It turns out that poverty leads to a decrease of about 13 IQ points. It`s a bit like losing a night`s sleep or being an alcoholic. But would it reduce poverty? Not necessarily. The wealth of a growing economy does not always filter to the poorest sections of the population. But it is also the bad news: 896 million people now live in poverty. Let this character sink for a while. In the United States, no one has to settle for $1.90 a day. But that doesn`t mean there are no poor people. Poverty is not only absolute, but also absolute. There is also a kind of relative poverty.

For example, if all the children in your class are in the local sports club, you are poor if you don`t have the money to join. Adam Smith gave a correct definition: being poor is not able to “walk in public without shame.” To be clear, in Poverty 101, we talk about extreme absolute poverty. The richest countries are currently committing to spend 0.7% of their gross national income (GNI) on international development assistance. This target was set by the Pearson Commission in 1969 and approved the following year by a UN General Assembly resolution. Countries reached this agreement half a century ago in a world where global poverty was at a very high level. At that time, the world was rightly perceived in a binary way: the North was rich and the South poor. Each country has its own poverty line, which determines what is considered poor. But these kinds of numbers don`t mean much to most of us – you, like me, probably don`t have a clue if 32.30 rupees a day is enough to keep living. “In addition to this historic agreement, the UK`s innovative Addis Tax Initiative, with the Netherlands, Germany, Ethiopia, Kenya and other important agreements on additional private sector funding, has helped us end aid dependency.

Until 2000, there were no truly international agreements on the fight against poverty. This year, the Millennium Development Goals have been set to give new impetus to the fight. And the focus has been on the first of these eight goals: to halve extreme poverty in the world in 15 years. “The importance of today`s single agreement should not be underestimated. This agreement would have been unthinkable a few years ago and is an important step towards achieving the level of resources we need if we are to accelerate economic growth in developing countries and eradicate extreme poverty. Since last September, the United Nations has had a new goal: to eradicate extreme poverty by 2030. It is one of the new Sustainable Development Goals of the United Nations. And it`s just people in extreme poverty, whose less than $1.90 a day can live.

There are also billions of people who live on $2 to $3 a day. They are also very poor. The other “new centre” includes those who have escaped poverty but remain vulnerable to poverty. As we show, this group represents more than two-thirds of the population of developing countries. International Development Minister Justine Greening of Addis Ababa said: “This is a historic international agreement that takes us beyond aid. This is the first agreement that allows us to use private sector investment and the domestic resources of developing countries, including tax revenues, to develop turbo royalties.