Ending Poverty for Half the World Could Take More Than a Century

A newly released World Bank report, Poverty, Prosperity, and Planet, highlights the urgent need for a new global development playbook. At current progress rates, it may take over a century to eradicate poverty for nearly half the world’s population living on less than $6.85 a day. The report offers a sobering post-pandemic assessment of global poverty and shared prosperity efforts, calling for faster, greener, and more inclusive economic growth.

The Poverty Challenge: A Long Road Ahead

Extreme poverty, defined as living on less than $2.15 per day, is concentrated mainly in low-income countries, particularly in Sub-Saharan Africa. Today, 8.5% of the global population—nearly 700 million people—live in extreme poverty. At this rate, eradicating poverty by the 2030 target could take several more decades.

An even larger issue is the broader definition of poverty, which applies to 44% of the world’s population living on less than $6.85 per day, the benchmark for upper-middle-income countries. Due to population growth, the number of people in this category has remained stagnant since 1990, revealing a lack of progress over the past three decades.

World Bank Senior Managing Director Axel van Trotsenburg emphasized the gravity of the situation: “A business-as-usual approach will no longer work. We need a fundamentally new development playbook if we are to truly improve people’s lives and livelihoods and protect our planet.”

Progress Stalled by Crises

The report underscores that the world has suffered major setbacks in its fight against poverty. The COVID-19 pandemic, slow economic growth, rising global debt, and climate shocks have all contributed to stalled progress. Inclusive growth has also slowed, as seen in the Global Prosperity Gap, which reveals that income growth has not kept pace with the needs of the global population.

Developing nations, particularly in Latin America, the Caribbean, and Sub-Saharan Africa, continue to face high levels of income inequality, with 1.7 billion people living in high-inequality economies. This concentration of inequality blocks socioeconomic mobility and hampers efforts to reduce poverty.

Indermit Gill, Chief Economist of the World Bank Group, points out that there are synergies between climate action and development. “Policies to reduce air pollution, for example, contribute both to climate and developmental goals. Investments in education and health in developing countries yield greater poverty reduction than social assistance programs.”

A New Path to Prosperity

The report outlines key strategies for reducing poverty while addressing climate change. It calls for economic growth that is less dependent on carbon emissions and more focused on sustainability and inclusivity. Lower-income countries should prioritize creating jobs, improving access to essential services, and building infrastructure while making themselves more resilient to external shocks. Middle-income countries should focus on policies that reduce their vulnerability to climate and economic risks while growing in ways that lower carbon intensity.

For wealthier nations with higher carbon emissions, the focus should be on significantly reducing emissions while balancing the economic costs and the impact on vulnerable populations.

The Role of Global Cooperation

One of the strongest takeaways from the report is that international cooperation is essential for progress. Increased financing for sustainable development and climate resilience must be prioritized to help countries manage the trade-offs between poverty reduction and climate goals. With the right global commitment, progress can still be achieved, but the clock is ticking.

This report serves as a wake-up call for policymakers and global leaders to rethink their strategies. Fast-tracking inclusive, greener growth is the only way to tackle the intersecting challenges of poverty and climate change. The future of the planet and its people depends on it.