The World Bank’s 2024 Year in Review paints a stark picture of global poverty, particularly in sub-Saharan Africa. The report highlights the persistence of multidimensional poverty, affecting over half the population in the region, including Nigeria. This measure considers not only monetary poverty, using the international poverty line of $2.15 per day, but also deprivations in education and access to basic infrastructure like sanitation and clean energy. The report underscores the severity of the situation, revealing that a significant portion of Nigeria’s population, over half, experiences this multifaceted poverty and relies on harmful cooking fuels like dung, wood, or charcoal. High deprivations are also evident in other crucial areas such as access to healthcare, food security, and adequate housing. The confluence of these factors contributes to a cycle of poverty that hinders development and perpetuates inequality.
This dire situation is further exacerbated by climate shocks, to which 40% of the sub-Saharan African population is directly exposed, with almost the entire population considered at high risk. These climate-related vulnerabilities, including droughts, floods, and extreme weather events, disrupt livelihoods, displace communities, and strain already limited resources, pushing more people into poverty and hindering efforts to escape it. The report stresses the interconnectedness of these challenges, highlighting how climate change acts as a threat multiplier, intensifying existing inequalities and undermining development progress. It calls for urgent action to address these intertwined issues, emphasizing the need for climate-resilient development strategies that prioritize adaptation and mitigation measures.
While the recent replenishment of the International Development Association (IDA) with $23.7 billion offers a glimmer of hope, the scale of the challenge remains immense. This funding, leveraged to generate $100 billion in affordable financing, aims to support development in 78 countries, focusing on crucial areas such as job creation, healthcare improvements, education expansion, increased electricity access, and enhanced food security and nutrition. While this investment represents a significant commitment to development, the report cautions that achieving the Sustainable Development Goal of eradicating extreme poverty by 2030 is currently out of reach. The sheer magnitude of global poverty, coupled with persistent challenges, demands a more concerted and sustained effort.
The World Bank acknowledges the complexity of the problem, citing slow economic growth, the lingering effects of the COVID-19 pandemic, crippling debt burdens, and escalating fragility and conflict as key contributing factors. These interconnected challenges create a volatile environment that hinders progress towards poverty reduction. The pandemic, in particular, has disrupted economies, exacerbated inequalities, and pushed millions more into poverty, reversing years of development gains. Similarly, heavy debt burdens restrict governments’ ability to invest in essential services and social programs, further impeding poverty reduction efforts.
The report emphasizes that approximately 700 million people globally still live in extreme poverty, surviving on less than $2.15 a day. An even larger number, around 3.5 billion people, live on less than $6.85 a day, a poverty line more relevant for middle-income countries. Without significant and immediate action, the World Bank projects that eradicating extreme poverty could take decades, and eliminating poverty as defined for nearly half the world could take over a century. This sobering assessment underscores the urgency of the situation and the need for a renewed global commitment to poverty eradication.
Looking ahead, the World Bank advocates for a multi-pronged approach to address these challenges. The report stresses the importance of promoting green, inclusive, and sustainable economic growth to tackle intertwined global issues and reignite progress. This includes creating more opportunities for women and youth, investing in climate mitigation and adaptation measures, and revitalizing international cooperation and financing for development. The World Bank Group pledges its continued support to countries in these endeavors, emphasizing its commitment to helping nations emerge from challenging circumstances and enabling individuals to reach their full potential. The report concludes with a call for unwavering endurance and a collective determination to overcome setbacks and achieve the ambitious goals of ending extreme poverty and fostering shared prosperity on a livable planet by 2030.
