UN’s Goal of Ending Extreme Poverty by 2030 Unlikely, Says World Bank Report
A new report by the World Bank has revealed that the United Nations’ (UN) goal of ending extreme poverty by 2030 is no longer feasible due to a combination of factors, including wars, huge debt, climate crisis, and the COVID-19 pandemic.
According to the ‘Poverty, Prosperity, and Planet Report’, the global goal of ending extreme poverty, defined as $2.15 per person per day, by 2030, is out of reach. The report states that it could take three decades or more to eliminate poverty at this threshold, which is relevant primarily for low-income countries.
The report highlights that almost 700 million people, or 8.5% of the global population, live on less than $2.15 per day, with 7.3% of the population projected to be living in extreme poverty in 2030. The number of people living under this poverty line has barely changed since 1990 due to population growth.
The report also notes that it would take even longer – more than a century – to meet a more ambitious objective of raising incomes above the $6.85 a day deemed to be the poverty threshold for upper-middle-income countries. Today, 44% of the world’s population lives on less than $6.85 a day, the poverty line for upper-middle-income countries.
The report emphasizes that reducing extreme poverty requires economic growth that is less carbon emissions-intensive than in the past. It also highlights the need for a tailored approach based on each country’s income level, prioritizing certain policies and managing synergies and trade-offs across goals.
The World Bank’s Senior Managing Director, Axel van Trotsenburg, said, "After decades of progress, the world is experiencing serious setbacks in the fight against global poverty, a result of intersecting challenges that include slow economic growth, the pandemic, high debt, conflict and fragility, and climate shocks. Amid these overlapping crises, a business-as-usual approach will no longer work. We need a fundamentally new development playbook if we are to truly improve people’s lives and livelihoods and protect our planet."
The report also notes that reducing poverty at the higher standard of $6.85 per day could lead to a significant increase in emissions, and that each country needs a tailored approach based on their income level, prioritizing certain policies and managing synergies and trade-offs across goals.
The World Bank’s Chief Economist, Indermit Gill, said, "Low-income countries and emerging market economies will do well to acknowledge the inevitability of tradeoffs among these objectives, but also to appreciate some synergies. Policies to reduce air pollution, for example, contribute both to climate and developmental goals. Sustained investments in education and health provide higher poverty and prosperity-related payoffs in developing countries than do tax-financed social assistance programs."
The report emphasizes that strengthening international cooperation and boosting finance for development are critical for a successful transition towards more sustainable, inclusive, and resilient economies.
