At the current rate of progress, it could take over a century to eliminate poverty for nearly half of the global population, according to the World Bank's "Poverty, Prosperity, and Planet Report." The report provides an assessment of global efforts post-pandemic to eradicate poverty and promote shared prosperity on a sustainable planet.
The goal to end extreme poverty—defined as living on less than $2.15 per day—by 2030 seems unattainable. It may take more than three decades to achieve this target, which primarily concerns low-income nations. Currently, around 700 million people, or 8.5% of the world's population, live under this threshold. By 2030, this figure is expected to decrease slightly to 7.3%.
Approximately 44% of the global population lives on less than $6.85 per day—the poverty line for upper-middle-income countries—a statistic that has remained stable since 1990 due to population growth.
Axel van Trotsenburg, World Bank Senior Managing Director, stated: “After decades of progress, the world is experiencing serious setbacks in the fight against global poverty.” He cited factors such as slow economic growth, pandemic effects, high debt levels, conflict and fragility, and climate shocks as contributing challenges.
Indermit Gill from the World Bank Group emphasized the need for policies that recognize trade-offs but also exploit synergies among developmental goals. For instance, reducing air pollution can support both climate and development objectives.
The report highlights a stagnation in reducing the Global Prosperity Gap since COVID-19 hit. This gap underscores a lack of inclusive income growth worldwide; incomes must rise five-fold globally to meet high-income country standards of $25 per person daily.
While high income inequality has decreased over ten years, about 1.7 billion people still live in highly unequal economies mainly located in Latin America and Sub-Saharan Africa.
With nearly one-fifth of the global population at risk from severe weather events linked to climate change—particularly in Sub-Saharan Africa—future strategies must focus on economic growth with reduced carbon emissions intensity.
For low-income countries aiming at poverty reduction through economic expansion should involve investment in job creation and human capital development while building resilience. Middle-income countries should focus on reducing vulnerability through income growth policies that also address carbon emission reductions.
High-income nations need strategies targeting emission cuts while mitigating short-term negative impacts like job losses among vulnerable populations.
Finally, international cooperation and increased financial resources are deemed essential for transitioning towards more sustainable and inclusive economies globally.