Economic Recovery and Poverty Alleviation
By Walid Dalil
The World Bank’s latest report, Poverty, Prosperity, and the Planet, warns that eradicating poverty for nearly half the world’s population—those living on less than $6.85 per day—could take over a century if efforts continue at the current slow pace. The report provides the first assessment of global progress toward eliminating poverty and promoting shared prosperity in a livable world following the COVID-19 pandemic.
The report states that the global goal of eradicating extreme poverty—defined as living on less than $2.15 per day per person—by 2030 is increasingly out of reach. At the current rate, it could take three decades or more to eliminate extreme poverty, particularly in low-income countries. Today, nearly 700 million people, or 8.5% of the world’s population, live on less than $2.15 per day, and an estimated 7.3% will still be in extreme poverty by 2030. Extreme poverty remains concentrated in fragile countries with persistently low economic growth rates, many of which are in Sub-Saharan Africa.
Currently, 44% of the global population lives on less than $6.85 per day, the poverty threshold for upper-middle-income countries. Since 1990, the number of people below this line has remained largely unchanged due to population growth.
Poverty is more than just a lack of income, resources, or sustainable livelihoods. It manifests in hunger, malnutrition, limited access to education and essential services, social discrimination, exclusion, and lack of opportunities for participation in decision-making. In 2015, over 736 million people lived below the international poverty line. Before the pandemic, about 10% of the world’s population was in extreme poverty, struggling to meet basic needs such as healthcare, education, and access to water and sanitation. For every 100 men aged 25-34 in extreme poverty, there were 122 women, and more than 160 million children were at risk of remaining in extreme poverty by 2030.
As of October 2024, the number of people in need of humanitarian aid in Sudan had reached 28.9 million, including 16.9 million requiring life-saving assistance, according to the government’s Humanitarian Aid Commission. The UN Office for the Coordination of Humanitarian Affairs (OCHA) reported that 30.4 million people would need humanitarian aid in 2025.
Meanwhile, the UN’s International Organization for Migration (IOM) announced that nearly 15 million people had been displaced due to the ongoing conflict in Sudan. According to its latest report, the number of internally displaced people rose by 27% in the past year to 11.56 million, while 3.35 million crossed into neighboring countries. Additionally, 84% of the 2.3 million displaced households require food assistance, while 78% need non-food items, particularly shelter and fuel.
The recovery period after the conflict is expected to be prolonged. Greater emphasis should be placed on developmental and agricultural aspects, addressing factors that hinder agricultural production by coordinating with relevant environmental agencies and prioritizing desertification control.
The war and displacement in Sudan have also disrupted the ecological balance. As people flee and later return to their villages, they rebuild using scarce resources essential to the ecosystem. This includes deforestation and the conversion of traditional migration routes and grazing lands into farmland. Such actions accelerate desertification, worsen drought conditions, and risk reigniting conflict.
Causes of Sudan’s Economic Crises:
The economic crises stem from long-standing financial mismanagement by the Ministry of Finance, particularly borrowing from the banking system and injecting excessive liquidity into the economy. Sudan must adopt economic reforms to prevent further damage to its resource-rich economy.
Government spending should be reduced, and Central Bank policies should be reassessed.
The state budget should be reviewed, production areas in different states should be visited, agricultural issues should be resolved, and Sudan should avoid reliance on foreign loans while utilizing its own resources.
Additional incentives should be provided to Sudanese expatriates to encourage financial transfers through government banks. Decisive measures must also be taken to stop gold and gum arabic smuggling.
Inflation must be controlled, as rising prices—especially for locally produced goods such as wheat, grains, sugar, and meat—account for 56% of inflationary pressure. Inflation rates also show significant disparities across regions.
Exchange rate stabilization is crucial.
Structural reforms must be implemented, including:
Enhancing resource development
Combating waste, corruption, nepotism, monopolies, dumping, and money laundering
Expanding financial inclusion and strengthening its mechanisms
Enhancing the Central Bank’s oversight role to reform the banking system
Resolving conflicts between banking regulations and financial institution laws
Developing and regulating financial markets to attract domestic and foreign savings
Implementing an export promotion program
Significant preparation is required to address external debt issues effectively.
A comprehensive and strategic approach is needed to achieve economic recovery and poverty alleviation in Sudan.
