Efforts to eliminate extreme poverty worldwide remain hindered, in part due to mounting difficulties in fragile and conflict-affected states (FCS), such as food shortages and limited institutional capacity, according to a World Bank report released Friday.
The Washington-based institution is urging increased global aid, debt relief, and technical assistance at a time when the United States — long the largest provider of foreign aid — is scaling back its support.
The World Bank’s first in-depth analysis of FCS economies since the COVID-19 pandemic reveals a troubling rise in extreme poverty within these regions. Currently, more than 420 million people in conflict-affected countries live on under $3 per day, surpassing the number in the rest of the world combined, despite representing less than 15% of the global population. This figure is expected to reach 435 million by 2030, or nearly 60% of the world’s extremely poor.
“Fragile and conflict-affected economies have become the center of global poverty and hunger, driven increasingly by more frequent and intense conflicts,” the report stated.
Economic performance in these nations is deteriorating, with the most violent conflicts reducing per capita GDP by as much as 20% within five years. These areas, home to around one billion people, typically have populations with only six years of education and life expectancies seven years shorter than in other developing regions. Since 2020, their per capita GDP has declined by 1.8% annually, in contrast to 2.9% growth in other developing countries.
“Since the mid-2010s, poverty reduction has stalled due to compounding pressures from conflict, fragility, and weak economic performance,” the report noted.
The World Bank calls for targeted reforms within countries and coordinated, long-term international involvement. Solutions should address root causes of conflict, such as inequality and marginalization, while also improving education, healthcare, and infrastructure. Sectors like agriculture and tourism offer potential for job creation among the growing youth population.
“With effective policymaking and consistent global support, fragile economies can pursue a more promising path to development,” the World Bank concluded.
