Global poverty: just how unfair is the world?
Crises, conflicts and less money for development hit the poorest hardest. The gap between rich and poor continues to grow.
When is a person considered poor?
According to the World Bank, people are considered poor if they have to live on less than a certain amount of money per day. The threshold for extreme poverty has been at three US dollars per day since 2025. As poverty can take other forms, it is also referred to as multidimensional poverty. In addition to income, factors such as inadequate education, health or lack of access to social security are included.
How many people are living in poverty?
In comparison to 1990, around 1.5 billion fewer people live in extreme poverty today. Nevertheless, according to the World Bank, around one in ten people and almost one in five children were still considered extremely poor in 2025. This corresponds to around 831 million people. The figure for multidimensional poverty was significantly higher: approximately 1.1 billion people, more than half of whom (586 million) were children. They receive too little schooling, have inadequate housing and have no toilet or washing facilities.
Who is hit hardest by extreme poverty?
Most people in extreme poverty live in rural areas, in sub-Saharan Africa or in conflict zones. Sub-Saharan Africa is the region most affected by extreme poverty. Almost every second person in the region has to get by on less than three US dollars per day. Suffering is also widespread in fragile and conflict-affected areas. More than two thirds of all people experiencing extreme poverty worldwide live in fragile contexts.
What role does climate change play in relation to poverty?
The results of global warming hit the poor population particularly hard. Around 80 per cent of people living in multidimensional poverty reside in areas affected by severe heat, drought, flooding or air pollution. Poor people are less able to protect themselves against flooding or heat because they lack the financial means or have no safety net. This is particularly unjust given that they have contributed the least to climate change. The richest one per cent produces as much climate-damaging emissions as two thirds of the world’s population. However, the poorest 50 per cent bear three quarters of the loss of income due to climate change. Without consistent climate action, poverty rates will continue to increase until the middle of the century.
How unequal is the world in terms of income and wealth?
Disparities between and within countries remain significant and have become even more pronounced in recent times. According to the report, the poorest half of the global population in 2022 earned just over eight per cent of global income, while the top ten per cent accounted for more than half. The differences are even greater when it comes to assets. The richest ten per cent owned around three quarters of global wealth, while the bottom 50 per cent owned just two per cent. Inequality has increased further in recent times. The average wealth of the richest one per cent has risen by 1.3 million US dollars since 2000, while that of the poorer half has increased by only 585 US dollars. The world’s more than 3,000 billionaires now have a fortune that exceeds the gross domestic product of all countries except China and the USA.
What are the differences between men and women?
Women are particularly hard hit by income and wealth inequality. Globally, men hold 105 trillion US dollars more in wealth than women, and there are also significant differences in income. Women and girls work in the lowest paid jobs worldwide and earn 39 per cent less per hour than men. Given that they make up 50 per cent of the population, their share of global income should be 50 per cent. Progress towards achieving equal pay in the foreseeable future is too slow. Income inequality between men and women is particularly marked in North Africa and the Middle East, and in Asia.
Where is the divide between rich and poor particularly wide?
Europe is the fairest place to be. Then comes East Asia, before North America. The biggest differences are in North Africa and the Middle East, followed by Latin America and sub-Saharan Africa. Here, the divide is greater within countries than between countries. This means, although the gap at country level has narrowed in the past four decades, disparities within countries have grown. Two thirds of all people live in countries where income inequality is increasing.
What risks does inequality harbour?
Inequality undermines social cohesion and jeopardises political systems. In countries with high inequality, democracy is seven times more likely to weaken than in countries where it is lower. This is because inequality fosters a sense of injustice, erodes trust in state institutions and polarises people.
What is the best way to eradicate poverty and inequality?
The global fight against poverty is stagnating. Conflicts, rising debt and dwindling funds for development cooperation are placing a particular burden on the poorest countries. During the COVID-19 pandemic, extreme wealth and extreme poverty rose simultaneously for the first time since 1990. Climate change is further exacerbating the situation. This means that poverty and inequality have diverse causes and are complex problems that are not easy to solve. However, it is undisputed that factors such as access to medical care, social security, education and decent employment can contribute significantly to reducing poverty. It is also important to redistribute income and through direct, progressive taxation, and to increase government revenues, in order to enable important investments in education and health. Particularly in countries with high income disparities, poverty cannot be reduced by economic growth alone. Especially here, it is necessary to actively address inequality.