Understanding the Distribution, Characteristics, and Challenges of Poverty Worldwide
Poverty remains a persistent challenge globally, affecting millions across various continents. This report delves into the distribution of poverty, identifying where the world’s poorest populations reside, the disparities faced across regions, and the specific deprivations affecting those living in poverty. The data reveals striking contrasts in poverty incidence and the severe conditions faced by disadvantaged communities, particularly in Sub-Saharan Africa and South Asia.
Who are the 1.1 billion people living in poverty, and where do they reside?
In 112 countries, 1.1 billion people out of 6.3 billion are living in poverty. Nearly half (48.2 percent) of these poor people live in Sub-Saharan Africa (553 million), and over a third (35.0 percent) live in South Asia (402 million). Therefore, 83.2 percent of poor people live in these two regions, while 9.1 percent live in East Asia and the Pacific (104 million), 4.6 percent in the Arab States (53 million), 3.0 percent in Latin America and the Caribbean (34 million), and 0.2 percent in Europe and Central Asia (2 million).
Low HDI Countries and Poverty Rates
Countries with the lowest Human Development Index (HDI) values tend to have the highest Multidimensional Poverty Index (MPI) values and the highest proportions of people in poverty. However, a significant share of poor people also lives in medium HDI countries. Approximately 53.3 percent of all poor people live in low HDI countries, which corresponds to over half of all poor people (613 million). For instance, low HDI countries such as Niger, Chad, Central African Republic, Burundi, and others have MPI values indicating that 64.5-91.0 percent of people are living in poverty.
Countries with the Largest Number of Poor People
The five countries with the largest number of people living in poverty are India (234 million), Pakistan (93 million), Ethiopia (86 million), Nigeria (74 million), and the Democratic Republic of the Congo (66 million). Together, these five countries account for nearly half (48.1 percent) of the 1.1 billion poor people.
Poverty in Low-Income and Middle-Income Countries
Low-income countries are home to only 10.2 percent of the population covered but account for 34.8 percent of all poor people (400 million). Lower middle-income countries are home to 56.3 percent of all poor people, and upper middle-income countries to 8.9 percent. Thus, 65.2 percent of poor people (749 million) live in middle-income countries.
Post-COVID-19 Data on Poverty
A total of 144 million poor people live in 19 countries with data from 2021/22 or later, which may be considered post–COVID-19 pandemic data. These 19 countries account for only 12.5 percent of the 1.1 billion poor people, indicating that post-pandemic data are still lacking for most countries. This emphasizes the urgent need for the data revolution to prioritize poverty data from household surveys.
Where Do the Poorest People Live?
Most poor people live in rural areas. Of the 1.1 billion poor people, 962 million (83.7 percent) live in rural areas. This rural–urban poverty disparity is stark globally, with 28.0 percent of the rural population living in poverty compared to just 6.6 percent in urban areas. Around 70.7 percent of all poor people live in rural areas of Sub-Saharan Africa (463 million) and South Asia (350 million).
Subnational Disparities in Poverty
Substantial disparities exist across 1,359 subnational regions. In Sub-Saharan Africa’s 550 subnational regions, 303 regions, home to 80.4 percent of poor people in the region, have an incidence of poverty of 50 percent or higher. The incidence of poverty is also over 50 percent for 34 of the 124 subnational regions in South Asia. In Afghanistan, poverty ranges from 27.9 percent in Kabul to 91.1 percent in Zabul, with over 87.5 percent of people being poor in seven provinces. Across the Arab States, poverty rates exceed 50 percent in 19 of the 144 subnational regions.
Children Experience Higher Incidence of Poverty
Of the 1.1 billion people living in poverty, over half (584 million) are children under the age of 18. Across all 112 countries, 27.9 percent of children are multidimensionally poor, more than twice the proportion of adults (13.5 percent). Sub-Saharan Africa accounts for over half of poor children, with 317 million children, followed by South Asia with 184 million poor children.
Child Poverty in Low-Poverty Contexts
Even in countries with a low incidence of poverty, child poverty remains a significant concern. In Argentina, where the incidence of poverty is 0.4 percent, the share of children among all poor people is 53.7 percent. In Turkmenistan, Tonga, and Jordan, children continue to represent a substantial portion of the poor population, even when overall poverty rates are low.
Deprivations Experienced by Poor People
The largest numbers of poor people are deprived in cooking fuel, housing, and sanitation. However, deprivations in nutrition, child mortality, years of schooling, and school attendance carry a higher weight in contributing to poverty. Of the 1.1 billion poor people, 828 million lack adequate sanitation, 886 million lack housing, and 998 million lack cooking fuel. In South Asia, 272 million poor people are deprived in nutrition, and in Sub-Saharan Africa, 256 million.
Lack of Basic Amenities
Over half of all poor people lack electricity (579 million), and over half live in households where no member has completed six years of schooling (590 million). Nearly half are deprived of drinking water (513 million), and 482 million live in households where one or more children are out of school. These deprivations illustrate the severity of multidimensional poverty.
Poverty in Burkina Faso
A detailed examination of Burkina Faso (2021), a country at war, reveals considerable subnational disparities, with incidences of poverty ranging from 20.6 percent to 88.1 percent and MPI values from 0.088 to 0.614. School attendance, nutrition, and years of schooling are primary contributors, and in nine of the 13 subnational regions, the incidence of poverty is above 70.0 percent.
Addressing Multidimensional Poverty
To end poverty in all its forms, it is essential to address the interlinked deprivations that poor people face in order to reduce the intensity of poverty and empower them to exit poverty. People living in multidimensional poverty experience multiple deprivations simultaneously, underscoring the need for comprehensive strategies to combat poverty effectively.
(India CSR)
