The poorest countries in the world
Most of the countries suffering from poverty are in Africa and South Asia. In terms of the number of people affected, Sub-Saharan Africa is by far the most affected region on earth. Two-thirds of all people in extreme poverty live here.Currently, the poorest country in the world is Burundi, with a purchasing power-adjusted annual income of only $775.
On a positive note, the number of people living in extreme poverty with an income of less than $1.90 per day has decreased significantly in recent years.
Country/Region | Adjusted GNI/capita | HDI | MPI |
---|---|---|---|
Burundi | 775 $ | 0.420 | 0.409 |
Central Africa | 1,094 $ | 0.387 | 0.461 |
Mozambique | 1,164 $ | 0.461 | 0.372 |
Congo (Dem. Republic) | 1,248 $ | 0.481 | 0.331 |
Niger | 1,492 $ | 0.394 | 0.601 |
Liberia | 1,555 $ | 0.487 | 0.259 |
Chad | 1,606 $ | 0.394 | 0.517 |
Malawi | 1,719 $ | 0.508 | 0.231 |
Somalia | 1,734 $ | 0.380 | |
Madagascar | 1,752 $ | 0.487 | 0.386 |
Guinea-Bissau | 2,316 $ | 0.483 | 0.341 |
Sierra Leone | 2,435 $ | 0.458 | 0.293 |
Gambia | 2,471 $ | 0.495 | 0.198 |
Guinea | 2,504 $ | 0.471 | 0.373 |
Mali | 2,569 $ | 0.410 | 0.376 |
Uganda | 2,597 $ | 0.550 | 0.281 |
Burkina Faso | 2,611 $ | 0.438 | |
Zimbabwe | 2,660 $ | 0.550 | 0.110 |
Solomon Islands | 2,661 $ | 0.562 | |
Rwanda | 2,688 $ | 0.548 | 0.231 |
Togo | 2,788 $ | 0.547 | 0.180 |
Ethiopia | 2,792 $ | 0.492 | 0.367 |
Sudan | 2,908 $ | 0.516 | 0.279 |
Haiti | 3,045 $ | 0.552 | 0.200 |
Tanzania | 3,118 $ | 0.532 | 0.284 |
Lesotho | 3,356 $ | 0.521 | 0.084 |
Zambia | 3,384 $ | 0.569 | 0.232 |
Vanuatu | 3,717 $ | 0.614 | |
Congo | 3,747 $ | 0.593 | 0.112 |
Papua New Guinea | 3,841 $ | 0.568 | 0.263 |
East Timor | 3,860 $ | 0.566 | 0.222 |
Kiribati | 3,906 $ | 0.628 | 0.080 |
Sao Tome and Principe | 4,084 $ | 0.613 | 0.048 |
Comoros | 4,157 $ | 0.586 | 0.181 |
Senegal | 4,266 $ | 0.517 | 0.263 |
Micronesia | 4,297 $ | 0.634 | |
Benin | 4,360 $ | 0.504 | 0.368 |
Angola | 4,371 $ | 0.591 | 0.282 |
Cameroon | 4,613 $ | 0.587 | 0.232 |
Nepal | 4,739 $ | 0.601 | 0.074 |
Cambodia | 5,143 $ | 0.600 | 0.070 |
Kyrgyzstan | 5,210 $ | 0.701 | 0.001 |
Myanmar | 5,547 $ | 0.608 | 0.176 |
Tajikistan | 5,609 $ | 0.679 | 0.029 |
Nigeria | 5,855 $ | 0.548 | 0.175 |
Samoa | 5,950 $ | 0.702 | 0.025 |
Kenya | 5,960 $ | 0.601 | 0.171 |
Honduras | 6,100 $ | 0.624 | 0.051 |
Djibouti | 6,220 $ | 0.515 | |
Pakistan | 6,236 $ | 0.540 | 0.198 |
Living on the lowest income
For this country comparison, we mainly relied on the gross national income (GNI) of the year 2022. This is the sum of all revenues generated domestically in each country. In addition, however, it is important to keep in mind that your money can buy different things in different countries. As described in our Cost of Living, almost every country has a different price level, and while you can barely rent an apartment in Switzerland with $500, you can already get half a palace for that money in many countries in Africa.In order to link all incomes worldwide with local purchasing power and thus make them internationally comparable, there is purchasing power parity. This is the only way to arrive at an adjusted and thus comparable income. The dollar sign in the table therefore does not stand for the U.S. dollar, but for the fictitious - but comparable - currency of the PPP dollar.
By comparison, adjusted per capita income in the U.S. is $US 76,770, so even taking into account the much higher purchasing power, people in the poorest countries still earn less than one 70th.
Is poverty measurable by money?
No - although wealth certainly would be. In all highly developed industrialized countries, there is a pronounced bureaucracy with a financial and tax system that has matured over many decades. Poor countries have this as well, but far less effectively. They are prone to high levels of corruption and unemployment. Taxes are also paid only sporadically. It is a vicious circle that many countries can no longer escape on their own. But if taxes are not paid and social welfare systems do not even exist, how does a state know how much money is flowing in the first place?It doesn't. Anyone who takes even a part-time job in a rich country is registered, recorded, insured, paid and taxed. This is certainly not the case in Somalia. This is precisely the weak point of the statistics: Poverty is almost always measured on the basis of the measurable flow of money. With less than 5% of a US-American or even European income (adjusted for purchasing power!) one cannot survive even in a corrugated iron hut.
Payment for goods and services therefore partly bypasses the state and does not appear in the figures because it is not recorded. If money is not available in the first place, payment is made in kind or in return. This explains why incomes can be so low in a country comparison. A secure and fulfilling life is, of course, still hardly possible. And if the state does not receive any tax money, it ultimately has even fewer possibilities to restructure its ailing economy.
Living in financial poverty does not necessarily mean living in material poverty. Thus, one needs further criteria that take into account the living conditions.
› The richest countries
› Unemployment rates in comparison
› List of highly indebted developing countries
The Human Development Index (HDI)
The United Nations Development Programme has developed the Human Development Index for better monitoring. In addition to income, it includes factors such as life expectancy and average years of schooling. Thus, on a scale of 0 to 1, the index better represents how medical care and education function in a country. The higher the value, the higher the human development in the country.Multidimensional Poverty Index (MPI)
In this context, the multidimensional poverty index published by the United Nations in cooperation with Oxford University is even more meaningful. Multidimensional here means that various forms of poverty are taken into account. In addition to the criteria of the HDI, the index also covers nutrition and housing, as well as access to water and electricity. In this measurement method, poverty is therefore no longer limited to the financial situation, but includes additional factors of living conditions. The index is formed from the intensity of deprivation and the proportion of the population that is affected or at risk. The MPI is expressed on a scale from 0 to 1, with 0 being the most optimal value with the least deprivation.Gross national income as the basis for the calculation
The richer a country is, the more it spends on administration and the production of statistics. However, this is not the case for the poorest countries in particular. They already have so much to do with their own budget management that many of them cannot afford - and do not want - the luxury of a federal statistical office. As a result, meaningful data is often unobtainable. For example, the World Bank collects various evaluations of the extent of poverty. The poorest countries in particular have not appeared in the data sets for years (sometimes even decades) because the necessary data are simply not available. According to the World Bank, 69% of the population in Eritrea lives below the poverty line. This figure is the most recent available for Eritrea and dates from 1993. For around 30 other countries, there are only figures that are more than 10 years old. Although the United Nations MPI is published annually, it is based on available data, some of which is several years old.So it is hardly possible to quantify the real state of poverty according to more precise criteria. For wealth, this would work because the rich countries all publish their figures. For a current country comparison, therefore, the only criterion that is available for all countries must suffice: Gross National Income (GNI).
This results in an inaccuracy: The gap between rich and poor cannot be seen in the GNI, because it is only an average value. One hundred people with an annual income of 2,000 euros and four with 100,000 euros, give an average of 5,769 euros. In other words, almost three times as much as the vast majority of people in the group. A median value would help, but it is not even calculable for 193 individual countries in the UN. If this hidden income gap is taken into account, poverty will be even higher in almost all the countries listed.
Even in industrialized countries, measurement methods such as the relative income poverty risk or the low-income ratio are based only on measurable payments. Material poverty cannot be captured with these. Newer methods such as recording of material deprivation, are increasingly being used in the European Union, but in the poverty-stricken countries of other regions, people will certainly have other things to worry about than statistics for quite some time to come.