The World Bank has highlighted the impact of limited data from large countries such as Nigeria and Ethiopia on global poverty estimates.
In a new report, Poverty, Prosperity and the Planet, the bank notes that the lack of recent survey data from these populous countries makes it difficult to measure global poverty, particularly in the regions where it is most severe. He said there is uncertainty.
“Although there is ample recent global data, there is a dearth of available survey data from populous countries such as Ethiopia and Nigeria, which makes it difficult to assess global poverty estimates reported in recent years, particularly in the poorest regions and countries. “Uncertainty is increasing,” the report said.
Sub-Saharan Africa (SSA) remains the world’s poverty center, according to the report. The region accounts for two-thirds of the world’s extreme poverty and nine out of the 10 countries with the highest poverty rates are located in the region. Although the region has only 16 percent of the world’s population, it is home to 67 percent of people living in extreme poverty.
Poverty is projected to decline slowly in sub-Saharan Africa, but the report warns that progress is not enough to meet the 2030 goal of eradicating extreme poverty. The World Bank said: “About one in three people in sub-Saharan Africa will still be living on less than $2.15 a day by 2030.”
In contrast, South Asia, another region heavily affected by poverty, is likely to reduce poverty more rapidly, although challenges remain. While poverty rates in South Asia continue to decline, the report noted that 64 percent of the region’s population is still expected to live below the $6.85 daily consumption expenditure threshold in 2030.
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The report also highlighted an alarming reversal in the Middle East and North Africa, where poverty eradication had almost been achieved by 2014. But economic stagnation, escalating conflict, inflation and the pandemic shock are holding the region back. “The effects of the pandemic, combined with conflict and inflation, have undermined years of progress,” the report warns, predicting that poverty in the region will continue to rise until 2030.
Globally, poverty trends are expected to become more diverse across income levels. While upper middle-income countries made significant progress in 2021 and 2022, lower-income countries are struggling to recover from the COVID-19 pandemic. “Reflecting the impact of rising food and energy prices, 43 per cent of people in low-income countries will still live in extreme poverty in 2024,” the report says. Low- and middle-income countries only began to recover in 2022, highlighting the uneven resilience of economies.
Fragile and conflict-affected states (FCS) are expected to face the most serious challenges. By 2030, half of the world’s extremely poor people will live in today’s fragile regions of sub-Saharan Africa, and the remaining quarter will live in non-fragile African countries. A World Bank report warns that poverty will become increasingly concentrated in the FCS, further complicating global efforts to eradicate poverty.
“The concentration of poverty in vulnerable regions threatens to derail global poverty reduction efforts,” the report said. “Conflict not only destroys infrastructure and disrupts business operations, but also reduces productivity and hinders the development of human capital.” Violence, forced displacement, limited services, and poor economic opportunities are among the Due to multiple impacts, the cycle of poverty continues in these areas.
The World Bank emphasized the need for targeted interventions to address poverty in fragile regions and sub-Saharan Africa. “Global support for fragile and conflict-affected areas is essential to eradicate extreme poverty,” the report said.
