Global Progress Towards Eradicating Poverty Slowed Down Amidst 'Polycrisis'

The World Bank has published its first post-COVID-19 pandemic assessment on global progress towards eradicating poverty and improving shared prosperity, revealing that despite some progress, the world is still far from achieving these goals. The report, titled "Poverty, Prosperity, and Planet Report 2024: Pathways out of the Polycrisis," highlights the pathways out of the current 'polycrisis' for low-income countries, middle-income countries, upper-middle-income countries, and high-income countries.

According to the report, almost 700 million people (8.5% of the global population) live in extreme poverty, with poverty rates higher than before the pandemic in many low-income countries. The number of poor has remained relatively stagnant since the 1990s due to population growth, with 3.5 billion people (44% of the global population) living on less than USD 6.85 per day.

The report finds that Sub-Saharan Africa bears the brunt of extreme poverty, accounting for 67% of those affected, despite housing just 16% of the world's population. Based on current trends, over 622 million people will still live in extreme poverty by 2030, with approximately 69 million projecting an escape from poverty between 2024 and 2030.

Furthermore, the global prosperity gap remains stalled since the pandemic, indicating a lack of progress in reducing income inequality. The report underlines climate change as a significant risk to poverty reduction and notes that people's exposure to climate hazards is likely to rise unless resilience is improved and greenhouse gas emissions are reduced.

To combat these challenges, the World Bank proposes prioritizing data collection for quicker monitoring, understanding trade-offs, scaling synergistic policies, and managing short-term transition costs. It also advocates for international cooperation, closing financing gaps, and transitioning economy towards more sustainable, low-carbon, and resilient economies.

The report's findings were launched ahead of this year's Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group (WBG), serving as a reminder that significant progress is still needed to eradicate poverty and promote shared prosperity on a livable planet.