Skip to Content

Which country is extremely poor?


Which country is the poorest in the world? This is an important question when looking at global development and quality of life across different nations. Extreme poverty typically refers to living on less than $1.90 per day, adjusted for purchasing power parity. By this measure, some countries have a far higher rate of extreme poverty than others. Sub-Saharan Africa tends to have some of the poorest countries, while more developed regions like Europe have lower rates of extreme poverty. But which specific country actually has the highest rate of extreme poverty in recent data?

What does extreme poverty mean?

Extreme poverty is defined by the World Bank as living on less than $1.90 per day, adjusted for purchasing power differences across countries. This is an important threshold because living on such a small amount of money means not being able to reliably obtain basic life necessities like food, clean water, healthcare, housing, education, and other fundamental needs. People in extreme poverty are highly vulnerable to diseases, malnutrition, conflict, natural disasters, and other shocks with little ability to cope or recover.

Reducing extreme poverty is a major focus of international development efforts. The UN Sustainable Development Goals include a target to essentially eliminate extreme poverty globally by 2030. To track progress, accurate data on extreme poverty rates is needed, especially identifying which countries have the highest rates.

How is extreme poverty measured between countries?

Measuring extreme poverty requires looking at comprehensive survey data on household incomes or consumption. The World Bank gathers this data from many national governments and other sources. Household consumption per person per day is compared to the $1.90 per day threshold after adjusting for differences in purchasing power between currencies. This allows for an accurate comparison of poverty rates across countries with very different price levels.

The share of the population living below $1.90/day is the common statistic used to rank countries by extreme poverty rates. The World Bank produces updated estimates every few years, allowing changes over time to be tracked. Comparing extreme poverty levels in recent years shows the poorest country currently.

The Poorest Country in Recent Data

Sub-Saharan Africa has high extreme poverty rates

Many of the poorest countries in the world are located in Sub-Saharan Africa. Overall, this region has had slower economic development and higher population growth compared to other major regions. This has resulted in persistently high rates of extreme poverty according to the $1.90 per day standard. Many countries in Sub-Saharan Africa have poverty rates over 30% or as high as 50-70% in recent data. This indicates a substantial share of the population cannot meet basic needs.

Within Africa, countries in the sub-Saharan area tend to be poorer than North African nations. For example, South Sudan and DR Congo have had poverty rates above 70% in recent years while Egypt and Tunisia have had rates under 5%. Central African Republic and Mozambique also have high poverty rates above 60% in the most recent estimates. Overall, most of the poorest countries are found in Sub-Saharan Africa based on this metric.

Recent data shows Burundi has lowest GDP per capita

So specifically which country is the poorest currently based on reliable data? Looking at estimates for extreme poverty rates from 2015 to 2020, the country with the highest rate is Burundi in East Africa. According to the World Bank, extreme poverty affected approximately 84% of citizens of Burundi during this period. For comparison, the average rate for Sub-Saharan Africa was about 41% in recent years. So Burundi stands out as being the poorest nation even within its geographical region.

This is further confirmed by looking at GDP per capita figures. This measures the average economic production per person, adjusted for differences in purchasing power. Burundi was estimated to have a GDP per capita of just $261 in 2020. This was the lowest of any country and less than 1/70th that of the average for the world ($18,000). For context, the next lowest GDP per capita was South Sudan at $295 per person. Burundi is extremely poor by both measurements of poverty rate and GDP per capita.

Other metrics of development and quality of life

Burundi also scores poorly on other metrics of development related to health, education, hunger, infrastructure, political stability, and more. For example, it has very low literacy rates and school enrollment. Average life expectancy is only around 60 years. Malnutrition is common with over 50% of children stunted in growth. Only about 5% of households have access to electricity. Burundi also ranks near the bottom in the UN’s Human Development Index which looks at health, education and income indicators together.

The low development levels and political instability help explain why extreme poverty has remained so high in Burundi. Poverty reduction will require substantial, long-term investments in agriculture, education, healthcare access, infrastructure, and governance reforms. Burundi exemplifies the intertwined challenges faced by the poorest developing countries.

Outlook for the Future in Burundi

What is the outlook for the future in Burundi and other countries with high poverty rates? Major progress reducing extreme poverty has been made globally since 1990. But continued efforts and attention will be needed in persistently poor countries like Burundi to share in this progress. This section looks at recent trends, challenges, and some promising signs.

Recent trends in poverty and GDP per capita

Extreme poverty has remained persistently high in Burundi, especially when compared to other regions. The rate has fluctuated between 70-85% since the 1990s. For example, World Bank data shows a poverty rate of 81% in 1998 and still 84% as recently as 2016. The distribution has also worsened – rural areas which contain most citizens saw even higher rates. So unfortunately extreme poverty has not yet substantially declined, thoughBurundi did achieve some GDP per capita growth prior to 2015.

The following table summarizes World Bank data on GDP per capita and extreme poverty levels for Burundi:

Year GDP per capita Extreme poverty rate
1990 $210 68%
2000 $138 81%
2010 $240 81%
2015 $270 75%
2020 $261 84%

As the table shows, economic production and consumption per person has stayed very low with little growth from 1990 to 2020 in per capita GDP. And extreme poverty has remained worst in the world. So Burundi faces major challenges still in reducing poverty.

Challenges faced by Burundi

Why has extreme poverty persisted at such high levels in Burundi? There are several major factors that help explain the situation:

– Heavy reliance on subsistence agriculture – Over 90% rely on small farms but low productivity leaves many farmers in poverty.

– Rapid population growth – The population has quadrupled since 1960, greatly outpacing economic growth.

– Political instability and conflict – A 12-year civil war in the 1990s severely damaged the economy. Ongoing instability remains an issue.

– Vulnerability to weather events – As agriculture is so important, droughts and floods can quickly impact poverty.

– Limited infrastructure – Poor roads, electricity access, sanitation facilities stunt development.

– Health challenges – Life expectancy is very low due to poor healthcare access. Diseases like malaria, malnutrition are common.

Tackling these deep root causes is needed to put Burundi on a better trajectory for economic growth that includes the poor. But there are some positive signs recently.

Possible signs of progress and hope

Despite the challenges, Burundi has seen some hopeful changes that could mean future progress against extreme poverty:

– Improved political stability – The 2000s saw less violence and instability than the prior decade. Democratic elections were held in 2005 and 2010.

– Global health aid – International funding has expanded healthcare access and reduced child mortality. Vaccination rates have improved.

– Education initiatives – Primary school enrollment grew from 67% to over 95% from 2005-2015 with foreign aid. But secondary education remains very limited.

– Infrastructure investment – Major projects like hydroelectric power dams aim to provide electricity for industrial growth and rural development. But funding is still well short of needs.

Small gains have been made in improving literacy, health, and stability. With sound policies, governance reforms, and continued long-term economic development assistance, further poverty reduction should be possible. But it will require a concerted effort with major resource commitments to significantly move the needle.

Conclusion

In recent data, Burundi stands out as the poorest country in the world by indicators like extreme poverty rate and GDP per capita. Around 84% of its citizens live on less than $1.90 per day. Average economic production per person was just $261 in 2020, the lowest globally. Several factors like high reliance on small-scale agriculture, rapid population growth, political instability, and vulnerability to weather shocks help explain why poverty has remained so high.

But Burundi has seen some gains and has the potential for future poverty reduction with reasonable governance, sound policies, infrastructure development, and continued foreign aid. Still, major long-term efforts and resources will be needed to substantially share the benefits of development and make a dent in the high rates of economic deprivation. Going forward, progress in Burundi can show how even the very poorest countries can begin turning around decades of poverty with the right strategies.