For the first time, extreme poverty has fallen below 10% of the global population.
The new global poverty line uses updated price data to paint a more accurate picture of the costs of basic food, clothing and shelter needs around the world. In other words, the real value of $1.90 in today’s prices is the same as $1.25 was in 2005.
East Asian and Pacific regions have made the most progress. In 1990 just over 60% of the population lived in poverrty. Today that number is estimated at 4.1%. South Asia has also shown progress, moving from 51% to 13.5%, while sub-Saharan Africa remains the most challenged by poverty with 35.2% of the population living on less than $1.90 a day.
Investments in education, health and social safety, in addition to strong growth in developing countries,have been mainly responsible for the rapid decline in global poverty. “This new forecast of poverty falling into the single digits should give us new momentum and help us focus even more clearly on the most effective strategies to end extreme poverty,” said Jim Yong Kim, President of the World Bank, in a statement. Read the rest of this entry »