Global poverty declining faster than ever—best new metrics

Global poverty declining faster than ever—best new metrics

It identifies "star performer" nations such as Rwanda, Nepal and Bangladesh as places where deprivation could disappear within the lifetime of present generations. Close on their heels with reductions in poverty levels were Ghana, Tanzania, Cambodia and Bolivia.

The study comes after the UN's latest development report published last week which stated that poverty reduction drives in the developing world were exceeding all expectations. It says: "The world is witnessing a epochal 'global rebalancing' with higher growth in at least 40 poor countries helping lift hundreds of millions out of poverty and into a new 'global middle class'. Never in history have the living conditions and prospects of so many people changed so dramatically and so fast."

The brighter global picture is the result of international and national aid and development projects investing in schools, health clinics, housing, infrastructure and improved access to water. The UN also pointed to trade as being a key factor which was improving conditions in Afghanistan, Ethiopia, Rwanda and Sierra Leone. These improvements have not been picked up in the past when poverty has been measured strictly in income terms without taking into account other factors – health, education and living standards.

The study of the world's poorest one billion people uses a new measure, the Multidimensional Poverty Index (MPI), which was just updated in the 2013 UN report. It includes ten indicators to calculate poverty – nutrition, child mortality, years of schooling and attendance, cooking fuel, water, sanitation, electricity assets and a covered floor.

The initiative hopes insights from the MPI will incentivise international donors and governments to help the poorest by allowing the results to be measured. The academics believe old methods of looking at income levels – such as those living on $1.25 a day or less – ignores other deprivations in, for example, nutrition, health and sanitation.

The system was developed in 2010 by the institute's director, Dr Sabina Alkire, and Dr Maria Emma Santos. Dr Alkire said: "As poor people worldwide have said, poverty is more than money – it is ill health, it is food insecurity, it is not having work, or experiencing violence and humiliation, or not having health care, electricity, or good housing.