5 Countries Leading in Poverty Rate Reduction
The World Bank published an analysis in 2019 of the 15 countries with the greatest poverty rate reduction from 1999-2015. Of those 15 countries, Tanzania, Tajikistan, Chad, the Democratic Republic of the Congo (DRC) and The Kyrgyz Republic were the most successful in reducing poverty. While some of these five countries are continuing to reduce their poverty levels, others have recently faced hardships, stagnating their ability to eradicate poverty.
5 Leaders in Poverty Reduction
- Tanzania: Tanzania saw a poverty rate reduction of 3.2% from 2000-2011. Moreover, its poverty rate is continuing to reduce as from 2007-2018, the poverty rate fell from 34.4% to 26.4%, and the extreme poverty rate fell from 11.7% to 8%. However, the wealth gap increased during that same time period, with the Gini coefficient rising from 38.5 to 39.5. This uptick in the wealth gap may be due to the fact that education and sanitation have become more accessible in cities but not rural areas. However, despite this increase, Tanzania is persisting in reducing its levels of poverty.
- Tajikistan: Tajikistan reduced its poverty levels by 3.1% from 1999-2015. Poverty rates fluctuate in Tajikistan depending on job availability and remittance. However, the poverty rate mostly remains on the decline in Tajikistan, albeit it is slower than in the past. From 2012-2017, the poverty rate fell by 7.5%, but now it is decreasing about 1% per year on average. The poverty rate has been decreasing slower because the remittances that Tajikistan has received have lessened over the past few years. Additionally, COVID-19 has negatively affected the economy, causing more food insecurity. Fortunately, expectations have determined that the country will recover quickly from this downfall.
- Chad: Chad experienced a reduced poverty rate of 3.1% from 2003-2011. The projected number of impoverished people in Chad increased from 4.7 million to 6.3 million from 2011-2019. Additionally, Chad ranks last on the World Bank’s Human Capital Index. The good news is that many nonprofit organizations are working to help decrease the poverty rate in Chad. The World Food Bank has established many support systems and has helped 1.4 million people so far. The International Development Association (IDA) improved learning conditions for over 300,000 elementary school children from 2013-2018. The IDA also provided health support for over 50,000 people from 2014-2018. These are only two examples of organizations that work to improve the quality of life of the people and reduce the poverty rate in Chad.
- The Democratic Republic of the Congo (DRC): The DRC reduced its poverty rate by 2.7% from 2005-2011. It remains low on the Human Captial Index with 72% of people living in extreme poverty. Yet, like in Chad, there are many nonprofits working to help reduce the poverty rate in the DRC. For example, the IDA helped 1.8 million people receive health services and provided work support programs for 1 million displaced people through 2018. The United Nations Capital Development Fund has been working in the DRC since 2004 and helps create a more financially inclusive environment. Even though the country has a long way to go, the hard work of these organizations shows a promising future for the DRC.
- The Kyrgyz Republic: The Kyrgyz Republic reduced its poverty levels by 2.6% from 2000-2015. The Kyrgyz Republic’s economy has experienced fluctuations since 2010 and remains vulnerable. Many citizens live close to the poverty line. However, the poverty rate in rural areas continues to steadily decline. Like Tajikistan, COVID-19 negatively impacted The Kyrgyz Republic’s economy. On July 30, 2020, the World Bank decided to finance three projects that will help “mitigate the unprecedented health, economic and social challenges caused by the…pandemic.” One of these initiatives includes direct financial help for up to 200,000 poor families. Overall, the Kyrgyz Republic has prevailed in reducing the poverty rate and increasing access to healthcare and education in the past 20 years.
While some countries have regressed in poverty rate reduction, others continue to decrease poverty rates. However, good news exists even for countries with increased poverty rates. Nonprofits work to provide relief, aid and policy changes that help those in poverty.
– Sophie Shippe