Ours is a world out of balance. Of the six billion people living in the world today, one billion receive 80 percent of global income, while more than one billion barely survive on less than a dollar a day. And, while developed countries spend $600 billion a year on defense, and incur $300 billion in direct and indirect agricultural subsidies, they offer only $56 billion a year in aid to developing countries.

Over the next 25 years, 50 million people will be added to the population of rich countries. But over the same period, about one and a half billion people will be added to the population of poor countries. Today, more than 2.9 billion people—nearly half the world's population—are under the age of 25. Many of these young people will experience poverty and unemployment. Disillusioned with what they will see as an inadequate global system, many will leave their homes, and often their countries, to find work.

The world is moving—but still too slowly— to address these issues. In 2000, world leaders gathered at the Millennium Summit to assess the future. They committed to cutting poverty in half by 2015—the foremost of a broad set of targets called the Millennium Development Goals. The other targets to be met by 2015 are achieving universal primary education; obtaining equality for girls and women; reducing child mortality; improving maternal health; combating the spread of HIV/AIDS, malaria and other diseases; protecting the environment and fostering a global partnership for development.

The global community can rise to meet the challenges presented by the Millennium Development Goals if the considerable progress of recent decades serves as a guide.

Over the past 40 years, life expectancy in developing countries has increased by 20 years—about as much as was achieved in all of human history prior to the middle of the 20th century. Over the past 30 years, adult illiteracy in the developing world was nearly halved to 25 percent from 47 percent. Over the past 20 years, the absolute number of people living on less than one dollar a day has for the first time begun to fall, even as the world's population has grown by 1.6 billion people. Over the last decade, economic growth in the developing world has outpaced that in the developed countries.

However, at current rates of progress, only the Millennium Goal of halving poverty is likely to be met by 2015. Thanks in particular to poverty reduction efforts in China and India, the proportion of people living on less than one dollar a day by 2015 is projected to decrease to just over 12 percent from more than 28 percent, bringing half a billion people out of poverty. Unfortunately, in parts of South Asia, the poverty reduction picture is less promising. In Sub-Saharan Africa, the number of people living in absolute poverty is actually projected to increase. On many of the other Millennium Development Goals, progress is lagging in virtually all regions.

Extraordinary efforts are required by developing and developed countries if these targets are to be met. In the past two years, global leaders at meetings in Monterrey, Doha and Johannesburg agreed on a course of action to meet these goals.

Developing countries agreed to strengthen governance, create a positive investment climate, build transparent legal and financial systems, and fight corruption. Developed countries agreed to support these efforts by increasing aid and better aligning it to national strategies, opening their markets more to trade, and offering more generous debt relief. Poverty reduction strategies or national development plans now provide the framework for the actions of countries and their partners to come together in accelerating progress towards the Millennium Development Goals. While this is a promising beginning, even more and better aid, greater market access and deeper debt relief are still needed.

Based on current rates of reform, developing countries could productively absorb twice the $16 billion a year in additional aid already promised through 2006 and in the medium-term, perhaps as much as another $50 billion a year as they further strengthen their policies and their capacity to absorb additional financing.

The World Bank recognizes the urgent need to act, and to ensure that successes in one project, in one country, or in one region lead to similar advances in others. Building on what has worked and learning from what has not, the Bank and its partners are seeking to broaden our understanding of the most effective ways to reduce poverty. Most of all, we have come to appreciate the central role poor people themselves must play as entrepreneurs and problem-solvers if long-lasting solutions are to be found and funded.

This booklet, along with its accompanying report, provides a snapshot of the World Bank's efforts to work with governments, civil society, other aid agencies and communities worldwide to help developing countries get better results and achieve the Millennium Development Goals.

Reaching these goals, and in so doing restoring balance to the world, requires that we act now. For all of us, it is time to implement the global bargain that was agreed in Monterrey, Doha and Johannesburg. We know what is needed to reduce poverty. What we now need is action.

James D. Wolfensohn
President of the World Bank