FeaturedNationalVOLUME 19 ISSUE # 50

Unequal burdens: The regional and global drivers of extreme poverty

The global situation of human well-being remains profoundly disturbing, as recent research by the United Nations Development Programme and the Oxford Poverty and Human Development Initiative on multidimensional poverty has pointed out. This report paints a bleak picture of poverty across 112 countries, stating that a staggering 1.1 billion people live in severe poverty-more than half of them children-and almost 40 percent in countries affected by conflict or considered fragile.

The report delves into the complex relationship between poverty and conflict, indicating how the vicious cycle of violence and instability deepens economic hardships for impoverished communities in war-torn or politically unstable countries, making basic survival and the hope of escaping poverty increasingly arduous. To understand the depth of deprivation that poverty entails, note that it is far from monetary or financial poverty. The report itself, through the use of the Multidimensional Poverty Index, investigates various indicators not included in income calculations—nutrition, housing, sanitation, drinking water, electricity, and child mortality, in addition to educational enrollment and attainment—which are all different dimensions of how poverty impacts society.

Significantly, the report notes that while nearly half of the world’s poor are living in South Asia and sub-Saharan Africa, a staggering 83.2% of them reside in those two regions. Among these countries, the second country is Pakistan, whose 93 million citizens fall into acute poverty, lagging behind only India’s 234 million. Given the ongoing instability, it is not surprising, therefore, that Pakistan scores abysmally. That such a high scale of poverty continues to characterize one of the world’s potentially wealthiest nations is nothing but a shock and indictment. This government has indeed gone down in history by continuing the trend of focusing so much on political wars rather than taking the challenges being thrown up by people toward addressing the needs of vulnerable peoples who need the highest amounts of support.

Regional disparities in Pakistan are sharply contrasting and severe poverty has been more concentrated in particular areas. The highest rates are observed in the erstwhile tribal regions (45.8 percent), followed by Balochistan (41 percent), Sindh (32.1 percent), Khyber Pakhtunkhwa (26.5 percent), and Punjab (12.2 percent). Militancy and terrorism significantly contribute to these imbalances, particularly in the tribal belt of Khyber Pakhtunkhwa and Balochistan where violence has hampered economic progress and fueled cycles of displacement, poverty, and instability.

Climate change, along with elite control of resources and policy decisions, has also exacerbated extreme poverty across the country. In resource manipulation by powerful groups, the marginalized communities often end up being sidelined with no access to support they need. Extreme poverty has deep root causes across the world. Compared with peers who are living under other even more peaceful conditions, it is estimated that 455 million are living in countries marred by conflict. And the issue is exacerbated since 2023 was the year of the highest ever number of global conflict events on record since the end of the Second World War, with the displacement of war and disaster forcing 117 million into the category. This calls for global and national leaders to effectively promote peace-building initiatives, climate change measures, and ways of poverty reduction that would assist the most vulnerable.

Despite the urgency, there is no political will to tackle deep-seated poverty and resolve major conflicts as reflected in the increased violence in Gaza, Lebanon, and beyond. In this sombre scenario, extreme poverty would likely continue to thrive based on unaddressed conflicts and the apparent apathy of global powers.

The World Bank predicts in “Macro Poverty Outlook for Pakistan” a slow improvement in the reduction of poverty as the country moves toward macroeconomic reforms. However, slow growth in real wages and employment means that the poverty rate is expected to remain around 40 percent until fiscal year 2026. Non-agricultural sectors have witnessed sluggish growth that has contributed to falling real wages in construction, trade, and transportation, with employment rates and job quality indicators still very sluggish. The combined impact of high inflation and fiscal tightening measures saw the poverty rate at 40.5 percent in fiscal year 2024, thereby pushing an additional 2.6 million Pakistanis below the poverty line. This will ease inflation to 11.1 percent this fiscal year, the report noted with lower base effects and commodity prices. This is expected, however, to remain very high since it will be influenced by higher domestic energy costs and more expansive open market operations on top of new taxation measures.

The new research from Pakistan and other countries paints quite a dismal picture: regional, interlinked inequalities, wars, climate change, and oligarchs controlling the distribution of resource riches. Pakistan’s highest levels of severe poverty tend to be located in some of those worst-affected regional clusters where violence has lasted for far too long. Other fragile or climate-stricken nations, including their poorest citizens, share the same fate globally. Despite some economic projections that seem to point to recovery, poverty is deeply entrenched, raising urgent questions about the effectiveness of current strategies of poverty alleviation.

The path forward requires decisive, coordinated action in the face of regional and global forces that perpetuate poverty. Both local and international leaders need to prioritize peace-building, climate action, and targeted poverty reduction initiatives that place the needs of marginalized communities at the forefront. But this has been overshadowed by continuous violence and lack of political will. Unless there is immediate, focused intervention, extreme poverty will remain a harsh reality and millions more will be left in its wake.

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