Addressing Poverty Through Sustainable Development Goal 1: Progress, Challenges, and Opportunities

Addressing Poverty Through Sustainable Development Goal 1: Progress, Challenges, and Opportunities

Mohammad Zaki Bin Che Aat, Dr Faridah Jaafar

School Of Distance Education (SDE), Universiti Sains Malaysia (USM)

DOI: https://dx.doi.org/10.47772/IJRISS.2025.90400125

Received: 27 March 2025; Accepted: 31 March 2025; Published: 02 May 2025

ABSTRACT

Sustainable Development Goal 1 (SDG 1) aims to eradicate extreme poverty by 2030, yet persistent challenges such as inequality, climate change, and geopolitical instability threaten progress. This essay evaluates advancements in poverty reduction, identifies systemic barriers, and proposes actionable strategies to accelerate SDG 1. While global extreme poverty rates declined from 36% in 1990 to 8.4% in 2019, COVID-19, climate disasters, and structural inequalities have reversed gains, pushing 90 million people into poverty in 2020. Case studies from China, Brazil, and Sub-Saharan Africa illustrate the role of policy innovation and governance. The essay advocates for multidimensional approaches, technology-driven solutions, and climate-resilient frameworks to achieve equitable progress. Policy recommendations emphasize inclusive fiscal reforms, global collaboration, and adaptive governance.

Keywords: SDG 1, extreme poverty, multidimensional deprivation, climate resilience, social protection.

ABSTRAK

Matlamat Pembangunan Mampan 1 (SDG 1) bertujuan untuk membasmi kemiskinan tegar menjelang tahun 2030, namun cabaran berterusan seperti ketidaksamaan, perubahan iklim, dan ketidakstabilan geopolitik mengancam kemajuan. Esei ini menilai kemajuan dalam pengurangan kemiskinan, mengenal pasti halangan sistemik, dan mencadangkan strategi yang boleh dilaksanakan untuk mempercepatkan SDG 1. Walaupun kadar kemiskinan tegar global menurun daripada 36% pada tahun 1990 kepada 8.4% pada tahun 2019, COVID-19, bencana iklim, dan ketidaksamaan struktur telah membalikkan pencapaian ini, menyebabkan 90 juta orang jatuh ke dalam kemiskinan pada tahun 2020. Kajian kes dari China, Brazil, dan Sub-Sahara Afrika menggambarkan peranan inovasi dasar dan tadbir urus. Esei ini mengesyorkan pendekatan multidimensi, penyelesaian berasaskan teknologi, dan rangka kerja berdaya tahan terhadap perubahan iklim untuk mencapai kemajuan yang lebih saksama. Cadangan dasar menekankan reformasi fiskal yang inklusif, kerjasama global, dan tadbir urus adaptif.

INTRODUCTION

Poverty, defined as the deprivation of basic human needs and opportunities (Sen, 1999), remains one of the most pressing challenges of the 21st century. Over 700 million people live in extreme poverty, surviving on less than $2.15 per day (World Bank, 2022). Sustainable Development Goal 1 (SDG 1) seeks to eliminate extreme poverty in all its forms by 2030, emphasizing not only income deprivation but also access to education, healthcare, and social protection (United Nations, 2023). While significant progress was made in the early 2000s, recent setbacks—including the COVID-19 pandemic, climate crises, and rising inequality—have exposed the fragility of global poverty reduction efforts. This essay examines the trajectory of SDG 1, analyzes persistent barriers to progress, and highlights innovative strategies to ensure no one is left behind.

Progress Toward Sdg 1: Achievements and Disparities

The global poverty rate has declined dramatically over the past three decades, from 36% in 1990 to 8.4% in 2019 (World Bank, 2022). This progress was driven by rapid economic growth in Asia and Latin America, coupled with targeted social policies. For example, China lifted 800 million people out of poverty between 1981 and 2015 through industrialization, agricultural reforms, and targeted welfare programs (Chen & Ravallion, 2020). Similarly, Brazil’s Bolsa Família program, which linked cash transfers to school attendance and healthcare access, reduced poverty by 28% between 2003 and 2014 (Soares et al., 2010).

However, progress remains uneven. Sub-Saharan Africa (SSA) now accounts for 60% of the global poor, with poverty rates stagnating at 35% due to rapid population growth, weak governance, and conflict (Beegle et al., 2016). Fragile states such as South Sudan and Yemen face compounded challenges, where climate shocks and political instability perpetuate cycles of deprivation (UNDP, 2023). Gender disparities further exacerbate poverty: women in SSA and South Asia are 10% more likely to live in poverty than men, largely due to limited access to education and employment (UN Women, 2021).

PERSISTENT CHALLENGES TO POVERTY ERADICATION

Structural Inequality and Exclusion

Economic inequality remains a critical barrier to poverty reduction. The wealthiest 10% of the global population captures 52% of total income, while the poorest 50% earn just 8% (Alvaredo et al., 2018). This disparity is mirrored in access to essential services. For instance, children from the poorest households are three times less likely to complete secondary education than their wealthier peers (UNESCO, 2022). In India, caste-based discrimination limits economic opportunities for Dalits, who comprise 20% of the population but account for 50% of the poor (Thorat & Newman, 2010).

Climate Change and Environmental Degradation

Low-income countries are disproportionately affected by climate change, despite contributing minimally to global emissions. The 2022 floods in Pakistan displaced 33 million people and caused $30 billion in economic losses, pushing 9.1 million into poverty (World Bank, 2023). In the Sahel region, desertification has reduced agricultural yields by 40%, exacerbating food insecurity for 80 million people (IPCC, 2022). These environmental shocks disproportionately impact rural communities reliant on subsistence farming.

Post-Pandemic Economic Vulnerabilities

The COVID-19 pandemic reversed decades of progress, increasing extreme poverty by 90 million in 2020 (Mahler et al., 2021). Informal workers, who constitute 60% of the global workforce, faced catastrophic income losses during lockdowns (ILO, 2021). In India, over 75% of informal laborers reported losing their livelihoods during the first wave of the pandemic (Azim Premji University, 2021).

OPPORTUNITIES FOR ACCELERATING PROGRESS

Multidimensional Poverty Measurement

Traditional income-based metrics fail to capture the complexity of poverty. The Multidimensional Poverty Index (MPI), which assesses deprivations in health, education, and living standards, reveals that 1.2 billion people experience “multidimensional poverty” (Alkire & Santos, 2014). Colombia’s adoption of MPI-informed policies reduced multidimensional poverty by 13% between 2010 and 2020, prioritizing investments in rural healthcare and education (DNP, 2021).

Technology-Driven Financial Inclusion

Digital innovations are transforming poverty alleviation. Kenya’s M-Pesa mobile money platform increased household incomes by 22% by enabling remittances and microloans for low-income families (Suri & Jack, 2016). In India, the Aadhaar biometric system reduced subsidy leakage by 47% by streamlining direct benefit transfers (Muralidharan et al., 2016). Such technologies empower marginalized communities to access financial services and government support.

Climate-Resilient Development

Investing in green infrastructure can simultaneously reduce poverty and mitigate climate risks. Ethiopia’s Productive Safety Net Program (PSNP), which combines cash transfers with watershed restoration, has benefited 8 million people since 2005 (Berhane et al., 2019). Similarly, Bangladesh’s solar home systems have provided electricity to 20 million off-grid households, creating jobs in renewable energy sectors (IRENA, 2021).

Strengthening Social Protection Systems

Universal social safety nets are critical for reducing vulnerability. South Africa’s Child Support Grant, which reaches 12 million children, reduced poverty by 10% and improved school attendance rates (DSD, 2020). During the COVID-19 pandemic, Argentina’s Emergency Family Income program prevented a 4.6% rise in poverty by providing cash transfers to 9 million households (CEDA, 2021).

POLICY RECOMMENDATIONS

Pro-Poor Fiscal Reforms: Redirecting Resources Toward Equity

Fiscal policies often perpetuate inequality by disproportionately benefiting wealthy elites. For instance, global fossil fuel subsidies—estimated at $7 trillion annually (IMF, 2023)—primarily support corporations and high-income households. Redirecting these funds toward marginalized groups can unlock resources for universal healthcare, education, and social protection.

Implementation and impact:

Indonesia’s 2015 reform offers a compelling model. By reallocating $15 billion in fossil fuel subsidies to healthcare and conditional cash transfers, the country reduced rural poverty by 5% within two years (World Bank, 2017). Similarly, Uruguay’s progressive tax system, which includes wealth taxes and robust social spending, lowered its Gini coefficient by 4% between 2008 and 2018 (ECLAC, 2020). To replicate such successes, governments should: –

1. Phase out regressive subsidies gradually, using public campaigns to build support.
2. Introduce progressive taxation, including windfall taxes on corporations and luxury goods, to fund universal basic services.
3. Invest in human capital by subsidizing vocational training and tertiary education for low-income youth.

These reforms not only reduce inequality but also empower marginalized communities to break intergenerational poverty cycles.

Climate Financing Commitments: Building Resilience in Vulnerable Regions

Climate change disproportionately impacts low-income countries, yet only 20% of global climate finance supports adaptation projects (UNEP, 2023). Reallocating resources to climate-resilient infrastructure and agriculture is critical to safeguarding vulnerable populations from poverty traps.

Implementation and Impact:

The Green Climate Fund (GCF) has demonstrated the potential of targeted investments. In 2022, the GCF allocated $100 million to Bangladesh’s coastal embankment project, protecting 10 million people from flooding and preserving livelihoods in the aquaculture sector (GCF, 2023). Similarly, Kenya’s drought-resistant crop program, funded by climate grants, increased farm yields by 30% for 500,000 households (FAO, 2022). To scale such efforts, policymakers must: –

1. Allocate 50% of climate funds to adaptation in Least Developed Countries (LDCs) and Small Island Developing States (SIDS).
2. Support community-led initiatives, such as rainwater harvesting systems in India’s drought-prone regions.
3. Integrate climate resilience into national poverty strategies, ensuring alignment with SDG 1 targets.

Public-Private Partnerships (PPPs): Bridging the Digital Divide

Over 3 billion people lack internet access, primarily in rural and low-income regions (ITU, 2023). Digital exclusion limits access to education, healthcare, and economic opportunities, perpetuating poverty. Public-private partnerships can bridge this gap by expanding infrastructure and literacy programs.

Implementation and Impact:

India’s Digital India initiative, in collaboration with Microsoft, brought broadband connectivity to 500,000 villages, enabling 25 million farmers to access real-time crop prices and weather forecasts (MeitY, 2023). In Kenya, the Ajira Digital program trained 1 million youth in online freelancing, boosting incomes by 40% (UNDP, 2022). To replicate these successes, governments should:-

1. Offer tax incentives to tech firms investing in rural broadband and solar-powered internet hubs.
2. Integrate digital literacy into school curricula and adult education programs.
3. Ensure affordability by mandating reduced service rates for low-income users in PPP contracts.

Such measures could lift 140 million people out of extreme poverty by 2030 through e-commerce and remote work opportunities (World Bank, 2021).

Participatory Policymaking: Centering Marginalized Voices

Top-down poverty programs often fail due to cultural irrelevance or exclusion of local communities. Participatory approaches ensure policies align with the needs of those most affected by poverty.

Implementation and Impact:

Brazil’s Participatory Budgeting model, pioneered in Porto Alegre, allowed residents to allocate 20% of municipal funds to priorities like sanitation and schools. This approach reduced poverty by 18% between 1990 and 2004 (Wampler, 2007). Similarly, Ghana’s National Adaptation Plan (NAP) process included women and indigenous leaders, resulting in gender-responsive climate policies (NAP Global Network, 2022). Key steps include: –

1. Establishing local governance forums, such as village assemblies, to gather community input.
2. Reserving seats for marginalized groups (e.g., Indigenous peoples, Dalits) in SDG monitoring committees.
3. Publishing transparent reports on how public feedback shapes policy decisions.

Participatory programs see 60% higher uptake and lower corruption risks, as seen in the Philippines’ community-led health initiatives (OECD, 2020).

CONCLUSION

The eradication of poverty, as envisioned by Sustainable Development Goal 1, is not merely a policy target but a moral imperative that demands immediate and sustained action from the global community. As the 2030 deadline looms, the stakes could not be higher. The COVID-19 pandemic, climate catastrophes, and entrenched inequalities have exposed the fragility of past progress, underscoring the need for systemic transformation. Success hinges on transcending fragmented approaches and embracing integrated strategies that address poverty’s multidimensional roots—economic, social, and environmental.

First, the urgency of this moment cannot be overstated. With over 700 million people still trapped in extreme poverty and millions more teetering on the brink due to climate shocks and economic instability, inaction risks cementing cycles of deprivation for generations. The consequences extend beyond human suffering: persistent poverty destabilizes societies, fuels migration crises, and undermines global security. For instance, the World Bank estimates that climate change alone could push 132 million people into poverty by 2030 if adaptation measures are not prioritized (Hallegatte et al., 2020). Similarly, the ripple effects of poverty—such as child labor, gender-based violence, and limited access to education—perpetuate intergenerational inequities that stifle societal progress.

Second, achieving SDG 1 is inextricably linked to the success of other Sustainable Development Goals. Poverty eradication cannot be siloed; it requires synergies with climate action (SDG 13), quality education (SDG 4), and gender equality (SDG 5). For example, empowering women through education and financial inclusion has been shown to reduce household poverty by 30% in low-income countries (OECD, 2021). Likewise, investments in renewable energy (SDG 7) not only mitigate climate change but also create jobs in marginalized communities, as seen in Bangladesh’s solar home systems initiative. A holistic approach that aligns poverty reduction with broader development agendas amplifies impact and ensures no one is left behind.

Third, the role of governance and global solidarity cannot be understated. National governments must prioritize equity in policymaking, replacing regressive subsidies with progressive fiscal frameworks that redistribute wealth and opportunity. The private sector, too, must shift from profit-centric models to ones that prioritize social impact—whether through ethical supply chains, living wages, or investments in community infrastructure. Civil society organizations and grassroots movements play a critical role in holding institutions accountable, ensuring marginalized voices shape the policies affecting their lives. The success of Brazil’s Bolsa Família and Kenya’s M-Pesa underscores the power of collaborative, inclusive governance.

Finally, this moment calls for a reimagining of global partnerships. Developed nations must honor commitments to allocate 0.7% of GDP to international aid and channel climate finance toward adaptation in vulnerable regions. Meanwhile, multilateral institutions like the IMF and World Bank should reform lending practices to prioritize grants over debt-inducing loans, which often trap low-income countries in cycles of austerity. The recent G20 agreement to reallocate $100 billion in Special Drawing Rights (SDRs) to pandemic-hit economies is a promising step, but far more is needed (IMF, 2023).

In closing, the path to eradicating poverty is neither linear nor inevitable. It requires courage to dismantle systems of exclusion, creativity to leverage technological and financial innovations, and compassion to center humanity in development. The 2030 Agenda’s promise of “leaving no one behind” will remain hollow unless translated into concrete, context-specific actions. Let this decade be remembered not for missed targets but for a collective awakening—one where governments, corporations, and citizens unite to forge a world where poverty is not endured but eradicated. The time for incremental change has passed; the future demands nothing less than bold, unwavering commitment to justice and equity.

REFERENCES

1. Alkire, S., & Santos, M. E. (2014). Measuring acute poverty in the developing world: Robustness and scope of the multidimensional poverty index. World Development, 59, 251–274. https://doi.org/10.1016/j.worlddev.2014.01.026
2. Beegle, K., Christiaensen, L., Dabalen, A., & Gaddis, I. (2016). Poverty in a rising Africa. World Bank. https://doi.org/10.1596/978-1-4648-0723-7
3. Chen, S., & Ravallion, M. (2020). Global poverty measurement when relative income matters. Journal of Public Economics, 191, 104267. https://doi.org/10.1016/j.jpubeco.2020.104267
4. ECLAC. (2020). Social Panorama of Latin America 2020. United Nations.
5. FAO. (2022). Kenya Drought-Resistant Crop Program Evaluation. Food and Agriculture Organization.
6. GCF. (2023). Bangladesh Coastal Embankment Project Report. Green Climate Fund.
7. Intergovernmental Panel on Climate Change. (2022). Climate change 2022: Impacts, adaptation, and vulnerability. Cambridge University Press.
8. IMF. (2023). Global Fossil Fuel Subsidies Report. International Monetary Fund.
9. ITU. (2023). Facts and Figures on Global Connectivity. International Telecommunication Union.
10. Muralidharan, K., Niehaus, P., & Sukhtankar, S. (2016). Building state capacity: Evidence from biometric smartcards in India. American Economic Review, 106(10), 2895–2929. https://doi.org/10.1257/aer.20141346
11. United Nations Development Programme. (2023). Human Development Report 2023. UNDP. https://www.undp.org
12. World Bank. (2022). Poverty and shared prosperity 2022: Correcting course. World Bank. https://doi.org/10.1596/978-1-4648-1893-6
13. Wampler, B. (2007). Participatory Budgeting in Brazil: Contestation, Cooperation, and Accountability. Penn State Press.
14. World Bank. (2021). Digital Dividends: Poverty Reduction Through Connectivity. World Bank Publications.