Watch our video where we are joined by Jamie Coats, President & CEO of SOPHIA Oxford; and Sabina Alkire, Director of the Oxford Poverty & Human Development Initiative.
Despite Progress Towards Eliminating Poverty, There Is Still Work To Do
Over the past few decades, the world has made remarkable progress in the reduction of extreme poverty. but the recent slowdown in poverty reduction, now compounded by COVID-19 implications, has made a number of regions and individual groups especially vulnerable to falling into extreme poverty, rather than moving out of it.
A Multidimensional Approach Is Key
Recognizing and embracing data and metrics on poverty that are beyond monetary deprivation will help create a sustainable and progressive route out of extreme poverty. the Global Multidimensional Poverty Index (MPI) captures deprivations across three dimensions — education, health, and living standards.
$1.6 Trillion in Incremental Spend
By assessing both the human and financial cost of the elements that make up a multidimensional poverty index, we can estimate the human opportunity and quantify the annual incremental spend for targeted investment to help fix the root causes of poverty. If undertaken correctly, the multiplier effect of the capital deployed toward many of these measures can also provide a useful spur to growth.
Matching Capital with Opportunity Is Essential
Tens of trillions of dollar are looking to invest with positive impact, but capital is not getting to where it is needed the most because of a mismatch in risk appetite of the capital. Sustainability-linked bonds could offer an attractive solution for the providers of capital, as well as those seeking access to it.