The 2030 Agenda and the Sustainable Development Goals (ODS) of the United Nations (UN)represent a collective effort to guide countries towards a sustainable future free of inequalities. This platform, with its 17 goals and 169 goals, seeks to transform the world and respond to the needs of people and governments.

The 2030 Agenda is recognized as the defining element of our time, as it addresses fundamental issues that affect humanity as a whole. The current Secretary-General of the UN, Antonio Guterres, points out that this agenda is an integrated platform that involves governments, organizations and individuals, calling on everyone to act towards a better future.

The Sustainable Development Goals cover a wide range of areas that are interconnected and affect human and planet well-being. These goals address issues such as eradicating poverty, protecting the environment, access to education, gender equality, promoting health and combating climate change, among other relevant topics.

The motto of the 2030 Agenda, “Transforming Our World”, reflects the essential purpose of these goals. They represent a universal call to end extreme poverty, protect the planet and ensure that all people can enjoy peace and prosperity. The SDGs are a shared vision of an ideal world towards which humanity should direct its efforts.

Eradicating poverty in all its forms remains one of the greatest challenges facing humanity. While it has made significant progress in reducing extreme poverty over the past few decades, there are still hundreds of millions of people who live in extreme poverty without adequate access to food, clean water and basic sanitation.

In 2015, approximately 736 million people lived on less than US$ 1.90 per day, the established threshold for the extreme poverty line. While rapid economic growth in countries such as China and India has helped lift many people out of poverty, progress has been uneven. Women and girls continue to be most affected by poverty due to structural barriers such as lack of access to education and paid work opportunities, as well as gender discrimination.

Furthermore, regions such as South Asia and sub-Saharan Africa face persistent challenges, harboring the majority of people living in extreme poverty. Around 80% of the population living in extreme poverty is concentrated in these areas, where lack of access to basic services, conflicts and food insecurity aggravate the situation. Furthermore, climate change poses a new threat, leading to natural disasters and exacerbating poverty in these regions.

The Sustainable Development Goals (SDGs) are a bold global commitment to address these challenges and end poverty in all its dimensions by 2030. The SDGs emphasize the need to target basic resources and services to the most vulnerable, ensuring that no one is abandoned. This includes access to education, health, clean water, basic sanitation and decent employment opportunities.

The health crisis in 2019 had a devastating impact on global poverty, reversing decades of progress and exacerbating existing inequalities. In 2020, the global extreme poverty rate increased to around 9.3%, compared to 8.4% in 2019. This means that over 70 million people have been pushed into extreme poverty, bringing the global total to over 700 millions of people living in extremely precarious conditions.

The year 2020 marked a historic shift, in which the global income convergence trend was replaced by a divergence. The world's poorest people have been the most affected by the Covid-19 pandemic that has gripped the entire planet, suffering the highest costs. Income in poorer countries has declined much more than in rich countries, further deepening existing disparities. As a result, income losses in the poorest economies were twice as large as in the richest, and global inequality rose for the first time in decades.

This uneven crisis has worsened the living conditions of vulnerable populations around the world. Informal workers, who were already precariously employed, lost their sources of income due to restrictions and lockdowns. Women, who already faced gender inequalities, were disproportionately affected, as they often hold informal jobs and face additional barriers in accessing services and opportunities.

Furthermore, the impacts of the pandemic are not just limited to extreme poverty. The health crisis has negatively affected education, health and other essential aspects of human development. Existing inequalities in access to quality health services and technology were also accentuated, leaving the poorest even more marginalized.

The economic recovery from the pandemic has been uneven, with wealthier economies recovering at a much faster pace than low- and middle-income ones. Rising food and energy prices, driven by climate shocks and conflicts between major food producers, have further hampered recovery. By the end of 2022, it was estimated that around 685 million people were living in extreme poverty.

The climate crisis also plays a significant role in the persistence of poverty. Climate shocks such as droughts and floods have a disproportionate impact on the poorest, affecting their livelihood sources and food availability.

In many low- and middle-income economies, efforts to benefit the poor through a combination of taxes, transfers and subsidies tend to be less effective than in high-income economies. While spending on basic services and investment, along with transfers and subsidies, can help offset the impact on household income, in two-thirds of these economies, poor household incomes decline over time, even after paying taxes and receipt of transfers and subsidies.

This divergence of results can be attributed, in part, to the greater presence of the informal sector in these low- and middle-income economies. The informal sector, which comprises informal and unregulated economic activities, often presents challenges in terms of direct tax collection. In these situations, taxes are predominantly collected indirectly through sales and excise taxes, which mainly affect final consumers, including poor households.

In addition, income transfers in these economies are often insufficient to compensate for the drop in income of poor families. This may be due to the lack of financial resources available for social assistance programs, as well as the lack of adequate infrastructure to effectively identify and reach the most needy beneficiaries.

This situation creates a cycle of inequality, in which the poorest continue to face increasing difficulties in improving their economic situation. Lack of resources and inadequate policies result in a limited ability to adequately support poor households, thus perpetuating poverty and inequality.

The outlook for global employment in 2023 points to a significant slowdown, with growth estimated at 1.0%, compared to the 2.3% growth rate recorded in 2022. This projection represents a notable downward revision to estimates which pointed to a more optimistic scenario.

The forecast for 2023 indicates that no significant improvements are expected, as job growth is projected to reach just 1.1% in 2024. This projection reflects a challenging reality, especially for high-income countries where growth is expected employment close to zero. This stagnation of employment in high-income economies can be attributed to several factors, such as structural adjustments, technological changes and economic uncertainties.

On the other hand, low-income and lower-middle-income countries have a more positive outlook, with job growth projections that surpass their pre-pandemic trend. This could be a result of targeted policies and investments to boost job creation in these countries, as well as a more robust recovery in key sectors such as agriculture, manufacturing and services.

However, it is important to point out that the projections are subject to uncertainties and risks. Furthermore, disparities between and within countries can persist, which highlights the need for comprehensive and adaptive approaches to promoting sustainable and inclusive employment.

 

Challenges of Investing in Health and Education in Developing Economies

 

Developing economies have faced significant obstacles in pursuing improvements in health and education, due to lack of financial resources and limited spending capacity. Compared to upper-middle-income economies, lower-middle-income economies can only offset a quarter of the impact of poverty through investments in these key areas.

However, investing in quality health and education is essential to boost the economic and social development of these economies. The pandemic has brought to the fore the urgent need to strengthen these sectors, as developing economies have suffered severe learning losses and faced significant health challenges.

According to Indermit Gill, Chief Economist and World Bank Senior Vice President for Development Economics, it is crucial that developing economies invest more robustly in health and education in the next decade. However, this will not be an easy task, given the current situation of record debt and depleted fiscal resources.

Governments in developing economies will need to take strategic steps to focus their limited resources on building human capital and maximizing growth. This may involve allocating investments in health infrastructure, strengthening health systems and ensuring access to quality services for all citizens. In addition, it is essential to invest in inclusive and accessible education, equipping young people with the necessary skills to face the challenges of the labor market and promote sustainable development.

Investment in health and education not only benefits individuals by providing them with a better quality of life and employment opportunities, but also drives long-term economic growth. Building strong human capital is a prerequisite for achieving sustainable development and overcoming the challenges of poverty.

Sub-Saharan Africa faces a serious challenge in combating poverty, with the region now home to an estimated 389 million people living in extreme poverty – representing 60% of all people in such condition worldwide. Furthermore, the poverty rate in the region is approximately 35%, the highest in the world. These alarming numbers highlight the urgent need for effective action to address this growing problem.

One of the main barriers to overcoming poverty in sub-Saharan Africa is the economic challenge faced by countries in the region. To achieve the poverty reduction target by 2030, each country would need to achieve annual per capita GDP growth of 9% over this decade. However, this is an extremely ambitious target for countries whose average GDP per capita growth in the decade before the pandemic was just 1.2%.

Low economic growth is influenced by a series of complex factors, including the lack of adequate infrastructure, the dependence of vulnerable economic sectors on external shocks, such as political instability and conflicts, in addition to structural and institutional challenges. These obstacles hamper the ability of sub-Saharan African countries to drive sustainable and inclusive economic growth that is capable of generating decent jobs, increasing household incomes and significantly reducing poverty.

Furthermore, the pandemic has further exacerbated the challenges facing the region, with negative impacts on key sectors such as tourism, agriculture and international trade. Restrictions put in place to contain the spread of the virus have severely impacted economic activity, resulting in job losses, disruption to supply chains and a significant reduction in government revenue.

The health crisis had a significant impact on families with many children, resulting in loss of income, food insecurity and difficulties in accessing education. According to collected data, 76% of families with many children reported loss of income, compared to 55% of families without children. This difference underscores the additional challenge faced by these families in maintaining their livelihoods during the crisis.

In addition to the loss of income, families with many children also faced greater food insecurity. One in four households with many children reported that an adult went the entire day without eating due to lack of financial resources, compared with 14% of households without children. These figures highlight the vulnerability of these families and the need for measures to ensure adequate access to food and basic resources.

Social assistance has become an essential source of support for families with many children. About 26% of these households reported receiving government assistance, while only 12% of childless households received similar assistance.

Access to technology for educational purposes was uneven across families. Only 4% of households with many children reported having access to mobile learning apps, compared to 11% of households with few children. This disparity can result in learning gaps and educational difficulties for children from families with many children.

Overall, participation in educational activities after school closures due to the pandemic was low for all households. Fewer than 60% of households with children who attended school prior to closure reported that their children participated in any educational activities during the closure period. This lack of educational engagement poses a significant challenge to children's development and futures.

 

Exposed Inequalities: The Socioeconomic Impact on Different Family Structures

 

Among the most significant adverse effects during the health crisis are loss of income and reduced job stability. In this context, it is essential to understand how these impacts have evolved over time and whether there are notable differences between families with many children and families without children.

Analyzing the evolution of income loss, a downward trend can be observed over time, indicating a gradual recovery from the economic crisis caused by the pandemic. However, it is important to highlight that no statistically noticeable differences were found in terms of recovery speed or pattern between the groups under analysis. This suggests that, regardless of family size, all were similarly affected by economic hardship during this challenging time.

Regarding employment, the data reveal that the estimated percentage of employees is higher among households with many children and lower among families without children in the first three quarters of the analyzed period. Although differences between families with few children and families with many children did not reach statistical significance, it is important to note that disparities between families with and without children are statistically observed in all four quarters. This indicates that, in general, families with many children faced greater challenges in terms of maintaining employment during the pandemic.

The analysis also shows that the employment rate increased from the first to the second quarter, reflecting some initial recovery. However, after this period, a downward trend in the employment rate was observed. This decrease encompassed both families with few children and families with many children, highlighting the broader challenges faced by the labor market as a whole.

The evolution of the impact on the loss of income and employment reveals a trajectory of gradual recovery from the crisis, although there are no statistically noticeable differences between families with many children and families without children in terms of speed or pattern of recovery. However, it is important to highlight that families with many children faced higher unemployment rates compared to those without children. These findings highlight the continued need for comprehensive policies and support measures to mitigate the adverse effects of the pandemic and ensure a more inclusive and sustainable economic recovery.

Among these families, those with many children were particularly affected by food insecurity.

At the start of the pandemic crisis, households with many children faced an especially difficult situation in terms of food insecurity. Both the severe food insecurity indicator, represented by “an adult member does not eat all day”, and the more moderate food insecurity indicator, represented by “an adult member skipped a meal”, showed a decreasing trend over the quarters subsequent.

Analyzing the evolution of these indicators over time, a downward trend can be observed up to the third quarter. This indicates that, in general, there was an improvement in the food security of the affected families. However, it is important to emphasize that no discernible differences were found between households with many children and those without children in relation to the evolution of this problem.

Although families with many children were hardest hit by food insecurity at the beginning of the pandemic, the downward trend over the quarters was similar in all groups analyzed. This suggests that, despite the initial difficulties faced by families with many children, measures and efforts to combat food insecurity were effective in different family contexts.

The evolution of food insecurity over time shows a downward trend, indicating improvements in the food security of families affected by the pandemic. Although families with many children faced more significant challenges at the beginning, the measures and efforts implemented to combat food insecurity were beneficial to all family groups. However, it is critical to maintain continued focus and investment in policies and programs that ensure food security for all households, regardless of size or composition.

Regarding the evolution of receiving government assistance and its impact on families with many children, the additional control variables used to test the robustness of the results indicate that families with many children are more likely to report receiving government assistance. Overall, there was a slight increase in the percentage of households that received this type of assistance from the second to the third quarter. This increase reflects the delay in expanding social protection programs after the initial impact of the pandemic. However, no significant differences were found between families with many, few or no children in this regard.

There was a trend similar to that of receiving government assistance from the second to the fourth quarter, indicating a possible stabilization in this regard. However, there was a downward trend from the first to the second quarter. These fluctuations can be influenced by a number of factors, including changes in social protection policies and the impact of the stringency of lockdowns, as measured by the Oxford Stringency Index.

The evolution of receiving social protection during the pandemic showed a slight increase in the percentage of households receiving government assistance, reflecting the effort to expand social protection programs. Although families with many children are more likely to receive this assistance, no significant differences were found in relation to families with few or no children. Trends in receiving assistance were similar when analyzing any type of support, indicating possible stabilization over time. When controlling for additional variables, the results were robust, taking into account factors such as the severity of blocks, location and level of education. These findings provide important data on the impact of government assistance on families with many children during the pandemic.

Challenging labor market conditions have undermined social justice around the world. Decent work plays a key role in promoting social justice, as families predominantly depend on income from work to sustain themselves. However, many people struggle to find decent work opportunities that reinforce a fair income, job security and adequate social protection. Of significant concern is the global job gap, which consumed 473 million people in 2022, corresponding to a job gap rate of 12.3%. This measure reflects the unmet need for employment worldwide and includes the 205 million unemployed, with an unemployment rate of 5.8%, and the 268 million people who want a job but are out of the labor force because meet the criteria to be considered unemployed. This employment gap is especially acute for women and in developing countries. Although men and women currently face similar unemployment rates, the job gap for women is 15.0%, compared to 10.5% for men. Personal and family responsibilities, including unpaid care work, lack of decent employment opportunities and restricted training possibilities can prevent many people from looking for work or limit their availability to work on a short-term basis. Low-income and lower-middle-income countries show higher unemployment rates, ranging from 13% to 20%, while upper-middle-income countries report a gap of around 11% and high-income countries show a difference of only 8%. These disparities demonstrated as existing inequalities in access to decent work and happy opportunities. Furthermore, around 2 billion workers worldwide were employed in the informal sector in 2022. Informal work often lacks many of the characteristics of formal employment, such as employment and access to social protection systems. Only 47% of the world's population is effectively covered by at least one form of social protection, which means that more than 4 billion people are still covered by this type of protection. Another worrying aspect is the fact that around 214 million workers were living in extreme poverty in 2022, earning less than US$ 1.90 per day per person in terms of purchasing power parity. This corresponds to approximately 6.4% of the employed population.

In addition to concerns about the employment gap, the quality of work has been a central issue. The lack of access to social protection networks and the need for subsistence have led many people to accept any type of work, often with low wages, inconvenient conditions and insufficient hours. With the projected economic downturn, it is expected that workers will be forced to accept lower quality jobs than they could enjoy under better economic conditions. Furthermore, rising prices at a faster pace than nominal wages have led to a sharp drop in disposable income for workers, even those who manage to keep their current jobs.

The lack of adequate social protection has placed workers in precarious situations, where they are forced to accept jobs with unfavorable conditions. Lack of job security, low wages and irregular working hours are some of the challenges faced by those without access to social safety nets. This reality became even more evident during the pandemic, when many people lost their jobs or had their income reduced.

With the projected economic slowdown, the job quality situation could get even worse. The lack of quality work opportunities can lead workers to accept inappropriate jobs, with insufficient pay and precarious conditions. Competition for available jobs can lead to acceptance of positions with low pay and lack of benefits, exacerbating people's economic vulnerability.

In addition to deteriorating job quality, workers also face the challenge of rapidly rising prices. With prices rising faster than nominal wages, disposable income for workers is declining, affecting their purchasing power and putting additional pressure on their financial situation.

 

The Impacts of Rising Global Food and Energy Prices on Poverty

 

Rising global food and energy prices have been a growing concern, especially in relation to their effects on poverty. In recent years, food prices have risen at rates higher than inflation in many countries, directly affecting the ability of the poorest people to access basic foodstuffs. In addition, energy prices have also shown significant increases, which impacts the cost of living for low-income families.

Over the past two years, food prices have risen about 5 percentage points more than inflation, while energy prices have risen about 11 percentage points faster than inflation. These increases are similar to those observed during the food price crisis of 2008. In addition, the prices of agricultural inputs, such as fertilizers, also showed significant increases. In 2022, wheat and corn prices skyrocketed, while rice prices remained relatively stable.

The immediate impacts of rising food prices mainly affect the poorest, who have a greater proportion of their income earmarked for the purchase of basic foodstuffs. However, it is important to highlight that simulations that consider only the immediate impacts of higher prices may not fully capture the long-term effects. This occurs because consumers look for substitutes for more expensive foods, producers benefit from higher prices, wage adjustments occur and there are investments in agricultural production.

An analysis of 300 episodes of poverty based on World Bank data found that increases in international food prices are correlated with reductions in poverty over one to five years. These reductions are attributed to the agricultural supply response and, to a lesser extent, the wage response to rising food prices. This indicates that, in the long term, the effects of rising prices can be mitigated through adjustments in production and income.

In hindsight, in Uganda, a study by Simler predicted a 2.6 percentage point increase in national poverty due to rising global food prices in 2008. However, official poverty estimates pointed to an annual reduction of 1. 6 percentage points in poverty between 2006 and 2013. It is important to highlight that the good rains and favorable prices were determining factors for the growth of agricultural income of the poorest 40% between 2006 and 2012.

In Cambodia, a study conducted by Ivanic and Martin simulated the short-term impacts of rising global food prices between 2005 and 2007. The results indicated a point increase of 1.5% in national poverty rates. However, the pace of poverty reduction increased from 2007 to 2009 due to rising rice prices, which especially benefited poverty reduction. Increased farmers' incomes, driven by higher prices for agricultural products, better conditions in rural areas, and increased income from non-agricultural self-employment, was a significant factor in reducing poverty in rural regions.

In Bangladesh, rising food prices in 2008 resulted in real income growth for farm workers, reversing the short-term impact of higher prices on rural households. Studies by Jacoby also highlighted that farm wages rose most rapidly in rural India, especially in crops that experienced the greatest relative price increases. These increases in agricultural wages had significant effects on non-farm wages, thus contributing to poverty reduction in Bangladesh.

A retrospective of periods of high food prices and their impact on poverty reveals that results may vary depending on the context and the measures adopted. While rising food prices may initially negatively affect the poorest, agricultural supply response, wage adjustments and non-farm income growth may help to mitigate the adverse effects.

 

The Impact of Extreme Poverty on Children: A Call to Action

 

Extreme poverty affects millions of children around the world, representing an urgent challenge for governments and international organizations. According to UNICEF, one in six children lives in conditions of extreme poverty, which compromises their survival and development.

According to UNICEF, half of the extremely poor are children, even though they make up only a third of the global population. These numbers are alarming and reveal a worrying disparity in the distribution of resources and opportunities. Furthermore, childhood poverty has long-lasting consequences, as children are twice as likely to become extremely poor as adults.

The UNICEF report highlights that the youngest children, under the age of five, are the most affected by extreme poverty. Around 20% of them live in extremely poor households, which puts their development and well-being at risk. Lack of access to adequate nutrition, health care, quality education and other essential services jeopardizes their growth and creates significant obstacles for their future.

Evidence shows that expanding social protection programs, especially through cash transfers, has proven to be an effective platform for long-term investments in human capital. Many countries have responded to the crisis of extreme poverty by expanding these programs, providing families with financial resources that allow them to meet the basic needs of children.

However, it is important to highlight that many of the responses to child poverty have been temporary in nature and are not adequate to deal with the challenges of a long-term recovery. It is essential that governments take a more comprehensive approach, enhancing and adjusting their social protection systems to prepare for future economic shocks. This involves innovations to ensure the financial sustainability of programs, strengthen legal and institutional models, and protect human capital through ongoing investments.

In addition to expanding cash transfer programmes, there is a need to invest in comprehensive family policies to tackle child poverty. This includes implementing paid paternity leave policies that promote gender equity and strengthen parental involvement in the care and development of children. In addition, it is essential to expand access to quality childcare for all families, ensuring that children have a safe and stimulating environment that promotes their integral development.

Extreme poverty disproportionately affects children, compromising their well-being, future opportunities and the very sustainability of societies.

The International Year for the Elimination of Child Labour, launched in 2021 by the International Labor Organization (ILO) and Alliance 8.7, represents a global effort to combat child labor and guarantee the rights of children around the world. The initiative's main objective is to promote legislative and practical actions that lead to the eradication of child labor, in line with Target 8.7 of the UN Sustainable Development Goals (SDGs).

SDG Target 8.7 calls on Member States to take immediate and effective measures to eliminate forced labour, modern slavery and human trafficking, and to prohibit and eradicate the worst forms of child labour. The goal is to achieve, by 2025, the end of child labor in all its forms. This goal reflects the global commitment to protect the fundamental rights of children and offer them the opportunity for a dignified childhood.

Over the past 20 years, there has been significant progress in reducing child labour, with nearly 100 million children being lifted out of child labour. The number of children involved in child labor has decreased from 246 million in 2000 to 152 million in 2016. However, it is important to note that progress is not uniform across regions. Africa and Asia and the Pacific still have high numbers of child labour, with 72 million and 62 million children affected respectively.

Modern slavery remains a sad reality in our world today, depriving millions of people of their freedom and dignity. According to alarming data from the International Labor Organization (ILO), it is estimated that 40 million people are trapped in situations of modern slavery around the world. Of these victims, 25 million are involved in forced labor.

Forced labor is one of the main manifestations of modern slavery. Millions of people are subjected to conditions of extreme exploitation, forced to work against their will, often in industries such as agriculture, construction, domestic work, mining and prostitution. These victims are deprived of their basic rights, subject to physical, emotional and financial abuse.

A worrying fact is that 25% of victims of forced labor are exploited outside their countries of origin. Human trafficking is a shocking reality that crosses borders, involving criminal networks that exploit people's vulnerability and subject them to inhumane conditions. These victims are often subjected to degrading work, without adequate remuneration and without means of escape from this oppressive reality. Modern slavery is a serious violation of human rights and requires an urgent global response.

 

Challenges in Pursuing the Global Poverty Reduction Target by 2030

 

 The United Nations Sustainable Development Goals set the ambitious target of ending extreme poverty by 2030, while the world Bank seeks to reduce the global poverty rate to a maximum of 3% by the end of this decade. However, the latest analyzes indicate a slowdown in poverty reduction between 2014 and 2019, with the concentration of poverty in countries with slower growth rates. These setbacks and the slow economic recovery projected for the next few years raise concerns about progress towards the established targets.

Between 2014 and 2019, a slowdown in poverty reduction was observed across the world, with poverty becoming concentrated in a smaller number of countries with slower economic growth rates. This scenario contrasts with the progress achieved earlier, when several countries significantly boosted poverty reduction. Slowing progress is an obstacle to reaching the 2030 global poverty target.

In addition to the slowdown in progress, other setbacks and uncertainties impact the pursuit of the poverty reduction target. The pandemic has had a significant impact on global economies, increasing poverty levels in many countries. The economic recovery projected for the following years is also slow, which raises concerns about the ability to reach the established targets.

Meeting the poverty reduction target by 2030 will require ever-higher economic growth rates and significant reductions in inequality.

World Bank growth projections are only available through 2024, so to estimate growth rates through 2030, it is assumed that each country will grow at its historical average annual per capita GDP growth. These projections serve as a reference, but it is essential to emphasize that achieving the goals will require continuous efforts and adaptable strategies to face future challenges and uncertainties.

It is estimated that a global poverty rate similar to 7% could have been achieved by 2026. However, due to the challenges faced, including the effects of the pandemic, there has been a delay of approximately four years in progress towards the 3% global poverty target . These delays underscore the ever-evolving nature of today's crises and the need for continued efforts to address the challenges and uncertainties.

Previously, it was believed that there would be a three-year delay in the global poverty reduction target. However, the current situation has indicated a further delay due to the effects of the pandemic, conflicts and inflation. Growth projections indicate that even before the onset of the crisis, projected economic growth was not fast enough to reach the goal of eradicating poverty by 2030.

The projections also reveal substantial differences across regions. Extreme poverty is predicted to be increasingly concentrated in the sub-Saharan Africa region. While other regions have the potential to reach the target of less than 3% of extreme poverty by 2030, poverty is projected to remain a significant challenge in sub-Saharan Africa. This region faces a considerable challenge, as projections show that annual economic growth of 9% would be required from 2023 onwards to reach the target of 3% by 2030. This represents a growth rate about eight times higher than the rates historic between 2010 and 2019. These projections highlight the urgent need to correct the current course.

According to the World Bank, the actions below aim to correct course and address issues such as the misdirection of grant spending, the need to increase public investment in long-term development, and revenue mobilization without hurting the poor.

One of the first priority actions is to refocus public spending away from subsidies and targeting support directly to poor and vulnerable groups. Subsidies are often misdirected, benefiting the wealthiest 20% of the population, who consume the most energy. On the other hand, targeted cash transfer programs are more likely to reach poor and vulnerable groups. More than 60% of spending on cash transfers goes to the poorest 40%.

A second priority action is to increase public investment in areas that support long-term development. Strategic spending, such as investing in youth human capital, infrastructure, and research and development, can have a beneficial impact on economic growth, reducing inequality, and eradicating poverty decades later. While it is challenging to protect these investments in times of crisis, it is critical to do so. The pandemic has demonstrated how gains made over decades can suddenly disappear. Designing forward-thinking fiscal policies can help countries be better prepared and protected against future crises.

The third priority action is revenue mobilization without harming the poorest. This can be achieved by implementing property and carbon taxes, as well as making personal and corporate income taxes more progressive. If there is a need to increase indirect taxes, it is important to use cash transfers as a mechanism to offset the effects on vulnerable households.

While tax policy reform is an essential element in correcting course and promoting global poverty reduction, it is important to be realistic about what you can expect to achieve. While fiscal reforms are promising, simulations indicate that massive efforts will be needed to recoup pandemic-related economic losses over the next four to five years.

The simulations show that restoring the economy and progress towards the Sustainable Development Goals will require significant efforts. Effective tax reform requires the implementation of policies that can mitigate the economic losses resulting from the pandemic.

Correcting the course towards reducing global poverty will require broader and more comprehensive policy action. This implies adopting a broader set of policies that encourage the kind of economic growth that can benefit all people, especially those at lower income levels. In addition to fiscal reform, other measures, such as investments in human capital, promotion of equal opportunities and access to basic services, are crucial to ensure sustainable and inclusive development.

The Multidimensional Poverty Index, published in 2022 by United Nations Development Program (UNDP) and the Oxford Poverty and Human Development Initiative, reveals an alarming scenario in relation to global poverty. The research points to new profiles of social vulnerability and emphasizes the need to face the multiple deprivations that often manifest themselves simultaneously. In addition, Latin America also faces high poverty rates, as highlighted in the report by the Economic Commission for Latin America and the Caribbean (ECLAC) in 2022.

According to the Multidimensional Poverty Index, more than half of the world's poor people, around 593 million, lack access to electricity and clean fuel for cooking. Furthermore, nearly 40% of the poor, equivalent to 437 million people, lack access to clean water and basic sanitation. Another alarming fact is that more than 30% of people living in poverty, or approximately 374 million, suffer from the simultaneous deprivation of adequate nutrition, fuel for cooking, basic sanitation and housing.

In the Latin American context, poverty levels are also worrying. According to ECLAC, approximately 201 million people, equivalent to 32.1% of the region's total population, live in poverty. Of these, 82 million (13.1%) are in extreme poverty. These numbers show the need for effective policies and actions to face this reality and promote social inclusion.

Data presented by the Multidimensional Poverty Index and ECLAC highlight the urgency of combating poverty both globally and in Latin America. Multidimensional poverty, which encompasses several simultaneous deprivations, reveals the complexity of the challenge faced.

The Multidimensional Poverty Index, developed by the UN and the University of Oxford, highlights successful cases in combating social vulnerability that can serve as inspiration for other countries. One such notable example is Nepal, which has demonstrated significant improvements in access to clean water, child nutrition and reduced child mortality thanks to integrated poverty eradication strategies.

In Nepal, the approach adopted to combat poverty went beyond the income criterion, understanding social vulnerability as a multidimensional issue. The country faced challenges in areas such as health, education and employment, which significantly affected the quality of life of its population. Through integrated strategies, Nepal has focused its efforts on improving access to clean water, child nutrition and reducing child mortality.

By prioritizing improving access to clean water, Nepal has been able to reduce the incidence of waterborne diseases and improve the health of the population. In addition, the promotion of child nutrition has contributed to reducing malnutrition, strengthening children's physical and cognitive development. The decrease in infant mortality is another positive indicator that demonstrates the effectiveness of implemented policies.

The example of Nepal highlights the importance of understanding poverty beyond the income criterion. Social vulnerability encompasses a variety of interconnected factors that affect people's quality of life. Lack of access to basic services such as health and education, as well as social exclusion and lack of paid work opportunities, perpetuate the cycle of poverty. It is therefore essential to take a multidimensional approach to addressing these challenges.

The fight against child labor and forced labor has been a global priority, and the International Labor Organization (ILO) played a key role in that battle. By providing assistance to some 115 countries, the ILO has collaborated in the elaboration and implementation of hundreds of action plans, policies and laws aimed at eradicating these forms of exploitation.

Through the joint efforts of governments, employers' organizations, workers' organizations and businesses, there has been a significant reduction in child labor over the last 16 years. Between 2000 and the present, there has been a net reduction of 94 million children involved in child labour. This demonstrates the positive results achieved through the engagement of multiple actors and the implementation of concrete actions.

In addition, the ILO has focused on prevention, prosecution and awareness-raising related to forced labor and human trafficking. Through field projects, the organization has developed effective approaches to prevent these practices, promote justice and support victims. The technical support provided ranged from the implementation of new laws to the promotion of fair recruitment practices, contributing to changing policies and legislation in several countries.

The ILO has also invested in the production of relevant knowledge and data. Manuals, training tools and e-learning modules were developed to train companies, legislators, judges and labor inspectors in combating child labor and forced labor. Through periodic global estimates, the ILO has created a methodology to measure these phenomena at the national level, providing a solid basis for formulating policies and monitoring the progress achieved.

While much has been accomplished, eradicating poverty, child labor and forced labor remains a persistent challenge. It is necessary to further strengthen actions and cooperation between countries, organizations and society in general.