Describe Global Poverty Trends (World Bank Data)

In the Class 9 Economics chapter 'Poverty as a Challenge', we look at poverty not just as an Indian problem, but as a global phenomenon. The World Bank defines 'extreme poverty' as living on less than $2.15 per day. By analyzing data over the last few decades, we can see clear global trends.

Question (Click to Flip)

Is poverty only about lack of money?

Answer

No. Modern economists use the 'Multidimensional Poverty Index' (MPI), which states that poverty is also the lack of access to clean water, healthcare, education, and basic human dignity.

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Key Facts

The United Nations' top Sustainable Development Goal (SDG Goal 1) is to completely eradicate extreme global poverty by the year 2030.

The COVID-19 pandemic in 2020 caused the first global increase in extreme poverty in over 20 years, pushing nearly 100 million people back under the poverty line.

1. Overall Global Reduction

The most positive trend is that extreme global poverty has dramatically declined.
In 1990, approximately 36% of the global population lived in extreme poverty. By 2019, that number had fallen to roughly 9%.
However, this massive reduction is not evenly distributed across the world; it is highly concentrated in a few specific regions.

2. The Success of China and Southeast Asia

China: The most spectacular success story in human history. Due to massive government investment in infrastructure, rapid industrialization, and free-market economic growth, China reduced its poverty rate from 88% in 1981 to less than 1% today. They successfully lifted over 800 million people out of poverty.
Southeast Asia: Countries like Vietnam and Indonesia have also seen rapid declines due to robust economic growth and foreign investment.

3. South Asia (India, Pakistan, Bangladesh)

The poverty decline in South Asia has been significant but slower compared to China.
While the percentage of poor people has dropped drastically, the absolute number of poor people remains very high because of the massive population growth in these countries.

4. The Crisis in Sub-Saharan Africa

Sub-Saharan Africa remains the most severely affected region.
While poverty percentages have slightly declined, the absolute number of poor people has actually increased.
Today, more than 60% of the world's extreme poor live in Sub-Saharan Africa. The major causes are political instability, civil wars, lack of industrialization, and lack of education.

Questions and Answers

Is poverty only about lack of money?+

No. Modern economists use the 'Multidimensional Poverty Index' (MPI), which states that poverty is also the lack of access to clean water, healthcare, education, and basic human dignity.

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