The World Bank Group’s mission is carved in stone at our Washington headquarters: “Our Dream is a World Free of Poverty.” This mission underpins all of our analytical, operational, and convening work in more than 145 client countries, and is bolstered by our goals of ending extreme poverty within a generation and promoting shared prosperity in a sustainable manner across the globe.
There has been marked progress on reducing poverty over the past decades. The world attained the first Millennium Development Goal target—to cut the 1990 poverty rate in half by 2015—five years ahead of schedule, in 2010. Despite the progress made in reducing poverty, the number of people living in extreme poverty globally remains unacceptably high. And given global growth forecasts, poverty reduction may not be fast enough to reach the target of ending extreme poverty by 2030.
- According to the most recent estimates, in 2015, 10 percent of the world’s population lived on less than US$1.90 a day, compared to 11 percent in 2013. That’s down from nearly 36 percent in 1990.
- Nearly 1.1 billion fewer people are living in extreme poverty than in 1990. In 2015, 736 million people lived on less than $1.90 a day, down from 1.85 billion in 1990.
While poverty rates have declined in all regions, progress has been uneven:
- Two regions, East Asia and Pacific (47 million extreme poor) and Europe and Central Asia (7 million) have reduced extreme poverty to below 3 percent, achieving the 2030 target.
- More than half of the extreme poor live in Sub-Saharan Africa. In fact, the number of poor in the region increased by 9 million, with 413 million people living on less than US$1.90 a day in 2015, more than all the other regions combined. If the trend continues, by 2030, nearly 9 out of 10 extreme poor will be in Sub-Saharan Africa.
- The majority of the global poor live in rural areas, are poorly educated, employed in the agricultural sector, and under 18 years of age.
The work to end extreme poverty is far from over, and many challenges remain. In much of the world, growth rates are too slow, and investment is too subdued to increase median incomes. For many nations, poverty reduction has slowed or even reversed. The latest projections show that if we continue down a business-as-usual path, the world will not be able to eradicate extreme poverty by 2030. That’s because it is becoming even more difficult to reach those remaining in extreme poverty, who often live in fragile countries and remote areas.
Access to good schools, health care, electricity, safe water, and other critical services remains elusive for many people, often determined by socioeconomic status, gender, ethnicity, and geography. The multidimensional view—wherein other aspects such as education, access to basic utilities, health care, and security are included—reveals a world in which poverty is a much broader, more entrenched problem. The share of poor according to a multidimensional definition that includes consumption, education, and access to basic utilities is approximately 50 percent higher than when relying solely on monetary poverty.
Moreover, for those who have been able to move out of poverty, progress is often temporary: Economic shocks, food insecurity and climate change threaten to rob them of their hard-won gains and force them back into poverty. It will be critical to find ways to tackle these issues as we make progress toward 2030.
Last Updated: Oct 02, 2019