According the World Bank, it does. What is the difference between extreme poverty and poverty? Who defined it? While the governments of the world figure this out, the World Bank has set a deadline for 2030 to end extreme global poverty emphasizing that the poorest benefit from strong growth and rising prosperity in developing nations Reuters reports. According to World Bank President Jim Yong Kim on Saturday following a meeting of the World Bank’s Development Committee, “For the first time in history we have committed to setting a target to end poverty. We are no longer dreaming of a world free of poverty; we have set an expiration date for extreme poverty.” The goal plans to reduce extreme poverty to 3 percent and target the bottom 40 percent of people living in each country of the developing world.
The target of the World Bank aims to guide the institution and work with the United Nations to make plans post-2015 poverty strategy to replace existing goals. The developing world has seen a growth of about 6 percent annually in their economies with millions of people being lifted out of poverty creating a new global middle class which has also allowed for increases in growing inequality. As the Committee explains, “We recognize that sustained economic growth needs a reduction in inequality. Investments that create opportunities for all citizens and promote gender equality are an important end in their own right, as well we being integral to creating prosperity.” This week the World Bank released figures that show extreme poverty has plunged since 1990 with 21 percent from 43 percent and that most of the poor are heavily concentrated in sub-Saharan Africa and South Asia, while China has slashed extreme poverty according to Reuters. Kim also said climate change and investments in heath and education were discussed as well.
The meeting also called for donor fundraising campaigns by the World Bank’s fund for its poorest borrowers urging strong participation by all countries. Every three years according to Huff Post, donors from rich and developing economies alike raise funds for the Bank’s International Development Association or IDA, while the United States, Britain and Nordic nations are usually the biggest funders for the past several years Brazil, India, China, Chile, Argentina and Peru have also donated funds. However with the current financial climates in Europe and the United States, the World Bank will be more restrictive when it comes to how the money is used so not to impact the poor. The emphasis according to Kim should be on helping fragile and conflict hit countries.