On February 28, 2025, the World Bank–UNHCR Joint Data Center on Forced Displacement, in collaboration with Denmark’s Ministry of Foreign Affairs, hosted a hybrid event in Copenhagen to launch the World Bank Group Poverty, Prosperity, and Planet Report 2024: Pathways Out of the Polycrisis. The latest report in a biennial series offers a first post-pandemic assessment of global efforts to tackle poverty, inequality, and climate change, while proposing solutions to navigate the complex challenges of the polycrisis—a time when multiple global crises intersect. 

Moderated by Aissatou Dicko, Head of the JDC, the event opened with presentations by Luis Felipe López-Calva, World Bank Global Director for Poverty and Equity, and Maria Eugenia Genoni, World Bank Senior Economist and co-author of the report. Sharing the key findings of the report, their insights set the stage for a robust discussion among stakeholders from the private sector, NGOs, academia, and government. The discussants situated the consequences of forced displacement and mixed movements within the report’s findings. Together, they delved into the key risks and explored innovative pathways to address the complex, overlapping challenges threatening global stability and prosperity.

Explore the key insights from the World Bank’s Poverty, Prosperity, and Planet report and the subsequent expert discussion, on addressing poverty, inequality, and climate change in our increasingly interconnected world.

Global progress on eradicating extreme poverty

After decades of significant achievements in poverty reduction globally, progress on poverty reduction has halted. The global community is unlikely to achieve Sustainable Development Goal (SDG) 1—ending extreme poverty—by 2030. With the current pace of economic growth coupled with rising inequality, it may take decades to significantly reduce extreme poverty. In fact, it could take over a century to lift people above the $6.85 per day threshold, a level indicative of poverty in upper-middle-income countries.

Post-pandemic challenges

Since the pandemic, shared prosperity has stagnated, with the poorest populations experiencing a substantial decline in income. This setback has deepened inequality, as recovery efforts have been uneven, leaving disparities between countries even more pronounced. The vulnerability of the poorest to future economic shocks remains a critical challenge.

Increasing risks from climate change

The global vulnerability to extreme weather events is growing. Today, one in five people are at risk of welfare losses due to climate-related disasters. The difficulty of recovering from these losses is becoming more pronounced, particularly in regions already struggling with heightened vulnerability. Thus, underlining the need to protect people from shocks. 

Geographical concentration of poverty

Extreme poverty is increasingly concentrated in fragile and conflict-affected countries in sub-Saharan Africa. By 2030, it is projected that nine out of ten of the world’s extreme poor will live in these areas.  

Focus on prioritizing resources in constrained settings

In resource-constrained environments, policymakers must prioritize poverty reduction, particularly in low-income countries, by investing in both human and physical capital, including leveraging IDA, the International Development Association, which is the most important instrument the global community must eradicate poverty in poorest countries. For middle-income countries, strategies should focus on reducing vulnerability and fostering inclusive growth. High-income nations, in turn, must emphasize mitigation efforts to prevent further climate-related damage while managing economic transitions effectively. 

Innovative financing to address funding gaps

As traditional aid sources decline, innovative financing methods such as hybrid capital and guarantees are becoming more critical. These strategies play a role in bridging development funding gaps and advancing the achievement of the SDGs, especially in resource-constrained settings. 

Data, evidence, and economic growth

Data plays a crucial role in shaping policies, particularly in fragile and conflict-affected regions. Recent improvements in data coverage that include those forcibly displaced open new avenues for tackling key development challenges. Economic growth remains central to poverty reduction, with a focus on integrated, inclusive and sustainable growth that benefits vulnerable populations, such as refugees and displaced individuals. Data-driven decision-making is essential to ensure that growth reaches those who need it most.

The cost-effectiveness of prevention

Investing in prevention rather than solely focusing on crisis response is more cost-effective. Addressing conflicts and climate shocks before they escalate is significantly less expensive than responding to their aftermath. For example, every $1 invested in peacebuilding can save $16 in future crisis response costs. A global focus on prevention in conflict-prone and disaster-affected areas is essential. 

Integrated resilience approaches

Programs that integrate peacebuilding, disaster risk management, and climate adaptation present effective models for preventing displacement. These approaches help communities in vulnerable regions adapt to both climate and conflict –related challenges, enabling them to remain in their homes and avoid displacement. 

Sustainable long-term solutions

While immediate humanitarian aid is essential, planning and investments from the onset of a crisis in long-term solutions focused on social and economic reintegration are equally crucial. Refugee-hosting countries, especially those in the Global South, face significant economic and institutional challenges. Investing in these regions is critical to support the inclusion of refugees into local economies and societies.

Governance, local engagement, and civil society’s role

Local governance and decentralized institutions are vital for addressing poverty, as they provide more responsive and immediate solutions in fragile regions. Engaging local authorities and civil society ensures that policies are tailored to meet the needs of vulnerable populations. Civil society plays a key role in service delivery and creating inclusive job opportunities, particularly for marginalized groups. By working closely with local communities, it helps tailor education and capacity-building initiatives to address local and national needs, enhancing their effectiveness. By empowering local communities and promoting self-reliance, these efforts can drive the transition from humanitarian aid to long-term development solutions. 

Overlooked link between migration and poverty

The relationship between migration and poverty is complex. Generally, migration increases as people’s income rises, but it tends to decrease after reaching a certain point. However, this dynamic does not apply to forcibly displaced people, who face unique challenges and are less likely to benefit from migration strategies that work for other groups. Unlike economic migrants, those fleeing persecution or conflict often experience increased marginalization. Therefore, it is crucial to address their specific needs by offering more opportunities and enhanced protection, while considering local dynamics in policy strategies

Barriers to human mobility

Historically, geographical and technical barriers to migration were the primary challenges. Today, however, regulatory barriers have become the main obstacles. Incremental changes in migration policies on for example remittances and labour mobility can significantly impact poverty reduction. Reducing barriers to human mobility could unlock trillions of dollars in economic benefits, far outweighing those gained from easing barriers to goods and trade.