Empowering lives for a future without poverty

Poverty remains an unshakable reality for millions.

In 2024, 692 million people are still expected to be living in extreme poverty. Poverty and vulnerability touch people in developed countries, middle-income countries and emerging economies, too. Many are still experiencing the impacts of the COVID-19 pandemic, which pushed millions of people back into extreme poverty in 2020, marking the first rise in global poverty for decades.

UNDP's ambitious moonshot is to help 100 million people escape multidimensional poverty by 2025. We recognize that addressing poverty requires tackling economic, social, and environmental challenges together. Achieving this holistic approach demands flexible funding, allowing UNDP to respond swiftly and effectively to these interconnected issues. None of this would be possible without strong partnerships, such as the longstanding collaboration between UNDP and Luxembourg.

This year's International Day for the Eradication of Poverty on 17 October focuses on ending social and institutional harm to people living in poverty, bringing visibility to the hidden dimensions of poverty. People living in poverty face negative attitudes and discriminatory policies and practices that deny their fundamental human rights, such as access to healthcare, education and housing. They are often ignored, excluded and exploited.

Together, UNDP and Luxembourg are working towards a future without poverty through the Funding Windows, where people are seen, included, and have access to the support that they need. Here are a few ways we are doing it.

Using data on lived experience of poverty to drive better policies

Understanding poverty not only in terms of income but also by considering the barriers, vulnerabilities, and daily challenges people face helps us address its full impact on people's lives. Developing policies and practices that reduce poverty requires listening to and valuing the knowledge of those who have experienced it.

The Local Multidimensional Poverty Index (LMPI), developed in Burkina Faso, The Gambia, Liberia, and Sierra Leone, not only tracks poverty but also empowers marginalized communities by involving them directly in gathering the data that shapes policies affecting their lives. For example, in Burkina Faso, where conflict and displacement compound economic hardships, the LMPI has helped policymakers better understand which communities are most in need of targeted support.

The new Multidimensional Poverty Index (MPI) 2024 also shows that multidimensional poverty is more than twice as high in fragile, conflict-affected, and so-called 'low-peacefulness' countries. Conflicts and crises are leaving people behind.

Sri Lanka's first Multidimensional Vulnerability Index report highlights the overlapping nature of vulnerabilities, including those arising from climate-induced disasters. People are affected by crises and shocks differently, making it even more vital to understand who bears the biggest impacts and is left furthest behind. The index was developed based on interviews with people experiencing poverty - their stories shed light on the realities of life in communities like Colombo.

Ensuring decent work and social protection for all

Having a stable job is one of the surest ways out of poverty. While over 60 percent of the world's workers earn their livelihood in the informal economy, they often have a harder time accessing social protection and benefits. Removing structural barriers that those at the margins of the labour market face, particularly women, youth, LGBTQ+ communities, and people with disabilities, requires strengthening regulatory, institutional and policy frameworks.

In Cambodia, the government now has strategic and practical policy options to support informal sector employees and Micro-, Small and Medium-sized Enterprises (MSMEs), including helping transition from informality to formality and providing workers and businesses with social security assets. In 2023, over 79,000 self-employed workers accessed national health insurance. Also, older people were connected to essential services such as health screenings, homecare support and learning, through Older People Associations.

In Costa Rica, policies on social inclusion and employment were implemented to strengthen social protection, and the national beneficiary registration system was enhanced for greater efficiency. UNDP also supported women's economic autonomy on the Pacific Coast, the Caribbean and indigenous territories, formalized women's production groups received seed funding and mentoring on marketing, venture growth, and sustainability, helping to boost incomes by an average of 18 percent in 2023.

Building pathways to sustainable entrepreneurship

MSMEs are the backbone of many economies. Entrepreneurs not only create their own livelihoods but can also create quality jobs for others. Supporting their growth, capacities and sustainability has ripple effects across the communities.

In the Dominican Republic, thanks to strategic alliances with local government representatives, MSMEs and tourism stakeholders were included in municipal development plans that improved the situation for businesses and workers in the tourism sector. Local businesses received support for formalization, and over 1,700 people (60 percent women) improved their livelihoods through business training. They also benefit from a national business intelligence platform and information on market opportunities and regulatory instruments affecting them.

In Belize, the launch of new Digital Connect Centres marked a significant step towards bridging the digital divide between urban and rural areas of the country. These centres provide free access to computers, high-speed internet, and various government online services. Entrepreneurs and employees can now access the Virtual Knowledge Centre, which also houses the National MSME Directory, an Export Catalogue, the Belize Investment Portfolio, and even a job portal. The centres also provide digital literacy training and mentorship programs for youth, women, and the elderly.

Reshaping economies that work for women

Gender-responsive policies and programmes for poverty eradication, whether they address employment, entrepreneurship, or social protection, are crucial in ensuring that economies work for everyone-especially those left most often on the sidelines. UNDP is working to transform economies through institutional capacity and policy reforms in favour of gender equality.

The EQUANOMICS programme contributes to UNDP's ambition to leverage US$100 billion for gender equality. This includes working with ministries of finance, tax administrations and other institutions in Mongolia, the Philippines, Rwanda, Ghana, Nigeria, Kyrgyzstan and Costa Rica to promote more equitable and gender-responsive fiscal policies and public financial management practices. Relevant fiscal institutions are also strengthened through the implementation of the UNDP's Gender Equality Seal for Public Institutions, enabling them to meaningfully advance gender equality in their work.

Accelerating action together

Strong partnerships, like the one between UNDP and Luxembourg, accelerate action towards achieving the Sustainable Development Goals (SDGs), including SDG 1 'No poverty'.

A future without poverty also means a world free from exclusion and exploitation. Better data, inclusive policies, and accessible services build a world where everyone, including those living in poverty, are heard and supported.

Luxembourg's continued commitment to the Funding Windows, UNDP's main thematic funding mechanism, fuels our shared mission to build a future without poverty.

The Funding Windows help UNDP target resources where they are most needed and catalyse innovative approaches to today's most pressing development challenges, complementing the 'core' resources. The results mentioned here were achieved through the Poverty and Inequality as well as the Gender Equality and Women's Empowerment Windows. Read more about the Funding Windows and 2023 results from our Annual Report.