14 October 2014
WBG, IMF Report on Ending Poverty, Promoting Shared Prosperity
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The World Bank Group (WBG) and the International Monetary Fund (IMF) have reported that more needs to be done to end poverty and promote shared prosperity, by closing the gap in living standards between those in the bottom 40% of the population with those in the top 60%.

It argues that inclusive and sustainable growth is more effective in reducing poverty and promoting shared prosperity, particularly if such growth includes greater investment in human capital, judicious use of safety nets and environmental sustainability.

WB and IMF8 October 2014: The World Bank Group (WBG) and the International Monetary Fund (IMF) have reported that more needs to be done to end poverty and promote shared prosperity, by closing the gap in living standards between those in the bottom 40% of the population with those in the top 60%. The report argues that inclusive and sustainable growth is more effective in reducing poverty and promoting shared prosperity, particularly if such growth includes greater investment in human capital, judicious use of safety nets and environmental sustainability.

The Global Monitoring Report 2014/2015 details, for the first time, its “twin goals” of: ending extreme poverty by reducing the percentage of people living on less than US$1.25 a day to less than 3% percent of the population by 2030; and promoting shared prosperity by improving the living standards of the bottom 40% of the population in every country. The World Bank Group proposed these two goals to measure success in promoting sustainable economic development, and to monitor its own effectiveness in delivering results.

While the report, which is subtitled ‘Ending Poverty and Sharing Prosperity,’ cites success in reducing extreme poverty, it also acknowledges that the number of poor was over one billion people (14% of the world population) in 2011. In terms of living standards, the bottom 40% in the developing world are worse off when it comes to access to education, health and sanitation.

The document also reports on progress toward the Millennium Development Goals (MDGs), noting, inter alia, that those on gender equality in secondary education and the incidence of malaria can be met by 2015, but sub-targets on maternal and child mortality and sanitation will not be met by 2015. On education, developing countries require more attention to early childhood development, because poor nutrition affects educational attainment and the ability to get better paying jobs.

The report also emphasizes the role of safety nets in fostering inclusive human development, redistributing growth gains, enhancing the poor’s ability to benefit from economic development and promoting employment.

Regarding environmental sustainability, the report explains that green growth strategies can help improve natural resource management, reduce pollution and emissions, increase resource efficiency and strengthen resilience.

The Global Monitoring Report also includes a Report Card of expected and unexpected outcomes of monitoring progress toward the two goals and the MDG targets, and illustrates where progress has slowed or indicators have deteriorated. [World Bank Press Release] [Report Webpage] [Publication: Global Monitoring Report 2014/2015]


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