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SDG 1: Eradication of Extreme Poverty

Selected e-articles

Abstract: The COVID-19 pandemic led to declines in market income and increases in unemployment across much of the European Union (EU) and the United States (US), and had the potential to increase poverty rates. However, the US and EU Member States adopted vastly different strategies for mitigating the economic consequences of the crisis. Using EU-SILC data and the U.S. Current Population Survey, this study compares the poverty-reduction performance of the EU and US from before the pandemic to during the pandemic. We find that unemployment and market poverty rates increased in many countries, disproportionately more in the US than in the EU, but welfare states largely compensated for those losses. Post-tax/transfer poverty rates for the average EU country did not change from 2019 to 2020, and poverty decreased substantially in the US. The US experienced the largest pre-tax/transfer increase in poverty rates, yet also the largest post-tax/transfers declines in poverty rates from 2019 to 2020. This suggests an improvement from historically poor poverty-reduction performances and underscores a policy approach focused on income support, contrasting with the EU’s emphasis on short-time work schemes. Among all countries, changes in pre-tax/transfer poverty rates were not positively correlated with changes in post-tax/transfer poverty. Overall, welfare states generally increased their performance enough to prevent what could have been large increases in post-tax/transfer poverty during the first year of the pandemic, with the US increasing its poverty-reduction performance more than any EU country.

Abstract: Financial inclusion in Africa faces significant challenges, including inadequate infrastructure, regulatory obstacles, and socioeconomic barriers, which limit access to financial services for underserved populations. In response to these challenges, this study examines how financial inclusion influences economic growth and poverty reduction across three Sub-Saharan Africa regions, namely East, West, and Southern Africa, spanning 28 countries from 2016 to 2023. Financial inclusion is measured through the availability of Automated Teller Machines and digital financial services, using a system Generalised Method of Moments and Quantile regression approach. The findings emphasise the pivotal role of digital financial services in expanding access to financial resources, particularly in East and Southern Africa, while highlighting ongoing disparities in West Africa. The quantile regression analysis reveals that inflation adversely affects GDP growth across all quantiles, whereas foreign direct investment consistently supports economic growth. Furthermore, the findings showed that digital financial services are more effective than automated teller machines in promoting financial inclusion, and infrastructure and digital literacy improvements are recommended to accelerate progress. In conclusion, enhancing digital financial services in Sub-Saharan Africa has the potential to significantly improve financial inclusion, drive economic growth, and reduce poverty levels. The study suggests that Sub-Saharan African countries should prioritise digital financial services, invest in infrastructure, promote financial literacy, and implement inclusive policies to ensure broader access to financial resources. This is because promoting digital financial services can offer Sub-Saharan African countries a path toward economic empowerment and alignment with Sustainable Development Goals, helping to bridge the financial inclusion gap.

Abstract: This study investigates the nexus between financial inclusion and povertyreduction in Nigeria over the period of 2013 to 2023. Financial inclusion,defined as access to a wide array of formal financial services, is crucial foreconomic development and poverty alleviation. The research utilizes aquantitative approach, analysing data from the World Bank global databaseto explore various indicators such as GDP, domestic credit to the privatesector, bank non-performing loans, and poverty headcount ratios. Thefindings reveal significant challenges hindering financial inclusion in Nigeria,including limited access to credit, low financial literacy, and disparities inbanking infrastructure distribution between urban and rural areas. Despiteefforts by the government and financial institutions to promote financialinclusion, the study identifies persistent gaps in reaching marginalizedpopulations. Recommendations for policymakers, investors, and marketparticipants include enhancing financial literacy programs, leveragingtechnology for inclusive banking, supporting Microfinance Institutions(MFIs), and fostering public-private partnerships. By addressing thesechallenges and implementing the proposed recommendations, Nigeria cancreate a more inclusive financial ecosystem, empower individuals, andaccelerate poverty reduction efforts. However, the study acknowledges somelimitations, such as reliance on available data and the need for longitudinalstudies to assess the long-term impact of financial inclusion initiatives. Futureresearch should explore cultural and societal dynamics influencing financialinclusion and conduct comparative studies across different regions anddemographic groups to develop more targeted interventions. Overall, thisstudy underscores the importance of advancing financial inclusion as acatalyst for sustainable development and poverty reduction in Nigeria.

Abstract: This review article explores the governance of social protection programs (SPPs) in alleviating poverty in Botswana, using stakeholder theory as a framework. It highlights that the governance of SPPs is an under-researched aspect of Botswana's social policy. Utilising an exploratory case study design and document analysis, the study examines governance strategies and the effectiveness of SPPs in combatting poverty and inequality. Findings indicate that while vulnerable groups benefit from SPPs, wealth distribution remains unequal, marginalising certain communities. Key governance strategies include stakeholder engagement, public awareness, and monitoring from the Department of Social Development. Challenges such as inadequate coordination among various government structures and capacity limitations for social workers are noted. The study calls for increased government transparency in social protection measures to address structural inequalities and empower citizens, contributing valuable insights for improving SPPs in Botswana and other emerging economies.

Abstract: China has achieved a comprehensive victory against extreme poverty, yet whether every individual has been lifted out of poverty remains relatively unexplored. Children are the most susceptible to intra-household inequality as their consumption is primarily controlled by their supervisors, making the standard per-capita indices unsuitable for assessing their poverty. This paper employs the DLP model to estimate children's resource shares and poverty rates among various household types in rural China. Based on a representative sample, we demonstrate that left-behind children (LBC) receive approximately 5 % fewer resource shares and are ten times more likely to fall into poverty than non-left-behind children (NLBC). Girl children, compared to boys, generally reside in larger families with more children, resulting in smaller portions of household consumption and higher poverty rates. Further analysis strengthens the validity of our identification and indicates that our measure of child poverty is largely consistent with household consumption patterns. While most rural children have been lifted out of extreme poverty, child poverty remains severe when assessed against the standards of developed countries.

Abstract: The last expenditure survey released by India’s National Sample Survey organization dates back to 2011, which underpins the last official estimates of poverty and inequality. This paper adopts a new approach to estimate India’s poverty and inequality trajectory since 2011 using a newly available household panel survey conducted by the private sector. The results suggest that (1) extreme poverty is estimated to be lower in 2019 than in 2011, with greater poverty reductions likely in rural areas, and (2) coinciding with the demonetization event, urban poverty likely rose in 2016. The results should not be interpreted as definite proof. While the estimated trends in poverty sit well with a range of corroborative evidence, significant uncertainty remains stemming from sampling and non-sampling errors associated with the private-sector survey.

Abstract: Studies done before tend to amplify the role of institutions in improving the welfare of individuals and families. Few studies interrogate the role of beneficiaries in micro-social work interventions. Using NGOs’ interventions as a case study, beneficiaries are going the extra mile to reap maximum benefits, and some of their actions are organic, spontaneous and context-specific and are not influenced by NGOs themselves. The findings deepen community practice by appreciating that NGOs’ beneficiaries can organise for social action in pursuit of household welfare. There are better outcomes when micro-social work builds on the potential of clients.

Abstract: Research problemIn the face of global efforts to combat poverty and enhance the well-being of vulnerable populations, aiming for inclusive growth, the 2024 UNDP trend report casts a shadow with its findings that the world remains off-course for achieving Sustainable Development Goal 1 (SDG1) “No Poverty.” Specifically, in Uganda, despite the integration of poverty eradication measures within national development agendas, the efficacy of such initiatives is critically contingent upon the financial literacy levels among the impoverished targets.AimThis study underscores the pivotal role of financial literacy in fostering the empowerment of underserved communities, directing them toward paths of inclusive growth.Research methodsAdopting a qualitative framework, this investigation spanned 7 parishes across five districts within Uganda’s Busoga region, selected via purposive sampling. Participants included a cross-section of community members—ranging from household heads and local entrepreneurs to SACCO (Savings and Credit Cooperative Organization) members and parish chiefs—all of whom engage with government-led poverty alleviation programs. A semi-structured interview guide facilitated the collection of nuanced data, which was subsequently transcribed and subjected to content analysis to distill key thematic insights.Results and discussionThe findings illuminate a stark reality: inadequate financial management and literacy significantly thwart the sustainable development of rural communities. Such deficiencies not only hamper economic progress but also stifle the potential for holistic community empowerment.ConclusionInvestment in financial literacy emerges as a crucial strategy, underscoring the importance of equipping individuals with the knowledge and skills necessary for economic participation and personal growth. This approach aligns with the principles of Amartya Sen’s Capability Approach and the Human Capital Theory, advocating for the prioritization of financial literacy initiatives within rural development strategies. The study accentuates the need for comprehensive financial literacy training, aimed at fulfilling broader policy objectives and catalyzing economic development and poverty reduction efforts.

Abstract: This study explores the interactive effect of self-help efforts, specifically through household decisions to engage in commercialisation, and external supports provided via government antipoverty policies, on poverty reduction among poor households in northern Vietnam. With observational data from 1383 surveyed households, we use an estimation strategy combining inverse probability weighting, regression adjustment, and two-stage least squares to address selection bias and omitted variable bias in two variables of interest. We find that while these two interventions are individually effective in alleviating poverty, their combination is not necessarily as effective. Our results show that commercialisation only reduces poverty among non-supported households, while government supports are more effective among non-commercial households. This substitution of effects comes from the nature of support targeting and commercialisation. Households receiving supports often have lower capacity, making commercialisation ineffective or even impossible. Furthermore, current support policies are insufficient to enhance the impact of commercialisation. These results suggest that there could be more effective ways to combine external interventions and self-help efforts to better alleviate poverty.

Abstract: In 2015, the Sustainable Development Goals set the eradication of extreme poverty by 2030 as a universally agreed objective. This paper analyses the prospects for achieving this goal country by country. Without a reduction in inequality, even with a very optimistic annual growth rate of 7% between 2022 and 2030, 3% of humans would still be living in extreme poverty in 2030. National capacity to eradicate poverty is then measured using the concepts of antipoverty cap or antipoverty tax required to finance poverty eradication, and income floor (financed by a given income tax). With credible annual growth of 3%, even capping incomes at $7 a day cannot eradicate extreme poverty in 5 low-income countries. In other words, neither growth alone nor growth combined with radical domestic redistribution could eradicate extreme poverty by 2030. By contrast, a transfer of just 0.14% of global income could achieve this goal.

Abstract: The impact of poverty causes pressure that weakens family resilience. Although measurements of family resilience are available, there are not many up-to-date measures for urban poor families in Indonesia. The purpose of this study is to describe the profile of family resilience and the conditions of vulnerability of extreme urban poor families. The research subjects were the heads of families (N=416) spread across five sub-districts in the city of Bandung, with the highest number of poverties, where most of the subjects worked as daily laborers. The measurement uses a scale of family resilience through four dimensions: the quality of physical, economic, psychological, social, and family structure as demographic resilience. Data were analyzed with descriptive and correlational statistics using JASP 0.15. The results show that poor families have a level of fulfillment of family resilience qualities of 16.5 percent (12.62 percent on the dimensions of physical endurance, 12.46 percent on the economic dimension, 17.33 percent on the psychological dimension and 19.95 percent on the social dimension). Several dimensions have a significant positive relationship, with the highest level on the relationship between dimensions of physical and economic resilience (r=.768). Six conditions of vulnerability were found, namely related to job instability and income that is less than needed, environmental cleanliness and insufficient food consumption, misunderstanding of family goals, and lack of gratitude for conditions. The research findings show two sub-dimensions in each dimension of social resilience and psychological resilience. Suggestions and implications are directed at recommendations for urban extreme poverty alleviation programs and optimizing family quality programs, especially aspects of independence.

Abstract: Rapid population growth in developing countries has led to the expansion of slums characterized by inadequate housing and poor sanitation. Floating slums, particularly in sub-Saharan Africa, present unique challenges requiring tailored planning and design strategies. This study examines Makoko, a floating slum in Nigeria, which grapples with frequent flooding, outdated building technologies, and socio-economic vulnerabilities. The research proposes sustainable urban development indicators aligned with the Sustainable Development Goals (SDGs), contextualized to address the specific needs of floating slums. A mixed-method approach was employed, combining expert interviews and multi-criteria decision-making methods such as the Analytic Hierarchy Process (AHP) and Analytic Network Process (ANP). In the first phase, community challenges were identified, and tailored goals were developed based on the UN SDGs. In the second phase, AHP and ANP were used to prioritize and correlate these goals, integrating expert insights to rank them by significance and potential impact. This research introduces a novel framework, the Sustainable Floating Development Goals (SfDGs), tailored to address the unique challenges of floating slums like Makoko. Among the goals, sustainable livelihoods (SfDG 10) emerged as a foundational leverage point, serving as a critical indicator for socio-economic development. This goal exerts maximum influence on other priorities, such as resilience (Goal 1), disaster preparedness (Goal 9), and health and well-being (Goal 6). By fostering economic stability and self-sufficiency, promoting sustainable livelihoods not only improves the socio-economic conditions of Makoko residents but also indirectly enhances their adaptive capacity to environmental hazards and strengthens access to essential services such as healthcare. These insights provide a comprehensive framework for enhancing the sustainability and resilience of Makoko, offering guidance for policymakers and urban planners addressing similar challenges in other contexts.

Abstract: Population poverty inhibits China's economic growth. Reducing poverty in the face of risk and uncertainty has been a priority for the Chinese government in recent years. And it is an important part of realizing the Sustainable Development Goal 1. The paper first uses entropy method and TOPSIS to comprehensively evaluate the Financial Technology (Fintech) index. This paper uses the autoregressive distributed lag (ARDL) bounds test to measure the long-term relationship. This paper also uses a nonlinear autoregressive distributed lag (NARDL) model to examine the asymmetric impact of trade policy uncertainty (TPU), natural resource development (NRD) and fintech on poverty reduction. For the robustness of the model, this paper uses three parametric methods FMOLS, DOLS and CCR. The findings of this paper are as follows. Increases or decreases in TPU can have a negative impact on poverty reduction. It brings greater impact when it increases. A reduction in the level of NRD and an increase in the fintech index will promote poverty reduction policies. An increase in the level of NRD and a decrease in the fintech index have opposite effects. The results of FMOLS, DOLS and CCR support these conclusions. The findings of this research provide effective suggestions for the formulation of future poverty eradication policies and the promotion of fintech development in China.

Abstract: Economic growth is commonly seen as the main driver of poverty reduction in a global perspective, but its impact varies substantially across cases. Meanwhile, the literature has been relatively silent regarding the role of social policy in explaining this variation. In light of an emerging attention to redistribution and social protection in promoting inclusive growth, this article analyses how government cash transfer systems moderate the effect of economic growth on both relative and absolute child poverty across low- and middle-income countries. The empirical analyses compare trends within 16 countries, using data from the Luxembourg Income Study (LIS), by means of descriptive analyses and multivariate regression techniques. Findings show that both economic growth and the expansion of government transfer schemes were associated with falling absolute child poverty rates. While the association between growth and relative child poverty was on average more muted, the analyses found growth to be related to reductions in relative child poverty when combined with sufficiently extensive government transfers, while the opposite effect was found in the face of inadequate levels of transfers. The study provides a framework for studying interrelated effects of national institutions and economic processes, with the findings highlighting the fruitfulness of including indicators on social protection policies when inquiring about enabling conditions for inclusive growth in a development context.

Abstract: Monitoring the status and evolution of Sustainable Development Goals (SDGs) is typically carried out at the national level. However, significant variation can exist within countries, and this may not be captured by aggregate statistics. Here, we develop a unique dataset representing indicators for three SDGs at a district level for Lao PDR. The indicators comprise prevalence of stunting (SDG 2, Zero hunger), poverty headcount (SDG 1, No Poverty), and share of natural area (SDG 15, Life on land) for two moments in time: 2005 and 2015. In both years, we find considerable variation among district-level outcomes for stunting and poverty. We also find that higher stunting and poverty rates are significantly correlated with higher shares of natural land in both years. This is consistent with the common perception of a trade-off between environmental outcomes and socioeconomic wellbeing. The correlation vanishes, however, when we consider changes in poverty, stunting, and natural area over the ten-year study period. This holds as well when we focus on agricultural land instead of natural areas. We observe that most regions show improvements in both stunting and poverty, albeit not always in a statistically significant sense. This points to synergistic development. Similarly, improvements in both indicators are associated with losses in natural areas in all regions, indicating a trade-off. These results suggest that both trade-offs and synergies between SDGs can arise at the district level, but that context and local conditions likely moderate the strength of these interactions. Our results highlight the importance of quantifying and monitoring sustainable development at the detailed subnational level.

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