Briefing paper
Resources
Description

430 million people will be living in extreme poverty by 2030, despite economic growth reducing poverty by a third. This is 30 million more people than ODI's 2018 assessment, and means the world is significantly off track to achieve the first Sustainable Development Goal. Most countries can afford the investment to end extreme poverty on their own, but there are still 46 countries that face a £222 billion funding shortfall in doing so. This research finds that both donors and countries have a part to play in financing the end of extreme poverty. 

Key messages:

  • 430 million people will be living in extreme poverty by 2030, despite economic growth reducing poverty by a third. This is 30 million more people than last year’s assessment, and means the world is significantly off track to achieve the first Sustainable Development Goal.
  • Extreme poverty could be ended by investing in human development: education, health, nutrition and social protection.
  • Most countries can afford this investment if they maximised their taxation and allocated 50% of public spending to human development. But 46 countries still cannot afford to end extreme poverty on their own, facing a funding gap of $222 billion per year.
  • Nearly half the gap in these 46 countries could be filled by governments maximising taxation and better targeting spending. The other half could be filled by more and better-targeted aid.
  • To close this gap, governments should increase taxation and allocate 50% of public spending to human development. Donors should fulfil their 0.7% ODA/gross national income commitment and allocate half their aid to the poorest countries. This could close the gap to meet SDG 1 and end extreme poverty by 2030.
  • Global inequality does not have to increase. Some governments and donors are leading the way in prioritising human development in the poorest countries. But overall aid trends are going in the wrong direction. Leaders gathering in September 2019 for the UN High Level Meeting on Financing for Development and SDG Summit must act now to reverse the trend and end extreme poverty by 2030.
Publication Details
Publication Year:
2019