Development Co-operation Report 2013

Ending Poverty

image of Development Co-operation Report 2013

The Development Co-operation Report (DCR) 2013 explores what needs to be done to achieve rapid and sustainable progress in the global fight to reduce poverty. The world is on track to achieve the Millennium Development Goal (MDG) target of halving the proportion of people whose income is less than USD 1.25 a day. Nonetheless, we are far from achieving the overarching MDG goal of eradicating extreme poverty. While we have learned much about what works in terms of reducing poverty, “getting to zero” remains a challenge in the face of the intractable difficulties of reaching those mired in extreme poverty.

The report  focuses on the very poor and will set out, in concrete terms:

• The nature and dimensions of poverty today

• What development co-operation – and the global partnerships it supports – can do in the fight against poverty

The DCR 2013 will focus on the positive experiences of countries, highlighting policies and approaches that have worked.

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What will it take to end extreme poverty?

The world has probably met the first Millennium Development Goal (MDG) target: to halve the share of the population living in extreme poverty. Can the world now end extreme poverty by 2030? Using a range of scenarios based on economic growth and income inequality forecasts, the author shows that strong economic growth coupled with a fall in within-country inequality could end extreme poverty. If growth is weak and inequality is not tackled, however, extreme poverty could remain around 1.3 billion in 2030. Ending USD 1.25 per day poverty does not mean ending all poverty. Nutrition and health poverty, multidimensional poverty and higher poverty lines need to be considered as well. This is why providers of concessional funding should not concentrate attention solely on the poorest countries and should remember the “new bottom billion” in middle-income countries (MICs). A new system of country classification would help to address this challenge. The focus of development co-operation with MICs should be on: supporting economic growth that is equitable and addressing poverty reduction as a national distribution issue; co-financing global, regional and national public goods; ensuring that development and other OECD polices (on trade, migration and others) are coherent and mutually supportive; encouraging new modalities of finance, such as joint funding by traditional and new “donors” of programmes with benefits beyond borders (vaccination programmes, green infrastructure, etc.); and supporting the exchange of knowledge and experience on poverty reduction.

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