The Decline of Extreme Poverty in Perspective
The Chart of the Week is a weekly Visual Capitalist feature on Fridays.
If you follow the news, the world can seem pretty grim at times.
This pessimistic view of global affairs is common. We’ve been trained by the media to believe that things are always getting worse – and not surprisingly, people extrapolate these perceptions onto issues like poverty.
One survey in the U.K. is the perfect barometer for this kind of public pessimism: in 2016 an Oxfam poll found that 87% of people thought that global poverty was staying the same or getting worse. However, the reality couldn’t be further from those perceptions.
Poverty in Perspective
The World Bank announced this week that extreme poverty is at its lowest rate in 28 years.
The current estimate is that 8.6% of the global population now lives in extreme poverty, using a measure based on a $1.90 per day wage (in 2011 PPP). The figure is adjusted using the cost of living and inflation, and it also takes into account the minimum needed for daily essentials in places where poverty is prevalent.
For comparison, in 1990, more than 1.9 billion people (36% of global population) lived below the extreme poverty line. That means more than one billion people have come out of poverty since then.
The preceding context is powerful, but where are we today in the fight against extreme poverty?
According to the World Bank’s latest comprehensive numbers that were just released for 2015, here is the latest data by region:
|Region||People in poverty (2015)||% of world total|
|East Asia and Pacific||47.2 million||6.4%|
|Europe and Central Asia||7.1 million||1.0%|
|Latin America and Caribbean||25.9 million||3.5%|
|Middle East and North Africa||18.6 million||2.5%|
|South Asia||216.4 million||29.4%|
|Sub-Saharan Africa||413.3 million||56.2%|
|World Total||735.9 million||100.0%|
As you can see, just over 85% of the population in extreme poverty is living in the Sub-Saharan Africa and South Asia regions. It’s worth noting that both of these regions are also rapidly growing in terms of population, as well.
Finally, here’s a look at recent progress during the period of 2013-2015:
|Region||Poverty rate (2013)||Poverty rate (2015)||Change|
|East Asia and Pacific||3.6%||2.3%||-1.3%|
|Europe and Central Asia||1.6%||1.5%||-0.1%|
|Latin America and Caribbean||4.6%||4.1%||-0.5%|
|Middle East and North Africa||2.6%||5.0%||+2.4%|
The one anomaly above (Middle East and North Africa) is a result of wars in Syria and Yemen – however, as you can see, the region did previously hit a low under 3%.
Overall, as the data shows, there has been progress in the fight against extreme poverty in both the long and short terms. That said, experts do warn that the rate of poverty reduction is slowing in more recent years, which will make the trend harder to keep intact.
Support the Future of Data Storytelling
Sorry to interrupt your reading, but we have a favor to ask. At Visual Capitalist we believe in a world where data can be understood by everyone. That’s why we want to build the VC App - the first app of its kind combining verifiable and transparent data with beautiful, memorable visuals. All available for free.
As a small, independent media company we don’t have the expertise in-house or the funds to build an app like this. So we’re asking our community to help us raise funds on Kickstarter.
Ranked: The 50 Most Innovative Companies
Companies need to adapt quickly to changing markets in order to thrive. Here’s a look at the top 50 most innovative companies in 2020.
Ranked: the Top 50 Most Innovative Companies in 2020
Corporate longevity is on the decline. In the 1960s, a typical S&P 500 company was estimated to last more than 60 years—these days, the average lifespan is just 18 years.
In today’s fast-paced world, companies need to stay relevant in order to survive. Because of this, it’s become increasingly more important for businesses to prioritize innovation.
This chart looks at the top 50 most innovative companies in 2020, based on a survey by Boston Consulting Group (BCG). The companies have been ranked based on four variables:
- Global “Mindshare”: The number of votes from all innovation executives.
- Industry Peer Review: The number of votes from executives in a company’s industry.
- Industry Disruption: A diversity index to measure votes across industries.
- Value Creation: Total share return.
Breakdown of the Leaderboard
BCG has been ranking the most innovative companies since 2005. Here’s a look at the top 50 most innovative companies in 2020:
|Rank||Company||Industry||HQ||Change from 2019|
|11||Tesla||Transportation & Energy||U.S.||-2|
|18||LG Electronics||Consumer Goods||South Korea||-|
|23||Philips||Pharmaceuticals & Medtech||Netherlands||6|
|26||Johnson & Johnson||Pharmaceuticals & Medtech||U.S.||-12|
|32||Volkswagen||Transportation & Energy||Germany||6|
|33||Bosch||Transportation & Energy||Germany||new|
|34||Airbus||Transportation & Energy||Netherlands||return|
|38||Bayer||Pharmaceuticals & Medtech||Germany||-14|
|39||Procter & Gamble||Consumer Goods||U.S.||return|
|40||Royal Dutch Shell||Transportation & Energy||Netherlands||-10|
|41||Toyota||Transportation & Energy||Japan||-4|
|46||FCA||Transportation & Energy||U.K.||new|
|47||Novartis||Pharmaceuticals & Medtech||Switzerland||new|
|49||Volvo||Transportation & Energy||Sweden||new|
When you think about innovative companies, Walmart might not be top of mind. However, the retail giant has moved up to the 13th spot on the list, an increase of 29 places since 2019.
Walmart has put significant efforts into its e-commerce and omnichannel offerings. For instance, the company launched NextDay Delivery in 2020, and now offers one-day delivery to a majority of the U.S. population. The company also has a stake in the Chinese e-commerce platform JD.com, which has grown from 5% to 12%.
Costco makes it to 30th place this year, and the company is known for its effective use of data. Thanks to the company’s members-only model, it has been able to compile a ton of information on its customers. It uses this data not only for marketing purposes, but to help streamline processes like recall notices. Costco also uses data monitoring sensors in its warehouses to save money on water usage and to spot any potential leaks before they happen.
Another company worth touching on is Huawei—the Chinese tech company has taken the 6th spot, a 42 rank increase since 2019. This rise in the ranks is likely due to the company’s significant $19 billion investment in research and development (R&D) in 2019. These types of investments seem to be paying off, as Huawei sold more smartphones in 2019 than Apple.
Innovation Leaders Come in All Sizes
While people may picture startups when they think of innovation and adaptability, big firms aren’t lagging far behind when it comes to innovation output.
In this context, firms with new product sales above their industry median are considered “innovation leaders.” Although 52% of small firms are considered innovation leaders, 43% of large firms still find themselves in the same boat.
In fact, because larger firms generally have more access to resources and manpower than smaller firms, they often have an advantage when it comes to research and development and the creation of innovation-focused programs.
Investing in innovation shows a far greater payoff down the line—firms that invested 1.4x more in innovation input saw 4x the amount of new products sales.
Innovation as a Lifestyle
Unless you’re in a startup that’s hoping to get acquired by a larger firm, innovation can’t be a one-hit-wonder. Yet, despite its importance, innovation over the long term is hard to maintain.
There have only been 8 companies that have appeared on the list every year. Here’s a look at the companies that have consistently made the cut since 2005:
These companies are serial innovators, and have managed to create innovation systems to perpetually foster creativity and agility. It’s an intentional, laborious process—but when done right, the payoff can be huge.
Silver Series: Perfect Storm for Silver (Part 2 of 3)
In the second part of the Silver Series, we show that the supply and demand fundamentals are potentially shaping up for a perfect storm in silver prices.
The Silver Series: A Perfect Storm for Silver (Part 2 of 3)
In Part 1 of the Silver Series we showed how precious metals can be a safe haven during times of volatility in a debt-laden era.
Today’s infographic is Part Two of the Silver Series, and it comes to us from Endeavour Silver, outlining some of the key supply and demand indicators that precede a coming gold-silver cycle in which the price of silver could move upwards.
Silver is produced primarily as a by-product in the mining of non-precious metals, and there is currently a dwindling supply of silver as a result of low base metal prices.
However, silver is more than just a precious metal and a safe haven investment. Its industrial uses also create a significant demand on silver stocks.
As the production of green technologies such as solar cells and EVs quickly escalates, upward pressure is being placed on the price of silver, indicating the potential start of a new gold-silver cycle in the market.
Just like gold, silver has functioned as a form of money for centuries, and its role as a store of value and hedge against monetary inflation endures.
Currency debasement is not new. Governments throughout history have “printed” money while silver’s value has held more constant over time.
In today’s age, the average investor does not own physical silver. Rather, they invest in financial instruments that track the performance of the physical commodity itself, such as silver exchange-traded funds (ETFs).
Until recently, ETF investment in precious metals has been relatively flat, but there has been a surge in the price of silver. Meanwhile, demand for silver-backed financial products have increased the demand for physical silver and could continue to do so.
Silver is also helping to power the green revolution.
The precious metal is the best natural conductor of electricity and heat, and it plays an important role in the production of solar-powered energy. A silver paste is used in photovoltaic solar cells which collects electrons and creates electricity. Silver then helps conduct the electricity out of the cell. Without silver, solar cells would not be as efficient.
As investments and the green revolution demand more and more silver, where is the metal coming from?
A Perfect Storm for Silver: Supply Crunch
The bulk of silver production comes as a by-product of other metal mines, such as zinc, copper, or gold mines.
Since silver is not the primary metal emerging from some of these mines, it faces supply crunches when other metal prices are low.
Silver supply is falling for three reasons:
- Declining mine production due to low base metal prices
- Declining silver mine capacity
- Declining reserves of silver
The demand for silver is rising and the few companies that produce silver could shine.
Don’t miss another part of the Silver Series by connecting with Visual Capitalist.
Money2 weeks ago
Mapping the Migration of the World’s Millionaires
Markets2 weeks ago
Visualizing the Coming Shift in Global Economic Power (2006-2036p)
Datastream3 weeks ago
Ranked: These Are 10 of the World’s Least Affordable Housing Markets
Demographics1 week ago
Mapped: A Decade of Population Growth and Decline in U.S. Counties
Misc3 weeks ago
Visualizing Well-Known Airlines by Fleet Composition
Politics4 weeks ago
Which Countries Trust Their Government, and Which Ones Don’t?
Markets4 weeks ago
Ranked: Visualizing the Largest Trading Partners of the U.S.
Misc1 week ago
Iconic Infographic Map Compares the World’s Mountains and Rivers