World Bank Warns Poverty Eradication for Half the World May Take Over a Century

ISLAMABAD/WASHINGTON: At the current sluggish pace, eradicating poverty for nearly half the world’s population, those living on less than $6.85 per day, could stretch beyond a century, according to the World Bank‘s recent Poverty, Prosperity, and Planet Report. This marks the first post-pandemic review of global poverty and prosperity progress, outlining the struggles many countries face.

The global target to end extreme poverty – defined as surviving on $2.15 per day – by 2030 appears increasingly out of reach. Nearly 700 million people, or 8.5% of the world’s population, currently live below this threshold, with projections indicating that 7.3% may still be living in extreme poverty by 2030. These conditions are most severe in low-income nations, particularly across Sub-Saharan Africa.

World Bank Senior Managing Director Axel van Trotsenburg highlighted, “After decades of progress, the world is experiencing serious setbacks in the fight against global poverty.” He emphasized the need for a new, robust approach, as ongoing crises like the pandemic, conflicts, and climate shocks stall progress.

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Chief Economist Indermit Gill pointed to policy trade-offs and synergies in achieving poverty reduction and environmental goals. “Policies to reduce air pollution, for example, contribute both to climate and developmental goals,” said Gill. Investing in education and health yields high returns in developing countries, while innovative agricultural policies can support both prosperity and climate goals.

The report also reveals a concerning halt in the Global Prosperity Gap metric since COVID-19, noting that average global incomes would need to increase fivefold to meet the minimum prosperity standard of $25 per person per day. Around 1.7 billion people, mainly in Latin America, the Caribbean, and Sub-Saharan Africa, still reside in high-inequality economies, limiting social mobility and stifling inclusive growth.

With climate-related shocks further hindering recovery, especially in Sub-Saharan Africa, the report stresses the need for sustainable growth. While reducing extreme poverty has a limited carbon impact, alleviating poverty at $6.85 per day could lead to higher emissions, necessitating tailored policies for each income level to balance poverty reduction with climate goals.

The report calls for a unified global effort and increased financing to build resilient, inclusive economies that can withstand future crises.