- Poverty denotes a circumstance wherein individuals or communities are devoid of the financial means and fundamental necessities required for a basic standard of living.
- It signifies a situation where income from employment falls egregiously short of meeting essential human needs.
- As per the World Bank, poverty manifests as severe deprivation across various facets of well-being.
- This encompasses meager incomes, the incapacity to access essential goods and services vital for dignified survival, inadequate health and educational standards, limited access to clean water and sanitation, deficient physical security, absence of voice, and constrained opportunities to enhance one’s livelihood.
The World Bank has established the international poverty line at $2.15 per person per day, based on 2017 prices. This benchmark serves as a reference point for gauging poverty levels globally.
The Poverty Gap Index, devised by the World Bank, assesses the severity of poverty by determining the financial shortfall needed for impoverished households to attain the poverty line.
The Poverty and Shared Prosperity Report of 2022, issued by the World Bank, reveals a stark reality: in 2020, the number of individuals residing below the extreme poverty line surged by more than 70 million.
FAQs
Q: What is the World Bank?
The World Bank is an international financial institution that provides loans and grants to the governments of low and middle-income countries for the purpose of pursuing capital projects. It comprises two institutions: the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA).
Q: How does the World Bank define poverty?
The World Bank defines poverty primarily in terms of income or consumption levels. It sets poverty lines based on the amount of money required to meet basic needs such as food, shelter, and clothing. These poverty lines vary between countries and are adjusted for differences in purchasing power.
Q: What is the World Bank’s threshold for extreme poverty?
The World Bank defines extreme poverty as living on less than $1.90 per day (in 2011 purchasing power parity terms), which is the international poverty line. This threshold is regularly updated to reflect changes in prices and living standards across countries.
Q: Does the World Bank only focus on income-based poverty?
No, the World Bank also considers multidimensional aspects of poverty, including access to education, healthcare, clean water, sanitation, and other essential services. It recognizes that poverty is not solely about income levels but also about a lack of opportunities and capabilities.
Q: How does the World Bank measure progress in poverty reduction?
The World Bank uses various indicators to monitor progress in poverty reduction, including changes in income or consumption levels, improvements in access to basic services, and reductions in social disparities. It also conducts household surveys and analyzes data to assess poverty trends over time and across different demographic groups.
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