ABSTRACT
Poverty and inequality are long-standing, complex global issues that require concerted and long-term engagements to address. This chapter assesses current progress in the fight against extreme poverty and then discusses the implications for global political and social stability. It puts a strong emphasis on the interrelationship between poverty and labour income, given that income from labour is the largest asset owned by the poor. The poverty reduction successes of the last 50 years, a period in which the world population increased by four billion, are all to be found in countries that transformed their economy to create more productive and better-paid jobs, thus raising earnings. Despite these success stories of increased labour earnings reducing poverty, too many people in developing countries are still working in low-productivity, insecure jobs. This chapter outlines recent trends in extreme poverty and inequality in the world, focusing on the impact of the pandemic while highlighting various channels through which poverty and inequality can affect global political and social stability. The chapter discusses policy options, including the need for efficient public spending, promotion of gender equality and a new social contract for data.
