Is extreme poverty going to end?: an analytical framework to evaluate progress in ending extreme poverty

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. The target of ending extreme poverty is measured by whether the percentage of the world’s population whose household expenditure per capita is below US$1.25 per day at 2005 international prices can be reduced to 3 percent by 2030. This new goal, which is sometimes called “ending poverty in one generation,” might have sounded impossible nearly 10 years ago when the Millennium Development Goals (MDGs) were set. But now that the development communities will almost certainly achieve MDG 1, halving global poverty by 2015, optimism for this new target is on the rise.