World Bank on 4 October 2015 released global poverty projections for the year 2015. As per the projections, the number of people living in extreme poverty around the world is likely to fall to under 10 percent of the global population in 2015.
Consequently, the world is all set to achieve the Sustainable Development Goal 1- ending poverty in all its forms by 2030.
The projections were based on the updated poverty line of 1.90 US dollars per day on the 2011 Purchasing Power Parity (PPP) exchange rates basis. The earlier poverty line was 1.25 US dollars per day at 2005 PPP exchange rates.
Takeaways from the poverty projections
• Sustained reduction in poverty, began in 1990, is moving the world closer to the historic goal of ending poverty by 2030
• Global poverty will have fallen from 902 million people or 12.8 per cent of the global population in 2012 to 702 million people or 9.6 per cent of the global population in 2015.
• Reductions in poverty were due to strong growth rates in developing countries in recent years, investments in people’s education, health, and social safety nets that helped keep people from falling back into poverty.
• Present challenges in eradicating extreme poverty are- slower global growth, volatile financial markets, conflicts, high youth unemployment, and the growing impact of climate change.
• For the last several decades, three regions, East Asia and Pacific, South Asia, and Sub-Saharan Africa, have accounted for some 95 percent of global poverty.
• In 1990, East Asia accounted for half of the global poor, whereas some 15 percent lived in in Sub-Saharan Africa; by 2015 Sub-Saharan Africa accounts for half of the global poor, with some 12 percent living in East Asia.
• Poverty is declining in all regions but it is becoming deeper and more entrenched in countries that are either conflict ridden or overly dependent on commodity exports.
• While some African countries have seen significant successes in reducing poverty, the region as a whole lags the rest of the world in the pace of lessening poverty.
• Sub-Saharan poverty fell from an estimated 56 percent in 1990 to a projected 35 percent in 2015
• Poverty in East Asia and the Pacific would fall to 4.1 per cent of its population in 2015, down from 7.2 per cent in 2012.
• Latin America and the Caribbean would see fall to 5.6 per cent in 2015 from 6.2 in 2012.
• In South Asia, the poverty would fall to 13.5 per cent in 2015, compared to 18.8 per cent in 2012.
The projections for 2015 are in tune with two goals set by the World Bank for itself in April 2013-to end extreme poverty by 2030, and to boost shared prosperity by raising the incomes of the bottom 40 percent of populations.
Now get latest Current Affairs on mobile, Download # 1 Current Affairs App
What: Released by World Bank
When: 4 October 2015