Poverty is commonly understood as the inability to afford the essentials for a dignified life, which includes food, shelter, education, and the ability to participate meaningfully in one’s community. As the Child Poverty Action Group puts it:
“Poverty means not having enough money to buy the things your household needs and to participate fully in society.”
This limited capacity can manifest in cramped housing, missing school trips, or struggling to stay warm, deeply affecting children and caregivers alike.
Renowned sociologist Peter Townsend framed poverty as not only an economic condition but also a sociological one, stating that poverty occurs when individuals lack resources to obtain the diet, living conditions, and amenities which are customary or widely approved in their society.
Measuring Poverty: Absolute vs. Relative, and Beyond
Absolute Poverty
Absolute poverty refers to living below a universal baseline for human survival — a “poverty line” that represents the minimum daily resources required. The World Bank recently updated its international poverty line in June 2025 to $3.00 per person per day (in 2021 PPP terms), replacing the previous threshold of $2.15 .
- In low-income countries, the poverty line is
$3.00/day. - In lower-middle-income countries, it’s
$4.20/day. - In upper-middle-income countries, it’s
$8.30/day.
Relative Poverty
Relative poverty measures how income or living conditions compare within a society. For example, a child living in a household earning less than 60 % of the national median income may be considered in poverty in many countries. This approach highlights social exclusion and inability to participate fully in societal life.
Multidimensional Poverty
Beyond income, poverty also includes deprivation in areas such as education, healthcare, housing, and social inclusion. Multidimensional poverty indices address this complexity, revealing how lack of resources impacts individuals across many life domains.
Global Poverty: Trends, Distribution & Roadblocks
Notable Gains — and Alarming Slowdowns
- Since 1990, over 1 billion people were lifted out of extreme poverty, largely due to economic growth in East Asia, the Pacific, and South Asia .
- However, progress has slowed significantly since 2013, disrupted by conflicts, climate shocks, debt burdens, economic fragility, and the COVID-19 pandemic .
Current Numbers, After the 2025 Update
- Nearly 1 in 10 people worldwide still live in extreme poverty — defined as under $3.00/day .
- According to the Poverty, Prosperity, and Planet 2024 report, nearly 700 million people (about 8.5% of the global population) live on less than $2.15/day, though after updating the poverty line to $3, the count is even higher .
Regional Disparities
- Sub-Saharan Africa houses a majority of the world’s extreme poor: 67 % of those living under $2.15/day, rising to three-quarters when including fragile and conflict-affected countries .
- Fragile and conflict-affected settings are central to global poverty. Over 420 million people (nearly 60% of global extreme poor) are projected to reside in such regions by 2030 .
Projections Into 2030
- By 2030, an estimated 622 million people (7.3%) may still live in extreme poverty — a sharp slowdown from the 150 million who exited poverty between 2013 and 2019 .
- Almost 3.4 billion people may remain under the higher threshold of $6.85/day — a standard relevant for upper-middle-income economies .
Crisis Impacts & Economic Speedbumps
- Progress has halted due to overlapping crises — from climate shocks to global pandemics. The Guardian reported that at current pace, it will take over three decades to bring nearly 700 million people above extreme poverty .
- Economic growth remains too low to alleviate poverty meaningfully. The World Bank forecasts global growth of just 2.7% for 2025–26 — not enough to reduce poverty sustainably .
- Fragile economies face GDP contraction (~1.8% annually) against 2.9% growth in other developing countries .
The Human Cost: Beyond Numbers to Lives
Food Insecurity & Hunger
- A 2025 World Vision report revealed that 300 million people worldwide are experiencing acute hunger, mainly in conflict zones and fragile economies .
- In Sudan, amid one of the world’s largest hunger crises, individuals may need to work 21 days to afford just 10 basic food items — a 42% increase from the previous year .
- The World Food Programme reports 282 million people across 59 countries faced high acute food insecurity in 2023 — a 24 million increase from 2022 .
Children & Multidimensional Poverty
- Globally, 333 million children live in extreme poverty, subsisting on less than $2.15/day, with long-term consequences for health, education, and safety .
- World Vision estimates that climate and disaster risks could push 325 million more people into extreme poverty over the next decade .
Gendered Dimensions
- Women often bear the brunt of poverty — yet empowering women leads to meaningful improvements across households. Interventions targeting women tend to deliver the most impactful outcomes for families .
A Message of Hope: Progress and the Path Forward
Historical Momentum
- Global extreme poverty has declined from roughly 44% in 1990 to under 10% in recent years .
- East Asia and the Pacific have seen dramatic reductions: from 60.6% of the population under $1.90/day in 1990 to just 4.1% by 2015 .
- Overall, 1.5 billion fewer people live under the International Poverty Line today than in 1990 — a decline of roughly 118,000 per day over 35 years .
Inclusive Strategies Are Key
Ending poverty will require more than just economic growth — it demands inclusive policies, investments in education, infrastructure, healthcare, and social protection systems. Equally critical is combating inequality, especially in fragile and conflict-affected regions, through debt relief, targeted aid, and locally driven solutions .
A Call to Action
Empowering women, building resilience to climate shocks, strengthening social safety nets — these are not peripheral goals; they’re central to ensuring the poorest can escape the poverty trap and contribute meaningfully to their societies.
Bringing It All Together: Poverty Matters — and We Can Change It
Poverty is about far more than lack of money. It’s about exclusion, lost potential, and unfulfilled promise — especially for children and vulnerable populations. From East Asia’s remarkable progress to tragic setbacks in fragile regions, the story of poverty is complex and urgent.
- Nearly 1 in 10 people still live in extreme poverty.
- Fragile states and sub-Saharan Africa are home to the majority of the world’s poor.
- Hundreds of millions suffer from acute hunger — facing impossible choices just to survive.
- Child poverty and gender inequality magnify the consequences — and opportunities — for change.
- But progress is possible — as history shows — and with the right mix of ambition, policy, and solidarity, we can accelerate toward a more equitable future.