Relevance: GS-1 (Poverty & Development) | GS-2 (Social Justice) Source  : The Hindu 

Extreme poverty declined sharply from 1.9 billion (1990) to about 700 million (2019). But since 2015, the pace has slowed, and post–COVID-19 shocks have stalled further reductions.
Global agencies warn that the world is unlikely to meet the SDG target of ending extreme poverty by 2030.

Why Has Progress Slowed?

1. Slow or Weak Economic Growth: Most of the world’s poor now live in countries experiencing low growth—such as the Democratic Republic of Congo, Malawi, Burundi and Madagascar. Weak growth reduces the impact of development programmes.

2. High Population Growth: Rapid population increase in several low-income regions offsets per-capita income gains, keeping poverty levels high.

3. Rising Poverty in Fragile States: Countries facing conflict, governance failures, and persistent inequality are projected to experience rising poverty.

4. Inequality Reduces Impact of Growth: Even where GDP grows, unequal income distribution prevents the benefits from reaching the poorest.

5. Geopolitical and Climate Shocks: Wars, supply disruptions, extreme weather events and climate-related disasters are pushing vulnerable populations back into poverty.

Future Outlook

• Sub-Saharan Africa will remain the global centre of extreme poverty, due to modest growth and high demographic pressures.
• Many of the poorest countries will still record high poverty rates by 2030, despite global economic expansion.
• Without major policy interventions, the rapid poverty reduction seen in the 1990s and 2000s is unlikely to recur.