Global Poverty and Climate Hardship Report 2025

Upsc relevance- mains gs paper-3, poverty

Why in News

The United Nations Development Programme (UNDP) and the Oxford Poverty and Human Development Initiative (OPHI) have jointly released the Global Poverty and Climate Hardship Report 2025, titled “Overlapping Hardships: Poverty and Climate Hazards.”
The report highlights how climate change and poverty are increasingly intertwined, creating a dual challenge for developing nations.

Background;The Global Multidimensional Poverty Index (MPI)

The Global Multidimensional Poverty Index (MPI) offers a comprehensive view of poverty, going beyond income to measure acute deprivations in health, education, and living standards.

Released By:	United Nations Development Programme (UNDP) and the Oxford Poverty & Human Development Initiative (OPHI) annually since 2010.
Methodology:	It is based on 3 Dimensions and 10 Indicators.

   Parameters of Key Indicators

The MPI identifies a household as “poor” if they are deprived in at least one-third of the weighted indicators.

1. Health (2 Indicators)

Indicator	Deprivation is defined as…
Nutrition	Any person under 70 years old in the household is considered undernourished.
Child Mortality	A child under 18 has died in the household within the five years preceding the survey.

2. Education (2 Indicators)

Indicator	Deprivation is defined as…
Years of Schooling	No eligible household member has completed six years of schooling.
School Attendance	Any school-aged child (up to the age of completing Class 8) is not attending school.

3. Living Standards (6 Indicators)

Deprivation in this dimension is defined by a lack of basic services and assets, including:

• Access to Clean Energy (e.g., cooking fuel)
• Sanitation
• Drinking Water
• Electricity
• Housing
• Assets

Global Highlights of the 2025 Report

1. Widespread Deprivation:The report covers 109 countries, finding that 1.1 billion people (18.3%) live in acute multidimensional poverty, showing that global recovery from COVID-19 remains incomplete.
2. Deep Inequality:Around 43.6% (501 million) poor people face severe poverty— deprived in at least half of the MPI indicators.
3. Children Most Affected:Although children make up 33.6% of the global population, they represent 51% of the multidimensionally poor, reflecting intergenerational deprivation.
4. Hidden Poverty in Middle-Income Nations:Nearly 740 million poor live in middle-income countries, showing that national income levels often hide deep inequalities.
5. Regional Hotspots:Sub-Saharan Africa and South Asia together account for 83% of the world’s poor, with Sub-Saharan Africa alone home to almost half of them.
6. Rural Dominance:83.5% of the poor live in rural areas, underscoring the gap in access to infrastructure, healthcare, and education.
7. Poverty–Climate Connection:About 80% of the world’s poor live in areas exposed to climate hazards like floods, droughts, and extreme heat, creating a “poverty-climate trap.”
8. Slowed Progress After Pandemic:Many countries have seen stagnation or reversal in poverty reduction due to inflation, conflicts, and climate shocks.

India’s Performance in the 2025 Report

1. Massive Poverty Reduction:India has reduced multidimensional poverty from 55.1% (2005–06) to 16.4% (2019–21), lifting over 414 million people out of deprivation — one of the fastest reductions globally.
2. Persistent Child Poverty:Despite this progress, child malnutrition, lack of clean cooking fuel, and inadequate housing remain major issues.
3. High Climate Vulnerability:About 99% of India’s poor live in climate-sensitive regions, regularly facing heatwaves, floods, and pollution, linking poverty eradication directly to climate resilience.
4. Impact of Welfare Schemes:India’s success is linked to flagship schemes such as Swachh Bharat Mission, PM-Awas Yojana, Ujjwala Yojana, and Jal Jeevan Mission, which target multiple deprivation areas.

Major Challenges

• Rural–Urban Divide:Over 83% of the poor live in rural areas, where healthcare, education, and connectivity remain weak.
• Climate-Induced Losses:Frequent droughts, floods, and crop failures threaten livelihoods, particularly in agriculture-dependent regions.
• Outdated Data Systems:Lack of real-time household data limits effective policy evaluation and SDG tracking.
• Gender and Child Gaps:Women and children continue to face higher deprivation in nutrition, education, and employment.
• Limited State Resources:Several states face budgetary and fiscal limitations, slowing progress in poverty and climate adaptation programs.

Policy Recommendations

1. Combine Climate and Poverty Strategies:Implement climate-resilient social protection systems to address poverty and environmental risks together.
2. Strengthen Local Data Systems:Create district-level MPI dashboards for real-time tracking and targeted welfare planning.
3. Expand Green Livelihoods:Promote jobs in renewable energy, sustainable agriculture, and waste recycling, linking growth with sustainability.
4. Enhance Global Cooperation:Secure climate finance and concessional support for developing nations facing both poverty and climate stress.
5. Focus on Women and Children:Prioritize nutrition, education, clean fuel, and maternal health for inclusive and intergenerational poverty reduction.

Conclusion

The Global Poverty and Climate Hardship Report 2025 clearly shows that poverty and climate change are now inseparable challenges.
India’s rapid progress offers hope, yet climate vulnerability threatens to undo hard-earned gains.Future strategies must integrate social justice with environmental sustainability, ensuring that global development remains inclusive, climate-resilient, and equitable — truly leaving no one behind.

UPSC Prelims Practice Questions

Q1.With reference to the Global Multidimensional Poverty Index (MPI), consider the following statements:

1. It measures poverty based on income levels adjusted for purchasing power parity (PPP).
2. It is jointly published by the United Nations Development Programme (UNDP) and the Oxford Poverty and Human Development Initiative (OPHI).
3. The MPI captures deprivations in health, education, and living standards.

Which of the statements given above is/are correct?

 A. 1 only
 B. 2 and 3 only
 C. 1 and 3 only
 D. 1, 2 and 3

Answer: B. 2 and 3 only

Explanation:

• The MPI measures non-income dimensions of poverty, not just income.
• It is jointly produced by UNDP and OPHI and captures three core dimensions — health, education, and standard of living.

Q2.According to the Global Poverty and Climate Hardship Report 2025, which of the following statements is/are correct?

1. Nearly four out of five poor people live in areas exposed to at least one climate hazard.
2. More than half of the world’s multidimensionally poor live in middle-income countries.
3. Sub-Saharan Africa and South Asia together account for more than 80% of global poverty.

Select the correct answer using the code given below:

 A. 1 and 2 only
 B. 1 and 3 only
 C. 2 and 3 only
 D. 1, 2 and 3

Answer: D. 1, 2 and 3

Explanation:

• Around 80% of the global poor face climate risks such as floods or droughts.
• About two-thirds of the poor live in middle-income countries.
• Sub-Saharan Africa and South Asia together account for 83% of global poverty, showing regional concentration.

UPSC Mains Practice Questions

Q1.  “Poverty is no longer defined merely by lack of income but by overlapping deprivations in health, education, and living standards.”Discuss in the context of the findings of the Global Poverty and Climate Hardship Report 2025. (Answer in 150 words)