But large gender gaps remain. Women and girls are more likely to die, relative to men and boys, in many low- and middle-income countries than their counterparts in rich countries. Women earn less and are less economically productive than men almost everywhere across the world. And women have less opportunity to shape their lives and make decisions than do men.
Many gender disparities remain even as countries develop, which calls for sustained and focused public action. Corrective policies will yield substantial development payoffs if they focus on persistent gender inequalities that matter most for welfare. To be effective, these measures must target the root causes of inequality without ignoring the domestic political economy.
This framework helps demonstrate why the gender gap in education enrollment has closed so quickly. In this case, income growth (by loosening budget constraints on households and the public treasury), markets (by opening new employment opportunities for women), and formal institutions (by expanding schools and lowering costs) have come together to influence household decisions in favor of educating girls and young women across a range of countries.
The framework also helps explain why poor women still face sizable gender gaps, especially those who experience not only poverty but also other forms of exclusion, such as living in a remote area, being a member of an ethnic minority, or suffering from a disability. In India and Pakistan, for instance, while there is no difference between the number of boys and girls enrolled in education for the richest fifth of the population, there is a gap of almost five years for the poorest fifth. The illiteracy rate among indigenous women in Guatemala is twice that among nonindigenous women and 20 percentage points higher than for indigenous men. Market signals, improved service delivery institutions, and higher incomes, which have generally favored the education of girls and young women, fail to reach these severely disadvantaged populations.
To limit gender inequality over time, reaching adolescents and young adults is key. Decisions made during this stage of life determine skills, health, economic opportunities, and aspirations in adulthood. To ensure that gender gaps do not persist over time, policies must emphasize building human and social capital (as in Malawi with cash transfers given directly to girls to either stay in or return to school); easing the transition from school to work (as with job and life skills training programs for young women in Uganda); and shifting aspirations (by exposing girls to such role models as women political leaders in India).
Ana Revenga is Sector Director, Human Development, Europe and Central Asia; and Sudhir Shetty is Sector Director, Poverty Reduction and Economic Management, East Asia and Pacific, both at the World Bank.
This article is based on the World Development Report 2012: Gender Equality and Development, published by the World Bank in 2011. The evidence and analysis referred to are cited in the relevant sections of the report.
Poverty is a state or condition in which an individual lacks the financial resources and essentials for a certain standard of living. Poverty can have diverse environmental, legal, social, economic, and political causes and effects.[1] When evaluating poverty in statistics or economics there are two main measures: absolute poverty which compares income against the amount needed to meet basic personal needs, such as food, clothing, and shelter;[2] secondly, relative poverty measures when a person cannot meet a minimum level of living standards, compared to others in the same time and place. The definition of relative poverty varies from one country to another, or from one society to another.[2]
Statistically, as of 2019[update], most of the world's population live in poverty: in PPP dollars, 85% of people live on less than $30 per day, two-thirds live on less than $10 per day, and 10% live on less than $1.90 per day.[3] According to the World Bank Group in 2020, more than 40% of the poor live in conflict-affected countries.[4] Even when countries experience economic development, the poorest citizens of middle-income countries frequently do not gain an adequate share of their countries' increased wealth to leave poverty.[5] Governments and non-governmental organizations have experimented with a number of different policies and programs for poverty alleviation, such as electrification in rural areas or housing first policies in urban areas. The international policy frameworks for poverty alleviation, established by the United Nations in 2015, are summarized in Sustainable Development Goal 1: "No Poverty".
There are several definitions of poverty depending on the context of the situation it is placed in. It usually references a state or condition in which a person or community lacks the financial resources and essentials for a certain standard of living.
United Nations: Fundamentally, poverty is a denial of choices and opportunities, a violation of human dignity. It means lack of basic capacity to participate effectively in society. It means not having enough to feed and clothe a family, not having a school or clinic to go to, not having the land on which to grow one's food or a job to earn one's living, not having access to credit. It means insecurity, powerlessness and exclusion of individuals, households and communities. It means susceptibility to violence, and it often implies living in marginal or fragile environments, without access to clean water or sanitation.[8]
World Bank: Poverty is pronounced deprivation in well-being, and comprises many dimensions. It includes low incomes and the inability to acquire the basic goods and services necessary for survival with dignity. Poverty also encompasses low levels of health and education, poor access to clean water and sanitation, inadequate physical security, lack of voice, and insufficient capacity and opportunity to better one's life.[9]
European Union (EU): The European Union's definition of poverty is significantly different from definitions in other parts of the world, and consequently policy measures introduced to combat poverty in EU countries also differ from measures in other nations. Poverty is measured in relation to the distribution of income in each member country using relative income poverty lines.[10] Relative-income poverty rates in the EU are compiled by the Eurostat, in charge of coordinating, gathering, and disseminating member country statistics using European Union Survey of Income and Living Conditions (EU-SILC) surveys.[10]
Absolute poverty, often synonymous with 'extreme poverty' or 'abject poverty', refers to a set standard which is consistent over time and between countries. This set standard usually refers to "a condition characterized by severe deprivation of basic human needs, including food, safe drinking water, sanitation facilities, health, shelter, education and information. It depends not only on income but also on access to services."[12][13][14] Having an income below the poverty line, which is defined as an income needed to purchase basic needs, is also referred to as primary poverty.
The "dollar a day" poverty line was first introduced in 1990 as a measure to meet such standards of living. For nations that do not use the US dollar as currency, "dollar a day" does not translate to living a day on the equivalent amount of local currency as determined by the exchange rate.[15] Rather, it is determined by the purchasing power parity rate, which would look at how much local currency is needed to buy the same things that a dollar could buy in the United States.[15] Usually, this would translate to having less local currency than if the exchange rate were used.[15]
From 1993 through 2005, the World Bank defined absolute poverty as $1.08 a day on such a purchasing power parity basis, after adjusting for inflation to the 1993 US dollar[16] In 2009, it was updated as $1.25 a day (equivalent to $1.00 a day in 1996 US prices)[17][18] and in 2015, it was updated as living on less than US$1.90 per day,[19] and moderate poverty as less than $2 or $5 a day.[20] Similarly, 'ultra-poverty' is defined by a 2007 report issued by International Food Policy Research Institute as living on less than 54 cents per day.[21] The poverty line threshold of $1.90 per day, as set by the World Bank, is controversial. Each nation has its own threshold for absolute poverty line; in the United States, for example, the absolute poverty line was US$15.15 per day in 2010 (US$22,000 per year for a family of four),[22] while in India it was US$1.0 per day[23] and in China the absolute poverty line was US$0.55 per day, each on PPP basis in 2010.[24] These different poverty lines make data comparison between each nation's official reports qualitatively difficult. Some scholars argue that the World Bank method sets the bar too high,[25] others argue it is too low.
There is disagreement among experts as to what would be considered a realistic poverty rate with one considering it "an inaccurately measured and arbitrary cut off".[26] Some contend that a higher poverty line is needed, such as a minimum of $7.40 or even $10 to $15 a day. They argue that these levels are a minimum for basic needs and to achieve normal life expectancy.[27]
One estimate places the true scale of poverty much higher than the World Bank, with an estimated 4.3 billion people (59% of the world's population) living with less than $5 a day and unable to meet basic needs adequately.[28] Philip Alston, a UN special rapporteur on extreme poverty and human rights, stated the World Bank's international poverty line of $1.90 a day is fundamentally flawed, and has allowed for "self congratulatory" triumphalism in the fight against extreme global poverty, which he asserts is "completely off track" and that nearly half of the global population, or 3.4 billion, lives on less than $5.50 a day, and this number has barely moved since 1990.[29] Still others suggest that poverty line misleads because many live on far less than that line.[23][30][31]
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