The Stark Reality: 17% Extreme Wealth vs. 9% Extreme Poverty, and the 74% in the Safe Zone—Why Global and Economic Challenges Persist

This blogpost is teamwork by Sara Innovation Hub.

Introduction:

Despite the relatively stable financial reality for most of the world’s population, the global landscape continues to face significant economic challenges, alongside inequality, and social unrest. With 17% of the world’s wealth concentrated among the wealthiest individuals and 9% of the population living in extreme poverty, the remaining 74% falls into what we often consider the “safe zone.” These people are neither wealthy nor impoverished, living in relative financial security. However, even with such financial stability, the world continues to grapple with profound issues like economic inequality, political instability, and global crises that affect all people.

In this post, we’ll examine the stark financial divides that persist, despite these realities, and explore why these global challenges continue to exist.

The Global Financial Divide: Extreme Wealth vs. Extreme Poverty

17% of Extreme Wealth:

Despite only making up 0.000033% of the world’s population, the billionaire class continues to hold an outsized amount of the world’s wealth. This, combined with upper-middle-class and wealthy individuals, constitutes 17% of the world’s population.

This small group of extremely wealthy individuals holds vast resources—money that could be used to transform communities and help alleviate some of the challenges faced by the 9% of people living in extreme poverty. However, wealth is often hoarded rather than shared, and the systems in place reward those already at the top. The financial elite control a disproportionate share of the wealth, creating an environment where economic inequality thrives.

9% in Extreme Poverty:

9% of the world’s population, or approximately 720 million people, live in extreme poverty—defined by the World Bank as those living on less than $1.90 per day. These people face daily struggles for survival, with limited access to food, clean water, healthcare, and education.

While there is growing global attention and efforts to combat extreme poverty, the disparity between the extreme wealth of the few and the poverty experienced by the many continues to grow. As nations in the safe zone make incremental progress, the disparity remains stark.

The 74% in the Safe Zone

The remaining 74% of the population falls into what can be considered the “safe zone”—people who are above the extreme poverty line but still not financially secure. They are not experiencing immediate deprivation, but they may still be struggling to meet basic needs due to job insecurity, high cost of living, or low-paying jobs.

Many people in this group face an ongoing struggle to build economic resilience and financial security for themselves and their families. Despite living above the poverty line, they remain vulnerable to economic shocks, such as job loss, health crises, or natural disasters.

So, Why Do These Economic Challenges Persist?

1. Wealth Inequality:

Despite a significant portion of the population living in the safe zone, the wealth gap between the wealthiest 17% and those in the safe zone and extreme poverty continues to widen. The middle class and working-class populations often struggle to move beyond financial stagnation because much of the wealth and capital remains concentrated in the hands of a few.

2. Systemic Barriers to Equality:

Around the world, systemic barriers such as poor education systems, lack of healthcare, and limited access to opportunities prevent millions from advancing beyond their economic status. Gender inequality, racial discrimination, and lack of social safety nets also make it harder for people in the safe zone and extreme poverty to improve their circumstances.

3. Global Economic Systems:

The global economy is structured to benefit certain Nations, corporations, and industries. Developed Nations and multinational corporations continue to benefit from global trade and investment opportunities, often at the expense of developing Countries. The capitalist system tends to favor the rich, leaving the global poor without the means to escape poverty.

4. Short-Term Profit Focus:

Companies and governments often prioritize short-term profit maximization over long-term stability and economic growth. Unsustainable growth models lead to environmental degradation, resource depletion, and social inequality, which harms the most vulnerable populations.

5. Political Instability and Corruption:

Political corruption, economic mismanagement, and poor governance exacerbate the challenges faced by Nations in the safe zone and extreme poverty. In many developing Countries, resources that could be used for poverty alleviation are misused or diverted, leaving citizens vulnerable and disillusioned.

6. Global Health and Environmental Crises:

Pandemics like COVID-19 and natural disasters have a disproportionate impact on the poor and middle class. The pandemic alone pushed many people in the safe zone into financial insecurity, illustrating how global health crises can disrupt even stable populations. Similarly, the impact of climate change and environmental degradation disproportionately affects vulnerable populations.

A Call for Change

The global divide between the extreme wealth of the 17%, the poverty of the 9%, and the vulnerable 74% remains an ongoing challenge. Despite relative stability in some parts of the world, economic inequality, systemic barriers, unsustainable practices, and global crises continue to hinder progress.

For true global prosperity to be achieved, wealth redistribution, ethical leadership, and global collaboration are needed. It’s time for the wealthy to lead with responsibility, ensuring that the economic benefits they create are shared more equitably, to help bring the world’s 7.9 billion people into a more balanced and just future.