World Bank revises international benchmark for extreme poverty: Details here

New Delhi:

The World Bank has raised the international benchmark for extreme poverty to USD3 a day from the earlier USD 2.15 per person per day for low-income countries. For lower-middle-income countries, it has gone up from USD 3.65 to USD 4.20 per day. Similarly, for upper-middle-income countries, the benchmark has been raised to USD 8.40 from USD 6.85. 

“However, this remains an extremely low bar and reflects the cost of meeting basic needs in the poorest countries of the world,” the World Bank said in a report.

When Did The First Update Take Place?

The international poverty line was first updated in 2001. Since then, it has been revised several times, namely, in 2008, 2015, and 2022. 

However, the financial institution says these updates do not impact how the international poverty line measures the percentage of people living in extreme poverty. The process opted for this remains the same as it was first done in 1990. 

“It shows the share of people living in absolute poverty according to the standards of the world’s poorest countries,” the report said.

1.5 Billion People Out Of Poverty 

The report said 1.5 billion people have been lifted out of poverty compared to 1990. 

“However, global poverty reduction has slowed substantially in the last decade due to several interconnected crises, including slow economic growth, high indebtedness, conflict and fragility, and severe weather-related shocks,” the report said.

According to the World Bank’s estimate, 808 million people are still living in extreme poverty, and the current pace of progress would take decades to eradicate extreme poverty.

India Lifted 171 Million From Extreme Poverty 

The World Bank recently said that India has lifted 171 million people from extreme poverty in the decade between 2011-12 and 2022-23.

It said that India also transitioned into the lower-middle-income category.

India’s five most populous states -Uttar Pradesh, Maharashtra, Bihar, West Bengal, and Madhya Pradesh – accounted for 65 per cent of the country’s extreme poor in 2011-12 and contributed to two-thirds of the overall decline in extreme poverty by 2022-23, it said.