How have the world’s poorest fared since the early 1980s?

Abstract

This paper presents new estimates of the extent of poverty in the developing world between 1981 and 2001, using consistent data and methods. The findings suggest that around 40 percent of the population of the developing world lived below $1 per day in 1981, falling to 21% by 2001. The overwhelmingly large majority of those living in poverty lived in Asia (chiefly, India). Nonetheless, the incidence and number of people living below the poverty line also rose in parts of Africa. Contrary to conventional wisdom, the 1990s was a period of modest progress against poverty. However, more recently, poverty reduction has stalled in many regions. Despite this progress, the increasing concentration of people just above the poverty line poses the risk that future aggregate economic slowdowns (such as during the COVID-19 pandemic) could result in a sharp rise in the numbers of the world’s poorest. – AI-generated abstract.