The main objective of this paper is to propose a new analytical framework to diagnose progress toward ending extreme poverty. The World Bank has recently announced twin goals of “ending extreme poverty” and “promoting shared prosperity,” both of which are pursued in an environmentally, socially and fiscally sustainable manner.

According to this new World Bank report on "state of the poor" the extreme poverty has fallen across the developing world in the last three decades, but the pace was considerably slower in LICs and poverty for middle and high income countries (including India and China) fell by more than a half since 1981.