecosystems and cities across Sub-Saharan Africa, South Asia and South East Asia. The impacts of a temperature rise of 2 °C included: regular food shortages in Sub-Saharan Africa; shifting rain patterns in South Asia leaving some parts under water and others without enough water for power generation, irrigation or drinking; degradation and loss of reefs in South East Asia, resulting in reduced fish stocks; and coastal communities and cities more vulnerable to increasingly violent storms.[328] In 2016, a UN report claimed that by 2030, an additional 122 million more people could be driven to extreme poverty because of climate change.[329]
Global warming can also lead to a deficiency in water availability; with higher temperatures and CO2 levels, plants consume more water leaving less for people. By consequence, water in rivers and streams will decline in the mid-altitude regions like Central Asia, Europe and North America. And if CO2 levels continue to rise, or even remain the same, droughts will be happening much faster and will be lasting longer. According to a 2016 study led by Professor of Water Management, Arjen Hoekstra, four billion people are affected by water scarcity at least one month per year.[330]
Spirituality[edit]
See also: Simple living and Evangelical counsels
St. Francis of Assisi renounces his worldly goods in a painting attributed to Giotto di Bondone.
Among some individuals, poverty is considered a necessary or desirable condition, which must be embraced to reach certain spiritual, moral, or intellectual states. Poverty is often understood to be an essential element of renunciation in religions such as Buddhism, Hinduism (only for monks, not for lay persons) and Jainism, whilst in Christianity, in particular Roman Catholicism, it is one of the evangelical counsels. The main aim of giving up things of the materialistic world is to withdraw oneself from sensual pleasures (as they are considered illusionary and only temporary in some religions—such as the concept of dunya in Islam). This self-invited poverty (or giving up pleasures) is different from the one caused by economic imbalance.
Some Christian communities, such as the Simple Way, the Bruderhof, and the Amish value voluntary poverty;[331] some even take a vow of poverty, similar to that of the traditional Catholic orders, in order to live a more complete life of discipleship.[332]
Benedict XVI distinguished "poverty chosen" (the poverty of spirit proposed by Jesus), and "poverty to be fought" (unjust and imposed poverty). He considered that the moderation implied in the former favors solidarity, and is a necessary condition so as to fight effectively to eradicate the abuse of the latter.[333]
As it was indicated above the reduction of poverty results from religion, but also can result from solidarity.[334]
See also[edit]
Accumulation by dispossession
Aporophobia
Bottom of the pyramid
Economic inequality
Environmental racism
Emotional detachment
Cycle of poverty
Distribution of wealth
Food bank
Income disparity
In-group and out-group
International development
International inequality
Involuntary unemployment
Juvenilization of poverty
List of countries by income inequality
List of countries by percentage of population living in poverty
List of sovereign states by wealth inequality
Millennium Development Goals
Prosperity
Redistribution of income and wealth
Social programs
Social protection floor
Social safety net
Social stigma
United Nations Millennium Declaration
Universal basic income
World Poverty Clock
References[edit]
Citations[edit]
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^ UN declaration at World Summit on Social Development in Copenhagen in 1995
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^ Pinker, Steven (2018). Enlightenment now: The case for reason, science, humanism, and progress. Viking. ISBN 978-0-525-42757-5.
^ a b "The Romantic Idea of a Plentiful Past Is Pure Fantasy". HumanProgress. 14 February 2019. Retrieved 22 July 2023.
^ Martínez Alier, Juan (2005). The environmentalism of the poor: a study of ecological conflicts and valuation. New Delhi: Oxford University Press. ISBN 978-0-19-567328-9. OCLC 61669200.
^ "Anantha Duraiappah (1996). Poverty and Environmental Degradation: a Literature Review and Analysis CREED Working Paper Series No 8 International Institute for Environment and Development, London. Retrieved on June 27, 2016" (PDF). Archived (PDF) from the original on 13 January 2016. Retrieved 27 June 2016.
^ Martinez-Alier, Joan; Temper, Leah; Del Bene, Daniela; Scheidel, Arnim (3 May 2016). "Is there a global environmental justice movement?". The Journal of Peasant Studies. 43 (3): 731–755. doi:10.1080/03066150.2016.1141198. ISSN 0306-6150. S2CID 156535916.
^ REPORT: Warmer world will keep millions of people trapped in poverty. Archived 29 October 2013 at the Wayback Machine Climate & Development Knowledge Network. Retrieved 31 July 2013.
^ "Climate change could drive 122m more people into extreme poverty by 2030". The Guardian. 17 October 2016. Archived from the original on 18 October 2016. Retrieved 18 October 2016.
^ "Thirsty future ahead as climate change explodes plant growth". Science. 4 November 2019. Archived from the original on 1 November 2020. Retrieved 30 November 2020.
^ Premier (18 July 2019). "Meet the Bruderhof: Our exclusive peek inside a modern Christian utopia". Premier Christianity. Archived from the original on 27 September 2019. Retrieved 26 October 2019.
^ Oved, Iaácov (2017). The witness of the brothers: a history of the Bruderhof. London: Routledge. ISBN 978-1-351-47253-1. OCLC 994005958.
^ "World Peace Day Address 2009". The Vatican. 1 January 2009. Archived from the original on 28 June 2011. Retrieved 21 June 2011.
^ "S. Adamiak, D. Walczak, Catholic social teaching and social solidarity in the context of social security, Copernican Journal of Finance & Accounting, Vol 3, No 1, p. 17". Archived from the original on 16 April 2014. Retrieved 19 December 2014.
Sources[edit]
This article incorporates text from a free content work. Licensed under CC BY-SA 3.0 IGO. Text taken from Global education monitoring report 2019: gender report: Building bridges for gender equality, UNESCO, UNESCO. UNESCO.
Further reading[edit]
Allen, Robert C. 2020. "Poverty and the Labor Market: Today and Yesterday. Archived 24 July 2021 at the Wayback Machine" Annual Review of Economomics.
Half of the world's poor live in just 5 countries Roy Katayama & Divinshi Wadha. World Bank Blogs.
Atkinson, Anthony. Poverty in Europe 1998
Babb, Sarah (2009). Behind the Development Banks: Washington Politics, World Poverty, and the Wealth of Nations. University of Chicago Press. ISBN 978-0-226-03365-5.
Banerjee, Abhijit & Esther Duflo, Poor Economics: A Radical Rethinking of the Way to Fight Global Poverty (New York: PublicAffairs, 2011)
Bergmann, Barbara. "Deciding Who's Poor" Archived 20 May 2008 at the Wayback Machine, Dollars & Sense, March/April 2000
Betson, David M. & Warlick, Jennifer L. "Alternative Historical Trends in Poverty." American Economic Review 88:348–51. 1998.
Brady, David "Rethinking the Sociological Measurement of Poverty" Social Forces 81#3 2003, pp. 715–751 Online in Project Muse.
Buhmann, Brigitte, et al. 1988. "Equivalence Scales, Well-Being, Inequality, and Poverty: Sensitivity Estimates Across Ten Countries Using the Luxembourg Income Study (LIS) Database." Review of Income and Wealth 34:115–142.
Chase, Elaine; Bantebya-Kyomuhendo, Grace (2015). Poverty and Shame. Global Experiences. Oxford University Press. ISBN 978-0-19-968672-8.
Danziger, Sheldon H. & Weinberg, Daniel H. "The Historical Record: Trends in Family Income, Inequality, and Poverty." pp. 18–50 in Confronting Poverty: Prescriptions for Change, edited by Sheldon H. Danziger, Gary D. Sandefur, and Daniel. H. Weinberg. Russell Sage Foundation. 1994.
Desmond, Matthew (2023). Poverty, by America. Crown Publishing Group. ISBN 978-0-593-23991-9.
Firebaugh, Glenn. "Empirics of World Income Inequality." American Journal of Sociology (2000) 104:1597–1630. in JSTOR
Gans, Herbert J., "The Uses of Poverty: The Poor Pay All" Archived 5 June 2007 at the Wayback Machine, Social Policy, July/August 1971: pp. 20–24
Gordon, David M. Theories of Poverty and Underemployment: Orthodox, Radical, and Dual Labor Market Perspectives. 1972.
Haveman, Robert H. Poverty Policy and Poverty Research. University of Wisconsin Press 1987 ISBN 978-0-299-11150-2
Haymes, Stephen, Maria Vidal de Haymes and Reuben Miller (eds). The Routledge Handbook of Poverty in the United States Archived 17 June 2015 at the Wayback Machine. Routledge, 2015. ISBN 978-0-415-67344-0.
Iceland, John Poverty in America: a handbook University of California Press, 2003
Lee, Dwight R. (2008). "Wealth and Poverty". In Hamowy, Ronald (ed.). The Encyclopedia of Libertarianism. Thousand Oaks, CA: Sage; Cato Institute. pp. 537–539. doi:10.4135/9781412965811.n326. ISBN 978-1-4129-6580-4. LCCN 2008009151. OCLC 750831024.
McEwan, Joanne, and Pamela Sharpe, eds. Accommodating Poverty: The Housing and Living Arrangements of the English Poor, c. 1600–1850 (Palgrave Macmillan; 2010) 292 pages; scholarly studies of rural and urban poor, as well as vagrants, unmarried mothers, and almshouse dwellers.
O'Connor, Alice (2000). "Poverty Research and Policy for the Post-Welfare Era". Annual Review of Sociology. 26: 547–562. doi:10.1146/annurev.soc.26.1.547.
Osberg, Lars; Xu, Kuan. "International Comparisons of Poverty Intensity: index decomposition and bootstrap inference". The Journal of Human Resources. 2000 (35): 51–81.
Paugam, Serge. "Poverty and Social Exclusion: a sociological view." pp. 41–62 in The Future of European Welfare, edited by Martin Rhodes and Yves Meny, 1998.
Philippou, Lambros (2010). "Public Space, Enlarged Mentality and Being-In-Poverty". Philosophical Inquiry. 32 (1–2): 103–115. doi:10.5840/philinquiry2010321/218.
Prashad, Vijay. The Poorer Nations: A Possible History of the Global South. Verso Books, June 2014. ISBN 978-1-78168-158-9
Prashad, Vijay. "Making Poverty History". Jacobin. 10 November 2014.
Pressman, Steven, Poverty in America: an annotated bibliography. Metuchen, NJ: Scarecrow Press, 1994 ISBN 978-0-8108-2833-9
Robinson, Marilynne, "Is Poverty Necessary? An idea that won't go away", Harper's Magazine, vol. 338, no. 2029 (June 2019), pp. 25–33. "To bring up the subject of providing a better life is to lean too far left, to flirt with socialism.... 'Why... do wages tend to a minimum which will give but a bare living?' A short answer would be: because they can.... Insofar as the public is barred from taking a central role in society, we lose wisdom to stealth, stupidity, parochialism."
Rothman, David J., (editor). The Almshouse Experience (Poverty U.S.A.: the Historical Record). New York: Arno Press, 1971. ISBN 978-0-405-03092-5Reprint of Report of the committee appointed by the Board of Guardians of the Poor of the City and Districts of Philadelphia to visit the cities of Baltimore, New York, Providence, Boston, and Salem (published in Philadelphia, 1827); Report of the Massachusetts General Court's Committee on Pauper Laws (published in [Boston?], 1821); and the 1824 Report of the New York Secretary of State on the relief and settlement of the poor (from the 24th annual report of the New York State Board of Charities, 1901).
Roy, Arundhati, Capitalism: A Ghost Story, Haymarket Books, 2014, ISBN 978-1-60846-385-5.
Sen, Amartya, Poverty and Famines: An Essay on Entitlement and Deprivation, Oxford, Clarendon Press, 1981.
Sen, Amartya, Development as Freedom, New York, Knopf, 1999.
Smeeding, Timothy M., O'Higgins, Michael & Rainwater, Lee. Poverty, Inequality and Income Distribution in Comparative Perspective. Urban Institute Press 1990.
Smith, Stephen C., Ending Global Poverty: a guide to what works, New York: Palgrave Macmillan, 2005
Triest, Robert K. (1998). "Has Poverty Gotten Worse?". Journal of Economic Perspectives. 12: 97–114. doi:10.1257/jep.12.1.97.
Wilson, Richard & Pickett, Kate. The Spirit Level, London: Allen Lane, 2009
World Bank: "Can South Asia End Poverty in a Generation?" Archived 15 April 2008 at the Wayback Machine
World Bank, "World Development Report 2004: Making Services Work For Poor People", 2004
External links[edit]
Wikimedia Commons has media related to Poverty.
Look up poverty in Wiktionary, the free dictionary.
Wikiquote has quotations related to Poverty.
Wikiversity has learning resources about Eliminating poverty
Addressing Global Poverty from the Dean Peter Krogh Foreign Affairs Digital Archives
Data visualizations of the long-run development of poverty and list of data sources on poverty on 'Our World in Data'.
Islamic Development Bank (archived 18 September 2009)
Luxembourg Income Study Contains a wealth of data on income inequality and poverty, and hundreds of its sponsored research papers using this data (archived 4 December 2005)
Organization for Economic Cooperation and Development Contains reports on economic development as well as relations between rich and poor nations.
OPHI Oxford Poverty & Human Development Initiative (OPHI) Research to advance the human development approach to poverty reduction.
Transparency International Tracks issues of government and corporate corruption around the world.
United Nations Hundreds of free reports related to economic development and standards of living in countries around the world, such as the annual Human Development Report.
US Agency for International Development USAID is the primary US government agency with the mission for aid to developing countries.
World Bank Contains hundreds of reports which can be downloaded for free, such as the annual World Development Report.
World Food Program Associated with the United Nations, the World Food Program compiles hundreds of reports on hunger and food security around the world.
Why poverty Documentary films about poverty broadcast on television around the world in November 2012, then will be available online.
Annual income of richest 100 people enough to end global poverty four times over. Oxfam International, 19 January 2013.
Contains estimates on the number of people living in poverty in selected countries from 1973 to 1985
Contains information on poverty in 1980
Contains estimates on trends in global extreme poverty since 1820
Contains estimates on trends in world poverty from 1970 to 2006
Includes estimates on poverty in various European countries in the Eighties
Contains estimates on global poverty in 1975
vtePovertyOther aspects
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See also
List of countries by percentage of population living in poverty · Deprivation and poverty indicators
vteDeprivation and poverty indicatorsSocialTopics:
Acting out
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Diseases of poverty
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Environmental racism
Fushūgaku
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Income
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States with limitedrecognition
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Dependencies andother territories
Canary Islands / Ceuta / Melilla (Spain)
Madeira (Portugal)
Mayotte / Réunion (France)
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vtePoverty in the Americas
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vtePoverty in AsiaSovereign states
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Category
Asia portal
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Gibraltar
Guernsey
Isle of Man
Jersey
Svalbard
vtePoverty in OceaniaSovereign states
Australia
Federated States of Micronesia
Fiji
Kiribati
Marshall Islands
Nauru
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Palau
Papua New Guinea
Samoa
Solomon Islands
Tonga
Tuvalu
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Associated statesof New Zealand
Cook Islands
Niue
Dependenciesand other territories
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Christmas Island
Clipperton Island
Cocos (Keeling) Islands
Easter Island
French Polynesia
Guam
Hawaii
New Caledonia
Norfolk Island
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Tokelau
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Derek Parfit
Peter Singer
Cari Tuna
Eliezer Yudkowsky
Organizations
80,000 Hours
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All-Party Parliamentary Group for Future Generations
Animal Charity Evaluators
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Poverty - Our World in Data
rty - Our World in DataOur World in DataBrowse by topicLatestResourcesAboutSubscribeDonateGdoc/AdminPovertyBy Joe Hasell, Max Roser, Esteban Ortiz-Ospina and Pablo ArriagadaIntroductionKey InsightsData ExplorerResearch & WritingChartsEndnotesCite This WorkReuse This WorkGlobal poverty is one of the most pressing problems that the world faces today. The poorest in the world are often undernourished, without access to basic services such as electricity and safe drinking water; they have less access to education, and suffer from much poorer health.In order to make progress against such poverty in the future, we need to understand poverty around the world today and how it has changed.On this page you can find all our data, visualizations and writing relating to poverty. This work aims to help you understand the scale of the problem today; where progress has been achieved and where it has not; what can be done to make progress against poverty in the future; and the methods behind the data on which this knowledge is based.Download Poverty data on GitHubRelated topicsEconomic GrowthEconomic InequalityKey Insights on PovertyMeasuring global poverty in an unequal worldGlobal extreme poverty declined substantially over the last generationThe pandemic pushed millions into extreme povertyHundreds of millions will remain in extreme poverty on current trendsThe rapid progress seen in many countries shows an end to poverty is possibleAfter 200 years of progress the fight against global poverty is just beginningMeasuring global poverty in an unequal worldThere is no single definition of poverty. Our understanding of the extent of poverty and how it is changing depends on which definition we have in mind.In particular, richer and poorer countries set very different poverty lines in order to measure poverty in a way that is informative and relevant to the level of incomes of their citizens.For instance, while in the United States a person is counted as being in poverty if they live on less than roughly $24.55 per day, in Ethiopia the poverty line is set more than 10 times lower – at $2.04 per day. You can read more about how these comparable national poverty lines are calculated in this footnote.1To measure poverty globally, however, we need to apply a poverty line that is consistent across countries.This is the goal of the International Poverty Line of $2.15 per day – shown in red in the chart – which is set by the World Bank and used by the UN to monitor extreme poverty around the world.We see that, in global terms, this is an extremely low threshold indeed – set to reflect the poverty lines adopted nationally in the world’s poorest countries. It marks an incredibly low standard of living – a level of income much lower than just the cost of a healthy diet.From $1.90 to $2.15 a day: the updated International Poverty LineRead moreWhat you should know about this dataGlobal poverty data relies on national household surveys that have differences affecting their comparability across countries or over time. Here the data for the US relates to incomes and the data for other countries relates to consumption expenditure.2The poverty lines here are an approximation of national definitions of poverty, made in order to allow comparisons across the countries.1Non-market sources of income, including food grown by subsistence farmers for their own consumption, are taken into account.3Data is measured in 2017 international-$, which means that inflation and differences in the cost of living across countries are taken into account.4Global extreme poverty declined substantially over the last generationOver the past generation extreme poverty declined hugely. This is one of the most important ways our world has changed over this time.There are more than a billion fewer people living below the International Poverty Line of $2.15 per day today than in 1990. On average, the number declined by 47 million every year, or 130,000 people each day.5The scale of global poverty today, however, remains vast. The latest global estimates of extreme poverty are for 2019. In that year the World Bank estimates that around 650 million people – roughly one in twelve – were living on less than $2.15 a day.Extreme poverty: how far have we come, how far do we still have to go?What you should know about this dataExtreme poverty here is defined according to the UN’s definition of living on less than $2.15 a day – an extremely low threshold needed to monitor and draw attention to the living conditions of the poorest around the world. Read more in our article, From $1.90 to $2.15 a day: the updated International Poverty Line.Global poverty data relies on national household surveys that have differences affecting their comparability across countries or over time.2Surveys are less frequently available in poorer countries and for earlier decades. To produce regional and global poverty estimates, the World Bank collates the closest survey for each country and projects the data forward or backwards to the year being estimated.6Non-market sources of income, including food grown by subsistence farmers for their own consumption, are taken into account.3Data is measured in 2017 international-$, which means that inflation and differences in the cost of living across countries are taken into account.4The pandemic pushed millions into extreme povertyOfficial estimates for global poverty over the course of the Coronavirus pandemic are not yet available.But it is clear that the global recession it brought about has had a terrible impact on the world’s poorest.Preliminary estimates produced by researchers at the World Bank suggest that the number of people in extreme poverty rose by around 70 million in 2020 – the first substantial rise in a generation – and remains around 70-90 million higher than would have been expected in the pandemic’s absence. On these preliminary estimates, the global extreme poverty rate rose to around 9% in 2020.7What you should know about this dataExtreme poverty here is defined according to the UN’s definition of living on less than $2.15 a day – an extremely low threshold needed to monitor and draw attention to the living conditions of the poorest around the world. Read more in our article, From $1.90 to $2.15 a day: the updated International Poverty Line.Figures for 2020-2022 are preliminary estimates and projections by World Bank researchers, based on economic growth forecasts. The pre-pandemic projection is based on growth forecasts prior to the pandemic. You can read more about this data and the methods behind it in the World Bank’s Poverty and Shared Prosperity 2022 report.8Global poverty data relies on national household surveys that have differences affecting their comparability across countries or over time.2Surveys are less frequently available in poorer countries and for earlier decades. To produce regional and global poverty estimates, the World Bank collates the closest survey for each country and projects the data forward or backwards to the year being estimated.6Non-market sources of income, including food grown by subsistence farmers for their own consumption, are taken into account.3Data is measured in 2017 international-$, which means that inflation and differences in the cost of living across countries are taken into account.4Hundreds of millions will remain in extreme poverty on current trendsExtreme poverty declined during the last generation because the majority of the poorest people on the planet lived in countries with strong economic growth – primarily in Asia.The majority of the poorest now live in Sub-Saharan Africa, where weaker economic growth and high population growth in many countries has led to a rising number of people living in extreme poverty.The chart here shows projections of global extreme poverty produced by World Bank researchers based on economic growth forecasts.9A very bleak future is ahead of us should such weak economic growth in the world’s poorest countries continue – a future in which extreme poverty is the reality for hundreds of millions for many years to come.Extreme poverty: how far have we come, how far do we still have to go?What you should know about this dataThe extreme poverty estimates and projections shown here relate to a previous release of the World Bank’s poverty and inequality data in which incomes are expressed in 2011 international-$. The World Bank has since updated its methods, and now measures incomes in 2017 international-$. As part of this change, the International Poverty Line used to measure extreme poverty has also been updated: from $1.90 (in 2011 prices) to $2.15 (in 2017 prices). This has had little effect on our overall understanding of poverty and inequality around the world. You can read more about this change and how it affected the World Bank estimates of poverty in our article From $1.90 to $2.15 a day: the updated International Poverty Line.Figures for 2018 and beyond are preliminary estimates and projections by Lakner et al. (2022), based on economic growth forecasts. You can read more about this data and the methods behind it in the related blog post.10Global poverty data relies on national household surveys that have differences affecting their comparability across countries or over time.2Surveys are less frequently available in poorer countries and for earlier decades. To produce regional and global poverty estimates, the World Bank collates the closest survey for each country and projects the data forward or backwards to the year being estimated.6Non-market sources of income, including food grown by subsistence farmers for their own consumption, are taken into account.3Data is measured in 2011 international-$, which means that inflation and differences in the cost of living across countries are taken into account.4The rapid progress seen in many countries shows an end to poverty is possibleEach of the countries shown in the chart achieved large declines in extreme poverty over the last generation.11The fact that rapid progress against poverty has been achieved in many places is one of the most important lessons we can learn from the available data on extreme poverty.For those who are not aware of such progress – which is the majority of people – it would be easy to make the mistake of believing that poverty is inevitable and that action to tackle poverty is hence doomed to fail.The huge progress seen in so many places shows that this view is incorrect.What you should know about this dataExtreme poverty here is defined according to the UN’s definition of living on less than $2.15 a day – an extremely low threshold needed to monitor and draw attention to the living conditions of the poorest around the world. Read more in our article, From $1.90 to $2.15 a day: the updated International Poverty Line.Global poverty data relies on national household surveys that have differences affecting their comparability across countries or over time.2Non-market sources of income, including food grown by subsistence farmers for their own consumption, are taken into account.3Data is measured in 2017 international-$, which means that inflation and differences in the cost of living across countries are taken into account.4After 200 years of progress the fight against global poverty is just beginningOver the past two centuries the world made good progress against extreme poverty. But only very recently has poverty fallen at higher poverty lines.Global poverty rates at these higher lines remain very high:25% of the world lives on less than $3.65 per day – a poverty line broadly reflective of the lines adopted in lower-middle income countries.47% of the world lives on less than $6.85 per day – a poverty line broadly reflective of the lines adopted in upper-middle income countries.84% live on less than $30 per day – a poverty line broadly reflective of the lines adopted in high income countries.12Economic growth over the past two centuries has allowed the majority of the world to leave extreme poverty behind. But by the standards of today’s rich countries, the world remains very poor. If this should change, the world needs to achieve very substantial economic growth further still.The history of the end of poverty has just begunHow much economic growth is necessary to reduce global poverty substantially?What you should know about this dataThe data from 1981 onwards is based on household surveys collated by the World Bank. Earlier figures are from Moatsos (2021), who extends the series backwards based on historical reconstructions of GDP per capita and inequality data.13All data is measured in international-$ which means that inflation and differences in purchasing power across countries are taken into account.4The World Bank data for the higher poverty lines is measured in 2017 international-$. Recently, the World Bank updated its methodology having previously used 2011 international-$ to measure incomes and set poverty lines. The Moatsos (2021) historical series is based on the previously-used World Bank definition of extreme poverty – living on less than $1.90 a day when measured in 2011 international-$. This is broadly equivalent to the current World Bank definition of extreme poverty – living on less than $2.15 a day when measured in 2017 international-$. You can read more about this update to the World Bank’s methodology and how it has affected its estimates of poverty in our article From $1.90 to $2.15 a day: the updated International Poverty Line.The global poverty data shown from 1981 onwards relies on national household surveys that have differences affecting their comparability across countries or over time.2Such surveys are less frequently available in poorer countries and for earlier decades. To produce regional and global poverty estimates, the World Bank collates the closest survey for each country and projects the data forward or backwards to the year being estimated.6Non-market sources of income, including food grown by subsistence farmers for their own consumption, are taken into account. This is also true of the historical data – in producing historical estimates of GDP per capita on which these long-run estimates are based, economic historians take into account such non-market sources of income, as we discuss further in our article How do we know the history of extreme poverty?Explore Data on PovertyAbout this dataAll the data included in this explorer is available to download in GitHub, alongside a range of other poverty and inequality metrics.Where is this data sourced from?This data explorer is collated and adapted from the World Bank’s Poverty and Inequality Platform (PIP).The World Bank’s PIP data is a large collection of household surveys where steps have been taken by the World Bank to harmonize definitions and methods across countries and over time.About the comparability of household surveysThere is no global survey of incomes. To understand how incomes across the world compare, researchers need to rely on available national surveys.Such surveys are partly designed with cross-country comparability in mind, but because the surveys reflect the circumstances and priorities of individual countries at the time of the survey, there are some important differences.Income vs expenditure surveysOne important issue is that the survey data included within the PIP database tends to measure people’s income in high-income countries, and people’s consumption expenditure in poorer countries.The two concepts are closely related: the income of a household equals their consumption plus any saving, or minus any borrowing or spending out of savings.One important difference is that, while zero consumption is not a feasible value – people with zero consumption would starve – a zero income is a feasible value. This means that, at the bottom end of the distribution, income and consumption can give quite different pictures about a person’s welfare. For instance, a person dissaving in retirement may have a very low, or even zero, income, but have a high level of consumption nevertheless.The gap between income and consumption is higher at the top of this distribution too, richer households tend to save more, meaning that the gap between income and consumption is higher at the top of this distribution too. Taken together, one implication is that inequality measured in terms of consumption is generally somewhat lower than the inequality measured in terms of income.In our Data Explorer of this data there is the option to view only income survey data or only consumption survey data, or instead to pool the data available from both types of survey – which yields greater coverage.Other comparability issuesThere are a number of other ways in which comparability across surveys can be limited. The PIP Methodology Handbook provides a good summary of the comparability and data quality issues affecting this data and how it tries to address them.In collating this survey data the World Bank takes a range of steps to harmonize it where possible, but comparability issues remain. These affect comparisons both across countries and within individual countries over time.To help communicate the latter, the World Bank produces a variable that groups surveys within each individual country into more comparable ‘spells’. Our Data Explorer provides the option of viewing the data with these breaks in comparability indicated, and these spells are also indicated in our data download.Global and regional poverty estimatesAlong with data for individual countries, the World Bank also provides global and regional poverty estimates which aggregate over the available country data.Surveys are not conducted annually in every country however – coverage is generally poorer the further back in time you look, and remains particularly patchy within Sub-Saharan Africa. You can see that visualized in our chart of the number of surveys included in the World Bank data by decade.In order to produce global and regional aggregate estimates for a given year, the World Bank takes the surveys falling closest to that year for each country and ‘lines-up’ the data to the year being estimated by projecting it forwards or backwards.This lining-up is generally done on the assumption that household incomes or expenditure grow in line with the growth rates observed in national accounts data. You can read more about the interpolation methods used by the World Bank in Chapter 5 of the Poverty and Inequality Platform Methodology Handbook.How does the data account for inflation and for differences in the cost of living across countries?To account for inflation and price differences across countries, the World Bank’s data is measured in international dollars. This is a hypothetical currency that results from price adjustments across time and place. It is defined as having the same purchasing power as one US-$ would in the United States in a given base year. One int.-$ buys the same quantity of goods and services no matter where or when it is spent.There are many challenges to making such adjustments and they are far from perfect. Angus Deaton (Deaton, 2010) provides a good discussion of the difficulties involved in price adjustments and how this relates to global poverty measurement.But in a world where price differences across countries and over time are large it is important to attempt to account for these differences as well as possible, and this is what these adjustments do.In September 2022, the World Bank updated its methodology, and now uses international-$ expressed in 2017 prices – updated from 2011 prices. This has had little effect on our overall understanding of poverty and inequality around the world. But poverty estimates for particular countries vary somewhat between the old and updated methodology. You can read more about this update in our article From $1.90 to $2.15 a day: the updated International Poverty Line.To allow for comparisons with the official data now expressed in 2017 international-$ data, the World Bank continues to release its poverty and inequality data expressed in 2011 international-$ as well. We have built a Data Explorer to allow you to compare these, and we make all figures available in terms of both sets of prices in our data download.Absolute vs relative poverty linesThis dataset provides poverty estimates for a range of absolute and relative poverty lines.An absolute poverty line represents a fixed standard of living; a threshold that is held constant across time. Within the World Bank’s poverty data, absolute poverty lines also aim to represent a standard of living that is fixed across countries (by converting local currencies to international-$). The International Poverty Line of $2.15 per day (in 2017 international-$) is the best known absolute poverty line and is used by the World Bank and the UN to measure extreme poverty around the world.The value of relative poverty lines instead rises and falls as average incomes change within a given country. In most cases they are set at a certain fraction of the median income. Because of this, relative poverty can be considered a metric of inequality – it measures how spread out the bottom half of the income distribution is.The idea behind measuring poverty in relative terms is that a person’s well-being depends not on their own absolute standard of living but on how that standard compares with some reference group, or whether it enables them to participate in the norms and customs of their society. For instance, joining a friend’s birthday celebration without shame might require more resources in a rich society if the norm is to go for an expensive meal out, or give costly presents.Our dataset includes three commonly-used relative poverty lines: 40%, 50%, and 60% of the median.Such lines are most commonly used in rich countries, and are the main way poverty is measured by the OECD and the European Union.More recently, relative poverty measures have come to be applied in a global context. The share of people living below 50 per cent of median income is, for instance, one of the UN’s Sustainable Development Goal indicators. And the World Bank now produces estimates of global poverty using a Societal Poverty Line that combines absolute and relative components.When comparing relative poverty rates around the world, however, it is important to keep in mind that – since average incomes are so far apart – such relative poverty lines relate to very different standards of living in rich and poor countries.Does the data account for non-market income, such as food grown by subsistence farmers?Many poor people today, as in the past, rely on subsistence farming rather than a monetary income gained from selling goods or their labor on the market. To take this into account and make a fair comparison of their living standards, the statisticians that produce these figures estimate the monetary value of their home production and add it to their income/expenditure.Show moreResearch & WritingExtreme poverty: how far have we come, how far do we still have to go?Despite making immense progress against extreme poverty, it is still the reality for every tenth person in the world.Max Roser$2.15 a day: the updated International Poverty LineWhat does the World Bank’s updated methods mean for our understanding of global poverty?Joe HasellGlobal poverty over the long-runThe history of the end of poverty has just begunMax RoserHow do we know the history of extreme poverty?Joe Hasell and Max RoserBreaking out of the Malthusian trap: How pandemics allow us to understand why our ancestors were stuck in povertyMax RoserThe short history of global living conditions and why it matters that we know itMax RoserPoverty & Economic GrowthThe economies that are home to the poorest billions of people need to grow if we want global poverty to decline substantiallyMax RoserHow much economic growth is necessary to reduce global poverty substantially?Max RoserGlobal poverty in an unequal world: Who is considered poor in a rich country? And what does this mean for our understanding of global poverty?Max RoserWhat do poor people think about poverty?Max RoserMore Articles on PovertyThree billion people cannot afford a healthy dietHannah RitchieHomelessness and poverty in rich countriesEsteban Ortiz-OspinaHistorical poverty reductions: more than a story about ‘free-market capitalism’Esteban Ortiz-OspinaInteractive Charts on PovertyShare of population living in extreme povertyLine chartDistribution of population between different poverty thresholdsmore thresholdsDistribution of population between different poverty thresholdsHistorical estimates (Moatsos, 2021)How does extreme monetary poverty compare to multidimensional poverty?Current estimatesMedian income or consumption per dayMultidimensional Poverty Index (MPI)Current estimatesNumber of people living in extreme povertyLine chartPoverty gap index at $2.15 per dayPoverty: Share of population living on less than $1 a dayPoverty: Share of population living on less than $3.65 a dayPoverty: Share of population living on less than $6.85 a dayShare in poverty relative to different poverty thresholdsShare of population in multidimensional povertyCurrent estimatesShare of population living in extreme poverty'Cost of basic needs' approach, Historical estimates (Moatsos, 2021), Stacked area chartThe share and number of people living in extreme povertyTotal population living in extreme poverty by world regionCereal yield vs. share in extreme povertyChild mortality vs. share in extreme povertyDeath rate from indoor air pollution vs. share in extreme povertyDeath rate from unsafe water sources vs. share of population living in extreme povertyDistribution of population between different poverty thresholdsfewer thresholdsDistribution of population between different poverty thresholdsExpected years of schooling vs. share in extreme povertyFertility rate vs. share living in extreme povertyGDP per capitaWorld Bank, constant international-$Hidden Hunger Index vs. share in extreme povertyIncome or consumption of the poorest 10%World Bank, MarimekkoIncome or consumption of the poorest 10% vs. GDP per capitaIncome or consumption of the poorest 10% vs. mean incomeIncome or consumption of the poorest and richest 10%Income or consumption of the richest 10%World Bank, MarimekkoIntensity of multidimensional povertyCurrent estimatesIntensity of multidimensional povertyHarmonized over time estimatesMean income or consumption per dayMarimekkoMean income or consumption per day2017 Int-$Mean income or consumption per day vs. GDP per capitaMean vs. median income or consumptionWorld BankMedian income or consumption per day vs. GDP per capitaMultidimensional Poverty Index (MPI)Harmonized over time estimatesNational poverty line vs. GDP per capitaNational poverty line vs. GDP per capitaBy income groupNational poverty line vs. mean daily income or consumptionNational poverty line vs. median income or consumption per dayNumber of income/consumption surveys in the past decade available via the World BankNumber of people living in extreme povertyStacked area chartNumber of people living in extreme poverty by regionHistorical estimates (Moatsos, 2021)Number of people living in extreme poverty by region'Cost of basic needs' approach, Historical estimates (Moatsos, 2021)Poverty: Share of population living on less than $10 a dayLine chartPoverty: Share of population living on less than $10 a dayMarimekkoPoverty: Share of population living on less than $30 a dayPoverty: Share of population living on less than $40 a dayPrevalence of underweight children vs. share in extreme povertyPrevalence vs. intensity of multidimensional povertyCurrent estimatesRelative poverty: Share of people below 40% of median incomeRelative poverty: Share of people below 50% of median incomeRelative poverty: Share of people below 60% of median incomeShare in extreme poverty vs. life expectancyShare in extreme poverty vs. poverty gap indexShare in extreme poverty: Cost of basic needs approach vs. living on less than $1.90 a dayHistorical estimates (Moatsos, 2021)Share in poverty relative to different poverty thresholdsHistorical estimates (Moatsos, 2021)Share in poverty vs. educational attainmentShare in poverty vs. life expectancyShare living on less than $6.85 a day vs. mean income or consumptionShare of government consumption in GDP vs. share of population living in extreme povertyShare of gross national income donated toward poverty reductionShare of gross national income from poverty reduction grantsShare of people at risk of falling into poverty if payment for surgical care is requiredShare of population below and above $30 per dayStacked bar: Above/below $30 per dayShare of population in multidimensional povertyHarmonized over time estimatesShare of population in multidimensional poverty: Urban vs. ruralHarmonized over time estimatesShare of population in multidimensional poverty: Urban vs. ruralCurrent estimatesShare of population living below national poverty linesShare of population living in extreme povertyMarimekkoShare of population living in extreme povertyHistorical estimates (Moatsos, 2021), Line chartShare of population living in extreme povertyHistorical estimates (Moatsos, 2021), Stacked area chartShare of population living in extreme poverty'Cost of basic needs' approach, Historical estimates (Moatsos, 2021), Line chartShare of population living in extreme poverty vs. GDP per capitaShare of population living in extreme poverty vs. mean income or consumption per dayShare of population living with less than $2.15 and $3.65 per dayShare vs. intensity of multidimensional povertyHarmonized over time estimatesTotal shortfall from extreme povertyVaccination coverage vs. share in extreme povertyWorld population living in extreme povertyWorld Bank & Bourguignon and MorrissonChart 1 of 83EndnotesOfficial definitions of poverty in different countries are often not directly comparable due to the different ways poverty is measured. For example, countries account for the size of households in different ways in their poverty measures.The poverty lines shown here are an approximation of national definitions, harmonized to allow for comparisons across countries. For all countries apart from the US, we take the harmonized poverty line calculated by Jolliffe et al. (2022). These lines are calculated as the international dollar figure which, in the World Bank’s Poverty and Inequality Platform (PIP) data, yields the same poverty rate as the officially reported rate using national definitions in a particular year (around 2017).For the US, Jolliffe et al. (2022) use the OECD’s published poverty rate – which is measured against a relative poverty line of 50% of the median income. This yields a poverty line of $34.79 (measured using 2017 survey data). This however is not the official definition of poverty adopted in the US. We calculated an alternative harmonized figure for the US national poverty using the same method as Jolliffe et al. (2022), but based instead on the official 2019 poverty rate – as reported by the U.S. Census Bureau.You can see in detail how we calculated this poverty line in this Google Colabs notebook.Jolliffe, Dean Mitchell, Daniel Gerszon Mahler, Christoph Lakner, Aziz Atamanov, and Samuel Kofi Tetteh Baah. 2022. Assessing the Impact of the 2017 PPPs on the International Poverty Line and Global Poverty. The World Bank. Available to read at the World Bank here.Because there is no global survey of incomes, researchers need to rely on available national surveys. Such surveys are designed with cross-country comparability in mind, but because the surveys reflect the circumstances and priorities of individual countries at the time of the survey, there are some important differences. In collating this survey data the World Bank takes steps to harmonize it where possible, but comparability issues remain.One important issue is that, whilst in most high-income countries the surveys capture people’s incomes, in poorer countries these surveys tend to capture people’s consumption. The two concepts are closely related: the income of a household equals their consumption plus any saving, or minus any borrowing or spending out of savings.One important difference is that, while zero consumption is not a feasible value – people with zero consumption would starve – a zero income is a feasible value. This means that, at the bottom end of the distribution, income and consumption can give quite different pictures about a person’s welfare. For instance, a person dissaving in retirement may have a very low, or even zero, income, but have a high level of consumption nevertheless.The gap between income and consumption is higher at the top of this distribution too, richer households tend to save more, meaning that the gap between income and consumption is higher at the top of this distribution too. Taken together, one implication is that inequality measured in terms of consumption is generally somewhat lower than the inequality measured in terms of income.In our Data Explorer of this data there is the option to view only income survey data or only consumption survey data, or instead to pool the data available from both types of survey – which yields greater coverage.There are a number of other ways in which comparability across surveys can be limited. The PIP Methodology Handbook provides a good summary of the comparability and data quality issues affecting this data and how it tries to address them.In collating this survey data the World Bank takes a range of steps to harmonize it where possible, but comparability issues remain. These affect comparisons both across countries and within individual countries over time.To help communicate the latter, the World Bank produces a variable that groups surveys within each individual country into more comparable ‘spells’ (which we include in our data download). Our Data Explorer provides the option of viewing the data with these breaks in comparability indicated.Many poor people today, as in the past, rely on subsistence farming rather than a monetary income gained from selling goods or their labor on the market. To take this into account and make a fair comparison of their living standards, the statisticians that produce these figures estimate the monetary value of their home production and add it to their income/expenditure.The international-$ is a hypothetical currency that results from price adjustments across time and place. It is defined as having the same purchasing power as one US-$ in a given base year – in this case 2017. One int.-$ buys the same quantity of goods and services no matter where or when it is spent. There are many challenges to making such adjustments and they are far from perfect. But in a world where price differences across countries and over time are large it is important to attempt to account for these differences as well as possible, and this is what these adjustments do. Read more in our article From $1.90 to $2.15 a day: the updated International Poverty Line.According to World Bank data, in 1990 there were 2.00 billion people living in poverty, and in 2019 that had fallen to 0.648 billion. The average fall over the 29 years in between is: (2.00 billion – 0.648 billion)/29 = 46.6 million. Dividing by the number of days (29 x 365) gives the average daily fall: (2.00 billion – 0.648 billion)/(29 x 365) = 128,000. (All figures rounded to 3 significant figures).The projections are generally made on the assumption that incomes or expenditure grow in line with the growth rates observed in national accounts data. You can read more about the interpolation methods used by the World Bank in Chapter 5 of the Poverty and Inequality Platform Methodology Handbook.We use the figures presented in the World Bank’s Poverty and Shared Prosperity 2022 report. Earlier estimates were also published in Lakner, C., Mahler, D.G., Negre, M. et al. How much does reducing inequality matter for global poverty?. J Econ Inequal (2022). https://doi.org/10.1007/s10888-021-09510-w. Available online here.Earlier estimates were also published in Lakner, C., Mahler, D.G., Negre, M. et al. How much does reducing inequality matter for global poverty?. J Econ Inequal (2022). https://doi.org/10.1007/s10888-021-09510-w. Available online here.The figures are taken from a World Bank blog post by Nishant Yonzan, Christoph Lakner and Daniel Gerszon Mahler. The post builds on and updates the estimates published by Lakner et al. (2022).In September 2022, the World Bank changed from using 2011 international-$ to 2017 international-$ in the measurement of global poverty. The International Poverty Line used by the World Bank and the UN to define extreme poverty was accordingly updated from $1.90 a day (in 2011 prices) to $2.15 (in 2017 prices).In order to match up to the projected figures, the extreme poverty estimates shown here relate to a previous release of the World Bank’s data using data expressed in 2011 prices, which vary slightly from the latest data in 2017 prices. You can read more about this change and how it affected the World Bank estimates of poverty in our article From $1.90 to $2.15 a day: the updated International Poverty Line.Lakner, C., Mahler, D.G., Negre, M. et al. How much does reducing inequality matter for global poverty?. J Econ Inequal (2022). https://doi.org/10.1007/s10888-021-09510-w. Available online here.We use the figures provided in the blog post, which extend the methods presented in Lakner et al. (2022).Lakner, C., Mahler, D.G., Negre, M. et al. How much does reducing inequality matter for global poverty?. J Econ Inequal (2022). https://doi.org/10.1007/s10888-021-09510-w. Available online here.Shown are those countries with a decline of more than 30 percentage points over a period of 15 years or more.There are a number of ways in which comparability across the different household surveys on which this data is based can be limited. These affect comparisons both across countries and within individual countries over time.The World Bank’s Poverty and Inequality Platform Methodology Handbook provides a good summary of the comparability and data quality issues affecting this data and how it tries to address them. In collating this survey data the World Bank takes a range of steps to harmonize it where possible, but comparability issues remain. To help communicate the latter, the World Bank produces a variable that groups surveys within each individual country into more comparable ‘spells’. Our Data Explorer provides the option of viewing the data with these breaks in comparability indicated.You can read more about how the World Bank sets these higher poverty lines, as well as the International Poverty Line against which it measures extreme poverty, in our article From $1.90 to $2.15 a day: the updated International Poverty Line. To the three poverty lines adopted officially by the World Bank – $2.15, $3.65 and $6.85 – we add a higher line broadly consistent with definitions of poverty in high income countries. See our article Global poverty in an unequal world: Who is considered poor in a rich country? And what does this mean for our understanding of global poverty?For details of the methods used to produce the long-run poverty data see, Moatsos, M. (2021). Global extreme poverty: Present and past since 1820. In van Zanden, Rijpma, Malinowski and Mira d’Ercole (eds.) How Was Life? Volume II: New Perspectives on Well-Being and Global Inequality since 1820. Available from the OECD here.Cite this workOur articles and data visualizations rely on work from many different people and organizations. When citing this topic page, please also cite the underlying data sources. This topic page can be cited as:Joe Hasell, Max Roser, Esteban Ortiz-Ospina and Pablo Arriagada (2022) - “Poverty” Published online at OurWorldInData.org. Retrieved from: 'https://ourworldindata.org/poverty' [Online Resource]BibTeX citation@article{owid-poverty,author = {Joe Hasell and Max Roser and Esteban Ortiz-Ospina and Pablo Arriagada},
title = {Poverty},
journal = {Our World in Data},
year = {2022},
note = {https://ourworldindata.org/poverty}
}Reuse this work freelyAll visualizations, data, and code produced by Our World in Data are completely open access under the Creative Commons BY license. You have the permission to use, distribute, and reproduce these in any medium, provided the source and authors are credited.The data produced by third parties and made available by Our World in Data is subject to the license terms from the original third-party authors. We will always indicate the original source of the data in our documentation, so you should always check the license of any such third-party data before use and redistribution.All of our charts can be embedded in any site.Our World in Data is free and accessible for everyone.Help us do this work by making a donation.Donate nowAboutContactFeedbackJobsFundingHow to useDonatePrivacy policyLatest workAll chartsTwitterFacebookInstagramThreadsGitHubRSS FeedLicenses: All visualizations, data, and articles produced by Our World in Data are open access under the Creative Commons BY license. You have permission to use, distribute, and reproduce these in any medium, provided the source and authors are credited. All the software and code that we write is open source and made available via GitHub under the permissive MIT license. All other material, including data produced by third parties and made available by Our World in Data, is subject to the license terms from the original third-party authors.Please consult our full legal disclaimer.Our World In Data is a project of the Global Change Data Lab, a registered charity in England and Wales (Charity Number 118643
Goal 1: End poverty in all its forms everywhere - United Nations Sustainable Development
Goal 1: End poverty in all its forms everywhere - United Nations Sustainable Development
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HomeOverview The Sustainable Development AgendaMonitoring and Progress – HLPFFinancing for DevelopmentOverview | High-level Dialogue on Financing for DevelopmentSustainable Development Goals Report 2023The 17 Goals 1-6Goal 1: End poverty in all its formsGoal 2: Zero HungerGoal 3: HealthGoal 4: EducationGoal 5: Gender equality and women’s empowermentGoal 6: Water and Sanitation7-12Goal 7: EnergyGoal 8: Economic GrowthGoal 9: Infrastructure, industrializationGoal 10: InequalityGoal 11: CitiesGoal 12: Sustainable consumption and production13-17Goal 13: Climate ActionGoal 14: OceansGoal 15: Biodiversity, forests, desertificationGoal 16: Peace, justice and strong institutionsGoal 17: PartnershipsGet Involved ActNow for the SDGsClimate Action SuperheroesActNow appThe Lazy Person’s Guide to Saving the WorldSDG Book ClubSDG Book Club | ArchiveYouthPartnerships About PartnershipsSDG Media CompactSDG Media ZoneSDG Publishers CompactSDG AdvocatesFootball For The GoalsSDG Circle of SupportersNews and Events Goal of the MonthGoal of the Month | ArchivePress materialsSDG Editorial CalendarNewsFeatured NewsVideosResources BrandingSDG – ExplainersVirtual Exhibit
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Goal 1: End poverty in all its forms everywhere
Goal 1: End poverty in all its forms everywheredpicampaigns2024-01-24T23:03:13-05:00
Eradicating extreme poverty for all people everywhere by 2030 is a pivotal goal of the 2030 Agenda for Sustainable Development. Extreme poverty, defined as surviving on less than $2.15 per person per day at 2017 purchasing power parity, has witnessed remarkable declines over recent decades.
However, the emergence of COVID-19 marked a turning point, reversing these gains as the number of individuals living in extreme poverty increased for the first time in a generation by almost 90 million over previous predictions.
Even prior to the pandemic, the momentum of poverty reduction was slowing down. By the end of 2022, nowcasting suggested that 8.4 per cent of the world’s population, or as many as 670 million people, could still be living in extreme poverty. This setback effectively erased approximately three years of progress in poverty alleviation.
If current patterns persist, an estimated 7% of the global population – around 575 million people – could still find themselves trapped in extreme poverty by 2030, with a significant concentration in sub-Saharan Africa.
A shocking revelation is the resurgence of hunger levels to those last observed in 2005. Equally concerning is the persistent increase in food prices across a larger number of countries compared to the period from 2015 to 2019. This dual challenge of poverty and food security poses a critical global concern.
Why is there so much poverty
Poverty has many dimensions, but its causes include unemployment, social exclusion, and high vulnerability of certain populations to disasters, diseases and other phenomena which prevent them from being productive.
Why should I care about other people’s economic situation?
There are many reasons, but in short, because as human beings, our well- being is linked to each other. Growing inequality is detrimental to economic growth and undermines social cohesion, increas- ing political and social tensions and, in some circumstances, driving instability and conflicts.
Why is social protection so important?
Strong social protection systems are essential for mitigating the effects and preventing many people from falling into poverty. The COVID-19 pandemic had both immediate and long-term economic consequences for people across the globe – and despite the expansion of social protection during the COVID-19 crisis, 55 per cent of the world’s population – about 4 billion people – are entirely unprotected.
In response to the cost-of-living crisis, 105 countries and territories announced almost 350 social protection measures between February 2022 and February 2023. Yet 80 per cent of these were short-term in nature, and to achieve the Goals, countries will need to implement nationally appropriate universal and sustainble social protection systems for all.
What can I do about it?
Your active engagement in policymaking can make a difference in addressing poverty. It ensures that your rights are promoted and that your voice is heard, that inter-generational knowledge is shared, and that innovation and critical thinking are encouraged at all ages to support transformational change in people’s lives and communities.
Governments can help create an enabling environment to generate pro- productive employment and job opportunities for the poor and the marginalized.
The private sector has a major role to play in determining whether the growth it creates is inclusive and contributes to poverty reduction. It can promote economic opportunities for the poor.
The contribution of science to end poverty has been significant. For example, it has enabled access to safe drinking water, reduced deaths caused by water-borne diseases, and improved hygiene to reduce health risks related to unsafe drinking water and lack of sanitation.
Facts and FiguresGoal 1 TargetsLinksFacts and Figures
If current trends continue, 575 million people will still be living in extreme poverty and only one-third of countries will have halved their national poverty levels by 2030.
Despite the expansion of social protection during the COVID-19 crisis, over 4 billion people remain entirely unprotected. Many of the world’s vulnerable population groups, including the young and the elderly, remain uncovered by statutory social protection programmes.
The share of government spending on essential services, such as education, health and social protection, is significantly higher in advanced economies than in emerging and developing economies.
A surge in action and investment to enhance economic opportunities, improve education and extend social protection to all, particularly the most excluded, is crucial to delivering on the central commitment to end poverty and leave no one behind.
The global poverty headcount ratio at $2.15 is revised slightly up by 0.1 percentage points to 8.5 percent, resulting in a revision in the number of poor people from 648 to 659 million. (World Bank)
Source: The Sustainable Development Goals Report 2023
Goal 1 Targets
1.1 By 2030, eradicate extreme poverty for all people everywhere, currently measured as people living on less than $2.15 a day
1.2 By 2030, reduce at least by half the proportion of men, women and children of all ages living in poverty in all its dimensions according to national definitions
1.3 Implement nationally appropriate social protection systems and measures for all, including floors, and by 2030 achieve substantial coverage of the poor and the vulnerable
1.4 By 2030, ensure that all men and women, in particular the poor and the vulnerable, have equal rights to economic resources, as well as access to basic services, ownership and control over land and other forms of property, inheritance, natural resources, appropriate new technology and financial services, including microfinance
1.5 By 2030, build the resilience of the poor and those in vulnerable situations and reduce their exposure and vulnerability to climate-related extreme events and other economic, social and environmental shocks and disasters
1.A Ensure significant mobilization of resources from a variety of sources, including through enhanced development cooperation, in order to provide adequate and predictable means for developing countries, in particular least developed countries, to implement programmes and policies to end poverty in all its dimensions
1.B Create sound policy frameworks at the national, regional and international levels, based on pro-poor and gender-sensitive development strategies, to support accelerated investment in poverty eradication actions
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Fast Facts: No Poverty
Infographic: No Poverty
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Nowcast of extreme poverty, 2015-2022
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The number of extremely poor people continues to rise in Sub-Saharan Africa
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After several decades of continuous global poverty reduction, a period of significant crises and shocks resulted in around three years of lost progress between 2020-2022. Low-income countries, which saw poverty increase during this period, have not yet recovered and are not closing the gap.
For almost 25 years, extreme poverty was steadily declining. Now, for the first time in a generation, the quest to end poverty has suffered its worst setback. This setback is largely due to major challenges — COVID 19, conflict, and climate change — facing all countries, but in particular those with large poor populations. The increase in extreme poverty from 2019 to 2020 is projected to be larger than any time since the World Bank started tracking poverty globally in a consistent manner. While COVID-19 is a new obstacle, conflicts and climate change have been increasing extreme poverty for years in parts of the world. Explore Data
Globally, extreme poverty has rapidly declined. New poverty estimates by the World Bank suggest that the number of extremely poor people — those who live on $1.90 a day or less — has fallen from 1.9 billion in 1990 to about 736 million in 2015. Read More.
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Philippines
publicationNovember 24, 2022
KEY FINDINGS Overcoming Poverty and Inequality in the Philippines: Past, Present, and Prospects for the Future
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Download the Full ReportThe Philippines has made significant progress in reducing poverty, but income inequality has only recently begun to fall. Thanks to high growth rates and structural transformation, between 1985 and 2018 poverty fell by two-thirds. However, income inequality did not begin to decline until 2012. It is still high: the top 1 percent of earners together capture 17 percent of national income, with only 14 percent being shared by the bottom 50 percent.Several structural factors contribute to the persistence of inequality. The expansion of secondary education and mobility to better-paying jobs, citizen ownership of more assets and access to basic services, and government social assistance have helped reduce inequality since the mid-2000s. However, unequal opportunities, lack of access to tertiary education and a scarcity of skills, coupled with inequality in returns to college education, gendered social norms and childcare, and spatial gaps, sustain inequality.Inequality of opportunity limits the potential for upward mobility. While there has been considerable progress in expanding access to basic services such as electricity, safe drinking water, and school enrollment, large disparities limit the development of human capital. Inequality of opportunity and low intergenerational mobility waste human potential, resulting in a lack of innovation and a misallocation of human capital in the economy.While schooling is widely accessible, its quality and attainment vary by income group. Children from poorer households are less likely to be enrolled and, if they are, to reach age-appropriate grade levels. That means they are less likely to reach tertiary education, which severely constrains their earning potential and their prospects for upward mobility. With the relatively low share of workers with tertiary education, the premium for college education has remained high. Additionally, tertiary education tends to deliver much higher returns for rich than poor households, possibly due to differences in school quality or f ields of study and employment.COVID-19 partly reversed decades-long gains in reducing poverty and inequality. The pandemic halted economic growth momentum in 2020, and unemployment shot up in industries that require inperson work. In 2021, poverty rose to 18.1 percent despite large government assistance. The economy has begun to rebound but signs are emerging that the recovery will be uneven. Prolonged loss of income has taken a heavy toll on the poorest households. With food prices going up and a reliance on adverse coping strategies, among them eating less, there is a risk of serious consequences for the health and nutrition of children in vulnerable households.The shock from the COVID-19 pandemic led to a shift in the workforce to less productive sectors and occupations. Employment in wage work has notably decreased and employment in agriculture has risen. These trends have been concentrated among youth and the least educated, which suggests an uneven recovery and widening income inequality.The pandemic is likely to result in long-term scarring of human capital development. Over half of households estimate that their children learned from remote learning less than half what they would have learned from face-to-face schooling. The proportion increases to 68 percent in poor households. Extended distance learning is expected to have reduced the learning-adjusted years of schooling by over a full year. Learning loss, combined with the de-skilling associated with prolonged unemployment, could lead to sizable future earnings losses.Job polarization could further increase as the nature of work changes. Job polarization among wage workers emerged between 2016 and 2021: employment in middle-skilled occupations went down and employment in both low-skilled and high-skilled occupations went up. This pattern may rise with the transformation of jobs post-COVID-19 and could increase prevailing disparities in incomes.Policy can reduce inequality by supporting employment and workers, improving education access and quality, promoting inclusive rural development, strengthening social protection mechanisms, and addressing inequality of opportunity.
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REPLAY Report Launch Event
SLIDE PRESENTATION by Nadia Belhaj Hassine, Senior Economist, World Bank
PRESS RELEASE "PHILIPPINES: Reducing Inequality Key to Becoming a Middle-Class Society Free of Poverty"
POLICY BRIEF Towards an Inclusive Recovery from COVID-19 Impacts
POLICY BRIEF Structural Transformation, Job Polarization and Inequality in the Philippines
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