What do we know about child poverty in developing economies?

Child poverty is depriving millions of youngsters of their basic needs – and hindering their potential for a brighter future. Addressing this challenge requires a multifaceted approach that tackles economic, educational and social disparities to create a more equitable world.

Child poverty refers to the situation where children live in families with incomes below a certain threshold, often defined as 60% of the national median income.

Such circumstances deprive young people of the financial resources, basic needs and opportunities necessary for their wellbeing and development. They may lack nutritious food, safe drinking water, adequate shelter or access to healthcare and education. This hinders both their development and their future potential.

There is an urgent need for early intervention and comprehensive support. According to UNICEF (the United Nations International Children's Emergency Fund), approximately one billion children are considered ‘multidimensionally’ poor. This means that they lack basic necessities such as nutritious food and clean water.

Although child poverty is a global phenomenon, developing economies are the most affected. This is due to the wider extent of poverty across the whole population, which is often coupled with a dearth of adaptive technology, credit constraints, vulnerability to climatic shifts and political instability (Emediegwu et al, 2022).

Where in the world a child is born has a big impact on their chances of growing up in poverty.

What does child poverty look like on the ground?

Child poverty is a multifaceted issue that manifests in five critical domains: income poverty; educational disadvantage; health issues; social exclusion; and family stress.

These interrelated effects collectively shape the experiences and outcomes of children living in poverty, influencing their present circumstances as well as their future opportunities.

Research shows that income poverty limits access to essential resources and opportunities, leading to educational disadvantages as impoverished families may struggle to afford classroom supplies, extracurricular activities or even regular school attendance (Serneels and Dercon, 2021; Hofmarcher, 2021).

Health issues arise from poor living conditions, inadequate nutrition and limited access to healthcare. This results in higher rates of illness and chronic conditions among impoverished children (Banerjee et al, 2021).

Social exclusion often follows, as these children are marginalised and isolated from their more affluent peers, affecting their social development and self-esteem.

Family stress, driven by economic hardships, further exacerbates the situation, contributing to a home environment that can be unstable and fraught with tension. For children growing up in poverty, life can be extremely tough.

Which regions are more affected?

Income poverty is one of the most direct and measurable aspects of child poverty. Globally, an estimated 333 million children live in extreme poverty, struggling to survive on a household income of less than $2.15 a day, according to a UNICEF report.

This situation is exacerbated in regions like sub-Saharan Africa and South Asia, where, according to the United Nations, children represent half of those in extreme poverty. In fact, nearly 90% of children in extreme poverty reside in either sub-Saharan Africa or South Asia.

This dire situation often results in malnutrition, stunted growth and a lack of educational opportunities, perpetuating a cycle of poverty.

Figure 1: Children living in households with income below the national poverty line (as a percentage of all children), 2020

Source: UNICEF data warehouse, 2024

The data in Figure 1 illustrate that the majority of impoverished children live in sub-Saharan Africa. In countries like South Sudan and Zimbabwe, over 70% of the child population is classified as poor.

In developed nations, the prevalence of child poverty is lower but still significant. For example, the OECD reports that over 20% of children in the United States live in relative poverty, with disparities in access to food security and educational opportunities.

Further, in 2020, 24.2% of children (under 18 years old) in the European Union were at risk of poverty or social exclusion, compared with 21.7% of adults (aged 18-64) and 20.4% of elderly people (65 or over).

Social exclusion of children is a complex issue, which can manifest differently in developing and developed economies.

Developing economies typically grapple with higher levels of poverty and less developed infrastructure and services, leading to more pronounced social exclusion. In contrast, developed economies, despite better overall access to services, still face issues related to economic inequality and marginalised communities.

It is therefore important to consider the context in which children live in order to understand the nature and extent of the social exclusion that they face.

What are the drivers of child poverty in developing economies?

Child poverty in developing economies is influenced by a complex interplay of economic, social, political and environmental factors. Economic challenges such as low wages, high unemployment, inflation, inadequate social security benefits and poor government policies contribute significantly to child poverty.

For example, the poorly timed removal of a fuel subsidy in Nigeria led to soaring prices of basic necessities, including food. As wages have failed to keep up with price rises, the purchasing power of many households has declined, pushing more families and children into poverty.

Social factors, including gender, ethnicity, race and geographical location further exacerbate the problem, making certain groups more vulnerable. For example, the Sixth Assessment Report of the Intergovernmental Panel on Climate Change (IPCC) finds that women and girls are more likely to experience adverse effects of poverty due to social norms and gender inequalities that limit their access to resources.

The absence or non-enforcement of relevant enabling laws could also result in systematic discrimination and social exclusion of ethnic minorities and indigenous people, as recently witnessed in Jos (Nigeria), where indigenous communities have been targeted in armed attacks.

Civil unrest and extreme weather events also have the potential to drive families into poverty. Economists agree that conflicts lead to poverty due to death, destruction and displacement (Mueller and Techasunthornwat, 2020).

As many developing economies rely on agriculture, adverse weather conditions that have a detrimental impact on crops bring severe repercussions for food security and income, ultimately leading to ‘food poverty’ among children (Emediegwu and Ubabukoh, 2023). It is the poorest in society that bear the brunt of climate change and conflict.

What is the way forward?

Addressing child poverty in developing economies and elsewhere requires a multi-layered approach that tackles the root causes and provides sustainable solutions. This approach must include education, healthcare, security and supportive government policies to ensure that families have the resources they need to provide a stable and secure environment for their children.

Key strategies include implementing social protection programmes, increasing equitable public spending on child-related services, and improving access to quality education. Community-led initiatives that empower local populations to develop and manage resources effectively can also make a difference.

For example, in Nigeria, the Community and Social Development Project (CSDP) has increased access to improved social services and infrastructure for the poorest in society (World Bank, 2021).

Addressing economic instability, creating employment opportunities and ensuring access to healthcare are crucial steps too. Reducing political instability is also important as efforts to reduce child poverty in developing countries can be hindered by it – as seen with the military juntas in Mali and Niger, among others.

Corruption, inadequate infrastructure, and social and cultural barriers can also be detrimental to poverty reduction initiatives.

International aid and partnerships should support developing regions and aim to ensure that all children have the opportunity to thrive and reach their full potential.

Where can I find out more?

This publication from UNICEF provides an in-depth explanation and relevant statistics for measuring child poverty.
The Royal College of Paediatrics and Child Health documents some studies, findings and policy recommendations on child poverty in the UK.