Answer: About 10%

Questions:

• How would you describe extreme poverty?
• What would you write as the headline for the chart on the previous slide (below)?
• What do you think are keys to bringing down extreme poverty in countries? 

Click here for the ready-to-go slides for this Question of the Day that you can use in your classroom.

Behind the numbers (Our World in Data)

Researchers measure extreme poverty as living with less than 1.90$ per day. These poverty figures take into account non-monetary forms of income – for poor families today and in the past this is important, particularly because of subsistence farming. The poverty measure is also corrected for different price levels in different countries and adjusted for price changes over time (inflation) – poverty is measured in so-called international dollar that accounts for these adjustments.

The first chart shows the estimates for the share of the world population living in extreme poverty. In 1820 only a tiny elite enjoyed higher standards of living, while the vast majority of people lived in conditions that we would call extreme poverty today. Since then the share of extremely poor people fell continuously. More and more world regions industrialised and thereby increased productivity which made it possible to lift more people out of poverty: In 1950 three-quarters of the world were living in extreme poverty; in 1981 it was still 44%. For 2015 – the last year for which we currently have data – research suggests that the share in extreme poverty has fallen below 10%.

About the Author

Tim Ranzetta

Tim's saving habits started at seven when a neighbor with a broken hip gave him a dog walking job. Her recovery, which took almost a year, resulted in Tim getting to know the bank tellers quite well (and accumulating a savings account balance of over $300!). His recent entrepreneurial adventures have included driving a shredding truck, analyzing executive compensation packages for Fortune 500 companies and helping families make better college financing decisions. After volunteering in 2010 to create and teach a personal finance program at Eastside College Prep in East Palo Alto, Tim saw firsthand the impact of an engaging and activity-based curriculum, which inspired him to start a new non-profit, Next Gen Personal Finance.