An Article by World Vision Organization
The world has made huge strides in overcoming global poverty. Since 1990, more than 1.2 billion people have risen out of extreme poverty. Now, 9.2% of the world survives on $1.90 a day or less, compared to nearly 36% in 1990.
But the COVID-19 pandemic threatens to reverse decades of progress in the fight against global poverty and income inequalities, and it jeopardizes the future of a generation of children.
While the full impact of the COVID-19 pandemic is unknown, the World Bank estimates that an additional 88 million to 115 million people will fall into extreme poverty in 2020, with the total rising to as many as 150 million by 2021.
When families move out of poverty, children’s health and well-being improve. Since 1990, the number of children under the age of 5 dying — mostly from preventable causes such as poverty, hunger, and disease — is less than half of what it was, dropping from nearly 35,000 a day to about 14,200.
World Vision is committed to ending poverty and helping every child experience Jesus’ promise of life in all its fullness (John 10:10). Though eradicating global poverty is hard, particularly in fragile contexts, World Vision believes there is reason to hope.
Ending global poverty is a priority not only for World Vision. By 2030, as part of the United Nations’ Sustainable Development Goals, global leaders aim to eradicate extreme poverty for all people everywhere.
Help end global poverty.
FAQs: What you need to know about global poverty
Explore frequently asked questions about extreme poverty, poverty statistics, and learn how you can help end global poverty.
Fast facts: Global poverty
- 689 million people live in extreme poverty, surviving on less than $1.90 a day.
- Children and youth account for two-thirds of the world’s poor, and women represent a majority in most regions.
- Extreme poverty is increasingly concentrated in sub-Saharan Africa. About 40% of the region’s people live on less than $1.90 a day.
- Extreme poverty rates nearly doubled in the Middle East and North Africa between 2015 and 2018, from 3.8% to 7.2%, mostly because of crises in Syria and Yemen.
- Although countries impacted by fragility, crises, and violence are home to about 10% of the world’s population, they account for more than 40% of people living in extreme poverty. By 2030, an estimated 67% of the world’s poor will live in fragile contexts.
- About 70% of people older than 15 who live in extreme poverty have no schooling or only some basic education.
- 1.3 billion people in 107 developing countries, which account for 22% of the world’s population, live in multidimensional poverty.
- 644 million children are experiencing multidimensional poverty.
How many people live in poverty in the world?
Recent estimates for global poverty are that 9.2% of the world, or 689 million people, live in extreme poverty on $1.90 or less a day, according to the World Bank.
In the United States, 11.8% of the population or 38.1 million people, live in poverty — with an income of less than $33.26 per day — according to the 2018 census.
These numbers are calculated based on income and a person’s ability to meet basic needs. However, when looking beyond income to people experiencing deprivation in health, education, and living standards, 1.3 billion people in 107 developing countries are multidimensionally poor, according to a 2020 report by the U.N. Development Program.
How can I help end global poverty?
- Learn more about World Vision’s work to eradicate global poverty.
- Pray with us for World Vision’s work around the world using Matthew 25 prayer guides.
- Give to bring lasting change around the world by delivering life-saving help where it’s needed most.
- Sponsor a child to help provide access to essentials such as clean water, healthcare, economic opportunity, and education. For $39 a month, you’ll help that child and their community to stand tall, free from poverty.
What is poverty?
Although poverty is often discussed in terms of dollar amounts, quality of life is also part of the conversation. Living in poverty means a life of struggle and deprivation.
Children living in poverty often lack access to quality education. Sometimes it’s because there are not enough quality schools, their parents cannot afford school fees, or because impoverished families need their children to work. Without a quality education, children grow up being unable to provide for their own children — thus the generational cycle of poverty.
Living in poverty also means not being able to afford a doctor or medical treatment. It means no electricity, limited shelter, and often little to no food on the table. For young children, improper nutrition can mean stunting and wasting that permanently impact their development. In impoverished countries where many people lack access to clean water and sanitation, poverty means the spread of preventable diseases and the unnecessary death of children.
Historically, poverty has been calculated based on a person’s income and how much he or she can buy with that income, but new multidimensional measures are more holistic.
What is extreme poverty?
Since 2015, the World Bank has defined extreme poverty as people living on $1.90 or less a day, measured using the international poverty line. But extreme poverty is not only about low income; it is also about what people can or cannot afford.
Extreme poverty is identified in two ways: absolute poverty and relative poverty.
What is absolute poverty and relative poverty?
Absolute poverty is when a person cannot afford the minimum nutrition, clothing, or shelter needs in their country.
Relative poverty is a household income below a certain percentage, typically 50% or 60%, of the median income of that country. This measurement takes into consideration the subjective cost of participating in everyday life. For example, plumbing is a necessity in some places; without plumbing, a person could be considered impoverished. But, in other places plumbing is a luxury. Relative poverty is useful for considering income inequality within a country.
What is multidimensional poverty?
Multidimensional poverty acknowledges that poverty isn’t always about income. Sometimes a person’s income might be above the poverty line, but their family has no electricity, no access to a proper toilet, no clean drinking water, and no one in the family has completed six years of school.
The Global Multidimensional Poverty Index looks beyond income to measure a person’s healthcare, education, and living standards to determine poverty levels. It was developed in 2010 by the U.N. Development Program and the Oxford Poverty and Human Development Initiative.
Within the categories of health, education, and living standards, there are 10 key indicators of multidimensional poverty that include nutrition, child mortality, years of schooling, school attendance, cooking fuel, sanitation, drinking water, electricity, housing, and assets. If a person is experiencing deprivation in three or more of these standards, then he or she is multidimensionally poor.
The Global Multidimensional Poverty Index offers a thorough look at poverty and can provide guidance for the specific interventions necessary in each country to eliminate poverty.
How is poverty measured?
Poverty is measured by each country’s government, which gathers data through household surveys of their own population. Entities like the World Bank provide support and may conduct their own surveys, but this data collection is time-consuming and slow. New forms of high-frequency surveys using estimates and mobile phone technology are being developed and tested.
What is a poverty line, and how are poverty lines calculated?
A poverty line, also called a poverty threshold, is the line below which it is difficult, if not impossible, to afford basic needs. The poverty line is determined in each country by adding up the cost of meeting minimum needs, such as food and shelter. Household incomes that are too low to afford minimum needs, such as food and shelter, are below the poverty line.
The income necessary to afford meeting minimum needs typically sets the poverty line for a country. Poverty lines can then be compared between countries. The international poverty line is the standard poverty line for measuring poverty globally. However, relatively new measures such as the Global Multidimensional Poverty Index include measurements of health, education, and living standards, all as signs of poverty.
Is the poverty line the same in every country?
Poverty lines are not the same in all countries. In higher-income countries, the cost of living is higher and so the poverty line is higher, too. In 2017, the World Bank announced new median poverty lines, grouping countries into low-income, middle-income, and high-income countries and finding the median poverty line for those groups:
- $1.91 per person per day — in 33 low-income countries
- $3.21 per person per day — in 32 lower-middle-income countries, such as India and the Philippines
- $5.48 per person per day — in 32 upper-middle-income countries, such as Brazil and South Africa
- $21.70 per person per day — in 29 high-income countries
What is the international poverty line?
The international poverty line, currently set at $1.90 a day, is the universal standard for measuring global poverty. This line helps measure the number of people living in extreme poverty and helps compare poverty levels between countries.
As the cost of living increases, poverty lines increase too. Since 1990, the international poverty line rose from $1 a day, to $1.25 a day, and most recently in 2015 to $1.90. This means that $1.90 is necessary to buy what $1 could in 1990.
In addition to the lowest-income poverty line at $1.90, the World Bank also reports poverty rates using two new international poverty lines: a lower middle-income line set at $3.20/day and an upper middle-income line set at $5.50 a day.
What is the poverty line in the United States?
In the U.S. for a family a four, the poverty line is $26,200 a year. This means that families who earn less than that cannot afford rent, food, or other basic needs. For an individual in the U.S., the poverty line is $12,760 a year, or $34.96 per day. This poverty guideline is calculated based on information from the Census Bureau and is updated by evaluating recent price changes using the Consumer Price Index.
What was the war on poverty?
President Lyndon Johnson in 1964 coined the term “war on poverty.” In President Johnson’s first State of the Union address, he acknowledged that one-fifth of Americans were living in poverty and called for “a national war on poverty.” With his war on poverty, President Johnson launched Medicare and Medicaid, expanded social security benefits, solidified the food stamps program, and subsidized school districts with a large share of impoverished students.
What causes poverty?
The root causes of poverty are not only a lack of access to basic necessities of life like water, food, shelter, education, or healthcare. Inequities including gender or ethnic discrimination, poor governance, conflict, exploitation, and domestic violence also cause poverty. These inequities not only lead a person or a society into poverty but can also restrict access to social services that could help people overcome poverty.
The places most entrenched in poverty are fragile contexts, which can be entire countries or areas of a country. In fragile states, children and communities face higher rates of poverty due to political upheaval, past or present conflict, corrupt leaders, and poor infrastructure that limits access to education, clean water, healthcare, and other necessities.
What is the cycle of poverty?
Poverty can be a trap. For someone to get out of poverty, they need opportunities such as education, clean water, medical facilities nearby, and financial resources. Without these basic elements, poverty becomes a cycle from one generation to the next.
If families are too poor to send their children to school, their children will have a difficult time earning an income when they grow up. If a community lacks clean water, women will spend much of their day fetching water instead of earning an income. If medical facilities are far away, a parent loses income every time they take a sick child to the doctor.
Natural disasters and conflict can add to the cycle of poverty or add people to it. When a natural disaster strikes an impoverished community without functional public institutions, families are more vulnerable and often lack basic resources to recover, thus further entrenching a community in poverty or jeopardizing one that had recently emerged.
How can we end global poverty?
We can help end global poverty by identifying what is causing poverty in a particular community and then determining what needs to change. Because poverty looks different in various places and is caused by different factors, the work to eradicate global poverty varies on the context.
World Vision works with a “Theory of Change” for each community. In partnership with the community members, we determine the desired outcomes for that community and identify key steps to reach that outcome. The desired outcomes might be the same for many communities, but the path to get there depends on the context and the resources available.
Perhaps infrastructure needs to be improved with new schools, medical clinics, or access to clean water. Or maybe, people need more economic resources to help boost their income so they can better provide for themselves and their families. Regardless of the solution, to ensure poverty doesn’t return, the work must be sustainable. So, the community must be involved in each step.
To end extreme poverty, the U.N. estimates that the total cost per year would be about $175 billion, less than 1% of the combined income of the richest countries in the world.
What progress has been made in reducing global poverty?
Since 1990, more than 1 billion people have been lifted out of extreme poverty and child mortality has dropped by more than half. Reducing extreme poverty rates was a central goal in the Millennium Development Goals — eight goals signed by all United Nations member states in 2000 with a goal to achieve them by 2015. Since then, the world has made much progress in reducing global poverty.
What are the Sustainable Development Goals?
The Sustainable Development Goals are a plan of action for countries worldwide to unify in a global partnership for the benefit of people, the planet, and prosperity. By 2030, the Sustainable Development Goals aim to end extreme poverty for all people everywhere and at least cut in half the proportion of people living in poverty in all its forms. The United Nations’ member states adopted this goal to end poverty as one of 17 goals in September 2015.
How is Princess Pantry Inc. helping the community of Granada Nicaragua?
Since 2007, Princess Pantry has been involved with the community in bringing medical supplies, food, and sponsorship to children’s athletics in an effort to minimize the impact that poverty has on them. In collaboration with new and active donors we work together as a team and bring the hope they need for that one push they need to overcome their necessity.
With our donors’ support, in a single year we worked to:
- Bring much needed medical equipment and supplies to patients in rural areas.
- Assist struggling families with food banks year round.
- Sponsor community Youth Athletics.
- Provide food baskets to struggling families during the holidays.
As a child-focused organization, Princess Pantry Inc. sees children as a community’s most precious resource and central to addressing poverty. Our development approach focuses on children and seeks to empower their families, local communities, and partners to address the underlying causes of poverty, so children and the community can prosper.
Since poverty is different in each context, Princess Pantry Inc. works with communities, families, local leaders, and children themselves to identify solutions and transform lives. We are expanding our focus to fragile contexts because, although they are difficult places to work, they are also where the most vulnerable children increasingly live. By 2030, it is estimated that 67% of the world’s extremely poor will live in fragile contexts.