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How a new type of insurance helps to relieve poverty in Ethiopia

Livestock owners in Ethiopia are in a hugely vulnerable position. Their livelihood is highly dependent on weather patterns and a drought could lead to catastrophic herd loss, potentially pushing them into extreme poverty. Livestock owners are currently unable to mitigate these risks since traditional insurance markets are overpriced and underprovided due to issues of moral hazard and adverse selection. However, a new form of index based livestock insurance (IBLI) addresses these issues by issuing indemnity payments based on objectively verifiable climatic reasons. In IBLI’s case the insurance pay-out is ingeniously based on vegetation levels as seen by remote satellite imagery which can be used to estimate livestock mortality rates.

How Data could save the SDGs: Three approaches to Ending Extreme Poverty

Around half of the 140 SDG targets measured are described in the report as ‘weak or inefficient’ showing moderate or severe deviations from the desired trajectory. For more than 30 percent of the targets, including those concerning poverty, no progress is reported at all – and in some cases actual regression since 2015 is noted.

Fragility and poverty in Sub-Saharan Africa: two sides of the same coin

In 1990, about half of the population in sub-Saharan Africa and South Asia and two-thirds in East Asia and the Pacific were living in extreme poverty (defined as living on less than what today amounts to around $2.15 per person per day). In the three decades that followed, these three regions have undertaken quite different development paths. In 2019, 35 percent of the population in sub-Saharan Africa were estimated to be living in extreme poverty, compared to 9 percent in South Asia and 1 percent in East Asia and the Pacific.

Multidimensional Poverty Index- A Progress Review from India by NITI Aayog

Most of the world’s extreme poor live in middle income countries – but not for long

IIn the early 1990s, there was a near complete overlap between poor people and poor countries, with more than 9 out of 10 of the world’s extreme poor living in low-income countries at the time. This picture changed over the following two decades, in part driven by the movement in and out of the low-income group of populous countries like China and India where most of the extreme poor lived.

Pandemic, prices, and poverty

The world’s poorest population have faced two extraordinarily difficult years. The pandemic has caused unprecedented reversals in poverty reduction that are further exacerbated by rising inflation and the effects of the war in Ukraine.