An end to extreme poverty? (Or at least the extreme poverty line) – World
An end to extreme poverty? (Or at least the extreme poverty line) - World ReliefWeb
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Report on the World Bank’s Extreme Poverty Line
Introduction
By Charles Kenny
The World Bank’s extreme poverty line has been widely recognized for its role in discussing global poverty. However, it has several weaknesses that need to be addressed. This report aims to highlight the importance of the Sustainable Development Goals (SDGs) in addressing these weaknesses and proposes a multidimensional indicator as a potential replacement for the extreme poverty line.
What are Poverty Lines For?
Poverty lines serve multiple purposes. Firstly, they help measure progress and regress in the quality of life of the most disadvantaged individuals, whether in relative or absolute terms. Poverty lines also help set socially accepted targets for a minimum quality of life, which includes access to basic goods and services. Additionally, poverty lines focus policy attention and resources on the most disadvantaged members of a community.
Uses of Poverty Lines
At the national level, poverty lines are often used as a targeting mechanism for welfare payments and differential pricing of access to services. Internationally, they are used as tools for directing attention and measuring progress towards reducing extreme poverty, as outlined in the UN Millennium Development Goals (MDGs) and the UN Sustainable Development Goals (SDGs).
Weaknesses of the Extreme Poverty Line
The global extreme poverty line has several shortcomings:
- It is not a fixed-definition indicator, making it unsuitable for measuring progress accurately.
- It does not measure or guarantee access to a basic bundle of economic goods and services.
- It has been largely ignored as an indicator for targeting assistance.
The first part of this report highlights that these problems are worsening over time. The extreme poverty line is increasingly focused on measuring changes rather than actual levels of consumption, it no longer represents the same quality of life as before, and it has become irrelevant for an increasing number of countries due to economic growth.
Importance of Poverty Lines
While there are shortcomings, poverty lines still play a crucial role. They serve as a useful measure of progress, albeit a partial one, and can be a helpful targeting tool, albeit a blunt one. The last part of this report explores potential options to address these issues.
SDGs, Targets, and Indicators
| SDGs | Targets | Indicators |
|---|---|---|
| SDG 1: No Poverty | 1.1 By 2030, eradicate extreme poverty for all people everywhere, currently measured as people living on less than $1.25 a day | Extreme poverty line |
| SDG 10: Reduced Inequalities | 10.1 By 2030, progressively achieve and sustain income growth of the bottom 40 percent of the population at a rate higher than the national average | Distribution of poverty line |
1. Which SDGs are addressed or connected to the issues highlighted in the article?
- SDG 1: No Poverty
- SDG 10: Reduced Inequalities
The article discusses the weaknesses of the extreme poverty line as a measure of poverty and the need for a multidimensional indicator tied to the Sustainable Development Goals (SDGs). This highlights the connection to SDG 1, which aims to eradicate extreme poverty, and SDG 10, which aims to reduce inequalities.
2. What specific targets under those SDGs can be identified based on the article’s content?
- Target 1.1: By 2030, eradicate extreme poverty for all people everywhere, currently measured as people living on less than $1.25 a day.
- Target 10.1: By 2030, progressively achieve and sustain income growth of the bottom 40 percent of the population at a rate higher than the national average.
The article mentions the need for a fixed-definition indicator to measure progress and regress in the quality of life of those most disadvantaged, which aligns with Target 1.1 of SDG 1. It also discusses the importance of an indicator that influences distribution for targeting assistance, which relates to Target 10.1 of SDG 10.
3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?
- Extreme poverty line
- Distribution of poverty line
The article mentions the extreme poverty line as a measure of progress towards eradicating extreme poverty (Target 1.1) and the distribution of the poverty line as an indicator for targeting assistance (Target 10.1).
By analyzing the article, we can identify two indicators that can be used to measure progress towards the identified targets.
4. SDGs, Targets, and Indicators
| SDGs | Targets | Indicators |
|---|---|---|
| SDG 1: No Poverty | 1.1 By 2030, eradicate extreme poverty for all people everywhere, currently measured as people living on less than $1.25 a day | Extreme poverty line |
| SDG 10: Reduced Inequalities | 10.1 By 2030, progressively achieve and sustain income growth of the bottom 40 percent of the population at a rate higher than the national average | Distribution of poverty line |
Copyright: Dive into this article, curated with care by SDG Investors Inc. Our advanced AI technology searches through vast amounts of data to spotlight how we are all moving forward with the Sustainable Development Goals. While we own the rights to this content, we invite you to share it to help spread knowledge and spark action on the SDGs.
Fuente: reliefweb.int
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