A new report from the World Bank, Poverty, Prosperity, and Planet, warns that without urgent reforms, eliminating poverty for nearly half the global population those living on less than $6.85 per day could take more than a century. This first comprehensive post-pandemic assessment highlights stalled progress in the fight against global poverty, calling for transformative policies to foster faster, greener, and more inclusive growth.

Extreme Poverty Target by 2030 Out of Reach

The report reveals that achieving the global goal of ending extreme poverty defined as living on less than $2.15 per day by 2030 is unlikely. Around 700 million people, or 8.5% of the global population, live below this threshold today, with projections indicating that 7.3% will remain in extreme poverty by 2030. Many of the hardest-hit populations are in Sub-Saharan Africa, where slow economic growth, fragility, and conflict persist.

Despite past gains, 44% of the global population still lives on less than $6.85 per day the poverty line used for upper-middle-income countries. Population growth has kept this number stagnant since 1990, underscoring the difficulty of lifting millions out of poverty.

Overlapping Crises Demand New Strategies

“After decades of progress, the world faces setbacks from slow economic growth, high debt, conflict, climate shocks, and the pandemic,” said Axel van Trotsenburg, World Bank Senior Managing Director. “We need a fundamentally new development playbook to improve livelihoods and protect the planet.”

Trade-offs and Opportunities for Growth

Indermit Gill, Chief Economist of the World Bank Group, noted that countries must balance economic, environmental, and developmental priorities. Policies such as reducing air pollution can support both climate goals and economic development. In low-income countries, investments in education and healthcare offer higher payoffs than direct cash assistance. Meanwhile, climate-smart agriculture can enhance resilience, reduce poverty, and promote environmental sustainability.

Inequality and Climate Risks Remain High

The report highlights persistent inequality, with 1.7 billion people living in high-inequality economies, especially in Latin America, the Caribbean, and Sub-Saharan Africa. Limited access to opportunities prevents inclusive growth, exacerbating poverty.

Nearly 20% of the world’s population will face severe weather events in their lifetime, many of whom will struggle to recover. Sub-Saharan Africa remains particularly vulnerable to climate-related welfare losses due to weak infrastructure and economic fragility.

Pathways to a Sustainable Future

Reducing poverty at the $2.15-per-day level will have a minimal environmental impact, as the poorest nations contribute little to global emissions. However, cutting poverty at the higher $6.85 standard will require balancing growth with sustainability to avoid increased carbon emissions.

The report emphasizes that low-income countries should focus on job creation, human capital, infrastructure, and resilience, while middle-income nations must balance income growth with carbon reduction. High-income countries should prioritize reducing emissions while mitigating the impact on vulnerable populations.

Strengthening Global Cooperation

The report concludes by stressing the importance of international cooperation and financing for development. Only with coordinated efforts can the world transition toward sustainable, inclusive, and resilient economies that reduce poverty and safeguard the planet for future generations.