Extreme Poverty Doubles in LDCs
By John Katsigeorgis, for the Chronicle

A homeless man in Madras, India. (UNESCO Photo/C. Ecker)

The United Nations Conference on Trade and Development (UNCTAD) has reported that the number of people living on less than $1 a day has doubled during the last 30 years. UNCTAD estimates that by the year 2015, there will be 420 million people in the world’s 49 least developed countries (LDCs) suffering from extreme poverty.

Dr. Veena Jha, the coordinator of UNCTAD India, reported to the Financial Times that the promotion of economic growth, and the creation of a development-oriented economy in low-income countries could reduce such poverty from 65 to 20 per cent. Economic growth would increase the average household consumption of people in LDCs, and decrease the number of people living on less than $1 a day. As quoted in The New York Times, UNCTAD Secretary-General Rubens Ricupero stated that only if economic growth is given priority could the level of extreme poverty be drastically reduced.

Extreme poverty is most prevalent in countries that depend on commodity exports for their survival and development. Asian LDCs have been able to reduce the percentage of people living in extreme poverty from 36 to 23 per cent by diversifying their economies and raising the average daily consumption. An increase in foreign aid will be needed to help reduce the poverty level further.

Because discrepancies between national accounts and household surveys conducted by aid groups existed, the correlation between average real consumption and extreme poverty has only recently been recognized. UNCTAD has asked developed countries to help increase average consumption and reduce extreme poverty by doubling international development assistance.

Links:
United Nations Conference on Trade and Development (UNCTAD)
UNCTAD: The Least Developed Countries Report 2002