extreme poverty

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Development Aid: A Mixed Track Record

Extreme poverty has never been lower in the history of mankind. 135 billion USD is spent on official development aid every year. However, to eradicate extreme poverty, is the answer to simply increase aid? Fredrik Thor investigates.

Can cash grants help reduce poverty?

1.2 billion people around the world, or roughly one in every six people, live in extreme poverty – defined as survival on less than $USD1.25 a day according to The World Bank. As a proportion of the global population, however, this number has fallen dramatically over the past few decades. The economic uprising of several key East Asian nations has resulted in over 700 million people, over the past twenty years, breaking free from extreme poverty. Organisations such as the UN have project further decreases in the years to come. Indeed, there are many political, economical, and environmental factors that contribute to the extreme impoverishment of individuals around the world and many argue that this is a deeply complex issue that we cannot afford to merely throw money at – or can we?

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