The world has sufficient resources and cash to provide an adequate standard of living for each member of the human race. However, there are many poor countries in the world where the impoverished continue to live in abject poverty.
Although several initiatives have been taken by global institutions like a conference on Ending Poverty: The Road to 2030 by World Bank to eradicate the poverty from the world, but it seems the journey is far too long.
Let’s take a look at the 10 poorest countries in the world in 2024 by GDP per capita, as on July 2024 by International Monetary Fund (IMF):
Methodology for ranking poorest countries in the world
GDP stands for gross domestic product, which measures a country’s goods and services produced yearly. Its population must also be considered to get a clearer picture of how rich or poor a country is. Therefore, divide the GDP by the total number of people in the country to get GDP per capita. Now, here’s where it gets interesting. Sometimes, the GDP per capita only tells us part of the story. That’s because the cost of living and inflation rates can vary a lot from one country to another. That is where PPP penetrates to make a fair comparison. PPP stands for purchasing power parity and considers the local costs and inflation rates to give a more accurate picture of the standard of living in different countries. Some countries might have artificially inflated GDPs due to being tax havens. GDP per capita PPP is a helpful tool to pinpoint the poorest countries in the world.
South Sudan (GDP per capita: $455.16)
Africa’s youngest country is also the poorest. South Sudan has had two instances of civil conflict since getting independence in 2011. In addition, the country is vulnerable to floods and droughts, which can impede development and push 80 percent of the population into poverty. The year 2024 holds great significance for the whole country, since elections are expected to take place in December. In addition to being vital to stabilizing the economy, mitigating the various threats civilians face and enabling families to create viable future for themselves, etc. it is an essential element of a long-lasting peace for the entire country.
Burundi (GDP per capita: $915.88)
Being the second poorest country in the world, Burundi in a tiny landlocked nation. It lacks natural resources and has been devastated by the civil war that occurred from 1993 to 2005. Food insecurity in Burundi is about twice as severe as average for sub-Saharan African nations, with around 80 percent of the country’s 13 million people depending on subsistence farming. In addition, fewer than 5 percent of the population has access to power, and access to water and sanitation is also severely restricted. As a result of President Evariste Ndayishimiye’s efforts to revive the economy and restore diplomatic ties, financial sanctions were lifted in 2022 and assistance from the US and the EU was restored. Unfortunately, while the growth is increasing, inflation is expected to reach 22 percent this year.
Central African Republic (GDP per capita: $1.12 thousand)
The Central African Republic is a home to a population of extremely impoverished people. Although it is rich in gold, oil, uranium, and diamonds. Also, it has remained among the world’s poorest nations for a long time. The year 2016 saw the Central African Republic democratically elect a president for the first time since gaining independence from France. Faustin Archange Touadéra, a former prime minister and maths professor, ran on an agenda of bringing peacemakers to reconcile the country’s population divided along religious lines.
Although his election victory has been viewed as a significant step towards the country’s restoration, anti-government and militia organizations continue to hold influence over the majority of the nation. Despite issues and disappointments, growth has somewhat improved in recent years, driven by the timber industry, the revival of the agricultural sector, and the partially resumed sale of diamonds.
Democratic Republic of the Congo (GDP per capita: $1.55 thousand)
The Democratic Republic of the Congo (DRC) has consistently ranked among the world’s poorest countries. This is due to decades of violent political unrest, aggressive tyranny. Also, the political instability since getting independence from Belgium in 1960. Of the 100 million people living in the nation, around 65 percent earn a living with less than $2.15 per day. However, the DRC has the potential to rank among the richest nations in Africa and serve as a catalyst for the continent’s economic growth, according to the World Bank. The country now leads Africa in copper output. Also, it is the world’s top producer of cobalt, both of which are needed to make electric cars.
Read more: 10 most populated countries in the world in 2024
Mozambique (GDP per capita: $1.65 thousand)
This former Portuguese colony is strategically positioned, rich in resources, and during the last 10 years it has consistently reported average GDP growth rates of above 7 percent. However, it is still one of the world’s 10 poorest countries, with a number of primary factors including harsh weather and unstable political systems. To make problems worse, the gas-rich northern region of the nation has been plagued by attacks since 2017 carried out by militant groups. Nevertheless, the IMF predicts that the economy is still in high gear, with growth of around 5 percent in 2024 and 2025, and double-digit growth in the latter half of the decade.
Niger (GDP per capita: $1.67 thousand)
Niger faces a threat from desertification since the Sahara desert covers 80 percent of its landlocked area. Its population is increasing rapidly and depends on small-scale agriculture. Disease and death rates are high, as is food insecurity. Thousands have been displaced by the army’s ongoing conflict with militants. In 2021, Niger had its first democratic transfer of power when it elected Mohamed Bazoum. He is a former interior minister and teacher. By 2022, the economy was growing by 12 percent, and things seemed to be improving. Howeve, Bazoum was ousted and imprisoned by members of his presidential guard in the summer of 2023. The military junta has remained in power ever since.
Malawi (GDP per capita: $1.71 thousand)
Malawi is one of the smallest countries in Africa. Its economy is heavily reliant on crops that receive rain, making it susceptible to weather-related shocks. The rate of food insecurity in rural areas is rather high. When Malawi separated from Britain in 1964, it has had stable governments. But in 2020, the victory of the general elections by former president Peter Mutharika was declared invalid by the constitutional court due to vote fraud. After taking over as sworn in, politician and theologian Lazarus Chakwera said he intended to govern in a way that would ensure everyone prospered, but structural reforms have taken a while to come about. Malawi is now experiencing an economic crisis that has resulted in a severe depreciation of the currency, a spike in food costs, and shortages of petroleum.
Liberia (GDP per capita: $1.88 thousand)
For a long time, the oldest republic in Africa has been one of the poorest countries in the world. When George Weah, a former football player, was elected president in 2018, expectations were high. Instead, the years he spent in power were marked by high unemployment, inflation and slow economic growth. In a fresh set of elections in 2023, opposition leader and former vice president Joseph Boakai beat him. Boakai might have had it easier than Weah: growth resumed in 2022 following losses in 2020 and 2021. It is now anticipated to remain over 6 percent in the years to come, reaching around 5.3 percent in 2024.
Madagascar (GDP per capita: $1.98 thousand)
Following its 1960 independence from France, Madagascar has had violent coups, disputed elections, and years of political unrest. President Andry Rajoelina was elected in 2019 with the objectives of eradicating corruption, eliminating poverty, and boosting the country’s economy. For the most part, these proved to be empty promises. At almost 75 percent, Madagascar continues to have one of the worst percentages of poverty in the world. The country’s growth is still slow, and inflation is close to 8 percent. Rajoelina was nevertheless re-elected in December 2023. Madagascar is one of the top 10 most vulnerable countries in the world to climatic risks. These include cyclones, floods and droughts have killed people, uprooted whole populations, and damaged infrastructure, crops, and houses.
Yemen (GDP per capita: $2 thousand)
This is a 35 million-people nation. It is among the poorest on the Arabian Peninsula. It been engulfed in violence since late 2014. This was due to the consequence of a power struggle between the rebel Houthi movement and the government. More than 150,000 people have died in the conflict, which has also devastated the economy and damaged vital infrastructure. Because of this, more than 80 percent of people in this oil-rich region live in poverty today.
What causes poverty
Several factors can impact the level of poverty in a nation. Over time, it has been indicated that there is a positive and substantial correlation between income disparity and poverty. Population explosion has also shown to positively affect poverty severity. Furthermore, there is a positive correlation between the unemployment rate and the severity, gap, and rate of poverty. Trade liberalization, foreign aid, expenditure on defence, corruption, and education are further causes of poverty. Poverty and these factors do not, however, have a consistent association. In order to reduce poverty, it is critical that governments address these issues and put policies in place that support fair economic growth, steady population growth, and job opportunities.
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