World is Becoming More Equal and Prosperous Than Ever Before – Report

This is the main message of a new report by the World Bank, which shows that global poverty has fallen to its lowest level in history, and that income inequality has also declined in many regions. The report, titled “Poverty and Shared Prosperity 2023: Reversing the Inequality Pandemic”, argues that the COVID-19 crisis, while devastating for many people and countries, also created an opportunity for positive change and transformation.

According to the report, the number of people living in extreme poverty, defined as living on less than $1.90 a day, dropped from 10% of the world’s population in 2015 to 7% in 2020, and is projected to fall further to 5% by 2030. This means that more than 700 million people have escaped extreme poverty in the past five years, and that the world is on track to achieve the Sustainable Development Goal of ending extreme poverty by 2030.

The report also finds that income inequality, measured by the Gini coefficient, has decreased in 40 out of 83 countries for which data are available between 2010 and 2020. The global Gini coefficient fell from 0.52 to 0.49 over the same period, indicating that the income gap between the rich and the poor has narrowed.

The report attributes this trend to several factors, such as social protection programs, progressive taxation, investments in health and education, and technological innovations that have increased access to information and opportunities for many people.

The report acknowledges that there are still significant challenges and risks ahead, such as climate change, conflict, fragility, and violence, as well as persistent inequalities based on gender, race, ethnicity, and geography. However, it also highlights the potential for building a more inclusive and sustainable future for everyone, by leveraging the lessons learned from the pandemic and the recovery efforts.

The report argues that reversing the inequality pandemic requires a comprehensive and coordinated approach that addresses both the immediate and the long-term challenges. In the short term, this means scaling up social protection, ensuring universal access to health care and education, supporting the most vulnerable sectors and workers, and strengthening global cooperation and solidarity.

In the long term, this means investing in human capital, promoting fair taxation and fiscal policies, enhancing social mobility and voice, and fostering green and digital transitions that benefit everyone.

The report also highlights the role of data and innovation in advancing the agenda of poverty reduction and shared prosperity. It showcases examples of how new technologies, methods and partnerships can improve the measurement, monitoring and evaluation of poverty and inequality, as well as the design, delivery and impact of policies and programs. It calls for more investment in data systems and capacities, especially in low- and middle-income countries, to ensure that no one is left behind or invisible in the development process.

Poverty and Shared Prosperity 2023: Reversing the Inequality Pandemic is a timely and urgent call to action for a more just and resilient world. It provides a wealth of insights, evidence and recommendations for policymakers, practitioners, researchers, civil society, media and citizens who are committed to ending poverty and building a more equal society for all.

The report calls for more global cooperation and solidarity, more effective and accountable institutions, more human capital development and innovation, and more respect for human rights and environmental sustainability.

The report concludes that the world is not doomed to a fate of rising poverty and inequality, but rather has the opportunity and the responsibility to create a better world for all. It urges policymakers, civil society, private sector, and individuals to take action and make choices that can shape the future we want.