The Story: - 56% of people in extreme poverty (1990) - Now only 22% (2022) - 2+ billion individuals got out of poverty.
Data: Our World in Data
Four Income Groups:
Remarkable Progress:
1990 → 2022: - 56% → 22% extreme poverty - 60% decrease - 2 billion+ lives improved
Why? - Economic growth - Education expansion - Globalization - Technology Advancement in the world
China In 1990, two-thirds of the Chinese population were languishing in abject poverty. In 2020, the figure was practically zero. Such change has raised approximately 850 million individuals out of abject poverty within approximately 30 years. It is the most significant decrease in poverty in history.
Vietnam At the beginning of the 21st century, Vietnam was still in severe poverty, but by 2020 it has nearly eradicated it (approximately 2%). Within a short span of one generation, the country was transformed in terms of industrialisation, exports, and employment, making it no longer very poor, but lower middle income.
Indonesia Indonesia also plunged down in terms of poverty within the same period. It did not go to zero, however, it brought millions of people out of survival mode and into a less unstable situation.more stable.
How Far Apart?
Australia (2022):
~11% live on less than $30/day
Typical income ≈ $140/day
The majority of the population belong to the middle class in the world.
India (2022):
~99% live on less than $30/day
Typical income ≈ $6/day
The level of poverty is decreasing, but the average citizen remains well below the living standards of the Australians
Where is the middle class?
Most established:
Latin America: ~35%
Europe: ~32%
East Asia: ~28%
The number of these regions with a size of $10-30/day is already large. That implies that there are many individuals who are high income earners, have access to services and can spend
Still emerging:
South Asia: ~15%
Africa: ~18%
In this case the middle class is increasing though at a smaller proportion. There are lots of individuals who are on the brink of returning into poverty.
Why this matters:
An increased middle class will generally translate to greater stability.
Improved educational, health, electrical, internet access.
Increased consumer consumption which stimulates growth.
Historical Moments:
1990:Cold war is over, Approximately 56 percent of the total world population lived in severe poverty - 1.9 billion people.
2000: The jobs in factories and exports in such countries as China and Vietnam begin to take tens of millions of people out of poverty.
2010: The mobile/internet boom enables people to get jobs, earn, remit and enter the new middle class.
2020: There is a regression and in certain instances, a regression.
What made progress possible
Economic growth Replacement of farm labor with paid jobs in factories provided individuals with the first cash earnings.
Education More children and particularly girls attended school. It goes to mean increased skills, improved employment and less generational stuckness in poverty.
Technology Mobile phones, internet and mobile banking allow individuals to get jobs, receive payments, sell and obtain information without having to be wealthy first.
Trade Global supply chains offered enormous demands of labour in the poor countries. The rich nations began purchasing the goods produced in such locations as China, Vietnam, and so on - and that money entered into wages.
The Unfinished Fight:
Still Too Many:
Approximately 700 million still live in abject poverty.
The majority of the poor in the world today are then Africans.
Speed Slowing:
Progress is slowing down
People went back to being poor due to COVID.
The globe is not moving towards eradicating extreme poverty by 2030.
What’s Needed:
Seal a gap of about $350 billion per year on financing the basics such as health, education, infrastructure and clean energy.
Focus support on Africa
Conflict zones: peace and stability.
Peace and stability in conflict zones
Data Sources:
Global Change Data Lab. (2024). Share of population living with less than $3.20/day (PPP, 2021 international dollars) [Data set]. Our World in Data. https://ourworldindata.org/grapher/share-living-with-less-than-320-int--per-day
Global Change Data Lab. (2024). Share of population living with less than $10/day (PPP) [Data set]. Our World in Data. https://ourworldindata.org/grapher/share-living-with-less-than-10-int--per-day
Global Change Data Lab. (2024). Share of population living with less than $30/day (PPP, 2021 international dollars) [Data set]. Our World in Data. https://ourworldindata.org/grapher/poverty-share-on-less-than-30-per-day
World Bank. (2024). Poverty and Inequality Platform (PIP) [Data set]. World Bank. https://pip.worldbank.org
Methodology:
The figures in 2021 international dollars are daily income values. PPP adjusted (cost-of-living adjusted in order to compare countries). According to the data of the household surveys conducted in the period between 1990 and 2024 in 195 countries and more. Measures employed: Percentage of the population living under the line of 3.20/day, 10/day and 30/day.
Report:
Student: DHANUSH BAIJU (s4144600) Date: October 2025