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Extreme poverty

society Maturity 11-13 Next article →

Extreme poverty is the most severe form of economic hardship. The United Nations (UN) defines it as a condition of severe deprivation. This means people lack basic human needs to live a healthy life. These needs include food, safe drinking water, and sanitation facilities. It also includes access to health care, shelter, and education. Experts note that extreme poverty depends on more than just money. It also depends on whether a person can reach essential services.

United Nations Headquarters, Geneva
United Nations Headquarters, Geneva

To track this issue, the World Bank uses an international poverty line. This line is a specific income level used for comparison. In 2025, the line was set at $3.00 per day. This number is updated regularly to account for inflation. Inflation refers to how prices for goods change over time. The updates reflect the actual cost of food, clothing, and shelter. Because many poor people are subsistence farmers, experts measure consumption. Consumption is the total value of the goods and services a person uses. This method ensures that people who grow their own food are included in the data.

Poverty headcount ratio at 1.90 a day
Poverty headcount ratio at 1.90 a day

There are different ways to view and measure poverty. The $3.00 per day metric is the most widely used. It measures absolute poverty, which stays constant for comparison. However, some researchers use the Multidimensional Poverty Index (MPI). The MPI is published by the Oxford Poverty & Human Development Initiative. It looks at more than just income. It measures the intensity of deprivation in many different areas. For example, it can track a lack of electricity or overcrowding. In some places, like the Gaza Strip, poverty is caused by a lack of water and electricity. In other places, like Bhutan, income is the main factor.

Share of population living in multidimensional poverty, 2014
Share of population living in multidimensional poverty, 2014

History shows that the global situation has changed dramatically. In the year 1800, over 80% of the world lived in extreme poverty. This was the standard condition for most people. Over the centuries, this percentage has fallen significantly. By 2025, the global population in extreme poverty dropped to around 10%. This represents a massive shift in human history.

World-population-in-extreme-poverty-absolute
World-population-in-extreme-poverty-absolute

Specific numbers highlight the scale of recent progress. In the year 2000, approximately 2.23 billion people lived in extreme poverty. By 2025, that number fell to 831 million people. This means more than one billion people escaped extreme poverty in just 25 years. Most people in extreme poverty live in South Asia and Sub-Saharan Africa. In 2018, Nigeria had the highest number of people in extreme poverty at 94.7 million. While the total number is falling, the number in Sub-Saharan Africa rose from 321 million to 598 million between 1990 and 2025.

Total population living in extreme poverty, by world region (PovcalNet, World Bank), OWID
Total population living in extreme poverty, by world region (PovcalNet, World Bank), OWID

International organizations have set major targets to help. In 2000, the UN set the Millennium Development Goals (MDGs). The first goal, MDG1, was to reduce extreme poverty by half by 2015. The world met this target five years early. Now, the Sustainable Development Goals (SDGs) have replaced the MDGs. The current goal is to end extreme poverty in all forms everywhere. The international community, including the World Bank, aims to reach this by 2030.

Sustainable Development Goals
Sustainable Development Goals

Achieving "global zero" is the ultimate objective. This means having fewer than 3% of the population in extreme poverty. The 3% figure allows for temporary poverty caused by conflict or economic shifts. Some economists predict that 793 million people may still be in poverty if current trends continue. However, others hope for more optimistic scenarios. The path to 2030 depends on how consumption and distribution change in developing nations.

Extreme-Poverty-projection-by-the-World-Bank-to-2030
Extreme-Poverty-projection-by-the-World-Bank-to-2030
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File:World-population-in-extreme-poverty-absolute.svg
World-population-in-extreme-poverty-absolute.svg
File:Total population living in extreme poverty, by world region (PovcalNet, World Bank), OWID.svg
Total population living in extreme...
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Distribution-of-population-poverty-thresholds.svg
File:Poverty headcount ratio at 1.90 a day.png
Poverty headcount ratio at 1.90 a day.png
File:Share of population living in multidimensional poverty, 2014.svg
Share of population living in...
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File:USAID Projections.png
USAID Projections.png
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File:Brookings -- 2030 Extreme Poverty Projections.png
Brookings -- 2030 Extreme Poverty Projections.png
File:Sustainable Development Goals.png
Sustainable Development Goals.png
File:World Bank Group.png
World Bank Group.png
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World Bank logo.svg

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