June 5, 2025

What Is the Definition of Global Poverty?

Poverty impacts millions of children and families around the world. Learn the definition of global poverty and its effects below.

  • Global poverty, in economic terms, means the number of people around the world living on less than $3.00 per day. 

  • The true definition of poverty goes beyond how much money a family earns. Instead, it means to be overwhelmed by need in all areas of life. 

  • There are many causes of global poverty, including natural disasters, lack of nutrition and conflict. 

What Is Global Poverty?

In economic terms, global poverty is defined as the number of people around the world who live on less than $3.00 per day. This amount is the newest international poverty line defined by the World Bank. 

However, the fullest definition of global poverty goes beyond how much money families earn. Poverty means to be overwhelmed by need in all areas of life: physically, emotionally, mentally and spiritually. 

Physically, a family in Kenya may be sick without the ability to access medical care. Mentally, a family in the Dominican Republic might be overwhelmed by thoughts like “where do we find food?”  

Emotionally, a family in Thailand may be overcome by fear. And spiritually, a family in Colombia may feel as if there’s no hope of ever escaping the grips of poverty. 

What Causes Global Poverty? 

There are many causes of global poverty, such as: 

  • Natural disasters: Disasters like earthquakes can destroy communities, leaving families without shelter, clothing, food and other critical essentials. This loss can force many families into poverty.  

  • Lack of nutrition and clean water: Hunger and a lack of clean water can perpetuate poverty. For example, without nutrition or clean water, children may experience diminished immunity, keeping them sick and unable to go to school. Without school, they can’t learn the skills needed to later provide for themselves or their families as adults. As a result, they must raise their own children hungry, keeping the cycle of poverty moving. 

  • War and conflict: War, gang violence and other conflicts may force families to leave their homes. They must often leave what little they do have behind, pushing them further into poverty. 

Other causes include poor infrastructure, a lack of access to medical care, economic equality and even political instability. 

A dirt path with trees on one side and houses connected by bridges over a water channel.
Photo by: Lina Marcela Alarcón Molina

How Many People Live in Global Poverty?

According to the World Bank, almost 700 million people (or 8.5 percent of the global population) live in extreme poverty or on less than $3.00 per day. Around 3.5 billion people (or 44 percent of the global population) are considered impoverished, living on less than $6.85 per day. 

Where Is Poverty More Prevalent? 

Per the World Bank, poverty is currently most prevalent in countries within Sub-Saharan Africa. This includes countries located south of the Sahara desert, such as Ethiopia, Kenya and Ghana

How Poverty Impacts Children Around the World

While poverty impacts the lives of all those it touches, children are often the most vulnerable. Poverty affects a child’s: 

  • Development: Poverty starts to impact the lives of children before they’re even born. For example, maternal malnutrition often hinders a baby’s ability to survive. A lack of medical care during birth also puts moms and their babies at risk. If a baby does survive birth, the fight for life continues, with many impoverished little ones succumbing to diseases like pneumonia. In 2022, one in 27 children died before reaching the age of 5 due to preventable diseases and other factors. 

  • Physical health: The impacts on a child’s health are many. For example, impoverished children often live without nutritious food, placing them at risk of chronic health conditions like heart disease. Poverty also exposes children to preventable and treatable illnesses like pneumonia and diarrhea. And without medical care, they can’t access treatment, keeping them sick. 

  • Mental health: Children living in poverty struggle with overwhelming fear and consistent stress. They’re constantly worried about where they’ll find their next meal or if things will ever get better. Sadly, approximately 75% of suicides occur in low- and middle-income countries where poverty rates are higher. 

An older woman lays her hand on a teen girl’s shoulder as they both pray.
Photo by: Piyamary Shinoda

Child Sponsorship Helps Release Children From Poverty

Compassion is fighting back against global poverty by releasing children from poverty in Jesus’ name. You can help us do just that by becoming a child sponsor

Sponsorship means encouraging a child and donating to them monthly. This consistent support empowers a local church in their community to care for their immediate needs, introduce them to the hope of the gospel and prepare them for a brighter future beyond poverty. 

Child sponsorship provides a child with an introduction to the gospel, education, medical care, a safe community, protection from abuse, nutrition support and disaster relief — the spiritual and tangible support they need to leave poverty behind. 

A boy dressed in a brown costume with red scarf stands in front of a wood and clay house, smiling.

Release a Child From Poverty in Jesus' Name

By providing the love and care a child needs to thrive, you can help them escape global poverty. Release a child from poverty in Jesus’ name through sponsorship.