System of Poverty Reduction 1 Human Capital STATE Resilient Growth Environment Sustainable Poverty Reduction Jobs, Incomes General multiplier Girls & Women Education Health Social protection Food security WASH Humanitarian and others... Taxation Social Policy Private sector investment & Growth Political Settlement Political institutions + Active Citizens International Environment: the global system, global constraints, global players Natural Resource Base

Poverty is most severe in Poor Countries Highest rates of poverty (across all dimensions) are in Low Income Countries Concentrated: geographically in Sub Saharan Africa, South & East Asia Concentrated: in particular social groups – ethnicity and gender 2

Most poor people will continue to live in MICs Numbers of poor are falling faster in MICs than LICs, but graduation of LICs (a success) transfers more poor into MIC category Extreme poverty continues predominately in MICs over next 20Y India and Nigeria comprise 60-75% of extreme poor living in MICs India takes over from China as the principal net reducer of numbers of poor

98% of extreme poverty will be in 50 countries 4 * No data for Afghanistan, Somalia, Zimbabwe, Myanmar. Data for Ethiopia in WB data are under revision China