Nearly Half the World Lives on Less than $5.50 a Day (2024)

Despitedeclinein extreme poverty, broader measures showbillionsstillstruggle to meet basic needs

WASHINGTON,Oct. 17,2018—Economic advances around the world mean that while fewer people live in extreme poverty, almost half the world’s population—3.4 billion people—still strugglesto meet basic needs, the World Bank said.

Livingon less than$3.20 per day reflects povertylinesin lower-middle-income countries, while $5.50 a dayreflects standardsin upper-middle-income countries, the World Bank said in itsbiennialPoverty and Shared Prosperity Report, “Piecing Together the Poverty Puzzle.”

The World Bank remains committed to achieving the goal ofendingextreme poverty, defined as living on less than $1.90 a day, by 2030. The share of the world’s population living in extreme poverty fell to 10 percent in 2015,but the pace of extreme poverty reduction has slowed,the Bankwarned onSept. 19.

However, given that economic growth means that a much greater proportion of the world’s poor now live in wealthier countries, additional poverty lines and a broaderunderstanding of povertyarecrucial tofully fightingit, the report says.

“Ending extreme poverty by 2030 and boosting shared prosperity are our goals, and we remain committed to them,”saidWorld Bank Group President Jim Yong Kim.“At the same time, we can take a broader view of poverty at different levels and dimensions around the world.This view reveals that poverty is more widespread and entrenched, underlining the importance of investing in people.”

While rates of extreme poverty have declined substantially, falling from 36 percent in 1990,the report’sexpandedexamination of the nature of poverty demonstrates the magnitude of the challenge in eradicating it.Over1.9 billion people, or 26.2 percent of the world’s population, were livingonless than $3.20 per dayin 2015. Close to 46 percent of the world’s population was livingon less than$5.50 a day.

The reportalsogoes beyond monetary measures of poverty to understand how access toadequatewaterand sanitation,education,orelectricity affect a family’s well-being.And since the burdens of poverty often fall most heavily on women and children, the report analyzes how poverty can vary within a household.

The report finds that the incomes of the poorest 40 percent grew in 70 of the 91 economies monitored.In more than halfoftheeconomies, their incomes grew faster than the average, meaning theyweregetting a bigger share of the economic pie.However, progress in sharing prosperity lagged in some regions of the world.The report also warns thatdata needed to assess shared prosperity is weakest in thevery countries that most need it to improve. Only one in four low-income countries and four of the 35 recognized fragile and conflict-affected states havedata onshared prosperitydata over time.

The new measures allow the World Bank to better monitor poverty in all countries, in multiple aspects of life, and for all individuals in every household.

“Piecing Together the Poverty Puzzle”is beingreleasedonEnd Poverty Dayand will be accompanied by alaunch eventtobe webcast on World Bank Live at 12:30 p.m.EDT (4:30 p.m. UTC/GMT).

REGIONAL SNAPSHOTS

East Asia and Pacific:The regionwas one ofthe best performers inshared prosperity:The incomes ofthepoorest40 percent of the populationgrewon average4.7 percent between 2010 and 2015.East Asianotonly had the largest reductions in extreme poverty, but also in the proportion of people living on less than $3.20 and $5.50 per day.Whileextremepovertyis very low, theregionsaw a higher percentage of peoplelackingaccess tosanitation.

Europe and Central Asia:Many countries in the region suffered setbacks in the growth of incomes of its bottom 40.On the other hand, several economies whose bottom 40 suffered large declinesbecause ofthe financial and the debt crises were recovering. Among developing regions, Europe and Central Asiahad the lowest percentage of people living under the$3.20 and $5.50poverty lines. However, in the share of peoplelackingschooling enrollment,itperforms less well thaneitherEast Asia and PacificorLatin America andtheCaribbean. 

Latin America and the Caribbean:The regionsaw lessshared prosperity from 2010 to 2015than in previous yearsas its economies were impacted by a slowdown in global commodity prices.The region hadalmost 11 percent living on less than $3.20 a day and over 26 percent onless than$5.50 a dayin 2015.Poverty in non-monetary dimensions such as lack of access to drinking water, adequate sanitation or electricity was much less associatedwithmonetaryaspects.

Middle East and North Africa:Even though the region saw an increase in the number of people living on less than $1.90 a day, levels of extreme poverty remained low. However, the region had more people living on less than $5.50 per day in 2015 than in 1990. Additionally, almost one in seven people lacks adequate sanitation.

South Asia:the regionsaw impressive growth of the incomes of its bottom 40 between 2010 and 2015. Despite a 35-percentage point decline in extreme poverty between 1990 and 2015, the region registered only an 8 percent decrease in people living on less than $3.20 a day,and over 80 percent of the region still lived below $5.50 per day in 2015. Also, the number of people in the region living in households without access to electricity or adequate sanitationwas far greater than those living in monetary poverty.

Sub-Saharan Africa:A thirdof thecountries in the region experienced negative income growth forthebottom 40 percent of theirpopulations. The region with thelargest number ofextreme poor,Africasaw its population nearly double between 1990 and 2015, with one of the largest increases in population being for those living on less than $3.20 and more than $1.90.The poor sufferedfrom multiple deprivationssuch aslowconsumptionlevels and lack ofaccess to education and basic infrastructure services.