August 9, 2018

The Impact of Microfinance

How poor is the world? In 2013, 10.7% of the world’s population lived on less than US$1.90 a day. By fall 2015, for the first time in history, less than 10% of the world’s population was living in extreme poverty — down from 37% in 1990 and 44% in 1981. For its latest estimates, The World Bank used an updated international poverty line of US $1.90 a day, which incorporates new information on differences in the cost of living across countries(the PPP exchange rates). The new line, however, preserves the real purchasing power of the previous line(of $1.25 a day in 2005 prices) in the world’s poorest countries. While poverty rates have declined in all regions, The World Bank emphasizes that the progress has been uneven: The reduction in extreme poverty between 2012 and 2013 was mainly driven by East Asia and Pacific (71 million fewer poor) — notably China…

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