Global poverty

Global poverty is a serious issue that puts breaks on human development. It also
challenges human dignity and world peace. In countries like Afghanistan, Pakistan and
India, poverty reduction is also part of the global counter-terrorism strategy. Since the
1960s, a major change in development thinking occurred; rural areas in general and
agriculture sector in particular were seen as a key driver of overall growth and poverty
reduction, especially in countries at their early stages of development (Johnston and
Mellor, 1961; Schultz, 1961; Schultz, 1972). This was evident from many Asian
countries benefitting from the Green Revolution of the 1960s that led to a dramatic
reduction in poverty however it is measured. China, India, Pakistan and other countries
in Asia made a huge contribution to poverty reduction (Chen and Ravallion, 2007). The
unprecedented fall in global poverty in recent decades reflects a large contribution from
this successful agricultural transformation in Asia (Datt and Ravallion, 1998; Hussain
and Hanjra, 2003; 2004; Namara et al., 2010) The Green Revolution transformed the
opportunity structure of the poor farm and non-farm households and protected
agricultural and rural communities against episodes of hunger and famine while
dramatically improving their income and consumption (Castillo et al., 2007).. Many
countries in sub-Saharan Africa are now picking up the Green Revolution technology
and taking a major step on the pathway out of poverty (Hanjra and Gichuki, 2008).
However, poverty is multifaceted and a dynamic concept (Bourguignon and
Chakravarty, 2003) which includes not only income or consumption shortfalls but it also
encompasses other dimensions of human wellbeing such as lack of access to
education, healthcare, water and sanitation services, etc. Equitable access to services
for men and women, effective participation into decision making, voice and political
freedoms, and social justice are also important dimensions of poverty. Often these
dimensions of poverty cannot be adequately captured by any single poverty
measurement method or indicator. Rather, poverty measurement methods and
indicators are approach specific, and consumption/income based poverty measures are
most commonly used. The definition and measurement of poverty has been an issue of
intense debate and theoretical investigation (Sen, 1976; Chakravarty, 1983; Basu,
1985; Vaughan, 1987; Foster and Shorrocks, 1988; Shorrocks, 1995; Blundell and
Preston, 1998). Some measured it in terms of a minimum required calorie intake
(Bhalla, 1980) and in monetary terms (Ravallion et al., 1991; Chen and Ravallion, 2001;
Pritchett, 2006). For instance, the widely used Foster, Greer and Thorbecke (FGT)
(Foster et al., 1984) poverty indices measure the incidence, depth and severity of
poverty using this simple and practical approach. Another source of debate is the exact
position of the poverty line (e.g. one-dollar-a-day and two-dollars-a-day international
poverty lines or national poverty line). Although there are no substantive changes in the
basic poverty indices, there have been some improvements in the traditional method of
measuring poverty by incorporating other dimensions (e.g. inequality, gender, human
development, availability of basic amenities, and other welfare indicators). United
Nations Human Development Index captures various dimensions of human
development such as income, education, health, and services (UNDP, 2010a).
Specifically, the development of multidimensional poverty index (MPI) which intends to
reflect the multiple deprivations that people face is an attempt to complement the
traditional measurements of poverty by including the ‘missing dimensions’ of poverty
(OHIP et al., 2010). This is a major conceptual advance that builds on the United
Nations flagship Human Development Index. Also, the Voices of the Poor project by the
World Bank and the implementation of this concept (Hargreaves et al., 2007), the
Quantitative Qualitative (Q-square) Poverty project (Kanbur and Shaffer, 2007) and
most recently the studies using subjective poverty lines –drawn by the poor themselves
to characterize their own rank in terms of poverty– in Ghana, India, South Africa and
Thailand (Krishna, 2004) have helped to significantly advance the conceptual ferment of
poverty. Poverty is widely measured and reported. Yet the definition and measurement
of poverty still poses significant challenges. The capacity building needs are immense
and worldwide there is not a single school or university that offers specialized degree
program in poverty analysis. The measurement of poverty using household level survey
data is particularly challenging. This chapter builds on our previous works (Hanjra,
2001b; a; c; d) and examines both theoretical developments and empirical evidences on
the measurement of poverty and demonstrate in a very simple but powerful way of
computing poverty and inequality indices from survey data. Priorities for future research
on global poverty in a regional context are outlined.

Causes of poverty

1. INADEQUATE ACCESS TO CLEAN WATER AND NUTRITIOUS FOOD

Currently, more than 2 billion people don’t have access to clean water at home, while
over 800 million suffer from hunger. You might think that poverty causes hunger and
prevents people from accessing clean water (and you would be right!), but hunger and
water insecurity are also big reasons why people struggle to escape extreme poverty.

If a person doesn’t get enough food, they simply don’t have the strength and energy
needed to work, while lack of access to food and clean water can also lead to
preventable illnesses like diarrhea. And when people must travel far distances to clinics
or spend what little money remains on medicine, it drains already vulnerable
populations of money and assets, and can knock a family from poverty into extreme
poverty.
Even if clean water sources are available, they’re often located far from poor, rural
communities. This means that women and girls collectively spend some 200 million
hours every day walking long distances to fetch water. That’s precious time that could
be used working, or getting an education to help secure a job later in life.

2. LITTLE OR NO ACCESS TO LIVELIHOODS OR JOBS

This might seem a bit like a “no brainer.” Without a job or a way to make money, people
will face poverty. But it’s easy to assume that if someone wants a job, they could have
one. That just isn’t true, particularly in developing and rural parts of the world. Dwindling
access to productive land (often due to conflict, overpopulation, or climate change), and
overexploitation of resources like fish or minerals is putting increasing pressure on
many traditional livelihoods. In the Democratic Republic of Congo (DRC) for example,
most of the population lives in rural communities where natural resources have been
plundered over centuries of colonialism — while conflict over land disputes has forced
people from the land they relied upon for food and money. Now, more than half of the
country lives in extreme poverty. While inconsistent work and low paying jobs can land
a family in poverty, absolutely no work means that a family can’t get by without
assistance.

3. CONFLICT
Conflict can cause poverty in several ways. Large scale, protracted violence that we see
in places like Syria can grind society to a halt, destroy infrastructure, and cause people
to flee, forcing families to sell or leave behind all their assets. In Syria, around 70% of
the entire population now lives below the poverty line — this in a country where extreme
poverty was once very rare. Women often bear the brunt of conflict: during periods of
violence, female-headed households become very common. And because women often
have difficulty getting well-paying work and are typically excluded from community
decision-making, their families are particularly vulnerable.

But even small bouts of violence can have huge impacts on communities that are
already struggling. For example, if farmers are worried about their crops being stolen,
they won’t invest in planting. Women are particularly vulnerable in these kinds of
conflicts, too, as they often become the targets of sexual violence while fetching water
or working alone in the fields.

4. INEQUALITY
There are many different types of inequality in the world, from economic to social
inequalities like gender, caste systems, or tribal affiliations. But no matter the inequality,
it generally means the same thing: unequal or no access to the resources needed to
keep or lift a family out of poverty.

Sometimes inequalities are obvious, but in other situations, it can be subtle — for
example, the voices of certain people or groups might not be heard in community
meetings, meaning they don’t get a say in important decisions. Regardless, these
inequalities mean that the people affected don’t have the tools they desperately need to
get ahead, and for already vulnerable families, this can mean the difference between
being poor or living in extreme poverty.

5. POOR EDUCATION
Not every person without an education is living in extreme poverty. But most of the
extremely poor don’t have an education. And why is that? There’s a lot
of barriers stopping children from going to school. Many families can’t afford to send
their children to school and need them to work. More still don’t see a benefit
in educating girls. Education is often referred to as the great equalizer, and that’s
because education can open the door to jobs and other resources and skills that a
family needs to not just survive, but thrive. UNESCO estimates that 171 million
people could be lifted out of extreme poverty if they left school 

6. CLIMATE CHANGE
You might be stunned to learn that the World Bank estimates that climate change has
the power to push more than 100 million people into poverty over the next ten years. As
it is, climate events like drought, flooding, and severe storms disproportionately impact
communities already living in poverty. Why? Because many of the world’s poorest
populations rely on farming or hunting and gathering to eat and earn a living. They often
have only just enough food and assets to last through the next season, and not enough
reserves to fall back on in the event of a poor harvest. So when natural disasters
(including the widespread droughts caused by El Niño) leave millions of people without
food, it pushes them further into poverty, and can make recovery even more difficult

7. LACK OF INFRASTRUCTURE
Imagine that you have to go to work, or to the store, but there are no roads to get you
there. Or heavy rains have flooded your route and made it impassable. What would you
do then? A lack of infrastructure — from roads, bridges, and wells to cables for light, cell
phones, and internet — can isolate communities living in rural areas. Living “off the grid”
means the inability to go to school, work, or market to buy and sell goods. Traveling
farther distances to access basic services not only takes time, it costs money, keeping
families in poverty. Isolation limits opportunity, and without opportunity, many find it
difficult, if not impossible, to escape extreme poverty.

8. LIMITED CAPACITY OF THE GOVERNMENT

Many people living in the United States are familiar with social welfare programs that
people can access if they need healthcare or food assistance. But not every
government can provide this type of help to its citizens — and without that safety net,
there’s nothing to stop vulnerable families from backsliding further into extreme poverty
if something goes wrong. Ineffective governments also contribute to several of the other
causes of extreme poverty mentioned above, as they are unable to provide necessary
infrastructure or ensure the safety and security of their citizens in the event of conflict.
9. LACK OF RESERVES
People living in poverty don’t have the means to weather the storms of life. So when
there is a drought, or conflict, or illness, there is little money saved or assets on hand to
help. In Ethiopia for example, repeated cycles of drought have caused harvest after
harvest to fail, causing a widespread hunger crisis. To cope, families will pull their
children from school, and sell off everything they own to eat. That can help a family
make it through one bad season, but not another. For communities constantly facing
climate extremes or prolonged conflict, the repeated shocks can send a family reeling
into extreme poverty and prevent them from ever recovering.

Poorest Country in the World

GDP per capita is often considered an indicator of the standard of living of a given country, as it
reflects the average wealth of each person residing in a country. It is therefore the standard method
used to compare how poor or wealthy countries are in relation to each other. With 2018 coming to a
close, we decided to take a look at our forecasts for GDP per capita from 2019 to 2023 for the 127
countries we cover to get an idea of what countries are the poorest currently and which will be
making a leap toward becoming wealthier in the coming years.  The projections used in this study
are Consensus Forecasts based on the individual forecasts of over 1000 world renowned investment
banks, economic think tanks and professional economic forecasting firms.

As one might imagine those closest to the top of the list are mostly emerging markets
and least developed countries of which the majority are from Sub-Saharan Africa.
Similar to our ranking for the most miserable economies, this is one of those lists where
the “winners” aren’t really winners; being as far from the top of the list as possible is a
good thing.

Many of the poorest nations in the world are places where issues such as authoritarian
regimes, political turmoil, weak financial institutions, inadequate infrastructure and
corruption deter foreign investment despite the fact that many of them are immensely
rich in natural resources and have a young, growing population. In our list of the top 10,
five are landlocked, which means they have no direct access to maritime trade and
another one is in the midst of a civil war, which helps to explain why some of them are
currently not in the best of shape.

Despite how grim that may sound, these countries stand to benefit the most in the
coming years as emerging markets will become vitally important to the global economy.
Although per capita GDP will still be the highest in the developed world by 2023, the
fastest growth in GDP per capita will indeed come from many of the world’s poorest
economies currently. According to our forecasts, the highest per capita growth from
2017–2023 will be in Mongolia with an 89% increase in that time span, followed by
Myanmar, Egypt, Serbia and Bangladesh with 83%, 80%, 79%, and 67% growth in per
capita GDP, respectively.

With that said, let’s have a look at the poorest countries in the world according to the
FocusEconomics Consensus Forecast for 2019 nominal GDP per capita.

 Almost 50% of the total populace lives at or underneath the destitution line; out of the
2.2 billion youngsters on the planet, one billion of them live in neediness. Despite the
fact that this issue may not be as pervasive or obvious in the U.S., it is an issue that
influences everybody. Little advances can be taken to better this issue, prompting
potential answers for worldwide neediness. Appropriately Identifying Issues Perhaps the
biggest issue including destitution is the powerlessness to appropriately distinguish
contributing elements at the miniaturized scale and full scale level. Numerous
associations accept that neighborhood help alone will better the issue, however it is just
with the consolidated endeavors of nearby, state and national governments that
neediness will reduce. Allotting Proper Time and Resources Preventable infections, for
example, pneumonia kill almost 2,000,000 youngsters for every year. Without legitimate
arranging, which incorporates designating sufficient opportunity, cash and charitable
effort, worldwide destitution will keep on existing. Right now, the U.S. spends just
around one percent of the government spending plan on outside guide. By making point
by point plans and activities planned for helping different countries, worldwide
neediness will start to diminish. Making associations and networks to work locally
Sanctioning strategy isn't the main answer for worldwide neediness, as arrangement
frequently doesn't influence those enduring straightforwardly. As recently expressed,
endeavors must originate from both neighborhood and government areas. Basically,
while approach is made to change enactment, nearby associations order the changes,
straightforwardly helping those out of luck. What's more, working with whole networks
rather than explicit people has been demonstrated to be increasingly successful.
Making Jobs Making employments in neediness ridden networks permits people to haul
themselves out of destitution. This answer for worldwide destitution is ostensibly one of
the best. Governments can accomplish this by reconstructing their foundations, creating
sustainable power sources, revamping deserted lodging and raising the lowest pay
permitted by law. By bringing the lowest pay permitted by law up in existing
occupations, organizations would battle ongoing expansion in both created and creating
nations. This adjustment in the states (in spots, for example, Seattle and Washington)
has been appeared to lessen neediness. Giving Access to Healthcare Unpaid doctor's
visit expenses are the main source of liquidation. Approaching free or moderate social
insurance would permit families to dispense the cash they would regularly spend on
human services somewhere else. Enabling Women Female strengthening in creating
nations regularly originates from associations that work to lessen neediness by
permitting them to take initiative positions and advance socially and financially.
Microfinancing Microfinancing gives enhancements to financial status by giving access
to increasingly, bigger advances, giving better reimbursement rates to ladies, as they
are less inclined to default on their credits than men and broadening training programs
for advance payers' kids. It can likewise improve wellbeing and welfare by giving access
to clean water and better sanitation, make new openings and show creating nations to
be increasingly manageable. Microfinancing keeps on demonstrating that even the
littlest measures of credit can be one of the numerous answers for worldwide
neediness. Give paid leave and paid days off Paid maternal and fatherly leave permits
families to set aside cash after labor, as having a youngster is a main source of
monetary hardship. Besides, giving laborers paid days off permits them to appropriately
get over their sickness without stressing over missing a check or getting a check with
less assets than typical. Supporting equivalent compensation for people Shutting the
pay hole among people would decrease 50 percent of neediness experienced by ladies
and their families. This would likewise add cash to the country's GDP