17 Oct 2014
Alfredo González Reyes, UNDP specialist on poverty and human development, Latin America and the Caribbean
Many countries have already started taking an important step towards a new way of thinking about poverty. Photo: UNDP Peru.
Today, the 17th of October 2014, marks 21 years since for the first time the International Day for the Eradication of Extreme Poverty was celebrated. Notable progress has been made since then. According to World Bank data, among the 115 low-income countries of the world, the proportion of people in extreme poverty (i.e. an income per person per day of US$1.25, adjusted for purchasing power parity) declined from 43.4 percent in 1990 to 17 percent in 2011; i.e. 912 million people were lifted out of extreme poverty over the past two decades. This drop was mainly concentrated in East Asia and the Pacific, where the incidence of extreme poverty was reduced from 57 to 7.9 percent during the same period (i.e. 750 million people). In Southeast Asia, it dropped from 54.1 to 24.5 percent (221.5 million people). In Latin America and the Caribbean, between 1990 and 2011, the incidence of extreme poverty dropped from 12.2 to 4.6 percent, i.e. 25.5 million Latin Americans no longer live in this extreme condition. Two decades ago, poverty was defined in monetary terms, based on a consensus around the concept that income was an adequate measure to represent wellbeing. Today, it is more readily acknowledged