poverty in world essay

March 2024 global poverty update from the World Bank: first estimates of global poverty until 2022 from survey data

R. andres castaneda aguilar, carolina diaz-bonilla, christoph lakner, minh cong nguyen, martha viveros, samuel kofi tetteh baah.

Global poverty estimates were updated today on the Poverty and Inequality Platform (PIP).   As explained in more detail in the What’s New document, more than 100 new surveys were added to the PIP database, bringing the total number of surveys to more than 2,300. With more recent survey data, this March 2024 PIP update is the first to report a global poverty number for 2020-2022, the period of the COVID-19 pandemic. We estimate that COVID-19 increased extreme poverty in the world, as measured by the international poverty line of $2.15, from 8.9 percent in 2019 to 9.7 percent in 2020 (see Figure 1). This is the first increase in global poverty in decades. It is in line with earlier estimates of the COVID-19 impact which used limited survey data and GDP growth projections.  The global increase in extreme poverty in 2020 is driven by South Asia, where extreme poverty increased by 2.4 percentage points to 13 percent between 2019 and 2020. In Latin America and the Caribbean, however, extreme poverty continued to decline in 2020, which is driven by Brazil. This can be explained by the role of fiscal policy in mitigating the economic impacts of the COVID-19 shock . At a higher poverty line of $3.65 ( the poverty line more relevant for assessing poverty in lower-middle-income countries ), poverty also fell in Latin America and the Caribbean and in East Asia and the Pacific even in 2020. At $6.85 ( the poverty line more relevant for assessing poverty in upper-middle-income countries ), poverty also declined in 2020 in Europe and Central Asia and in advanced countries (“Other High Income”). Unfortunately, survey coverage during the post-2019 period is still limited in Sub-Saharan Africa and the Middle East and North Africa, so we cannot report poverty estimates beyond 2019 for these regions. 

Figure 1: Global and regional poverty estimates, 1990 - 2022

Following the widespread recession in 2020, economies around the world started to recover in 2021 and extreme poverty levels were lower than pre-pandemic levels in the more prosperous regions of the world by 2022 (East Asia and the Pacific, Latin America and the Caribbean, advanced countries, Europe and Central Asia, and South Asia). For the world, however, global poverty was still marginally above pre-pandemic levels by 2022, though on a declining trend.  The new estimates of extreme poverty in the world in the period 2020-2022 are quite similar to earlier projections.   An estimated 23 million more people were living in extreme poverty in 2022, compared to 2019. That extreme poverty levels were lower in 2022 relative to 2019 for more prosperous regions, but not for the world, suggests that the economic recovery from the pandemic was uneven and slower for Sub-Saharan Africa where more than half of the extreme poor live. The year 2022 also came with another global shock – Russia’s invasion of Ukraine, which contributed to rising inflation in low-, middle- and high-income countries. At the $3.65 and $6.85 poverty lines, the global poverty rate in 2022 are lower the levels recorded in 2019. This result is consistent with the recovery being faster in more prosperous regions, considering that Sub-Saharan Africa accounts for a smaller share of the global poor at these higher lines compared to the extreme poverty line. This March 2024 global poverty update from the World Bank incorporates updated CPI, national accounts and population data, and revises previously published global and regional estimates from 1981 to 2022. The methodology used for lining up regional and global poverty has also been revised, which leads to small changes. For more details, see the What’s New document. Figure 1 shows global and regional poverty trends at all three global absolute poverty lines of the World Bank (see the poverty series using 2011 PPPs here. ) Table 1 summarizes the revisions to the regional and global poverty estimates between the September 2023 data vintage and the March 2024 data vintage for the 2019 reference year at all three poverty lines.

Table 1: Poverty estimates for reference year 2019, changes between the September 2023 and March 2024 PIP vintages

Given all the new data points and revisions to PIP data and methodology in this update, global extreme poverty in 2019 has been revised down marginally by 0.1 percentage points to 8.9 percent, resulting in a downward revision in the number of poor people from 701 to 689 million. The global reduction in the millions of extreme poor occurs despite an upward revision in Sub-Saharan Africa (14 million). The reduction is driven by Europe and Central Asia and the Middle East and North Africa, where new survey data have recently become available to replace extrapolations of very old surveys (the regional estimate for Middle East and North Africa cannot be shown since it does not meet the 50% population cut-off.) For example, new survey data for 2022 have been added for Syria and Uzbekistan, for which the latest surveys were 2003 in the previous vintage of the data. At $3.65 and $6.85, poverty rates have been revised down by 0.7 and 0.6 percentage points, representing a reduction in global poverty counts by 52 and 44 million, respectively. These downward revisions in global poverty estimates at these higher poverty thresholds are driven by Europe and Central Asia and South Asia. For more details on the March 2024 PIP update from the World Bank, see the What’s New document.

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The authors gratefully acknowledge financial support from the UK Government through the Data and Evidence for Tackling Extreme Poverty (DEEP) Research Program.

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Goal 1: End poverty in all its forms everywhere

Eradicating extreme poverty for all people everywhere by 2030 is a pivotal goal of the 2030 Agenda for Sustainable Development. Extreme poverty, defined as surviving on less than $2.15 per person per day at 2017 purchasing power parity, has witnessed remarkable declines over recent decades.

However, the emergence of COVID-19 marked a turning point, reversing these gains as the number of individuals living in extreme poverty increased for the first time in a generation by almost 90 million over previous predictions.

Even prior to the pandemic, the momentum of poverty reduction was slowing down. By the end of 2022, nowcasting suggested that 8.4 per cent of the world’s population, or as many as 670 million people, could still be living in extreme poverty. This setback effectively erased approximately three years of progress in poverty alleviation.

If current patterns persist, an estimated 7% of the global population – around 575 million people – could still find themselves trapped in extreme poverty by 2030, with a significant concentration in sub-Saharan Africa.

A shocking revelation is the resurgence of hunger levels to those last observed in 2005. Equally concerning is the persistent increase in food prices across a larger number of countries compared to the period from 2015 to 2019. This dual challenge of poverty and food security poses a critical global concern.

Why is there so much poverty

Poverty has many dimensions, but its causes include unemployment, social exclusion, and high vulnerability of certain populations to disasters, diseases and other phenomena which prevent them from being productive.

Why should I care about other people’s economic situation?

There are many reasons, but in short, because as human beings, our well- being is linked to each other. Growing inequality is detrimental to economic growth and undermines social cohesion, increas- ing political and social tensions and, in some circumstances, driving instability and conflicts.

Why is social protection so important?

Strong social protection systems are essential for mitigating the effects and preventing many people from falling into poverty. The COVID-19 pandemic had both immediate and long-term economic consequences for people across the globe – and despite the expansion of social protection during the COVID-19 crisis, 55 per cent of the world’s population – about 4 billion people – are entirely unprotected.

In response to the cost-of-living crisis, 105 countries and territories announced almost 350 social protection measures between February 2022 and February 2023. Yet 80 per cent of these were short-term in nature, and to achieve the Goals, countries will need to implement nationally appropriate universal and sustainble social protection systems for all.

What can I do about it?

Your active engagement in policymaking can make a difference in addressing poverty. It ensures that your rights are promoted and that your voice is heard, that inter-generational knowledge is shared, and that innovation and critical thinking are encouraged at all ages to support transformational change in people’s lives and communities.

Governments can help create an enabling environment to generate pro- productive employment and job opportunities for the poor and the marginalized.

The private sector has a major role to play in determining whether the growth it creates is inclusive and contributes to poverty reduction. It can promote economic opportunities for the poor.

The contribution of science to end poverty has been significant. For example, it has enabled access to safe drinking water, reduced deaths caused by water-borne diseases, and improved hygiene to reduce health risks related to unsafe drinking water and lack of sanitation.

Facts and Figures

Goal 1 targets.

• If current trends continue, 575 million people will still be living in extreme poverty and only one-third of countries will have halved their national poverty levels by 2030.
• Despite the expansion of social protection during the COVID-19 crisis, over 4 billion people remain entirely unprotected. Many of the world’s vulnerable population groups, including the young and the elderly, remain uncovered by statutory social protection programmes.
• The share of government spending on essential services, such as education, health and social protection, is significantly higher in advanced economies than in emerging and developing economies.
• A surge in action and investment to enhance economic opportunities, improve education and extend social protection to all, particularly the most excluded, is crucial to delivering on the central commitment to end poverty and leave no one behind.
• The global poverty headcount ratio at $2.15 is revised slightly up by 0.1 percentage points to 8.5 percent, resulting in a revision in the number of poor people from 648 to 659 million. ( World Bank)

Source: The Sustainable Development Goals Report 2023 

1.1  By 2030, eradicate extreme poverty for all people everywhere, currently measured as people living on less than $2.15 a day

1.2 By 2030, reduce at least by half the proportion of men, women and children of all ages living in poverty in all its dimensions according to national definitions

1.3  Implement nationally appropriate social protection systems and measures for all, including floors, and by 2030 achieve substantial coverage of the poor and the vulnerable

1.4 By 2030, ensure that all men and women, in particular the poor and the vulnerable, have equal rights to economic resources, as well as access to basic services, ownership and control over land and other forms of property, inheritance, natural resources, appropriate new technology and financial services, including microfinance

1.5  By 2030, build the resilience of the poor and those in vulnerable situations and reduce their exposure and vulnerability to climate-related extreme events and other economic, social and environmental shocks and disasters

1.A  Ensure significant mobilization of resources from a variety of sources, including through enhanced development cooperation, in order to provide adequate and predictable means for developing countries, in particular least developed countries, to implement programmes and policies to end poverty in all its dimensions

1.B  Create sound policy frameworks at the national, regional and international levels, based on pro-poor and gender-sensitive development strategies, to support accelerated investment in poverty eradication actions

• United Nations Development Programme
• UN Children’s Fund
• International Monetary Fund
• UN Global Compact
• UN International Strategy for Disaster Reduction

Fast Facts: No Poverty

Infographic: No Poverty

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5 Essays About Poverty Everyone Should Know

Poverty is one of the driving forces of inequality in the world. Between 1990-2015, much progress was made. The number of people living on less than $1.90 went from 36% to 10%. However, according to the World Bank , the COVID-19 pandemic represents a serious problem that disproportionately impacts the poor. Research released in February of 2020 shows that by 2030, up to ⅔ of the “global extreme poor” will be living in conflict-affected and fragile economies. Poverty will remain a major human rights issue for decades to come. Here are five essays about the issue that everyone should know:

“We need an economic bill of rights” –  Martin Luther King Jr.

The Guardian published an abridged version of this essay in 2018, which was originally released in Look magazine just after Dr. King was killed. In this piece, Dr. King explains why an economic bill of rights is necessary. He points out that while mass unemployment within the black community is a “social problem,” it’s a “depression” in the white community. An economic bill of rights would give a job to everyone who wants one and who can work. It would also give an income to those who can’t work. Dr. King affirms his commitment to non-violence. He’s fully aware that tensions are high. He quotes a spiritual, writing “timing is winding up.” Even while the nation progresses, poverty is getting worse.

This essay was reprinted and abridged in The Guardian in an arrangement with The Heirs to the Estate of Martin Luther King. Jr. The most visible representative of the Civil Rights Movement beginning in 1955, Dr. King was assassinated in 1968. His essays and speeches remain timely.

“How Poverty Can Follow Children Into Adulthood” – Priyanka Boghani

This article is from 2017, but it’s more relevant than ever because it was written when 2012 was the worst economic crisis since the Great Depression. That’s no longer the case. In 2012, around ¼ American children were in poverty. Five years later, children were still more likely than adults to be poor. This is especially true for children of colour. Consequences of poverty include anxiety, hunger, and homelessness. This essay also looks at the long-term consequences that come from growing up in poverty. A child can develop health problems that affect them in adulthood. Poverty can also harm a child’s brain development. Being aware of how poverty affects children and follows them into adulthood is essential as the world deals with the economic fallout from the pandemic.

Priyanka Boghani is a journalist at PBS Frontline. She focuses on U.S. foreign policy, humanitarian crises, and conflicts in the Middle East. She also assists in managing Frontline’s social accounts.

“5 Reasons COVID-19 Will Impact the Fight to End Extreme Poverty” – Leah Rodriguez

For decades, the UN has attempted to end extreme poverty. In the face of the novel coronavirus outbreak, new challenges threaten the fight against poverty. In this essay, Dr. Natalie Linos, a Harvard social epidemiologist, urges the world to have a “social conversation” about how the disease impacts poverty and inequality. If nothing is done, it’s unlikely that the UN will meet its Global Goals by 2030. Poverty and COVID-19 intersect in five key ways. For one, low-income people are more vulnerable to disease. They also don’t have equal access to healthcare or job stability. This piece provides a clear, concise summary of why this outbreak is especially concerning for the global poor.

Leah Rodriguez’s writing at Global Citizen focuses on women, girls, water, and sanitation. She’s also worked as a web producer and homepage editor for New York Magazine’s The Cut.

“Climate apartheid”: World’s poor to suffer most from disasters” – Al Jazeera and news Agencies

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Barbara Ehrenreich is the author of 21 books and an activist. She’s worked as an award-winning columnist and essayist.

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About the author, emmaline soken-huberty.

Emmaline Soken-Huberty is a freelance writer based in Portland, Oregon. She started to become interested in human rights while attending college, eventually getting a concentration in human rights and humanitarianism. LGBTQ+ rights, women’s rights, and climate change are of special concern to her. In her spare time, she can be found reading or enjoying Oregon’s natural beauty with her husband and dog.

Global poverty in an unequal world: Who is considered poor in a rich country? And what does this mean for our understanding of global poverty?

What does global poverty look like if we rely on the notions of poverty in countries like denmark, the us, or germany and how should this perspective inform our aspirations for the future of global poverty.

Abstract: The extremely low poverty line that the UN relies on has the advantage that it draws the attention to the very poorest people in the world. It has the disadvantage that it ignores what is happening to the incomes of the 90% of the world population who live above the extreme poverty threshold.

The global poverty line that the UN relies on is based on the national poverty lines in the world’s poorest countries. In this article I ask what global poverty looks like if we rely on the notions of poverty that are common in the world’s rich countries – like Denmark, the US, or Germany. Based on the evidence I ask what our aspirations for the future of global poverty reduction might be.

Note: Since the publication of this article, the World Bank has updated its poverty data. See the note at the end for more information.

In every country of the world there are people living in poverty. Even in the world’s richest countries the poorest people often live in poor housing and struggle to afford basic goods and services like heating, transport, and healthy food for themselves and their family.

Those who are in monetary poverty also have much poorer living conditions more broadly. Even in a rich and relatively equal country like Denmark middle-aged men who are among the poorest 20% of the population die on average 9 years earlier than those among the richest 20%. 1 In Denmark a person who lives on less than $30 per day is considered poor, and it is the declared goal of the country to reduce poverty relative to this threshold. 2

Countries that are much poorer than Denmark also have the goal to reduce poverty. The United Nations declared the objective of ending ‘extreme poverty’ to be the number 1 goal of the global Sustainable Development Goals . According to the UN a person is considered to live in extreme poverty when he or she is living on less than $1.90 per day, this is called the International Poverty Line . According to the latest global statistics almost one in ten people live in extreme poverty globally.

If we know that poverty is a large problem even in high income countries like Denmark where the poverty line is set at around $30 a day, why should we use an International Poverty Line that is so extremely low to measure poverty globally?

It is the reality of our extremely unequal world – in which every tenth person lives in extreme poverty – that makes such an extremely low poverty line necessary. Without having an extremely low poverty line we would not be aware of the fact that a large share of the world lives in such extreme poverty. The UN’s global poverty line is valuable because it draws attention to the reality of extreme poverty in our world.

In a world where the majority still lives on very low incomes it would be wrong if the UN decided to measure global poverty solely by a poverty line as high as the poverty line of Denmark. It would mean that the global statistics gloss over the extremely large and important income differences among the poorest billions in the world. It would mean that the difference between those who live on only $1 per day and those who have an income that is more than 20-times higher would be entirely disregarded. They would all be considered poor, and the reality that some of them are much poorer than others would be hidden.

Slightly higher global poverty lines – such as the poverty line of $3.10 per day that Kate Raworth relies on in her ‘Doughnut’ framework, or the poverty line of $7.40 per day that anthropologist Jason Hickel uses in his work, or Bob Allen’s absolute poverty line based on minimal nutritional requirements – all have the same value. 3  These low poverty lines allow us to understand the material living conditions of the poorest people in the world and have been successful in drawing attention to the terrible depths of poverty experienced by a large share of the world's population. The only way to achieve these goals is to rely on extremely low poverty lines.

Indeed, there is an argument for using an even lower poverty line. To understand what is happening to the very poorest in the world, we need to look even lower than $1.90. This is because one of the biggest failures of development is that over the last decades the incomes of the very poorest people have not risen. A big part of the reason for why this issue doesn’t get discussed enough is that the International Poverty Line we rely on is too high to see this fact.

Why not both?

Yet, only measuring global poverty relative to such extremely low poverty lines has its own large downside.

By focusing on an income threshold that is lower than the incomes of 90% of the global population we are ignoring what is happening to the majority of the world’s population. This matters. The majority of the world do not live in extreme poverty anymore , but billions are nevertheless living in great poverty still.

The obvious solution to the problem that the majority of the world is not considered by the International Poverty Line is to use an additional poverty line. This is not a new idea. One poverty researcher who has made the argument for an additional higher global poverty line based on the notions of poverty in rich countries is Lant Pritchett – you find it in his short, yet widely-cited essay ‘The case for a high global poverty line’ from eight years ago. 4

Defining global poverty lines

The definition of poverty differs between countries. Poorer countries set much lower poverty lines than richer countries. 5 This means that if we were to simply rely on national poverty definitions for a global measure of poverty we would end up with a measurement framework in which where a person happens to live would determine whether they are poor or not: If we would count as poor those who are defined nationally as poor we would end up counting a person who lives on $20 per day as poor in a rich country, while at the same time counting a person who lives on $2 as not-poor when they happen to live in a very poor country.

One way out of this problem is to set global poverty lines based on the national definitions, but to apply them globally. This is how the UN decided to define the International Poverty Line. In order to ground this global poverty line on something more than the views of global poverty researchers, it is based on the existing definitions of poverty adopted in countries around the world at the national level, but to avoid the problem outlined above they apply the national poverty lines globally. As we explain here in some detail, the $1.90 per day poverty line is set to reflect the national poverty lines adopted in the world’s poorest countries. 6 Applying this poverty line globally means that a person who lives on less than $1.90 per day is considered extremely poor no matter where they live.

In recent years the World Bank has applied this same methodology to countries in the middle-income bracket, those countries with a GNI per capita between $1000 and $12,500. Based on the poverty lines in these countries they have set additional global poverty lines at $3.20 and $5.50 per day, which are now directly available via the World Bank statistics. 7

What I want to do here is to see what a global poverty line would be if we rely on the notion of poverty in rich countries — countries like Denmark, the US, or Germany. 8 That is what Pritchett suggested eight years ago: “Since the origin of the [International Poverty Line] was just to adopt as a global lower bound the poverty lines used by the poorest countries, it symmetrically makes sense to say that the global upper bound poverty line is based on the poverty line used in rich countries.”

The definition of poverty is certainly not an easy ethical question and thoughtful people disagree about it in ways that have meaningful consequences for our understanding of the world. There are also interesting proposals for hybrid poverty lines that combine absolute and weakly-relative measures; see Ravallion (2019) for a recent proposal. 9 And I would also recommend Tony Atkinson’s last book ‘ Measuring Poverty around the World ’ for an excellent recent overview of the topic.

→ To understand how it is possible to compare poverty levels and living standards across countries you need to know the basics of global poverty measurement. You find a summary of the basics in the following fold-out box.

The basics of global poverty measurement

Throughout this article – and in global income and expenditure data generally – the statisticians who produce these figures are careful to make these numbers as comparable as possible.

First, many poorer people rely on subsistence farming and do not have a monetary income. To take this into account and make a fair comparison of their living standards, the statisticians that produce these figures estimate the monetary value of their home production and add it to their income/expenditure.

Second, price changes over time (inflation) and price differences across countries are both taken into account: all measures are adjusted for differences in purchasing power. 10 To this end incomes and expenditures are expressed in so-called international dollars . This is a hypothetical currency that results from the price adjustments across time and place. An international dollar is defined as having the same purchasing power as one US-$ in the US . This means no matter where in the world a person is living on int.-$30, they can buy the goods and services that cost $30 in the US. None of these adjustments are ever going to be perfect, but in a world where price differences are large it is important to attempt to account for these differences as well as possible, and this is what these adjustments do. 11

Throughout this text I’m always adjusting incomes for price changes over time and price differences between countries in this way. All dollar values discussed here are presented in int.-$; the UN does the same for the $1.90 poverty line. Sometimes I leave out ‘international’ as it is awkward to repeat it all the time; but every time I mention any $ amount in this text I’m referring to international-$ and not US-$. 12

An additional higher poverty line of $30 per day

Pritchett made his proposal based on data and prices a decade ago and so it is necessary to update his calculations. But I want to go beyond Pritchett’s approach and additionally provide a number of other relevant comparisons to inform our understanding of who is considered poor in a rich country.

By following this idea I find that a poverty of 30 international-$ per day corresponds to the notion of poverty in a rich country. In the following section I consider a long number of benchmarks that made me arrive at this poverty line. Here is the short summary of these comparisons:

• European countries: The span of poverty lines in high-income countries in Europe ranges from int.-$25 to int.-$38 per day .
• The US: A comparison with the poverty line in the US is not straightforward, as explained in some detail below; two different approaches arrive at poverty lines of int.-$23 and int.-$35 per day respectively.
• Survey result: A study surveyed people in a high-income country to ask at what income a person is considered poor. The study found that the mean income threshold suggested by the surveyed population corresponds to an income of int.-$37.58 per day
• UBI: The daily income paid as ‘Universal Basic Income’ in a pilot study in Germany corresponds to an income of int.-$48.19 per day .
• Social care: The average basic social care payout in Germany (‘Hartz-IV’) corresponds to int.-$30.78 per day

The range of possible higher poverty lines based on richer countries is wide, as the list of benchmarks suggests. At the lower end I believe that it might be as low as $25 per day, and on the higher end it might be as high as $40 or $50 per day.

Just as someone who lives on less than $1.90 per day is defined as extremely poor, a person who lives on less than $30 a day could be considered moderately poor.

A reality check for any poverty line you might want to consider is to ask yourself what you think about living on less than that poverty line yourself. I lived on less than $30 per day before and would consider myself poor if I’d fall back on that income level again.

In the following box you find the sources and calculations of the benchmarks that led me to my $30 per poverty line proposal.

Who is considered poor in rich countries? Poverty lines and other relevant benchmarks

Poverty lines in european countries.

As mentioned before most European countries set their poverty line at 60% of the median income in the country. In his original proposal Pritchett was relying on this 60% of median cut-off.

Calculating the poverty line for European countries therefore means that we look up their median income and then multiply it by 0.6. This is less straightforward than it might first appear. The reason for that is that there are many different income concepts. You quickly realize that it is not easy to define a person’s income if you ask yourself what your own income is. Do you take government transfers into account or not? Do you take your partner’s income into account and divide it by two? How do you take into account that you have a child for which you need to pay? It is possible to take these and many other aspects into account and arrive at useful statistics, but various sensible ways of addressing such questions lead to many different income metrics. As such, in comparing different poverty thresholds across countries we have to take care to avoid mixing different income concepts as much as possible.

One important difference is how incomes are adjusted for the size of the household: whether the total household income is simply divided by the number of people (including children) – ‘per capita’ income – or whether some adjustment is made to account for the fact that larger households, and particularly households with children, face lower costs per person – known as ‘equivalised’ income. Whereas EU countries, like other rich countries, use equivalised income to measure poverty, the UN’s measurement of global poverty is based on a global dataset of per capita incomes. This dataset is called PovcalNet , and it is this that we must use in order to make comparisons of poverty measures in different countries according to the same income concept.

In this dataset we find the median income for countries around the world and we can take that median income and then apply the logic on which the European poverty lines are based. In the extensive footnote here you find more details and the full calculations. 13

As high-income European countries I’m referring to those European countries, which according to the Eurostat statistics had a higher income in 2019 than the European average. These are the following countries: Finland, Netherlands, Belgium, Sweden, Germany, France, Iceland, Switzerland, Norway, Luxembourg, Denmark, Austria, Ireland, and the UK.

These are the poverty lines for daily income in a number of high-income European countries (based on 60% of the median incomes from PovcalNet):

• Sweden: $29.40 per da
• Norway: $37.80 per day
• Austria: $31 per day
• UK: $25.04 per day
• Switzerland: $35.82 per day
• Germany: $28.35 per day
• France: $27.28 per day
• Luxembourg: $43.86 per day
• Finland: $27.22 per day
• Iceland: $31.64 per day
• Ireland: $24.68 per day
• Netherlands: $28.6 per day
• Belgium: $26.92 per day
• Denmark: $29.06 per day

The span of poverty lines in these countries ranges from $25 (for the UK and Ireland) up to $38 (for Norway); in the small country of Luxembourg the poverty line is higher.

The poverty line in the US

Unlike European countries, the US does not set the poverty line in a relative way. Instead the US poverty line dates back to the work of Mollie Orshansky, an economist working for the Social Security Administration in the early 1960s. Since then it has been of course revised for price changes, but otherwise it remained unchanged.

The US poverty line is very often criticised as being too low. Those that criticize the US poverty line in that way therefore suggest that the severity of poverty in the US is understated in the statistics.

How high is the poverty line in the US? In 2020 the poverty threshold for a single person under 65 was $30, measured in 2011 international-$ per day to be comparable with the other figures in this article. 14

Now the problem with comparing this poverty line with the global statistics is again that the income concept is different. The US crucially relies on an equivalence scale for adjusting the income cutoff depending on the household size.

One alternative is to use the World Bank's poverty and inequality data – which expresses incomes in per capita terms – to find a 'harmonized' poverty line: the line that yields the same poverty rate in the World Bank data as the official poverty rate. 15

The official poverty rate in the US in 2019 was  10.5% ,  as reported  by the U.S. Census Bureau. The poverty line that yields this rate in the World Bank's data is $22.53 (measured in 2011 international-$). 16

An alternative is to apply the same concept that the Europeans are using for their poverty line determination. If the US would use the 60% of median income definition of poverty their poverty line would be int.-$32.8 per day 17 Very close to the one-person poverty line based on Orshansky’s work.

A somewhat comparable poverty line based on these three approaches therefore falls into the range of around $23 to $35 per day. Within the range of poverty lines in European countries.

Survey results – Below which income do you consider a person poor?

The UN and Pritchett rely on the existing poverty lines in low-income and high-income countries respectively to derive their poverty lines. We can follow other approaches too.

An obvious one is to ask what people out there believe: Who is considered poor in a high-income country by people in high-income countries?

For the regular poverty report of the German government, a survey is conducted that asks Germans below which income level they consider someone as poor. The latest data is from the year 2015. 18

The mean answer given by the German population for a cutoff below which a person is considered poor was 947€ per month. In international dollars per day this corresponds to an income of int.-$37.58 . 19

Universal Basic Income

Universal Basic Income (UBI) is a political idea that is becoming rapidly more popular.

A large UBI study in Germany – called ‘Mein Grundeinkommen’ – sets this income at €1200. In international-$ this corresponds to an income of int.-$48.19 per day . 20

Social security in Germany

Germany pays basic social care for its citizens. This social security payment is referred to as ‘Hartz-IV’.

How much a person receives depends on the particular circumstances of the individual, but we can look at the average payment. In 2018 a single person received on average 783 Euro per month. That corresponds to int.-$30.78 per day . 21

The Roslings’ suggest a cutoff of $32 per day

Anna Rosling-Rönnlund, Ola Rosling and Hans Rosling challenged the old dichotomy between developed and developing countries in their bestselling book ‘ Factfulness ’. They argue that the old dichotomy corresponds to a view of the world that was accurate half a century ago when a few countries were relatively well-off, but most countries were living in very poor conditions .Today, they say, people around the world live on a large spectrum. To reflect this spectrum they proposed 4 income levels.

The first cut-off corresponds to the international poverty line (rounded to int.-$2 per day). The next income cutoff they set at $8 per day, the following one at $16 and the highest one at int.-$32 per day .

Kahneman's and Deaton's study of income and emotional well-being

Nobel laureates Daniel Kahneman and Angus Deaton published a famous study on the link between life satisfaction and income. 22

The authors find that higher incomes go together with higher self-reported life satisfaction, but for people’s self-reported emotional well-being this is only true up to a certain point: the study finds that above $75,000 further increases in income do not correspond with improvements in people’s emotional well-being – a finding that is often cited to argue that additional economic growth does not improve people’s lives in high-income countries. 23

Again, the income concept is not the same as that in PovcalNet, and so comparisons with the global data are not directly possible. But we can ask what the daily income at which emotional well-being supposedly levels off corresponds to: $75,000 per year are int.-$205 per day .

It is certainly worth considering whether an income up to which emotional well-being increases could be taken as the basis for a definition of poverty. A US company reacted to the research finding of Kahneman and Deaton by using it to set the minimum wage in their company: everyone in that company gets paid that salary.

For the discussion of global poverty however it might be considered as an even higher poverty line, but for any practical purpose in the world today the income cutoff would be too high as only a very small fraction of the world lives on more than $75,000 per year.

How many people in the world live in poverty?

We have seen that 10% of the world live in extreme poverty as defined by the UN. How large is the share of the world that lives in moderate poverty?

The latest global data tells us that 85% of the world population live on less than $30 per day . These are 6.5 billion people.

Relying on a higher poverty line of $45 per day you find that 92% live in poverty, and using a lower poverty line of $20 per day you find that 78% live in poverty. No matter which of these poverty lines you might want to choose, at least three-quarters of the world live in poverty.

All of this data refers to pre-pandemic times. The global recession has certainly increased the share below any of these cutoff points. As soon as the new data is available you will find it on Our World in Data.

The chart shows where in the world people are poor. If we would only rely on the UN’s extreme poverty line we would conclude that barely anyone lives in poverty in high-income countries. Relying on higher poverty lines, this data here shows that even in high-income countries there is a significant share of the population that lives in poverty. No country, not even the high-income countries, has eliminated poverty. There are no ‘developed countries’ — there is work to do for all.

But just as clear from this data is the fact that in many world regions the large majority of people are very poor. In Sub-Saharan Africa about 40% of the population lives on less than $1.90 per day as the chart shows. In all regions outside of high-income countries more than 85% of all people live in moderate poverty.

Countries in which the majority do not live in poverty have only left poverty behind in recent history

Two centuries ago the global income distribution was very different. Back then almost everyone in the world was living in extreme poverty. Those places in which few people live in moderate poverty today only left poverty behind in the very recent past.

Denmark is one of those places. The reason why the majority of people in Denmark is not living in poverty is that the economic inequality is low and the average income high.

The fact that the inequality is low you can see on the map. It shows an inequality measure called the Gini coefficient (explained here ) which makes clear that Denmark is among the least unequal countries in the world.

The reason that the average income in Denmark is high is due to the fact that average incomes have increased steadily for the last two centuries; this long-term development is called economic growth. As the historical data shows the average incomes in Denmark are today more than 20-times higher than in the past.

You can add any other country to this chart. By adding one of those countries in which the majority lives in poverty – like Ethiopia – you see just how large the differences in average incomes are.

GDP per capita is by far the most widely used measure of average income and is yet another income concept from the two I mentioned so far. 24 It is a more comprehensive measure of incomes and crucially takes into account government expenditures. For these and other reasons (mentioned in the long footnote) you will find that dividing GDP per capita by 365 days will let you arrive at a higher value than the income that is determined in household income surveys. 25

Billions of people live in countries where average incomes are very low

The income of every person depends on two factors, the average income in the country they live in and the position that particular person has in that country’s income distribution. This chart here shows the average income in countries around the world. The height of each bar represents the average daily income in a country, the width of each country corresponds to the country’s population size. I have ordered the countries by income: from the poorest country on the very left (South Sudan where the average person lives on $1.12 per day) to the richest country on the very right (Luxembourg with an average of $86 per day).

After two centuries of economic growth the average income in Denmark is now $57 per day today. You find the country far to the right in this chart, which tells you that only very few countries in the world have such high average incomes. The fact that the average income is far higher than the poverty line tells us that the existing poverty in Denmark discussed at the beginning of this post is to a large extent the consequence of inequality.

What this chart makes very clear is how low the average incomes in many countries in the world are. The huge majority of the world live in countries where the average income is much lower than the poverty threshold in rich countries. 82% of the world population live in countries where the mean income is less than $20 per day.

And where incomes are low, living standards generally are poor . As the last chart below shows, a child that is born into a poorer country must not just expect to live on a very low income, but also faces a much higher risk of not staying alive at all.

As I have said before , people are not poor because of who they are, but because of where they are. This is why economic growth is so important to leave poverty behind. By far the most important difference between those people who are not living in poverty and those who do is the average income in the country that they live in – this single factor matters more for a person’s income than all other factors taken together . The increase of average income in a country is called economic growth and for global poverty to decrease substantially economic growth for the poorest billions of people is necessary.

→ See my previous article: The economies that are home to the poorest billions of people need to grow if we want global poverty to decline .

The future of global poverty

The world today is far from the ‘end of poverty’ relative to any poverty definition. After two centuries of unprecedented progress against the very worst poverty it is still the case that every tenth person lives on less than $1.90 per day .

As the world has not even ended extreme poverty it is therefore right to focus much of our attention on this very low poverty cutoff; ending extreme poverty surely is a global goal of great importance.

Yet at the same time we should consider what our aspirations for the future are. In the past our ancestors did not know that it was possible for a society to leave widespread poverty behind. Today we are in a different situation. We know from the reality of today’s rich countries that widespread poverty is not inevitable. Because we know that poverty relative to such higher cutoffs is not inevitable I believe it would be wrong to limit our ambitions to eradicating poverty based on the definition of poverty in the very poorest countries.

What I take away from this discussion are three insights: First, we have seen from countries like Denmark that it is possible to reduce poverty for an entire population relative to a poverty line of about $30 per day. Second, we have seen that these countries were extremely poor in the past and were able to reduce poverty over the course of the last few generations. And third we have seen that the huge majority of the world is still living in great poverty, by any standard. What this suggests to me is that the history of global poverty reduction has only just begun.

Continue reading Our World in Data : My colleague Hannah Ritchie has just published a series of posts on the drivers of deforestation and how to bring humanity's long history of deforestation to an end. You find her work here .

Note: The World Bank has updated its poverty and inequality data

The data in this article uses a previous release of the World Bank's poverty and inequality data in which incomes are expressed in 2011 international-$.

The World Bank has since updated its methods, and now measures incomes in 2017 international-$. As part of this change, the International Poverty Line used to measure extreme poverty has also been updated: from $1.90 (in 2011 prices) to $2.15 (in 2017 prices).

This has had little effect on our overall understanding of poverty and inequality around the world. But because of the change of units, many of the figures mentioned in this article will differ from the latest World Bank figures.

Read more about the World Bank's updated methodology:

• From $1.90 to $2.15 a day: the updated International Poverty Line
• Explore the latest World Bank data on poverty and inequality

Acknowledgements: I would like to thank Joe Hasell for his thoughtful comments on draft versions of this article.

Brønnum-Hansen H, Foverskov E, Andersen I. Income inequality in life expectancy and disability-free life expectancy in Denmark. J Epidemiol Community Health 2021;75:145-150. https://jech.bmj.com/content/75/2/145

For the moment it is important to note that this $30 per day poverty line is defined in international-$ and therefore comparable with the ‘International Poverty Line’ discussed in the following section. Much more details about how to compare incomes across countries, the income concept here, and the definition of this poverty line follows further below in this text.

Kate Raworth (2017) – A Doughnut for the Anthropocene: humanity's compass in the 21st century. In The Lancet Planetary Health. Volume 1, Issue 2, E48-E49, May 01, 2017. Open Access DOI: https://doi.org/10.1016/S2542-5196(17)30028-1 You find the metrics that the Doughnut relies on in the Appendix here .

Jason Hickel – Could you live on $1.90 a day? That's the international poverty line and here .

Allen, Robert C.(201). – Absolute Poverty: When Necessity Displaces Desire . American Economic Review, 107 (12): 3690-3721.DOI: 10.1257/aer.20161080

Lant Pritchett (2013) – Monitoring progress on poverty: the case for a high global poverty line. Online here https://www.odi.org/sites/odi.org.uk/files/odi-assets/publications-opinion-files/8440.pdf

Jolliffe and Prydz (2016)

Specifically, the line is set at the average national poverty line amongst 15 particular low-income countries. As Jolliffe and Prydz (2016) demonstrate however, this is also the average poverty line found among the poorest quarter of countries with available data, and also among countries falling into the World Bank’s low-income category.

The study on which these thresholds rely is Jolliffe, D., Prydz, E.B. Estimating international poverty lines from comparable national thresholds. J Econ Inequal 14, 185–198 (2016). https://doi.org/10.1007/s10888-016-9327-5 The researchers also report an average high-income country poverty line of $21.70 per day.

High income countries in the World Bank framework are however relatively poor compared to the countries that I’m focusing on here – the cutoff for a high-income country according to the World Bank is $12,536, about a quarter of the GNI of Germany and only a fifth of the US. Accordingly, the poverty cutoff is much lower than in those countries. Here you find the World Bank income classification cutoffs .

The range of incomes considered ‘middle’ and ‘high’ income countries according to the World Bank are very low relative to rich countries. High-income economies are those with a GNI per capita of $12,536 or more. The range of middle-income economies begins at a GNI per capita of $1,036. In this post I want to rely on countries like Denmark; higher income countries by any standard.

Martin Ravallion (2019) – On Measuring Global Poverty . NBER Working Paper 26211. DOI 10.3386/w26211

This is possible by relying on the work of the International Comparison Project , which monitors the prices of goods and services around the world.

Angus Deaton and Alan Heston (2010) discuss the methods behind such price adjustments and many of the difficulties and limitations involved.

Deaton, A., and Heston, A. 2010. “Understanding PPPs and PPP-Based National Accounts.” American Economic Journal: Macroeconomics 2 (4): 1–35. A working paper version is available online here .

Keep in mind that in the special case of the US the US-$ equals the international-$.

The European reference incomes are national median equivalised disposable income after social transfers.

The disposable household income including all income from work (employee wages and self-employment earnings), private income from investment and property, transfers between households, and all social transfers received in cash including old-age pensions.

Eurostat applies an equivalisation factor calculated according to the OECD-modified scale first proposed in 1994. The UN/World Bank is not.

This is according to Eurostat here , where you also find the relevant data. (If the link should break, search on Google for ‘Distribution of income by quantiles - EU-SILC and ECHP surveys’.)

There are various ways of bringing the national poverty lines with reference to the national median equivalised disposable income after social transfers in line with the income/expenditure concept used in PovcalNet.

Joliffe and Prydz follow a different approach and their paper is very relevant for anyone interested in this question here. One alternative to the approach I’m following in this article would be to start from the poverty lines they estimated (based on the poverty headcount ratio) and apply the growth rate of the median income since the publication of their study. Yet another possibility would of course be to repeat their analysis with the up-to-date data. I am not following either of these approaches because I believe for a wide audience they are less transparent that the approach here – which is simply: I rely on the same dataset so that I rely on the same income concept, then look up the median income and multiply it by 0.6.

This is the reference: Jolliffe & Prydz (2016). Estimating international poverty lines from comparable national thresholds. The Journal of Economic Inequality, 14(2), 185-198.

The following are the relevant calculations. All of them are based on PovcalNet data:

Germany’s median monthly income in 2017 was $1417.29 according to PovcalNet.

60% of the median expressed in daily income/consumption is 0.6*$1417.29=$850.374/30=$28.35 per day

Sweden’s median monthly income in 2017 was $1469 according to PovcalNet.

60% of the median expressed in daily income/consumption is (0.6*1469)/30=$29.38 per day

Norway’s median monthly income in 2017 was $1890 according to PovcalNet.

60% of the median expressed in daily income/consumption is (0.6*1890)/30=$37.8 per day

Austria’s median monthly income in 2017 was $1534 according to PovcalNet.

60% of the median expressed in daily income/consumption is (0.6*1534)/30=$30.68 per day

In the UK the median monthly income in 2017 was $1252 according to PovcalNet.

60% of the median expressed in daily income/consumption is (0.6*1252)/30=$25.04 per day

France’s median monthly income in 2017 was $1364 according to PovcalNet.

60% of the median expressed in daily income/consumption is (0.6*1364)/30=$27.28 per day

Switzerland’s median monthly income in 2017 was $1791 according to PovcalNet.

60% of the median expressed in daily income/consumption is (0.6*1791)/30=$35.82 per day

Spain’s median monthly income in 2017 was $982 according to PovcalNet.

60% of the median expressed in daily income/consumption is (0.6*982)/30=$19.64 per day

Iceland’s median monthly income in 2017 was $1582 according to PovcalNet.

60% of the median expressed in daily income/consumption is (0.6*1582)/30=$31.64 per day

Luxembourg’s median monthly income in 2017 was $2193 according to PovcalNet.

60% of the median expressed in daily income/consumption is (0.6*2193)/30=$43.86 per day

Netherland’s median monthly income in 2017 was $1430 according to PovcalNet.

60% of the median expressed in daily income/consumption is (0.6*1430)/30=$28.6 per day

Belgium’s median monthly income in 2017 was $1346 according to PovcalNet.

60% of the median expressed in daily income/consumption is (0.6*1346)/30=$26.92 per day

Denmark’s median monthly income in 2017 was $1453 according to PovcalNet.

60% of the median expressed in daily income/consumption is (0.6*1453)/30=$29.06 per day

Ireland’s median monthly income in 2017 was $1234 according to PovcalNet.

60% of the median expressed in daily income/consumption is (0.6*1234)/30=$24.68 per day

Finland’s median monthly income in 2017 was $1361 according to PovcalNet.

60% of the median expressed in daily income/consumption is (0.6*1361)/30=$27.22 per day

According to the " Annual Update of the HHS Poverty Guidelines " the poverty line in the US is an annual income of US$12,760. That is in 2020 price. According to the World Bank , the Consumer Price Index in the US in 2020 was 118.7 and in 2011 it was 103.2. So prices between the years rose by 118.7/103.2 - 1 =  15% .

Deflating the poverty line in to 2011 prices we get 12,760/1.15 = $11,096. And expressing that as a per day figure that is $11,096/365 = $30.40

This method was introduced by Jolliffe and Prydz (2016) and used by Jolliffe et al. (2022) as an ingredient of their method for setting the World Bank's international poverty lines.

Jolliffe, Dean, and Espen Beer Prydz. 2016. Estimating International Poverty Lines from Comparable National Thresholds . Washington, DC.

Jolliffe, Dean Mitchell, Daniel Gerszon Mahler, Christoph Lakner, Aziz Atamanov, and Samuel Kofi Tetteh Baah. 2022. Assessing the Impact of the 2017 PPPs on the International Poverty Line and Global Poverty. The World Bank. Available to read at the  World Bank here .

You can see our detailed calculations in this Google Colabs document .

The US median monthly income in 2017 was $1640 according to PovcalNet.

60% of the median expressed in daily income/consumption is (0.6*1640)/30=$32.8 per day

These reports are called ‘Armuts- und Reichtumsbericht der Bundesregierung’ online at armuts-und-reichtumsbericht.de

The latest survey was produced by aproxima and published in 2016. It is published as Wahrnehmung von Armut und Reichtum in Deutschland, Ergebnisse der repräsentativen Bevölkerungsbefragung „ARB-Survey 2015“ , Berlin: Bundesministerium für Arbeit und Soziales (Hrsg.).

The 2011 PPP conversion factor for private consumption (LCU per international $) for Germany in 2015 is 0.84 according to the World Bank here .

This means the perceived poverty threshold corresponds to €947/0.84=int.-$1,127.38 per month or int.-$37.58.

The 2011 PPP conversion factor for private consumption (LCU per international $) for Germany in 2017 is 0.83 according to the World Bank here .

This means the UBI corresponds to 1200/0.83=int.-$1,445.78 per month or int.-$48.19.

That’s €783/0.834=int.-$938.85 per month. Or int.-$938.85/30.5=int.- $30.78 per day.

Kahneman and Deaton (2010) – High income improves evaluation of life but not emotional well-being. Published in the Proceedings of the National Academy of Sciences. https://www.pnas.org/content/107/38/16489

Kahneman and Deaton analyze two different concepts self-reported satisfaction:

– Emotional well-being refers to the “emotional quality of an individual's everyday experience – the frequency and intensity of experiences of joy, stress, sadness, anger, and affection that make one's life pleasant or unpleasant.”

– Life evaluation refers to the thoughts that people have about their life when they think about it.

The authors find that higher incomes go together with higher self-reported life satisfaction in both metrics. What they emphasize is that at very high incomes this is not true anymore – emotional well-being does not increase over around $75,000. Evaluation of life however continues to increase even at incomes over $75,000.

The two previous ones were income/expenditure as determined in household surveys and equivalized disposable income after social transfers.

There is generally a gap between GDP per capita and the averages found in both income surveys and expenditure surveys. But the reasons for the gap are different depending on which we are comparing.

GDP includes many items that are typically not measured in household income surveys, such as an imputed rental value of owner-occupied housing, the retained earnings of firms and taxes on production such as VAT. The gap is even larger when GDP is compared to surveys of household consumption – the latter concept excluding both investment expenditure and government expenditure on public services such as education and health.

Other aggregates beyond GDP are available in the national accounts that are more comparable to the concepts applied in household income and consumption surveys. However, important differences still remain even here. For example, in addition to imputed rents, imputations for the value of certain financial services, such as bank accounts, are included in aggregate household consumption measured in national accounts, with no equivalent for these items recorded in the survey data. In many countries the consumption of ‘nonprofit institutions serving households’ (NPISH) is included as part of household consumption within national accounts, but not within household surveys.

On top of these conceptual differences are a range of mismeasurement problems that affect both sets of data. On this topic see Deaton (2005), and Pinkovskiy and Sala-i-Martin (2016).

Deaton, Angus. 2005. “Measuring Poverty in a Growing World (or Measuring Growth in a Poor World).” The Review of Economics and Statistics 87 (1): 1–1.

Pinkovskiy, Maxim, and Xavier Sala-i-Martin. 2016. “Lights, Camera… Income! Illuminating the Nation"

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Ending Global Poverty: Why Money Isn’t Enough

In this section.

• Faculty Publications
• Publications by Centers & Initiatives
• Student Publications

7 Essays About Poverty: Example Essays and Prompts

Essays about poverty give valuable insight into the economic situation that we share globally. Read our guide with poverty essay examples and prompts for your paper.

In the US, the official poverty rate in 2022 was 11.5 percent, with 37.9 million people living below the poverty line. With a global pandemic, cost of living crisis, and climate change on the rise, we’ve seen poverty increase due to various factors. As many of us face adversity daily, we can look to essays about poverty from some of the world’s greatest speakers for inspiration and guidance.

There is nothing but a lack of social vision to prevent us from paying an adequate wage to every American citizen whether he be a hospital worker, laundry worker, maid or day laborer. There is nothing except shortsightedness to prevent us from guaranteeing an annual minimum—and livable—income for every American family. Martin Luther King Jr., Where Do We Go from Here: Chaos or Community?

Writing a poverty essay can be challenging due to the many factors contributing to poverty and the knock-on effects of living below the poverty line . For example, homelessness among low-income individuals stems from many different causes.

It’s important to note that poverty exists beyond the US, with many developing countries living in extreme poverty without access to essentials like clean water and housing. For help with your essays, check out our round-up of the best essay checkers .

Essays About Poverty: Top Examples

1. pensioner poverty: fear of rise over decades as uk under-40s wealth falls, 2. the surprising poverty levels across the u.s., 3. why poverty persists in america, 4. post-pandemic poverty is rising in america’s suburbs.

• 5. The Basic Facts About Children in Poverty
• 6. The State of America’s Children 
• 7. COVID-19: This is how many Americans now live below the poverty line

10 Poverty Essay Topics

1. the causes of poverty, 2. the negative effects of poverty, 3. how countries can reduce poverty rates, 4. the basic necessities and poverty, 5. how disabilities can lead to poverty, 6. how the cycle of poverty unfolds , 7. universal basic income and its relationship to poverty, 8. interview someone who has experience living in poverty, 9. the impact of the criminal justice system on poverty, 10. the different ways to create affordable housing.

There is growing concern about increasing pensioner poverty in the UK in the coming decades. Due to financial challenges like the cost of living crisis, rent increases, and the COVID-19 pandemic, under 40s have seen their finances shrink.

Osborne discusses the housing wealth gap in this article, where many under the 40s currently pay less in a pension due to rent prices. While this means they will have less pension available, they will also retire without owning a home, resulting in less personal wealth than previous generations. Osborne delves into the causes and gaps in wealth between generations in this in-depth essay.

“Those under-40s have already been identified as  facing the biggest hit from rising mortgage rates , and last week a study by the financial advice firm Hargreaves Lansdown found that almost a third of 18- to 34-year-olds had stopped or cut back on their pension contributions in order to save money.” Hilary Osborne,  The Guardian

In this 2023 essay, Jeremy Ney looks at the poverty levels across the US, stating that poverty has had the largest one-year increase in history. According to the most recent census, child poverty has more than doubled from 2021 to 2022.

Ney states that the expiration of government support and inflation has created new financial challenges for US families. With the increased cost of living and essential items like food and housing sharply increasing, more and more families have fallen below the poverty line. Throughout this essay, Ney displays statistics and data showing the wealth changes across states, ethnic groups, and households.

“Poverty in America reflects the inequality that plagues U.S. households. While certain regions have endured this pain much more than others, this new rising trend may spell ongoing challenges for even more communities.” Jeremy Ney,  TIME

In this New York Times article, a Pulitzer Prize-winning sociologist explores why poverty exists in North America.

The American poor have access to cheap, mass-produced goods, as every American does. But that doesn’t mean they can access what matters most. Matthew Desmond,  The New York Times

The U.S. Census Bureau recently released its annual data on poverty, revealing contrasting trends for 2022. While one set of findings indicated that the overall number of Americans living in poverty remained stable compared to the previous two years, another survey highlighted a concerning increase in child poverty. The rate of child poverty in the U.S. doubled from 2021 to 2022, a spike attributed mainly to the cessation of the expanded child tax credit following the pandemic. These varied outcomes underscore the Census Bureau’s multifaceted methods to measure poverty.

“The nation’s suburbs accounted for the majority of increases in the poor population following the onset of the pandemic” Elizabeth Kneebone and Alan Berube,  Brookings

5.  The Basic Facts About Children in Poverty

Nearly 11 million children are living in poverty in America. This essay explores ow the crisis reached this point—and what steps must be taken to solve it.

“In America, nearly 11 million children are poor. That’s 1 in 7 kids, who make up almost one-third of all people living in poverty in this country.” Areeba Haider,  Center for American Progress

6.  The State of America’s Children  

This essay articles how, despite advancements, children continue to be the most impoverished demographic in the U.S., with particular subgroups — such as children of color, those under five, offspring of single mothers, and children residing in the South — facing the most severe poverty levels.

“Growing up in poverty has wide-ranging, sometimes lifelong, effects on children, putting them at a much higher risk of experiencing behavioral, social, emotional, and health challenges. Childhood poverty also plays an instrumental role in impairing a child’s ability and capacity to learn, build skills, and succeed academically.” Children’s Defense Fund

7.  COVID-19: This is how many Americans now live below the poverty line

This essay explores how the economic repercussions of the coronavirus pandemic 2020 led to a surge in U.S. poverty rates, with unemployment figures reaching unprecedented heights. The writer provides data confirming that individuals at the lowest economic strata bore the brunt of these challenges, indicating that the recession might have exacerbated income disparities, further widening the chasm between the affluent and the underprivileged.

“Poverty in the U.S. increased in 2020 as the coronavirus pandemic hammered the economy and unemployment soared. Those at the bottom of the economic ladder were hit hardest, new figures confirm, suggesting that the recession may have widened the gap between the rich and the poor.” Elena Delavega,  World Econmic Forum

If you’re tasked with writing an essay about poverty, consider using the below topics. They offer pointers for outlining and planning an essay about this challenging topic.

One of the most specific poverty essay topics to address involves the causes of poverty. You can craft an essay to examine the most common causes of extreme poverty. Here are a few topics you might want to include:

• Racial discrimination, particularly among African Americans, has been a common cause of poverty throughout American history. Discrimination and racism can make it hard for people to get the education they need, making it nearly impossible to get a job.
• A lack of access to adequate health care can also lead to poverty. When people do not have access to healthcare, they are more likely to get sick. This could make it hard for them to go to work while also leading to major medical bills.
• Inadequate food and water can lead to poverty as well. If people’s basic needs aren’t met, they focus on finding food and water instead of getting an education they can use to find a better job.

These are just a few of the most common causes of poverty you might want to highlight in your essay. These topics could help people see why some people are more likely to become impoverished than others. You might also be interested in these essays about poverty .

Poverty affects everyone, and the impacts of an impoverished lifestyle are very real. Furthermore, the disparities when comparing adult poverty to child poverty are also significant. This opens the doors to multiple possible essay topics. Here are a few points to include:

• When children live in poverty, their development is stunted. For example, they might not be able to get to school on time due to a lack of transportation, making it hard for them to keep up with their peers. Child poverty also leads to malnutrition, which can stunt their development.
• Poverty can impact familial relationships as well. For example, members of the same family could fight for limited resources, making it hard for family members to bond. In addition, malnutrition can stunt the growth of children.
• As a side effect of poverty, people have difficulty finding a safe place to live. This creates a challenging environment for everyone involved, and it is even harder for children to grow and develop.
• When poverty leads to homelessness, it is hard for someone to get a job. They don’t have an address to use for physical communication, which leads to employment concerns.

These are just a few of the many side effects of poverty. Of course, these impacts are felt by people across the board, but it is not unusual for children to feel the effects of poverty that much more. You might also be interested in these essays about unemployment .

Different countries take different approaches to reduce the number of people living in poverty

The issue of poverty is a major human rights concern, and many countries explore poverty reduction strategies to improve people’s quality of life. You might want to examine different strategies that different countries are taking while also suggesting how some countries can do more. A few ways to write this essay include:

• Explore the poverty level in America, comparing it to the poverty level of a European country. Then, explore why different countries take different strategies.
• Compare the minimum wage in one state, such as New York, to the minimum wage in another state, such as Alabama. Why is it higher in one state? What does raising the minimum wage do to the cost of living?
• Highlight a few advocacy groups and nonprofit organizations actively lobbying their governments to do more for low-income families. Then, talk about why some efforts are more successful than others.

Different countries take different approaches to reduce the number of people living in poverty. Poverty within each country is such a broad topic that you could write a different essay on how poverty could be decreased within the country. For more, check out our list of simple essays topics for intermediate writers .

You could also write an essay on the necessities people need to survive. You could take a look at information published by the United Nations , which focuses on getting people out of the cycle of poverty across the globe. The social problem of poverty can be addressed by giving people the necessities they need to survive, particularly in rural areas. Here are some of the areas you might want to include:

• Affordable housing
• Fresh, healthy food and clean water
• Access to an affordable education
• Access to affordable healthcare

Giving everyone these necessities could significantly improve their well-being and get people out of absolute poverty. You might even want to talk about whether these necessities vary depending on where someone is living.

There are a lot of medical and social issues that contribute to poverty, and you could write about how disabilities contribute to poverty. This is one of the most important essay topics because people could be disabled through no fault of their own. Some of the issues you might want to address in this essay include:

• Talk about the road someone faces if they become disabled while serving overseas. What is it like for people to apply for benefits through the Veterans’ Administration?
• Discuss what happens if someone becomes disabled while at work. What is it like for someone to pursue disability benefits if they are hurt doing a blue-collar job instead of a desk job?
• Research and discuss the experiences of disabled people and how their disability impacts their financial situation.

People who are disabled need to have money to survive for many reasons, such as the inability to work, limitations at home, and medical expenses. A lack of money, in this situation, can lead to a dangerous cycle that can make it hard for someone to be financially stable and live a comfortable lifestyle.

Many people talk about the cycle of poverty, yet many aren’t entirely sure what this means or what it entails. A few key points you should address in this essay include:

• When someone is born into poverty, income inequality can make it hard to get an education.
• A lack of education makes it hard for someone to get into a good school, which gives them the foundation they need to compete for a good job. 
• A lack of money can make it hard for someone to afford college, even if they get into a good school.
• Without attending a good college, it can be hard for someone to get a good job. This makes it hard for someone to support themselves or their families. 
• Without a good paycheck, it is nearly impossible for someone to keep their children out of poverty, limiting upward mobility into the middle class.

The problem of poverty is a positive feedback loop. It can be nearly impossible for those who live this every day to escape. Therefore, you might want to explore a few initiatives that could break the cycle of world poverty and explore other measures that could break this feedback loop.

Many business people and politicians have floated the idea of a universal basic income to give people the basic resources they need to survive. While this hasn’t gotten a lot of serious traction, you could write an essay to shed light on this idea. A few points to hit on include:

• What does a universal basic income mean, and how is it distributed?
• Some people are concerned about the impact this would have on taxes. How would this be paid for?
• What is the minimum amount of money someone would need to stay out of poverty? Is it different in different areas?
• What are a few of the biggest reasons major world governments haven’t passed this?

This is one of the best essay examples because it gives you a lot of room to be creative. However, there hasn’t been a concrete structure for implementing this plan, so you might want to afford one.

Another interesting topic you might want to explore is interviewing someone living in poverty or who has been impoverished. While you can talk about statistics all day, they won’t be as powerful as interviewing someone who has lived that life. A few questions you might want to ask during your interview include:

• What was it like growing up?
• How has living in poverty made it hard for you to get a job?
• What do you feel people misunderstand about those who live in poverty?
• When you need to find a meal, do you have a place you go to? Or is it somewhere different every day?
• What do you think is the main contributor to people living in poverty?

Remember that you can also craft different questions depending on your responses. You might want to let the interviewee read the essay when you are done to ensure all the information is accurate and correct.

The criminal justice system and poverty tend to go hand in hand. People with criminal records are more likely to be impoverished for several reasons. You might want to write an essay that hits on some of these points:

• Discuss the discriminatory practices of the criminal justice system both as they relate to socioeconomic status and as they relate to race.
• Explore just how hard it is for someone to get a job if they have a criminal record. Discuss how this might contribute to a life of poverty.
• Dive into how this creates a positive feedback loop. For example, when someone cannot get a job due to a criminal record, they might have to steal to survive, which worsens the issue.
• Review what the criminal justice system might be like for someone with resources when compared to someone who cannot afford to hire expert witnesses or pay for a good attorney.

You might want to include a few examples of disparate sentences for people in different socioeconomic situations to back up your points. 

Affordable housing can make a major difference when someone is trying to escape poverty

Many poverty-related problems could be reduced if people had access to affordable housing. While the cost of housing has increased dramatically in the United States , some initiatives exist to create affordable housing. Here are a few points to include:

• Talk about public programs that offer affordable housing to people from disadvantaged backgrounds.
• Discuss private programs, such as Habitat for Humanity , doing similar things.
• Review the positive impacts that stable housing has on both adults and children.
• Dive into other measures local and federal governments could take to provide more affordable housing for people.

There are a lot of political and social angles to address with this essay, so you might want to consider spreading this out across multiple papers. Affordable housing can make a major difference when trying to escape poverty. If you want to learn more, check out our essay writing tips !

Meet Rachael, the editor at Become a Writer Today. With years of experience in the field, she is passionate about language and dedicated to producing high-quality content that engages and informs readers. When she's not editing or writing, you can find her exploring the great outdoors, finding inspiration for her next project.

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The Problem Of World Poverty

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Essay on Poverty: Samples in 100, 200, 300 Words

• Updated on  
• Oct 14, 2023

Poverty is a deep-rooted problem that continues to affect a large portion of the world’s population today. It touches on several aspects of human life including but not limited to political, economic, and social elements. Even though there are several methods to escape poverty, still issues arise due to a lack of adequate unity among the country’s citizens. Here are some essays on poverty which will give you insights about this topic.

Table of Contents

• 1 Essay on Poverty in 100 words
• 2 Essay on Poverty in 200 words
• 3.1 Reasons Behind Poverty
• 3.2 World Poverty Conditions
• 3.3 Role of NGOs to Eradicate Poverty
• 3.4 What Can be Done by Us?

Essay on Poverty in 100 words

Poverty is defined as a state of scarcity, and the lack of material possessions to such an extreme extent that people have difficulties in fulfilling their basic needs. Robert McNamara, a former World Bank President, states that extreme poverty is limited by illiteracy, malnutrition, disease, high infant mortality rate, squalid conditions of living, and low life expectancy.

In order to eradicate poverty in a country, strict measures need to be taken on all levels. The political system needs to address this issue with utmost sincerity and strategic implementation in such a way that it improves the lives of people, especially the ones living below the poverty line. 

Also Read: Speech on Made in India

Essay on Poverty in 200 words

Poverty is like a parasite that degrades its host and eventually causes a lot of damage to the host. It is basically the scarcity of basic needs that leads to an extremely degraded life and even low life expectancy. It includes a lack of food, shelter, medication, education, and other basic necessities. Poverty is a more serious circumstance where people are forced to starve. It can be caused by a variety of factors depending upon the country. 

Every country that is hit with pandemic diseases, experiences an increase in poverty rates. This is because of the fact that poor people are unable to receive adequate medical care and hence are unable to maintain their health. This renders the people powerless and even puts their liberty in jeopardy. This is because of the fact that poor people can become trapped in a vicious cycle of servitude. The condition of poverty is a distressing one that causes pain, despair, and grief in the lives of the ones it affects. 

This is also a negative scenario that prevents a child from attending basic education. It’s the lack of money that prevents people from living sufficiently. Also, it is the cause of more serious social concerns such as slavery, child labour, etc. Hence action is needed on the same with utmost sincerity. 

Essay on Poverty in 300 words

Poverty is a multifaceted concept that includes several aspects such as social aspects, political elements, economic aspects, etc. It is basically associated with undermining a variety of essential human attributes such as health, education, etc. Despite the growth and development of the economies of countries, poverty still exists in almost every one of them. 

Reasons Behind Poverty

There are several contributing reasons behind poverty in a nation. Some of them are mentioned below:-

• Lack of literacy among citizens
• Lack of Capital in the country
• Large families and a rapidly growing population
• Limited employment opportunities

There are even urban areas where the slum population is increasing. These are deprived of many basic amenities such as sanitation, drainage systems, and low-cost water supply, etc. 

World Poverty Conditions

According to UNICEF , around 22000 children lose their lives each day due to poverty. There are approximately 1.9 billion children in developing countries in the world and India is also among them. Out of these, approximately 640 million don’t have a proper shelter, 270 million are living without medical facilities, and approximately 400 million don’t have access to safe water. This worldwide situation is growing at a fast pace. 

Role of NGOs to Eradicate Poverty

The approaches by NGOs basically include helping the poor by providing various public services such as medical services etc.

They also play a major role in mobilizing the services recommended by the government. They have various approaches and strategies that directly help the poor in various ways.

What Can be Done by Us?

We help in eradicating poverty by increasing employment opportunities.

Ensuring financial services and providing the same is another such measure that can be taken.

Recognizing social entrepreneurs as people of influence, conveying to them the seriousness of this situation, and then eventually making people aware of the same is another thing that can be done. 

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Writing an essay on poverty in 200 words requires you to describe various aspects of this topic such as what causes poverty, how it affects individuals and society as a whole, etc. The condition of poverty is a distressing one that causes pain, despair, and grief in the lives of the ones it affects.

An essay on poverty may be started as follows:- Poverty is a deep-rooted problem that continues to affect a large portion of the world’s population today. It touches on several aspects of human life including but not limited to political, economic, and social elements. Even though there are several methods to escape poverty, still issues arise due to a lack of adequate unity among the country’s citizens.

Poverty in 100 words: Poverty is defined as a state of scarcity, and the lack of material possessions to such an extreme extent that people have difficulties in fulfilling their basic needs. Robert McNamara, a former World Bank President, states that extreme poverty is limited by illiteracy, malnutrition, disease, high infant mortality rate, squalid conditions of living, and low life expectancy. In order to eradicate poverty in a country, strict measures need to be taken on all levels. The political system needs to address this issue with utmost sincerity and strategic implementation in such a way that it improves the lives of people, especially the ones living below the poverty line.

For more information on such interesting topics, visit our essay writing page and follow Leverage Edu .

Deepansh Gautam

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Why Poverty Persists in America

A Pulitzer Prize-winning sociologist offers a new explanation for an intractable problem.

A mother and son living in a Walmart parking lot in North Dakota in 2012. Credit... Eugene Richards

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By Matthew Desmond

• Published March 9, 2023 Updated April 3, 2023

In the past 50 years, scientists have mapped the entire human genome and eradicated smallpox. Here in the United States, infant-mortality rates and deaths from heart disease have fallen by roughly 70 percent, and the average American has gained almost a decade of life. Climate change was recognized as an existential threat. The internet was invented.

On the problem of poverty, though, there has been no real improvement — just a long stasis. As estimated by the federal government’s poverty line, 12.6 percent of the U.S. population was poor in 1970; two decades later, it was 13.5 percent; in 2010, it was 15.1 percent; and in 2019, it was 10.5 percent. To graph the share of Americans living in poverty over the past half-century amounts to drawing a line that resembles gently rolling hills. The line curves slightly up, then slightly down, then back up again over the years, staying steady through Democratic and Republican administrations, rising in recessions and falling in boom years.

What accounts for this lack of progress? It cannot be chalked up to how the poor are counted: Different measures spit out the same embarrassing result. When the government began reporting the Supplemental Poverty Measure in 2011, designed to overcome many of the flaws of the Official Poverty Measure, including not accounting for regional differences in costs of living and government benefits, the United States officially gained three million more poor people. Possible reductions in poverty from counting aid like food stamps and tax benefits were more than offset by recognizing how low-income people were burdened by rising housing and health care costs.

The American poor have access to cheap, mass-produced goods, as every American does. But that doesn’t mean they can access what matters most.

Any fair assessment of poverty must confront the breathtaking march of material progress. But the fact that standards of living have risen across the board doesn’t mean that poverty itself has fallen. Forty years ago, only the rich could afford cellphones. But cellphones have become more affordable over the past few decades, and now most Americans have one, including many poor people. This has led observers like Ron Haskins and Isabel Sawhill, senior fellows at the Brookings Institution, to assert that “access to certain consumer goods,” like TVs, microwave ovens and cellphones, shows that “the poor are not quite so poor after all.”

No, it doesn’t. You can’t eat a cellphone. A cellphone doesn’t grant you stable housing, affordable medical and dental care or adequate child care. In fact, as things like cellphones have become cheaper, the cost of the most necessary of life’s necessities, like health care and rent, has increased. From 2000 to 2022 in the average American city, the cost of fuel and utilities increased by 115 percent. The American poor, living as they do in the center of global capitalism, have access to cheap, mass-produced goods, as every American does. But that doesn’t mean they can access what matters most. As Michael Harrington put it 60 years ago: “It is much easier in the United States to be decently dressed than it is to be decently housed, fed or doctored.”

Why, then, when it comes to poverty reduction, have we had 50 years of nothing? When I first started looking into this depressing state of affairs, I assumed America’s efforts to reduce poverty had stalled because we stopped trying to solve the problem. I bought into the idea, popular among progressives, that the election of President Ronald Reagan (as well as that of Prime Minister Margaret Thatcher in the United Kingdom) marked the ascendancy of market fundamentalism, or “neoliberalism,” a time when governments cut aid to the poor, lowered taxes and slashed regulations. If American poverty persisted, I thought, it was because we had reduced our spending on the poor. But I was wrong.

Reagan expanded corporate power, deeply cut taxes on the rich and rolled back spending on some antipoverty initiatives, especially in housing. But he was unable to make large-scale, long-term cuts to many of the programs that make up the American welfare state. Throughout Reagan’s eight years as president, antipoverty spending grew, and it continued to grow after he left office. Spending on the nation’s 13 largest means-tested programs — aid reserved for Americans who fall below a certain income level — went from $1,015 a person the year Reagan was elected president to $3,419 a person one year into Donald Trump’s administration, a 237 percent increase.

Most of this increase was due to health care spending, and Medicaid in particular. But even if we exclude Medicaid from the calculation, we find that federal investments in means-tested programs increased by 130 percent from 1980 to 2018, from $630 to $1,448 per person.

“Neoliberalism” is now part of the left’s lexicon, but I looked in vain to find it in the plain print of federal budgets, at least as far as aid to the poor was concerned. There is no evidence that the United States has become stingier over time. The opposite is true.

This makes the country’s stalled progress on poverty even more baffling. Decade after decade, the poverty rate has remained flat even as federal relief has surged.

If we have more than doubled government spending on poverty and achieved so little, one reason is that the American welfare state is a leaky bucket. Take welfare, for example: When it was administered through the Aid to Families With Dependent Children program, almost all of its funds were used to provide single-parent families with cash assistance. But when President Bill Clinton reformed welfare in 1996, replacing the old model with Temporary Assistance for Needy Families (TANF), he transformed the program into a block grant that gives states considerable leeway in deciding how to distribute the money. As a result, states have come up with rather creative ways to spend TANF dollars. Arizona has used welfare money to pay for abstinence-only sex education. Pennsylvania diverted TANF funds to anti-abortion crisis-pregnancy centers. Maine used the money to support a Christian summer camp. Nationwide, for every dollar budgeted for TANF in 2020, poor families directly received just 22 cents.

We’ve approached the poverty question by pointing to poor people themselves, when we should have been focusing on exploitation.

A fair amount of government aid earmarked for the poor never reaches them. But this does not fully solve the puzzle of why poverty has been so stubbornly persistent, because many of the country’s largest social-welfare programs distribute funds directly to people. Roughly 85 percent of the Supplemental Nutrition Assistance Program budget is dedicated to funding food stamps themselves, and almost 93 percent of Medicaid dollars flow directly to beneficiaries.

There are, it would seem, deeper structural forces at play, ones that have to do with the way the American poor are routinely taken advantage of. The primary reason for our stalled progress on poverty reduction has to do with the fact that we have not confronted the unrelenting exploitation of the poor in the labor, housing and financial markets.

As a theory of poverty, “exploitation” elicits a muddled response, causing us to think of course and but, no in the same instant. The word carries a moral charge, but social scientists have a fairly coolheaded way to measure exploitation: When we are underpaid relative to the value of what we produce, we experience labor exploitation; when we are overcharged relative to the value of something we purchase, we experience consumer exploitation. For example, if a family paid $1,000 a month to rent an apartment with a market value of $20,000, that family would experience a higher level of renter exploitation than a family who paid the same amount for an apartment with a market valuation of $100,000. When we don’t own property or can’t access credit, we become dependent on people who do and can, which in turn invites exploitation, because a bad deal for you is a good deal for me.

Our vulnerability to exploitation grows as our liberty shrinks. Because labor laws often fail to protect undocumented workers in practice, more than a third are paid below minimum wage, and nearly 85 percent are not paid overtime. Many of us who are U.S. citizens, or who crossed borders through official checkpoints, would not work for these wages. We don’t have to. If they migrate here as adults, those undocumented workers choose the terms of their arrangement. But just because desperate people accept and even seek out exploitative conditions doesn’t make those conditions any less exploitative. Sometimes exploitation is simply the best bad option.

Consider how many employers now get one over on American workers. The United States offers some of the lowest wages in the industrialized world. A larger share of workers in the United States make “low pay” — earning less than two-thirds of median wages — than in any other country belonging to the Organization for Economic Cooperation and Development. According to the group, nearly 23 percent of American workers labor in low-paying jobs, compared with roughly 17 percent in Britain, 11 percent in Japan and 5 percent in Italy. Poverty wages have swollen the ranks of the American working poor, most of whom are 35 or older.

One popular theory for the loss of good jobs is deindustrialization, which caused the shuttering of factories and the hollowing out of communities that had sprung up around them. Such a passive word, “deindustrialization” — leaving the impression that it just happened somehow, as if the country got deindustrialization the way a forest gets infested by bark beetles. But economic forces framed as inexorable, like deindustrialization and the acceleration of global trade, are often helped along by policy decisions like the 1994 North American Free Trade Agreement, which made it easier for companies to move their factories to Mexico and contributed to the loss of hundreds of thousands of American jobs. The world has changed, but it has changed for other economies as well. Yet Belgium and Canada and many other countries haven’t experienced the kind of wage stagnation and surge in income inequality that the United States has.

Those countries managed to keep their unions. We didn’t. Throughout the 1950s and 1960s, nearly a third of all U.S. workers carried union cards. These were the days of the United Automobile Workers, led by Walter Reuther, once savagely beaten by Ford’s brass-knuckle boys, and of the mighty American Federation of Labor and Congress of Industrial Organizations that together represented around 15 million workers, more than the population of California at the time.

In their heyday, unions put up a fight. In 1970 alone, 2.4 million union members participated in work stoppages, wildcat strikes and tense standoffs with company heads. The labor movement fought for better pay and safer working conditions and supported antipoverty policies. Their efforts paid off for both unionized and nonunionized workers, as companies like Eastman Kodak were compelled to provide generous compensation and benefits to their workers to prevent them from organizing. By one estimate, the wages of nonunionized men without a college degree would be 8 percent higher today if union strength remained what it was in the late 1970s, a time when worker pay climbed, chief-executive compensation was reined in and the country experienced the most economically equitable period in modern history.

It is important to note that Old Labor was often a white man’s refuge. In the 1930s, many unions outwardly discriminated against Black workers or segregated them into Jim Crow local chapters. In the 1960s, unions like the Brotherhood of Railway and Steamship Clerks and the United Brotherhood of Carpenters and Joiners of America enforced segregation within their ranks. Unions harmed themselves through their self-defeating racism and were further weakened by a changing economy. But organized labor was also attacked by political adversaries. As unions flagged, business interests sensed an opportunity. Corporate lobbyists made deep inroads in both political parties, beginning a public-relations campaign that pressured policymakers to roll back worker protections.

A national litmus test arrived in 1981, when 13,000 unionized air traffic controllers left their posts after contract negotiations with the Federal Aviation Administration broke down. When the workers refused to return, Reagan fired all of them. The public’s response was muted, and corporate America learned that it could crush unions with minimal blowback. And so it went, in one industry after another.

Today almost all private-sector employees (94 percent) are without a union, though roughly half of nonunion workers say they would organize if given the chance. They rarely are. Employers have at their disposal an arsenal of tactics designed to prevent collective bargaining, from hiring union-busting firms to telling employees that they could lose their jobs if they vote yes. Those strategies are legal, but companies also make illegal moves to block unions, like disciplining workers for trying to organize or threatening to close facilities. In 2016 and 2017, the National Labor Relations Board charged 42 percent of employers with violating federal law during union campaigns. In nearly a third of cases, this involved illegally firing workers for organizing.

Corporate lobbyists told us that organized labor was a drag on the economy — that once the companies had cleared out all these fusty, lumbering unions, the economy would rev up, raising everyone’s fortunes. But that didn’t come to pass. The negative effects of unions have been wildly overstated, and there is now evidence that unions play a role in increasing company productivity, for example by reducing turnover. The U.S. Bureau of Labor Statistics measures productivity as how efficiently companies turn inputs (like materials and labor) into outputs (like goods and services). Historically, productivity, wages and profits rise and fall in lock step. But the American economy is less productive today than it was in the post-World War II period, when unions were at peak strength. The economies of other rich countries have slowed as well, including those with more highly unionized work forces, but it is clear that diluting labor power in America did not unleash economic growth or deliver prosperity to more people. “We were promised economic dynamism in exchange for inequality,” Eric Posner and Glen Weyl write in their book “Radical Markets.” “We got the inequality, but dynamism is actually declining.”

As workers lost power, their jobs got worse. For several decades after World War II, ordinary workers’ inflation-adjusted wages (known as “real wages”) increased by 2 percent each year. But since 1979, real wages have grown by only 0.3 percent a year. Astonishingly, workers with a high school diploma made 2.7 percent less in 2017 than they would have in 1979, adjusting for inflation. Workers without a diploma made nearly 10 percent less.

Lousy, underpaid work is not an indispensable, if regrettable, byproduct of capitalism, as some business defenders claim today. (This notion would have scandalized capitalism’s earliest defenders. John Stuart Mill, arch advocate of free people and free markets, once said that if widespread scarcity was a hallmark of capitalism, he would become a communist.) But capitalism is inherently about owners trying to give as little, and workers trying to get as much, as possible. With unions largely out of the picture, corporations have chipped away at the conventional midcentury work arrangement, which involved steady employment, opportunities for advancement and raises and decent pay with some benefits.

As the sociologist Gerald Davis has put it: Our grandparents had careers. Our parents had jobs. We complete tasks. Or at least that has been the story of the American working class and working poor.

Poor Americans aren’t just exploited in the labor market. They face consumer exploitation in the housing and financial markets as well.

There is a long history of slum exploitation in America. Money made slums because slums made money. Rent has more than doubled over the past two decades, rising much faster than renters’ incomes. Median rent rose from $483 in 2000 to $1,216 in 2021. Why have rents shot up so fast? Experts tend to offer the same rote answers to this question. There’s not enough housing supply, they say, and too much demand. Landlords must charge more just to earn a decent rate of return. Must they? How do we know?

We need more housing; no one can deny that. But rents have jumped even in cities with plenty of apartments to go around. At the end of 2021, almost 19 percent of rental units in Birmingham, Ala., sat vacant, as did 12 percent of those in Syracuse, N.Y. Yet rent in those areas increased by roughly 14 percent and 8 percent, respectively, over the previous two years. National data also show that rental revenues have far outpaced property owners’ expenses in recent years, especially for multifamily properties in poor neighborhoods. Rising rents are not simply a reflection of rising operating costs. There’s another dynamic at work, one that has to do with the fact that poor people — and particularly poor Black families — don’t have much choice when it comes to where they can live. Because of that, landlords can overcharge them, and they do.

A study I published with Nathan Wilmers found that after accounting for all costs, landlords operating in poor neighborhoods typically take in profits that are double those of landlords operating in affluent communities. If down-market landlords make more, it’s because their regular expenses (especially their mortgages and property-tax bills) are considerably lower than those in upscale neighborhoods. But in many cities with average or below-average housing costs — think Buffalo, not Boston — rents in the poorest neighborhoods are not drastically lower than rents in the middle-class sections of town. From 2015 to 2019, median monthly rent for a two-bedroom apartment in the Indianapolis metropolitan area was $991; it was $816 in neighborhoods with poverty rates above 40 percent, just around 17 percent less. Rents are lower in extremely poor neighborhoods, but not by as much as you would think.

Yet where else can poor families live? They are shut out of homeownership because banks are disinclined to issue small-dollar mortgages, and they are also shut out of public housing, which now has waiting lists that stretch on for years and even decades. Struggling families looking for a safe, affordable place to live in America usually have but one choice: to rent from private landlords and fork over at least half their income to rent and utilities. If millions of poor renters accept this state of affairs, it’s not because they can’t afford better alternatives; it’s because they often aren’t offered any.

You can read injunctions against usury in the Vedic texts of ancient India, in the sutras of Buddhism and in the Torah. Aristotle and Aquinas both rebuked it. Dante sent moneylenders to the seventh circle of hell. None of these efforts did much to stem the practice, but they do reveal that the unprincipled act of trapping the poor in a cycle of debt has existed at least as long as the written word. It might be the oldest form of exploitation after slavery. Many writers have depicted America’s poor as unseen, shadowed and forgotten people: as “other” or “invisible.” But markets have never failed to notice the poor, and this has been particularly true of the market for money itself.

The deregulation of the banking system in the 1980s heightened competition among banks. Many responded by raising fees and requiring customers to carry minimum balances. In 1977, over a third of banks offered accounts with no service charge. By the early 1990s, only 5 percent did. Big banks grew bigger as community banks shuttered, and in 2021, the largest banks in America charged customers almost $11 billion in overdraft fees. Previous research showed that just 9 percent of account holders paid 84 percent of these fees. Who were the unlucky 9 percent? Customers who carried an average balance of less than $350. The poor were made to pay for their poverty.

In 2021, the average fee for overdrawing your account was $33.58. Because banks often issue multiple charges a day, it’s not uncommon to overdraw your account by $20 and end up paying $200 for it. Banks could (and do) deny accounts to people who have a history of overextending their money, but those customers also provide a steady revenue stream for some of the most powerful financial institutions in the world.

Every year: almost $11 billion in overdraft fees, $1.6 billion in check-cashing fees and up to $8.2 billion in payday-loan fees.

According to the F.D.I.C., one in 19 U.S. households had no bank account in 2019, amounting to more than seven million families. Compared with white families, Black and Hispanic families were nearly five times as likely to lack a bank account. Where there is exclusion, there is exploitation. Unbanked Americans have created a market, and thousands of check-cashing outlets now serve that market. Check-cashing stores generally charge from 1 to 10 percent of the total, depending on the type of check. That means that a worker who is paid $10 an hour and takes a $1,000 check to a check-cashing outlet will pay $10 to $100 just to receive the money he has earned, effectively losing one to 10 hours of work. (For many, this is preferable to the less-predictable exploitation by traditional banks, with their automatic overdraft fees. It’s the devil you know.) In 2020, Americans spent $1.6 billion just to cash checks. If the poor had a costless way to access their own money, over a billion dollars would have remained in their pockets during the pandemic-induced recession.

Poverty can mean missed payments, which can ruin your credit. But just as troublesome as bad credit is having no credit score at all, which is the case for 26 million adults in the United States. Another 19 million possess a credit history too thin or outdated to be scored. Having no credit (or bad credit) can prevent you from securing an apartment, buying insurance and even landing a job, as employers are increasingly relying on credit checks during the hiring process. And when the inevitable happens — when you lose hours at work or when the car refuses to start — the payday-loan industry steps in.

For most of American history, regulators prohibited lending institutions from charging exorbitant interest on loans. Because of these limits, banks kept interest rates between 6 and 12 percent and didn’t do much business with the poor, who in a pinch took their valuables to the pawnbroker or the loan shark. But the deregulation of the banking sector in the 1980s ushered the money changers back into the temple by removing strict usury limits. Interest rates soon reached 300 percent, then 500 percent, then 700 percent. Suddenly, some people were very interested in starting businesses that lent to the poor. In recent years, 17 states have brought back strong usury limits, capping interest rates and effectively prohibiting payday lending. But the trade thrives in most places. The annual percentage rate for a two-week $300 loan can reach 460 percent in California, 516 percent in Wisconsin and 664 percent in Texas.

Roughly a third of all payday loans are now issued online, and almost half of borrowers who have taken out online loans have had lenders overdraw their bank accounts. The average borrower stays indebted for five months, paying $520 in fees to borrow $375. Keeping people indebted is, of course, the ideal outcome for the payday lender. It’s how they turn a $15 profit into a $150 one. Payday lenders do not charge high fees because lending to the poor is risky — even after multiple extensions, most borrowers pay up. Lenders extort because they can.

Every year: almost $11 billion in overdraft fees, $1.6 billion in check-cashing fees and up to $8.2 billion in payday-loan fees. That’s more than $55 million in fees collected predominantly from low-income Americans each day — not even counting the annual revenue collected by pawnshops and title loan services and rent-to-own schemes. When James Baldwin remarked in 1961 how “extremely expensive it is to be poor,” he couldn’t have imagined these receipts.

“Predatory inclusion” is what the historian Keeanga-Yamahtta Taylor calls it in her book “Race for Profit,” describing the longstanding American tradition of incorporating marginalized people into housing and financial schemes through bad deals when they are denied good ones. The exclusion of poor people from traditional banking and credit systems has forced them to find alternative ways to cash checks and secure loans, which has led to a normalization of their exploitation. This is all perfectly legal, after all, and subsidized by the nation’s richest commercial banks. The fringe banking sector would not exist without lines of credit extended by the conventional one. Wells Fargo and JPMorgan Chase bankroll payday lenders like Advance America and Cash America. Everybody gets a cut.

Poverty isn’t simply the condition of not having enough money. It’s the condition of not having enough choice and being taken advantage of because of that. When we ignore the role that exploitation plays in trapping people in poverty, we end up designing policy that is weak at best and ineffective at worst. For example, when legislation lifts incomes at the bottom without addressing the housing crisis, those gains are often realized instead by landlords, not wholly by the families the legislation was intended to help. A 2019 study conducted by the Federal Reserve Bank of Philadelphia found that when states raised minimum wages, families initially found it easier to pay rent. But landlords quickly responded to the wage bumps by increasing rents, which diluted the effect of the policy. This happened after the pandemic rescue packages, too: When wages began to rise in 2021 after worker shortages, rents rose as well, and soon people found themselves back where they started or worse.

Antipoverty programs work. Each year, millions of families are spared the indignities and hardships of severe deprivation because of these government investments. But our current antipoverty programs cannot abolish poverty by themselves. The Johnson administration started the War on Poverty and the Great Society in 1964. These initiatives constituted a bundle of domestic programs that included the Food Stamp Act, which made food aid permanent; the Economic Opportunity Act, which created Job Corps and Head Start; and the Social Security Amendments of 1965, which founded Medicare and Medicaid and expanded Social Security benefits. Nearly 200 pieces of legislation were signed into law in President Lyndon B. Johnson’s first five years in office, a breathtaking level of activity. And the result? Ten years after the first of these programs were rolled out in 1964, the share of Americans living in poverty was half what it was in 1960.

But the War on Poverty and the Great Society were started during a time when organized labor was strong, incomes were climbing, rents were modest and the fringe banking industry as we know it today didn’t exist. Today multiple forms of exploitation have turned antipoverty programs into something like dialysis, a treatment designed to make poverty less lethal, not to make it disappear.

This means we don’t just need deeper antipoverty investments. We need different ones, policies that refuse to partner with poverty, policies that threaten its very survival. We need to ensure that aid directed at poor people stays in their pockets, instead of being captured by companies whose low wages are subsidized by government benefits, or by landlords who raise the rents as their tenants’ wages rise, or by banks and payday-loan outlets who issue exorbitant fines and fees. Unless we confront the many forms of exploitation that poor families face, we risk increasing government spending only to experience another 50 years of sclerosis in the fight against poverty.

The best way to address labor exploitation is to empower workers. A renewed contract with American workers should make organizing easy. As things currently stand, unionizing a workplace is incredibly difficult. Under current labor law, workers who want to organize must do so one Amazon warehouse or one Starbucks location at a time. We have little chance of empowering the nation’s warehouse workers and baristas this way. This is why many new labor movements are trying to organize entire sectors. The Fight for $15 campaign, led by the Service Employees International Union, doesn’t focus on a single franchise (a specific McDonald’s store) or even a single company (McDonald’s) but brings together workers from several fast-food chains. It’s a new kind of labor power, and one that could be expanded: If enough workers in a specific economic sector — retail, hotel services, nursing — voted for the measure, the secretary of labor could establish a bargaining panel made up of representatives elected by the workers. The panel could negotiate with companies to secure the best terms for workers across the industry. This is a way to organize all Amazon warehouses and all Starbucks locations in a single go.

Sectoral bargaining, as it’s called, would affect tens of millions of Americans who have never benefited from a union of their own, just as it has improved the lives of workers in Europe and Latin America. The idea has been criticized by members of the business community, like the U.S. Chamber of Commerce, which has raised concerns about the inflexibility and even the constitutionality of sectoral bargaining, as well as by labor advocates, who fear that industrywide policies could nullify gains that existing unions have made or could be achieved only if workers make other sacrifices. Proponents of the idea counter that sectoral bargaining could even the playing field, not only between workers and bosses, but also between companies in the same sector that would no longer be locked into a race to the bottom, with an incentive to shortchange their work force to gain a competitive edge. Instead, the companies would be forced to compete over the quality of the goods and services they offer. Maybe we would finally reap the benefits of all that economic productivity we were promised.

We must also expand the housing options for low-income families. There isn’t a single right way to do this, but there is clearly a wrong way: the way we’re doing it now. One straightforward approach is to strengthen our commitment to the housing programs we already have. Public housing provides affordable homes to millions of Americans, but it’s drastically underfunded relative to the need. When the wealthy township of Cherry Hill, N.J., opened applications for 29 affordable apartments in 2021, 9,309 people applied. The sky-high demand should tell us something, though: that affordable housing is a life changer, and families are desperate for it.

We could also pave the way for more Americans to become homeowners, an initiative that could benefit poor, working-class and middle-class families alike — as well as scores of young people. Banks generally avoid issuing small-dollar mortgages, not because they’re riskier — these mortgages have the same delinquency rates as larger mortgages — but because they’re less profitable. Over the life of a mortgage, interest on $1 million brings in a lot more money than interest on $75,000. This is where the federal government could step in, providing extra financing to build on-ramps to first-time homeownership. In fact, it already does so in rural America through the 502 Direct Loan Program, which has moved more than two million families into their own homes. These loans, fully guaranteed and serviced by the Department of Agriculture, come with low interest rates and, for very poor families, cover the entire cost of the mortgage, nullifying the need for a down payment. Last year, the average 502 Direct Loan was for $222,300 but cost the government only $10,370 per loan, chump change for such a durable intervention. Expanding a program like this into urban communities would provide even more low- and moderate-income families with homes of their own.

We should also ensure fair access to capital. Banks should stop robbing the poor and near-poor of billions of dollars each year, immediately ending exorbitant overdraft fees. As the legal scholar Mehrsa Baradaran has pointed out, when someone overdraws an account, banks could simply freeze the transaction or could clear a check with insufficient funds, providing customers a kind of short-term loan with a low interest rate of, say, 1 percent a day.

States should rein in payday-lending institutions and insist that lenders make it clear to potential borrowers what a loan is ultimately likely to cost them. Just as fast-food restaurants must now publish calorie counts next to their burgers and shakes, payday-loan stores should publish the average overall cost of different loans. When Texas adopted disclosure rules, residents took out considerably fewer bad loans. If Texas can do this, why not California or Wisconsin? Yet to stop financial exploitation, we need to expand, not limit, low-income Americans’ access to credit. Some have suggested that the government get involved by having the U.S. Postal Service or the Federal Reserve issue small-dollar loans. Others have argued that we should revise government regulations to entice commercial banks to pitch in. Whatever our approach, solutions should offer low-income Americans more choice, a way to end their reliance on predatory lending institutions that can get away with robbery because they are the only option available.

In Tommy Orange’s novel, “There There,” a man trying to describe the problem of suicides on Native American reservations says: “Kids are jumping out the windows of burning buildings, falling to their deaths. And we think the problem is that they’re jumping.” The poverty debate has suffered from a similar kind of myopia. For the past half-century, we’ve approached the poverty question by pointing to poor people themselves — posing questions about their work ethic, say, or their welfare benefits — when we should have been focusing on the fire. The question that should serve as a looping incantation, the one we should ask every time we drive past a tent encampment, those tarped American slums smelling of asphalt and bodies, or every time we see someone asleep on the bus, slumped over in work clothes, is simply: Who benefits? Not: Why don’t you find a better job? Or: Why don’t you move? Or: Why don’t you stop taking out payday loans? But: Who is feeding off this?

Those who have amassed the most power and capital bear the most responsibility for America’s vast poverty: political elites who have utterly failed low-income Americans over the past half-century; corporate bosses who have spent and schemed to prioritize profits over families; lobbyists blocking the will of the American people with their self-serving interests; property owners who have exiled the poor from entire cities and fueled the affordable-housing crisis. Acknowledging this is both crucial and deliciously absolving; it directs our attention upward and distracts us from all the ways (many unintentional) that we — we the secure, the insured, the housed, the college-educated, the protected, the lucky — also contribute to the problem.

Corporations benefit from worker exploitation, sure, but so do consumers, who buy the cheap goods and services the working poor produce, and so do those of us directly or indirectly invested in the stock market. Landlords are not the only ones who benefit from housing exploitation; many homeowners do, too, their property values propped up by the collective effort to make housing scarce and expensive. The banking and payday-lending industries profit from the financial exploitation of the poor, but so do those of us with free checking accounts, as those accounts are subsidized by billions of dollars in overdraft fees.

Living our daily lives in ways that express solidarity with the poor could mean we pay more; anti-exploitative investing could dampen our stock portfolios. By acknowledging those costs, we acknowledge our complicity. Unwinding ourselves from our neighbors’ deprivation and refusing to live as enemies of the poor will require us to pay a price. It’s the price of our restored humanity and renewed country.

Matthew Desmond is a professor of sociology at Princeton University and a contributing writer for the magazine. His latest book, “Poverty, by America,” from which this article is adapted, is being published on March 21 by Crown.

An earlier version of this article referred incorrectly to the legal protections for undocumented workers. They are afforded rights under U.S. labor laws, though in practice those laws often fail to protect them.

An earlier version of this article implied an incorrect date for a statistic about overdraft fees. The research was conducted between 2005 and 2012, not in 2021.

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Poverty and Inequality in the World, Essay Example

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Poverty and inequality are two matters at all times influencing one another. Undoubtedly, where there is poverty there is also inequality happening on a social level.  These two terms, applied when discussing society in its entirety, are utilized to describe how inequality on an economical level affects social statuses, making room for let us say lucky groups, the ones able to afford almost anything and the unlucky, those who can barely make it from one day to another. Thereof, these two terms describe the cause and effect of the economic system, however complex it might be.

The main actors included in this process are, actually, the people living in the society and, also, the system at work in the society, by means of which people can or cannot get advantage insofar as to make their lives better. The actors included in the inequality process are, therefore, people on the one hand and, on the other hand, the economic system active in a particular society. This is exactly why the matter could not be discussed generally, but applied to each country in part.

The main focus of each scholar is that of identifying the most efficient strategies by means of each poverty to be avoided and inequality disposed of. However, given the complexity of the problem and the variety of variables which influence it, my standpoint is that no general strategy can be found, no strategy which, if applied anywhere, could solve such a sensitive matter. More precisely, distinct solutions should be sought and applied, afterwards, in each country in part.  I do not ignore the fact that relevant insights could be derived from one country which could aid solve the problem in another country, but that is not, under no circumstance, enough. In other words, global citizenship philosophy should be understood as the point of departure for the struggle of highlighting the efficient solutions towards eliminating inequality in societies.

Thereof, the main question I wish to bring to debate is that of identifying whether it would be more relevant that a united team of researchers would study a corpus of distinct societies in order to put together a strategy which would help eliminate inequality or that the same team of researchers would study the same country and its society, irrespective of the other insights derived from distinct societies, with the same scope. This question parts from the discussions in ”Globalization. A very short introduction”, by Manferd B. Steger. This made me realize that such a scope implies a numerous of variables to be taken into consideration and, however, contextualization, especially at a time in which globalization is rapidly escalating.

Probably, the most important aspect of such a research consists of the capabilities of the specialists of identifying the exact characteristics of each society in part which would affect, in any way, the rise of inequality. The presupposition stands clear. Each society has characteristics that influence the economic process, some of which are the great historical moments it went through, the collective mentality, the political system, the social intake of the differences between people, from the ways in which one can go from one social status to another until the way in which women are being viewed in comparison to men. Thereof, the question I propose stands relevant from the point of view that the strategy which, for example, would be applicable in a society in which women are expected to be paid far less than men occupying the very same positions would not be efficient in a society in which women are already highly emancipated and are not expected to be stay-at-home mothers for a long period of time.

Steger, B. “Manfred. Globalization: A Very Short Introduction.”

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Poverty Essay for Students and Children

500+ words essay on poverty essay.

“Poverty is the worst form of violence”. – Mahatma Gandhi.

How Poverty is Measured?

For measuring poverty United nations have devised two measures of poverty – Absolute & relative poverty.  Absolute poverty is used to measure poverty in developing countries like India. Relative poverty is used to measure poverty in developed countries like the USA. In absolute poverty, a line based on the minimum level of income has been created & is called a poverty line.  If per day income of a family is below this level, then it is poor or below the poverty line. If per day income of a family is above this level, then it is non-poor or above the poverty line. In India, the new poverty line is  Rs 32 in rural areas and Rs 47 in urban areas.

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Causes of Poverty

According to the Noble prize winner South African leader, Nelson Mandela – “Poverty is not natural, it is manmade”. The above statement is true as the causes of poverty are generally man-made. There are various causes of poverty but the most important is population. Rising population is putting the burden on the resources & budget of countries. Governments are finding difficult to provide food, shelter & employment to the rising population.

The other causes are- lack of education, war, natural disaster, lack of employment, lack of infrastructure, political instability, etc. For instance- lack of employment opportunities makes a person jobless & he is not able to earn enough to fulfill the basic necessities of his family & becomes poor. Lack of education compels a person for less paying jobs & it makes him poorer. Lack of infrastructure means there are no industries, banks, etc. in a country resulting in lack of employment opportunities. Natural disasters like flood, earthquake also contribute to poverty.

In some countries, especially African countries like Somalia, a long period of civil war has made poverty widespread. This is because all the resources & money is being spent in war instead of public welfare. Countries like India, Pakistan, Bangladesh, etc. are prone to natural disasters like cyclone, etc. These disasters occur every year causing poverty to rise.

Ill Effects of Poverty

Poverty affects the life of a poor family. A poor person is not able to take proper food & nutrition &his capacity to work reduces. Reduced capacity to work further reduces his income, making him poorer. Children from poor family never get proper schooling & proper nutrition. They have to work to support their family & this destroys their childhood. Some of them may also involve in crimes like theft, murder, robbery, etc. A poor person remains uneducated & is forced to live under unhygienic conditions in slums. There are no proper sanitation & drinking water facility in slums & he falls ill often &  his health deteriorates. A poor person generally dies an early death. So, all social evils are related to poverty.

Government Schemes to Remove Poverty

The government of India also took several measures to eradicate poverty from India. Some of them are – creating employment opportunities , controlling population, etc. In India, about 60% of the population is still dependent on agriculture for its livelihood. Government has taken certain measures to promote agriculture in India. The government constructed certain dams & canals in our country to provide easy availability of water for irrigation. Government has also taken steps for the cheap availability of seeds & farming equipment to promote agriculture. Government is also promoting farming of cash crops like cotton, instead of food crops. In cities, the government is promoting industrialization to create more jobs. Government has also opened  ‘Ration shops’. Other measures include providing free & compulsory education for children up to 14 years of age, scholarship to deserving students from a poor background, providing subsidized houses to poor people, etc.

Poverty is a social evil, we can also contribute to control it. For example- we can simply donate old clothes to poor people, we can also sponsor the education of a poor child or we can utilize our free time by teaching poor students. Remember before wasting food, somebody is still sleeping hungry.

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Poverty in the World

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To start with, as you can see the Global issue that I chose is poverty. One main cause of poverty that is found is warfare. when a war is caused the country who loses has many people who had lost their homes properties and valuable stuff. Poverty now is on a great level where people even live in garbage dunks, some don’t even have a home, people eat from garbage and others get sick by what they eat. Leading to death.

Likewise, Other people are not only in streets but also in little towns like the town where I used to live there were lots of homeless people who could not even look in the garbage for something to eat because people would not let them. Some of them were transported to another city or give them a new opportunity to start a new life, some of them went to jail and others died because of hunger.

This topic is important to me because I had experience of it, I experienced the poverty not the extreme one but I was in one poverty level I’m not sure which one but my family is in an extreme poverty, that’s why I chose this topic other than Climate change or religious conflicts. Poverty is not just being poor, poverty is in what we live in, what we drink, eat, wear, and in what ambient the person lives in. In my opinion poverty is the greatest Global Issue that is standing right now.

Later on, Oxfam is the organization who is helping to prevent poverty. Oxfam started in 1942, United Kingdom. Winnie Bynanyima has been the executive director since 2013. Oxfam is important to this issue of preventing poverty because it is one of the greatest organizations who is helping the poor. Although, Oxfam had some problems like other organization also debates and because of it they failed to report child abuse which was a big problem because they did not did what they promised.

Your donation will be used in general support of Oxfam America’s efforts around the world. Oxfam America is highly rated by Charity Navigator, the country’s leading independent charity evaluator. Oxfam America meets the 20 Standards for Charity Accountability of the BBB Wise Giving Alliance. Furthermore, today Oxfam works to end injustice of poverty, (that’s how they call it). Their plan is to end the roots of poverty and create lasting solutions. Also, the three main solutions that they have are:

• Help with extreme inequality and poverty
• Climate change

These plans or solutions are what the world is asking for not too much money or power but a bit of effort, a bit of heart, some people who looks for their partner, someone who shares what the man from above has given them and being a good Samaritan. This aint about religion but Oxfam is a good organization who actually helps prevent poverty. I think that Oxfam is doing a really good job because it doesn’t just focus on poverty but also in other stuff. Other Global Issues.

More than 3 billion people live on less than $2.50 a day and an estimated 1.3 billion people live in extreme poverty, making do with $1.25 or less daily. Can you imagine what it’s like to not have enough food to eat and go to bed hungry at night? Poverty is still a big problem in the world today, as you can see from the numbers. This is in spite of the progress that you see around you. The good news is that in 2010, only 18% of the world’s population was living way below the poverty line as compared to 36% in 1990. It’s a small victory, but the progress is slow. The World Bank aims to reduce global poverty to 9% by 2020 and to 3% by 2030. They plan to do this by focusing more on promoting income growth for the bottom 40% of the population and boosting shared prosperity. It’s a herculean task.

Having said that, I would bring awareness by starting a food drive. Social media would also work because many people now days even old people spend a lot of time in social media starting from the simplest one to the most used social media app, like starting from Facebook to Twitter or something like that. Or something like making T-shirts and with meaningful words or images that would caught people’s attention into it and try to make them think or change their mind and start to do something. Also, another way to do is simple just remind people to donate and that’s it.

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ADLS 1/2024: The Trade Route to Poverty Reduction in Africa in a De-globalising World

Categories : Distinguished Lecture Series

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This paper is an extension of the keynote address delivered by Professor Benedict Oramah, at the 8th Biennial lecture of Goddy Jidenma Foundation in Lagos, Nigeria, on February 22, 2024.

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New Data: Private Sector Pumps $86B into Infrastructure in Low- to Middle-Income Nations

WASHINGTON, May 14, 2024 —New World Bank data finds that private infrastructure investment in low- and middle-income countries totaled $86 billion in 2023. Investments declined 5% compared with 2022, however, were on par with the previous five-year average.

Despite the decline in total investment, more countries received private investments in infrastructure across a wider sample of projects. In 2023, 68 countries received investments across 322 projects, compared to 54 countries and 260 projects in 2022. Guinea Bissau, Libya, Papua New Guinea, São Tomé and Príncipe, and Suriname achieved their first private participation in infrastructure (PPI) transactions in more than a decade.

The  Private Participation in Infrastructure  report dates back to 1984. It tracks investments in 10,000 infrastructure projects in low- and middle-income countries on a continuous basis. As infrastructure financing becomes a bigger priority for countries around the globe, this dataset is an important resource for tracking progress and identifying trends.

“ Getting the right infrastructure in place is crucial for people to live to their full potential. With government budgets under pressure and an infrastructure financing gap totaling multiple trillions of dollars, more private sector participation is needed to deliver infrastructure projects ,” said  Guangzhe Chen, Infrastructure Vice President at the World Bank . “ At the World Bank, we are pulling out all the stops to enable this progress, through our work on public-private partnerships, our overhauled guarantees program, and our grants to the world's poorest countries. The PPI report is an important tool for us in these efforts. It is the only database of its kind, offering a direct view into the regions and sectors receiving infrastructure investments, how these projects are structured, and what role multilateral development banks can play in these contexts .”

Private infrastructure investments declined in most regions in 2023, with notable exceptions being the Middle East and North Africa (MENA) and East Asia and Pacific (EAP). MENA continued its growth trajectory, with PPI investment levels almost doubling from $1.4 billion in 2022 to $2.9 billion in 2023. The EAP region returned to pre-pandemic levels of investment after a three-year lag as the region recovered from the effects of COVID-19.

When it comes to sectoral trends, energy saw a threefold increase in investment levels in 2023, with most of this increase directed toward EAP. In line with the continued global push to reduce greenhouse gas emissions, 97% of electricity generation projects were renewable in 2023, compared to 93% in the previous five-year period. 

When it comes to the world’s poorest countries, 26 countries that are members of the International Development Association (IDA) received investment commitments amounting to $4.3 billion across 53 projects in 2023, an 18% increase and a record in terms of number of projects.  

The PPI Database has data on over 10,000 infrastructure projects in 137 low- and middle-income countries from 1984 to the present. The database is the leading source of PPI trends in the developing world, covering projects in the energy, transport, water and sewage, information and communications technology (ICT), and municipal solid waste sectors.

For more information, please visit:  ppi.worldbank.org

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Asia and the pacific, europe & central asia, latin america & the caribbean.

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What is climate change mitigation and why is it urgent?

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• Climate change mitigation involves actions to reduce or prevent greenhouse gas emissions from human activities.
• Mitigation efforts include transitioning to renewable energy sources, enhancing energy efficiency, adopting regenerative agricultural practices and protecting and restoring forests and critical ecosystems.
• Effective mitigation requires a whole-of-society approach and structural transformations to reduce emissions and limit global warming to 1.5°C above pre-industrial levels.
• International cooperation, for example through the Paris Agreement, is crucial in guiding and achieving global and national mitigation goals.
• Mitigation efforts face challenges such as the world's deep-rooted dependency on fossil fuels, the increased demand for new mineral resources and the difficulties in revamping our food systems.
• These challenges also offer opportunities to improve resilience and contribute to sustainable development.

What is climate change mitigation?

Climate change mitigation refers to any action taken by governments, businesses or people to reduce or prevent greenhouse gases, or to enhance carbon sinks that remove them from the atmosphere. These gases trap heat from the sun in our planet’s atmosphere, keeping it warm. 

Since the industrial era began, human activities have led to the release of dangerous levels of greenhouse gases, causing global warming and climate change. However, despite unequivocal research about the impact of our activities on the planet’s climate and growing awareness of the severe danger climate change poses to our societies, greenhouse gas emissions keep rising. If we can slow down the rise in greenhouse gases, we can slow down the pace of climate change and avoid its worst consequences.

Reducing greenhouse gases can be achieved by:

• Shifting away from fossil fuels : Fossil fuels are the biggest source of greenhouse gases, so transitioning to modern renewable energy sources like solar, wind and geothermal power, and advancing sustainable modes of transportation, is crucial.
• Improving energy efficiency : Using less energy overall – in buildings, industries, public and private spaces, energy generation and transmission, and transportation – helps reduce emissions. This can be achieved by using thermal comfort standards, better insulation and energy efficient appliances, and by improving building design, energy transmission systems and vehicles.
• Changing agricultural practices : Certain farming methods release high amounts of methane and nitrous oxide, which are potent greenhouse gases. Regenerative agricultural practices – including enhancing soil health, reducing livestock-related emissions, direct seeding techniques and using cover crops – support mitigation, improve resilience and decrease the cost burden on farmers.
• The sustainable management and conservation of forests : Forests act as carbon sinks , absorbing carbon dioxide and reducing the overall concentration of greenhouse gases in the atmosphere. Measures to reduce deforestation and forest degradation are key for climate mitigation and generate multiple additional benefits such as biodiversity conservation and improved water cycles.
• Restoring and conserving critical ecosystems : In addition to forests, ecosystems such as wetlands, peatlands, and grasslands, as well as coastal biomes such as mangrove forests, also contribute significantly to carbon sequestration, while supporting biodiversity and enhancing climate resilience.
• Creating a supportive environment : Investments, policies and regulations that encourage emission reductions, such as incentives, carbon pricing and limits on emissions from key sectors are crucial to driving climate change mitigation.

Photo: Stephane Bellerose/UNDP Mauritius

Photo: La Incre and Lizeth Jurado/PROAmazonia

What is the 1.5°C goal and why do we need to stick to it?

In 2015, 196 Parties to the UN Climate Convention in Paris adopted the Paris Agreement , a landmark international treaty, aimed at curbing global warming and addressing the effects of climate change. Its core ambition is to cap the rise in global average temperatures to well below 2°C above levels observed prior to the industrial era, while pursuing efforts to limit the increase to 1.5°C.

The 1.5°C goal is extremely important, especially for vulnerable communities already experiencing severe climate change impacts. Limiting warming below 1.5°C will translate into less extreme weather events and sea level rise, less stress on food production and water access, less biodiversity and ecosystem loss, and a lower chance of irreversible climate consequences.

To limit global warming to the critical threshold of 1.5°C, it is imperative for the world to undertake significant mitigation action. This requires a reduction in greenhouse gas emissions by 45 percent before 2030 and achieving net-zero emissions by mid-century.

What are the policy instruments that countries can use to drive mitigation?

Everyone has a role to play in climate change mitigation, from individuals adopting sustainable habits and advocating for change to governments implementing regulations, providing incentives and facilitating investments. The private sector, particularly those businesses and companies responsible for causing high emissions, should take a leading role in innovating, funding and driving climate change mitigation solutions. 

International collaboration and technology transfer is also crucial given the global nature and size of the challenge. As the main platform for international cooperation on climate action, the Paris Agreement has set forth a series of responsibilities and policy tools for its signatories. One of the primary instruments for achieving the goals of the treaty is Nationally Determined Contributions (NDCs) . These are the national climate pledges that each Party is required to develop and update every five years. NDCs articulate how each country will contribute to reducing greenhouse gas emissions and enhance climate resilience.   While NDCs include short- to medium-term targets, long-term low emission development strategies (LT-LEDS) are policy tools under the Paris Agreement through which countries must show how they plan to achieve carbon neutrality by mid-century. These strategies define a long-term vision that gives coherence and direction to shorter-term national climate targets.

Photo: Mucyo Serge/UNDP Rwanda

Photo: William Seal/UNDP Sudan

At the same time, the call for climate change mitigation has evolved into a call for reparative action, where high-income countries are urged to rectify past and ongoing contributions to the climate crisis. This approach reflects the UN Framework Convention on Climate Change (UNFCCC) which advocates for climate justice, recognizing the unequal historical responsibility for the climate crisis, emphasizing that wealthier countries, having profited from high-emission activities, bear a greater obligation to lead in mitigating these impacts. This includes not only reducing their own emissions, but also supporting vulnerable countries in their transition to low-emission development pathways.

Another critical aspect is ensuring a just transition for workers and communities that depend on the fossil fuel industry and its many connected industries. This process must prioritize social equity and create alternative employment opportunities as part of the shift towards renewable energy and more sustainable practices.

For emerging economies, innovation and advancements in technology have now demonstrated that robust economic growth can be achieved with clean, sustainable energy sources. By integrating renewable energy technologies such as solar, wind and geothermal power into their growth strategies, these economies can reduce their emissions, enhance energy security and create new economic opportunities and jobs. This shift not only contributes to global mitigation efforts but also sets a precedent for sustainable development.

What are some of the challenges slowing down climate change mitigation efforts?

Mitigating climate change is fraught with complexities, including the global economy's deep-rooted dependency on fossil fuels and the accompanying challenge of eliminating fossil fuel subsidies. This reliance – and the vested interests that have a stake in maintaining it – presents a significant barrier to transitioning to sustainable energy sources.

The shift towards decarbonization and renewable energy is driving increased demand for critical minerals such as copper, lithium, nickel, cobalt, and rare earth metals. Since new mining projects can take up to 15 years to yield output, mineral supply chains could become a bottleneck for decarbonization efforts. In addition, these minerals are predominantly found in a few, mostly low-income countries, which could heighten supply chain vulnerabilities and geopolitical tensions.

Furthermore, due to the significant demand for these minerals and the urgency of the energy transition, the scaled-up investment in the sector has the potential to exacerbate environmental degradation, economic and governance risks, and social inequalities, affecting the rights of Indigenous Peoples, local communities, and workers. Addressing these concerns necessitates implementing social and environmental safeguards, embracing circular economy principles, and establishing and enforcing responsible policies and regulations .

Agriculture is currently the largest driver of deforestation worldwide. A transformation in our food systems to reverse the impact that agriculture has on forests and biodiversity is undoubtedly a complex challenge. But it is also an important opportunity. The latest IPCC report highlights that adaptation and mitigation options related to land, water and food offer the greatest potential in responding to the climate crisis. Shifting to regenerative agricultural practices will not only ensure a healthy, fair and stable food supply for the world’s population, but also help to significantly reduce greenhouse gas emissions.  

Photo: UNDP India

Photo: Nino Zedginidze/UNDP Georgia

What are some examples of climate change mitigation?

In Mauritius , UNDP, with funding from the Green Climate Fund, has supported the government to install battery energy storage capacity that has enabled 50 MW of intermittent renewable energy to be connected to the grid, helping to avoid 81,000 tonnes of carbon dioxide annually. 

In Indonesia , UNDP has been working with the government for over a decade to support sustainable palm oil production. In 2019, the country adopted a National Action Plan on Sustainable Palm Oil, which was collaboratively developed by government, industry and civil society representatives. The plan increased the adoption of practices to minimize the adverse social and environmental effects of palm oil production and to protect forests. Since 2015, 37 million tonnes of direct greenhouse gas emissions have been avoided and 824,000 hectares of land with high conservation value have been protected.

In Moldova and Paraguay , UNDP has helped set up Green City Labs that are helping build more sustainable cities. This is achieved by implementing urban land use and mobility planning, prioritizing energy efficiency in residential buildings, introducing low-carbon public transport, implementing resource-efficient waste management, and switching to renewable energy sources. 

UNDP has supported the governments of Brazil, Costa Rica, Ecuador and Indonesia to implement results-based payments through the REDD+ (Reducing emissions from deforestation and forest degradation in developing countries) framework. These include payments for environmental services and community forest management programmes that channel international climate finance resources to local actors on the ground, specifically forest communities and Indigenous Peoples. 

UNDP is also supporting small island developing states like the Comoros to invest in renewable energy and sustainable infrastructure. Through the Africa Minigrids Program , solar minigrids will be installed in two priority communities, Grand Comore and Moheli, providing energy access through distributed renewable energy solutions to those hardest to reach.

And in South Africa , a UNDP initative to boost energy efficiency awareness among the general population and improve labelling standards has taken over commercial shopping malls.

What is UNDP’s role in supporting climate change mitigation?

UNDP aims to assist countries with their climate change mitigation efforts, guiding them towards sustainable, low-carbon and climate-resilient development. This support is in line with achieving the Sustainable Development Goals (SDGs), particularly those related to affordable and clean energy (SDG7), sustainable cities and communities (SDG11), and climate action (SDG13). Specifically, UNDP’s offer of support includes developing and improving legislation and policy, standards and regulations, capacity building, knowledge dissemination, and financial mobilization for countries to pilot and scale-up mitigation solutions such as renewable energy projects, energy efficiency initiatives and sustainable land-use practices. 

With financial support from the Global Environment Facility and the Green Climate Fund, UNDP has an active portfolio of 94 climate change mitigation projects in 69 countries. These initiatives are not only aimed at reducing greenhouse gas emissions, but also at contributing to sustainable and resilient development pathways.

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The Problems of Poverty in the Modern World Essay (Critical Writing)

Introduction, problems of poverty, benefits of poverty.

Poverty creates scores of problems in the society; that is a fact that many people living in various parts of the world identify with. But what is poverty? Poverty can be defined as lack of certain or all basic or material things including, money, shelter, food and water, education, health, and clothing, among others.

Usually, poverty can be defined by comparing the life status of different people in a given society. It is a relative component depending on the prevailing societal conditions. It is interesting to note that practically, all the problems that are linked to poverty, are either directly or indirectly caused by lack of or inadequacy of money, thus, it can confidently be said that money is the largest determinant of poverty.

Poverty can create many problems and challenges in life, with most of them being a direct result of absolute inaccessibility or inadequacy. To start with, poverty causes the lack of material or basic needs as mentioned above.

Living in shanties, lack of or inadequate access to food and water, lack of accessibility to health facilities, education facilities, and nutritional services, are all characteristics that define poverty. Thus, poverty comes with unpleasant consequences, which range from deaths, committing crimes, malnutrition, exposure to harsh weather conditions, ignorance among others.

To start with, lack of or inadequate access to food and water is one of the characteristics of poverty, and it makes people end up deducing means of survival, for instance; skipping meals, taking food and water in much smaller quantities, eating unbalanced diets, among others.

This condition often leads to health related problems, malnutrition, and even deaths. Lack of access to health facilities by sick people or expectant mothers could lead to fatalities, which could have otherwise been prevented. Most expectant women especially in poverty-stricken areas deliver at home due to inaccessibility and unaffordability of health services, and this often leads to deaths.

In addition, living in shanties and inhabitable conditions cannot be a choice to anyone; rather, it’s a forced state of poverty. This more often than not, results to exposure to diseases, and harsh weather conditions. Poverty also directly leads to lack of or inadequate education, which ultimately leads to ignorance, a setback that is so expensive to alleviate.

Indulging in crime has more often than not been related to poverty. It is common to find a thief insinuating to have stolen because of lack of basic needs. Some crimes end up causing unintentional deaths, for instance, a thief might strangle someone who is in possession of what they desire. Others still, take to extreme measures such as committing suicide when they can no longer cope with their status!

There are also some good sides of poverty. Maybe someone would ask, what good thing could really come out poverty? For one, it’s common to poor people to develop good interpersonal relations amongst themselves. These are virtues that could be said are a direct result of their poor state because they cannot survive independently.

People living in poverty develop a culture of borrowing, which forces them to be humble, courteous and easily mingle; values that are atypical within the rich people’s circles. Even if developed because of their poverty status, they add up to the good values that are much needed in a society. Although a bit selfish, if everyone in the society was to be rich, then very important links would be cut.

For instance, there would be no casual labourers, no cleaners, no charity homes, and limited social interactions. It is also perceived nature that poverty makes people work hard in the various sectors, seeking to improve their lifestyles. It’s often found that poor people work the hardest in school, work places and even in sports and music industry, because they don’t have what they desire in life.

• Chicago (A-D)
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IvyPanda. (2018, October 17). The Problems of Poverty in the Modern World. https://ivypanda.com/essays/poverty-3/

"The Problems of Poverty in the Modern World." IvyPanda , 17 Oct. 2018, ivypanda.com/essays/poverty-3/.

IvyPanda . (2018) 'The Problems of Poverty in the Modern World'. 17 October.

IvyPanda . 2018. "The Problems of Poverty in the Modern World." October 17, 2018. https://ivypanda.com/essays/poverty-3/.

1. IvyPanda . "The Problems of Poverty in the Modern World." October 17, 2018. https://ivypanda.com/essays/poverty-3/.

Bibliography

IvyPanda . "The Problems of Poverty in the Modern World." October 17, 2018. https://ivypanda.com/essays/poverty-3/.

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