Women, Poverty, and Progress: A Global Call to Action

“Poverty is not just about lacking money—it’s about lacking opportunities.” For Deepa, a 70-year-old woman living in the Rangamati Hill Tracts of Bangladesh, this sentiment rings true in every aspect of her life..

Deepa belongs to the Chakma tribe, Bangladesh’s largest indigenous group, and she vividly remembers when her family lost their land during the construction of the Kaptai Dam in the 1960s. Decades later, Deepa lives with her husband, daughter, and granddaughter in a simple mud house on a small island. They run a tiny shop in front of their home, selling basic goods and earning about $1 a day—just enough to survive.

Life on the island has many challenges. With no bridge connecting them to the mainland, Deepa relies on a boat to access supplies. For water, she must walk uphill, a task becoming harder as she ages and copes with arthritis. Despite the hardships, she dreams of a brighter future for her granddaughter, who attends a special school for children with disabilities.

Deepa’s story reflects the struggles faced by millions of people around the world living in multidimensional poverty. It’s a reality where not just income, but access to education, clean water, and basic healthcare are often out of reach. 

As we approach World Poverty Day on October 17, we find ourselves at a crucial point in the fight against poverty. While we’ve made some real progress over the past few decades, achieving the goal of ending poverty by 2030 is proving to be a huge challenge. The COVID-19 pandemic, global economic slowdowns, and ongoing conflicts have erased many of the gains made in earlier years, especially in the poorest regions of the world. These setbacks have made it harder for communities to recover and move forward, widening the gap between those who are struggling and those who are doing well.

One key tool in understanding these setbacks and shaping future strategies is the Global Multidimensional Poverty Index (MPI). Unlike traditional poverty measures that focus solely on income, the MPI digs deeper by looking at factors such as health, education, and basic living standards to capture a more nuanced picture of poverty. By examining these dimensions, we get a clearer understanding of how poverty affects individuals and communities differently. The MPI uses survey data from sources like UNICEF and the Demographic and Health Survey to assess how many people in a country are poor and the severity of their deprivations.

In 2023, it covered 110 countries, with about 1.1 billion people classified as living in poverty, helping to paint a more complete picture of poverty beyond money alone.

Here are a few key insights from the report:

1. Regional Disparities: The 2023 MPI data reveals that 534 million people, nearly half of the world’s poor, live in Sub-Saharan Africa, and 389 million live in South Asia. These regions are home to the majority of those experiencing severe poverty, highlighting the geographic concentration of deprivation.
2. Poverty Intensity: The higher the incidence of poverty in a region, the more intense the deprivations experienced. For example, over 80% of the population in countries like the Central African Republic and Chad live in poverty, experiencing intense deprivation across multiple dimensions​.
3. Child Poverty: Half of the global multidimensionally poor population (566 million) are children. Sub-Saharan Africa alone accounts for 54.1% of poor children, making it a critical focus for child poverty reduction efforts​.
4. Rural-Urban Divide: About 84% of poor people live in rural areas, underscoring the need for targeted interventions in rural communities, especially in South Asia and Sub-Saharan Africa​.
5. Severe Deprivations: Around 824-991 million poor people lack adequate sanitation, housing, or cooking fuel. This points to basic living standard deprivations as key contributors to multidimensional poverty​.

The Ongoing Impact of Economic Shocks

While some parts of the world are bouncing back from the pandemic, it’s clear that not everyone is recovering at the same pace. The World Bank’s September 2024 Global Poverty Update provides a mixed picture of progress in tackling extreme poverty worldwide. While the number of people living in extreme poverty—those surviving on less than $2.15 per day—has returned to pre-pandemic levels, the recovery has been far from even across regions. In 2020, the COVID-19 pandemic led to a sharp increase in global poverty, pushing the poverty rate up to 9.7%, with South Asia and Sub-Saharan Africa being hit the hardest. In South Asia, extreme poverty jumped by 2.4 percentage points, while in Sub-Saharan Africa, it increased by 1.27 percentage points.

As of 2024, an estimated 692 million people around the world are still living in extreme poverty. However, many low-income countries—especially in Africa and the Middle East—have struggled to recover due to additional challenges like inflation and the impact of global conflicts, such as the war in Ukraine. These factors have increased the cost of essential goods like food and fuel, disproportionately affecting poorer regions.

On a positive note, some regions, such as Latin America and the Caribbean, managed to navigate the pandemic more successfully through government interventions like fiscal stimulus aimed at supporting low-income households. However, lower- and lower-middle-income countries remain highly vulnerable, showing that more work is needed to address the global inequality in poverty reduction.

India has also made significant progress. Between 2005 and 2021, the country lifted 415 million people out of multidimensional poverty, reducing its MPI incidence from 55.1% to 16.4%. India’s poorest regions, especially children and marginalized groups like disadvantaged castes, saw the fastest progress. But the global economic disruptions remind us that this progress is fragile and requires ongoing efforts to maintain. However, the report also warns that India’s progress is fragile in the face of ongoing global challenges, such as economic disruptions and inflation driven by external factors like the Russia-Ukraine conflict.

The report introduces new tools to better measure poverty and inequality, like the Global Prosperity Gap, which gives a clearer understanding of where help is needed the most. This tool helps identify the gaps between the richest and poorest, making it easier to target areas and communities that require urgent assistance. It’s a reminder that global cooperation and focused efforts are crucial in making sure no one is left behind in the fight against poverty. By using these improved measures, we can be smarter and more efficient in our efforts to reduce poverty worldwide.

The Structural Challenges of Inequality

Poverty and inequality are closely linked and can’t be separated. Issues like wealth gaps, gender inequality, and limited access to education and healthcare keep poverty deeply rooted in many societies. Gender inequality, in particular, plays a big role in worsening poverty. Women, especially those in rural or marginalized communities, are often hit the hardest. According to the 2023 Global Multidimensional Poverty Index (MPI), women living in rural areas face greater challenges in health, education, and basic living conditions than those in urban areas. For example, women in Sub-Saharan Africa and South Asia often lack access to education and healthcare, making it difficult for them to earn a living or improve their families’ situations.

Around 84% of the world’s poor live in rural areas, where things like clean water, proper sanitation, and healthcare are even harder to come by compared to cities. In world’s poorest countries, more than half of the population lives in multidimensional poverty, with women bearing the brunt of these hardships. Without access to good maternal healthcare, education for girls, or decent job opportunities, many women find it almost impossible to break out of the cycle of poverty.

On top of that, climate change is making things worse, especially in regions that depend on farming. Extreme weather events like droughts and floods are hitting low-income countries hard, further deepening poverty in areas already struggling to get by. And with 600 million people living in households where at least one person is undernourished, food insecurity remains a huge issue, particularly in Sub-Saharan Africa and South Asia.

Closing the Gender Gap to End Poverty

A powerful voice in the fight against global poverty, Melinda French Gates continues to champion women’s economic empowerment. At the 2023 Goalkeepers event, she emphasized the need to make affordable loans and financial support more accessible to women, particularly in developing countries. Gates believes that by giving women the tools they need to succeed financially, we can help lift entire communities out of poverty.

She emphasizes how empowering women is crucial for tackling poverty and driving economic growth. She highlights that women’s economic power—their ability to participate fully in economies—leads to financial stability for families and helps countries recover faster from economic shocks. She stresses that this isn’t just a moral responsibility but also an economic necessity, as prioritizing women’s participation could add up to $10 trillion to the global economy by 2030.

One of the key areas Gates focuses on is the access to affordable capital for women, especially in developing countries like sub-Saharan Africa and South Asia, where women entrepreneurs struggle to secure loans due to high interest rates and lack of credit history. She also discusses how countries like India have made progress through initiatives such as the National Rural Livelihoods Mission, which has improved credit access for women, leading to billions in additional investments.

Additionally, she highlights the transformative impact of digital financial inclusion in countries like India, where women now have access to digital bank accounts, giving them control over their finances. She cites examples like a 90-year-old widow in India who now receives her pension payments on her phone, rather than having to travel to a bank. This digital shift gives women more control over their earnings and empowers them to make independent financial decisions.

Gates concludes by stating, “The case for investing in women’s economic power has never been so urgent, so promising, or so actionable,” and calls on governments to make gender equality a central part of their policy agendas​.

In a similar vein, Sima Bahous, Executive Director of UN Women, is also widely recognized for her relentless work in advancing gender equality and women’s empowerment on a global scale. Her focus extends beyond economic empowerment to tackle critical issues like gender-based violence, poverty reduction, and the structural inequalities that hold women back, particularly in conflict zones and marginalized communities. Bahous highlights the urgent need to address unpaid care work, economic inequality, and the gender gap across various sectors. Like Gates, Bahous emphasizes that achieving gender equality is not only a matter of human rights but also essential for sustainable development, especially within the framework of the Sustainable Development Goals (SDGs).

Her work centers on addressing the disproportionate burden of poverty that women face globally. Bahous consistently highlights how poverty has a “woman’s face,” noting that women make up the majority of the world’s poor and suffer from systemic inequalities that exacerbate their situation.

In her speeches, Bahous has emphasized that more than 100 million women and girls could be lifted out of poverty if governments prioritize investments in education,healthcare, and social protection. She also points out that closing the gender gap in employment could boost global GDP by up to 20%​.

One of her key messages is: “Poverty continues to have a woman’s face, with women experiencing higher rates of poverty than men, a trend expected to persist beyond our lifetimes unless urgent action is taken.” This call for urgency reflects her deep commitment to eradicating poverty and achieving gender equality as a cornerstone for sustainable development​.

She highlighted the progress made since the Beijing Declaration but warned that it’s not enough. She stressed the urgent need to accelerate gender equality, citing that, without action, it could take over 100 years to eradicate extreme poverty for women and girls. Bahous proposed six priority actions: ending violence against women, securing leadership roles for women, supporting the care economy, bridging the gender digital gap, linking economic empowerment with climate action, and ensuring accountability for women’s rights in conflict and humanitarian settings.  She called for global solidarity, commitment, and resources to achieve gender equality by 2030, affirming that  “A gender-equal world is within our reach if we choose it”.

Policy Interventions: A Path Forward

To effectively tackle poverty, governments and international organizations need to adopt policies that provide both immediate relief and long-term solutions. Here are some key actions that can make a difference:

1. Strengthening Social Safety Nets: This is about creating a safety cushion for people when they hit tough times. Programs like cash transfers, unemployment benefits, and food aid can provide immediate help. For instance, Brazil has a successful program called Bolsa Família, where poor families receive cash transfers on the condition that they send their children to school and get them vaccinated. This simple idea has dramatically reduced poverty and improved health and education outcomes​. Mexico has a similar program, Prospera, which has helped reduce income inequality.
2. Fostering Inclusive Growth: Economic growth doesn’t automatically benefit everyone, which is why policies need to focus on inclusive growth. This means ensuring that the wealth generated by economic development reaches all people, not just the rich. Countries can do this by investing in education, healthcare, and infrastructure (roads, clean water, electricity). These investments help people lift themselves out of poverty and create long-term resilience. A good example is the expansion of schooling in places like India, which has led to better job opportunities and economic mobility​.
3. Addressing Climate Change: Poor communities are often hit hardest by climate change—whether it’s droughts, floods, or extreme weather. These disasters can destroy livelihoods, especially in regions that depend on farming. To protect these communities, we need sustainable farming practices and better disaster preparedness. For example, countries in Sub-Saharan Africa are adopting climate-resilient crops and setting up early-warning systems for natural disasters to minimize the impact​.
4. Promoting Global Cooperation: No country can fight poverty alone. International cooperation is key, and organizations like the United Nations and the World Bank help by providing financial support, technical expertise, and sharing what works in different parts of the world. These partnerships are crucial for countries that don’t have the resources to tackle poverty on their own. For example, the World Bank’s International Development Association has been instrumental in financing poverty-reduction projects in low-income countries​.

Addressing poverty isn’t just about providing money or aid; it’s about creating systems where everyone can access education, healthcare, and have opportunities to grow. Women, in particular, feel the brunt of poverty, and they need to be at the heart of our efforts to tackle it. By ensuring women have access to credit, digital services, and economic opportunities, we can unlock so much potential. As Melinda French Gates and Sima Bahous have pointed out, when we invest in women, we improve entire communities because women are often the backbone of families and societies.

Moving forward, it’s not just governments that need to act—global cooperation is key. Countries need to work together to share knowledge, resources, and create policies that help everyone, not just the wealthy. We must also protect those most vulnerable to climate change, which hits the poor hardest and creates even more obstacles for people trying to escape poverty.

How You Can Help

You don’t have to wait for big organizations or governments to make changes—you can play a role too:

1. Get involved locally: Support or volunteer with organizations that work to empower women or fight poverty in your community or globally. Even small donations can make a big difference.
2. Speak up for equality: Be an advocate for gender equality. Support policies that give women equal opportunities in the workplace, education, and access to financial tools.
3. Make sustainable choices: Take steps in your own life to reduce your carbon footprint—whether it’s reducing waste or supporting green energy. Climate change and poverty are linked, and every small effort helps.
4. Stay informed and educate others: Read up on issues of poverty and inequality, and share what you learn with your friends and family. Raising awareness is a powerful way to drive change.

The future we want—where everyone has the chance to live with dignity and opportunity—depends on the actions we take today. We all have a role to play. Let’s work together toward a future where poverty and inequality are things of the past.

Editorial Team