World Bank to adjust poverty line to $2.15 per day

The World Bank has recently announced plans to increase the international poverty line to $2.15 per day, citing a rise in prices as the primary reason for the adjustment. This change means that individuals living on less than $2.15 per day will now be considered to be in extreme poverty. In a recent interview on CNBC Africa, Andrew Nevin, Chief Economist at PWC Nigeria, shared his perspective on this development. Nevin highlighted the importance of focusing on absolute poverty, acknowledging the World Bank's efforts to reduce extreme poverty to 3% of the global population by 2030. However, he also emphasized the complexities of poverty, urging a more nuanced approach that considers various dimensions beyond income levels, such as access to basic amenities like sanitation, clean water, education, and food. Nevin pointed out the ongoing challenges faced by countries in Sub-Saharan Africa, particularly in light of the COVID-19 pandemic and the recent increase in global inflation due to the Russian-Ukrainian conflict. These factors have further exacerbated the plight of the region, leading to more people falling below the poverty line. Nevin stressed the urgent need to address food security issues, particularly in Nigeria, where a combination of inflation and security concerns has raised fears of a looming food crisis. He called for a concerted effort to prioritize food production and ensure access to essential nutrients for all citizens. Regarding the agricultural sector in Nigeria, Nevin expressed optimism about the progress made in recent years, citing initiatives to enhance food production and create value chains. Despite the challenges posed by security threats, he highlighted the resilience and potential for growth within the sector. Nevin underscored the importance of supporting women in agriculture and leveraging innovative solutions to boost productivity. On the topic of external support from institutions like the IMF and World Bank, Nevin urged a pragmatic approach that aligns with the political and economic realities of each country. He lauded the IMF's flexible approach to providing assistance during the COVID-19 crisis, contrasting it with the World Bank's more stringent conditions. Nevin cautioned against imposing impractical demands on nations already grappling with multiple crises, emphasizing the need for supportive measures that uphold sovereignty while addressing pressing needs. In conclusion, Nevin called for a coordinated response to the challenges posed by rising prices and inflation, emphasizing the importance of maintaining focus on sustainable agricultural practices and inclusive policies that benefit all segments of society. As countries navigate the complexities of poverty reduction and economic stability, collaboration between governments, international organizations, and local stakeholders will be crucial in achieving lasting progress.