The World Bank offers financing, data, knowledge, policy advice, and technical assistance to help countries achieve their development goals and address global challenges. Our experience on the ground spans countries, regions, and sectors, while our data and research inform policy-making and operations. This work is further strengthened through engagement with a wide range of partners to achieve shared goals.
Correcting course to accelerate poverty reduction
Amid a crisis of development spurred by successive global shocks, the Bank remains focused on assessing the impacts on the world’s poorest and most vulnerable. Issued in October 2022, our Poverty and Shared Prosperity Report: Correcting Course found that the COVID-19 pandemic dealt the biggest setback to global poverty reduction in decades, increasing the global extreme poverty rate to an estimated 9.3 percent in 2020—up from 8.4 percent in 2019. It is estimated that the pandemic pushed about 70 million people into extreme poverty in 2020, the largest one-year increase since global poverty monitoring began in 1990. An estimated 719 million people subsisted on less than $2.15 a day by the end of 2020. Going forward, several long-term trends will make the fight against poverty more difficult. Along with the pandemic, the path to equitable growth has become more challenging due to growing debt burdens, inflation, and rising costs of finance. The effects of climate change on growth are becoming ever more visible, particularly for poorer countries.
Helping achieve inclusive economic growth that lifts people out of poverty is at the core of our support to countries. This includes measuring, monitoring, and analyzing data to help policy makers better understand the economics behind poverty and inequality. It also means elevating poverty reduction and equitable growth in the development discourse, sharing policy analysis for development that targets poverty, and reinforcing the important links between climate action and equity.
Convening global stakeholders around key development issues remains central to our work. We shared insights on fiscal policy options that can support the most vulnerable people in developing countries, with a focus on taxes, transfers, and subsidies. We also facilitated discussions and exchanged knowledge on rapidly monitoring poverty and welfare during times of crisis, more targeted poverty mapping, the role of social norms in shaping economic development, and rethinking reforms of state-owned enterprises.
Our core analytical work included the latest Poverty and Equity Briefs and Country Poverty Assessments, along with tools and methods to assess the poverty and equity impacts of climate risks in the Bank’s new Country Climate and Development Reports.