World Bank says poverty is reducing globally

A new World Bank study says extreme poverty is on the decline worldwide despite the sluggish growth of economies. Sub-Saharan Africa, however, still has a huge number of people living in grinding poverty. PHOTO | FILE 

By MAGATI OBEBO

In Summary

• In 60 of 83 countries covered by the report, average income went up for people living in the bottom 40 per cent of their countries between 2008 and 2013.

A new World Bank study says extreme poverty is on the decline worldwide despite the sluggish growth of economies.

Sub-Saharan Africa, however, still has a huge number of people living in grinding poverty.

“Half of the world’s extreme poor live in Sub-Saharan Africa while a third are in South Asia,” said the report released in Washington on Sunday.

In 60 of 83 countries covered by the report, average income went up for people living in the bottom 40 per cent of their countries between 2008 and 2013.

The countries in the study represent 67 per cent of the world population.

“It’s remarkable that countries have continued to reduce poverty and boost shared prosperity but still, far too many people live with far too little,” said World Bank Group President Jim Yong Kim.

The report warns that given projected growth trends, reducing high inequality may be a necessary component of reaching the goal of ending extreme poverty.

According to the inaugural edition of Poverty and Shared Prosperity — a new series that will report on the latest and most accurate estimates and trends in global poverty annually — nearly 800 million people live on less than a dollar a day.

“Unless we can resume faster global growth and reduce inequality, we risk missing our target of ending extreme poverty by 2030,” he said.

“The message is clear; to end poverty, we must make growth work for the poorest, and one of the surest ways to do that is to reduce high inequality.”