Why Is Poverty a Problem?

Almost 1.1 billion individuals have managed to escape extreme poverty since 1990.[1] While the trend is going in the right direction, 1 in 10 people live below the $2.15 line of desperation.[2] So why is poverty a problem still?

Perhaps this journey is like a marathon, where the last segment is often the almost difficult. GFA World seeks to continue fighting in the most difficult areas—regions where poverty is entrenched in a complex and longstanding way.


Here are two important factors in this continuing problem:

Inequality – In many areas where we work in Africa and Asia, there are people groups that are economically disadvantaged. Poverty is so entrenched in these areas that it takes time and intentional strategies to help them. According to the World Bank, “Intensified efforts are required to boost the incomes, alleviate the suffering and build the resilience of those individuals still living in extreme poverty.”[3]

Natural and Manmade Disasters – Global and regional disasters and crises have severely impacted poverty-elimination goals. For example, the war in Ukraine and the pandemic in the early 2020s were major influences in the fight against poverty.[4] The United Nations suggests that the pandemic alone erased four years of progress against poverty. In 2020 alone, the working poor increased by 8 million.[5] Natural disasters also greatly impact poverty rates and keep progress from being made.[6]


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