One of the most frequently utilized gauges of poverty is the percent of people within a country or region that live on less than one dollar ($1) a day [a]. About 1/5 of the Earth's population, or 1.1 billion people, currently live on less than $1 a day [1]. Nine of the ten countries with the largest percent of people in this category are in Africa; Madagascar, Sierra Leone, Burundi, Gambia, Niger, Zambia, Central African Republic, Nigeria, and Mali have 49% to a staggering 73%, respectively, of their populations living in extreme poverty conditions. Between 1981 and 2001 the percent of total people in Sub-Saharan Africa living on less than $1 a day increased 93%, from 164 million to 316 million [1].

However, in absolute terms, India (by far) contains the greatest number of people who live on less than $1 a day. 380.6 million people, or just over 1/3 of India's total population, constitute this country's enormous poverty base; this total is greater than the combined populations of the United States, Canada, and Australia. China (219.5 million), Nigeria (91.4 million), Bangladesh (55.0 million), and Pakistan (21.6 million) also have more than 20 million people living on less than $1 a day [b].

The definition of poverty, however, can encompass many societal factors, not just economic thresholds. Poverty measures can include other, very tangible and quantifiable variables such as life expectancy and literacy, to more qualitative variables such as human rights, psychological suffering, and insecurity [1]. The first of the United Nations Millennium Development Goals is to eradicate extreme poverty and hunger by the year 2015. This includes reducing by half the proportion of people living on less than $1 a day.

a. Data for Poverty: Population living below $1/day are derived from surveys prepared by the World Bank’s Development Research Group and conducted between 1985 and 2002. The commonly used $1 a day standard is measured in 1985 international prices and adjusted to local currency using purchasing power parity (PPP) rates. PPP exchange rates, such as those from the Penn World Tables or the World Bank, are used because they take into account the local prices and goods and services not traded internationally.

b. Population data used in calculating totals are 2005 population estimates from the following source: Population Division of the Department of Economic and Social Affairs of the United Nations Secretariat, 2003. World Population Prospects: The 2002 Revision. New York: United Nations.

Selected relevant content available on EarthTrends and at WRI:

WRI Publications and Websites:
[1] United Nations Development Programme, United Nations Environment Programme, The World Bank, World Resources Institute. 2005. World Resources 2005: The Wealth of the Poor: Managing Ecosystems to Fight Poverty. WRI: Washington, D.C.

EarthTrends Poverty Resource

Variables:
Poverty: Population living on less than $1/day
Poverty: Poverty Gap $1/day
Population indices: Human poverty index

Data Tables:
Income and Poverty 2005