If you live on less than $1.25 you are
poor –World Bank
By SEUN ADESIDA
Monday, September 1, 2008
The World Bank has said more people are living in extreme
poverty in developing countries than previously thought as
it adjusted the recognized yardstick for measuring global
poverty to $1.25 a day from $1.
The poverty-fighting institution said there were 1.4 billion
people a quarter of the developing world, living in extreme
poverty on less than $1.25 a day in 2005. Last year, the World
Bank said there were 1 billion people living under the previous
$1 a day poverty mark. The new figures are likely to put fresh
pressure on big donor countries to move more aggressively
to combat global poverty, and on countries to introduce more-effective
policies to help lift the poorest.
Even so, the new estimates show how progress has been made
in helping the poor over the past 25 years. In 1981, 1.9 billion
people were living below the new $1.25 a day poverty line.
The new estimates are based on updated global price data,
and the revision to the poverty line shows the cost of living
in the developing world is higher than had been thought. The
data is based on 675 household surveys in 116 countries.
"These new estimates are a major advance in poverty measurements
because they are based on far better price data for assuring
that the poverty lines are comparable across countries,"
said Martin Ravallion, director of the World Bank's Development
Research Group. While the developing world has more poor people
than previously believed, the World Bank's new chief economist,
Justin Lin, said the world was still on target to meet a United
Nations goal of halving the number of people in poverty by
2015.
However, excluding China from overall calculations, the world
fails to meet the U.N. poverty targets, Lin said. The World
Bank data shows that the number of people living below the
$1.25 a day poverty line fell over nearly 25 years to 26 percent
in 2005 from 52 percent in 1981, a decline on average of about
1 percent a year, he said.
Lin said the new poverty data meant there was no room for
complacency and added that rich donor nations need to keep
their promises of stepped-up aid to poor countries. "The
sobering news that poverty is more pervasive than we thought
means we must redouble our efforts, especially in sub-Saharan
Africa," said Lin, a leading Chinese academic.
The new figures come ahead of an updated assessment of progress
in meeting the U.N.'s Millennium Development Goals, which
will released late next month at a meeting of the U.N. General
Assembly. While most of the developing world has managed to
reduce poverty, the rate in sub-Saharan Africa, the world's
poorest region, has not changed in nearly 25 years, according
to data using the new $1.25 a day poverty line.
Half of the people in sub-Saharan Africa were living below
the poverty line in 2005, the same as in 1981. That means
about 380 million people lived under the poverty line in 2005,
compared with 200 million in 1981.
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