Global progress in poverty reduction stalled, says Pierre Laporte

World Bank Country Director for Ghana, Liberia, and Sierra Leone, Pierre Laporte, has shed light on the persistent challenge of extreme poverty in certain regions and the concerning lack of progress in global poverty reduction. Mr. Laporte made these remarks at the World Bank’s End Poverty Day Celebration on October 18, 2023.

Mr Laporte emphasized that extreme poverty is disproportionately concentrated in areas where eradication is most challenging, including parts of Sub-Saharan Africa, conflict-affected zones, and rural regions. A particularly grim outlook looms over approximately half of the global population, who subsist on less than $6.85 per day, a measure typically associated with upper-middle-income countries.

Notably, nearly 700 million people worldwide are currently living in extreme poverty, defined as surviving on less than $2.15 per day. Of this population, slightly over half resides in Sub-Saharan Africa. Mr Laporte stressed that global progress in reducing poverty has stalled, with around three years of lost progress since 2020, as various shocks and crises disrupted the trajectory.

At the midpoint of the Sustainable Development Goals (SDGs), the world is off track in its efforts to eliminate extreme poverty by 2030. Projections indicate that nearly 600 million people will still be grappling with extreme poverty by that time if current rates of progress persist.

Turning his attention to Ghana, Mr Laporte highlighted that over a quarter of Ghanaians live on less than $2.15 per day, underscoring the challenges of extreme poverty in the country. He also acknowledged the adverse impact of inflation on household purchasing power, a consequence of income not keeping pace with rising prices. Ghana’s recent economic difficulties have likely exacerbated the poverty situation.

In response to the current crisis and the need to restore macroeconomic stability, he emphasized the necessity for Ghana to implement structural reforms that safeguard long-term growth prospects and enhance economic resilience.

These reforms should encompass policies supporting investment and human capital development, particularly within the agriculture and food systems. Targeted investments can contribute to job creation, reduced income inequality, and enhanced productivity.

Mr Laporte stressed that policymakers must intensify their efforts to bolster their economies while safeguarding the most vulnerable segments of society, with a focus on creating employment opportunities.

Source: Norvanreports