By Humberto Márquez
CARACAS, Dec 9 2024 – Poverty, while declining in Latin America and the Caribbean so far this century, shows a new face, that of the looming vulnerability of the poor as they become less rural and more urban, the United Nations Development Programme (UNDP) says in a new analysis.

“Not only is there more urban poverty, but also a greater percentage of the population is highly vulnerable, that is, they are very close to falling – and any small shock will make them fall – below the poverty line,” Almudena Fernández, chief economist for the region at the UNDP, told IPS.“It is no longer enough to lift people out of poverty; we have to think about the next step, to continue on this path, so that the population can consolidate”: Almudena Fernández.

Thus, “there is a segment of the population that remains above the poverty line, but which is pushed below it by an illness or the loss of household income,” Fernández told IPS from New York.

Rosa Meleán, 47, who was a teacher for 20 years in Maracaibo, the capital of Zulia, in Venezuela’s oil-rich northwest, told IPS that “falling back into poverty is like the slides where children play in the schoolyard: they keep going up, but with the slightest push they slide down again”.

Meleán has experienced this in person several times, supporting her parents, siblings and nephews with her salary, falling into poverty when her working-class father died, improving with a new job, her salary liquefied by hyperinflation (2017-2020), leaving teaching to search for other sources of income.

“You have to see what it’s like to be poor in Maracaibo, walking in 40 degrees (Celsius) to look for transport, without electricity, rationed water and earning US$25”, the last monthly salary she had as a teacher before retiring five years ago.

And then came the covid-19 pandemic, limiting her new occupations as an office worker or home tutor. She has barely recovered from that blow.

“We live in a time when shocks are more common – from extreme weather events, for example – and we see a lot of economic and financial volatility. We are a much more interconnected world. Any shock anywhere in the world produces a very direct contagion, they are the new normal,” says Fernández.

Shoppers jostle for the best prices at the Lo Valledor street market in Santiago, Chile. Urban households that ride the poverty line are particularly sensitive to food inflation. Credit: Max Valencia / FAO

Poverty falling in numbers

Starting in the 1950s, Latin America and the Caribbean experienced a rapid process of urbanisation, becoming one of the most urbanised regions in the world.

Today, 82% of the population lives in urban areas, compared to the world average of 58%, according to the UNDP.

Over the last two decades, the region has made progress in reducing extreme poverty and poverty in general. Even with setbacks since 2014, it recorded its lowest poverty rate in 2022 (26%), with slight decreases estimated for 2023 (25.2%) and 2024 (25%).

The Economic Commission for Latin America and the Caribbean (ECLAC) indicates in its most recent report that poverty in 2023 will affect 27.3% of the region’s population, which it puts at 663 million people this year. This means that “172 million people in the region still do not have sufficient income to cover their basic needs (general poverty)”.

Among them, 66 million cannot afford a basic food basket (extreme poverty). But these figures are up to five percentage points better than in 2020, the worst year of the pandemic, and 80% of the progress is attributed to advances in Brazil, where transfers of resources to the poor were decisive.

ECLAC points out that poverty is higher in rural areas (39.1%) than in urban areas (24.6%), and that it affects more women than men of working age.

Despite the progress, “the speed of poverty reduction is starting to slow down, it is decreasing at a much slower rate. This is a first concern, because the region is growing less,” said Fernández.

She recalled that the International Monetary Fund (IMF) forecasts point to an average economic growth in the region of two per cent per year, “well below the world average. Thus, it will be more difficult to continue reducing poverty”.

A hill overcrowded with informal dwellings in the populous Petare neighbourhood in eastern Caracas. Credit: Humberto Márquez / IPS

Changing face

The proportion of poor people living in the region’s urban areas increased from 66% in 2000 to 73% in 2022, and the change is more dramatic among those living in extreme poverty, with the proportion of the urban extreme poor rising from 48% to 68% over the same period.

Tracing this change annually, a UNDP analysis found that urban poverty increased markedly during the commodity crisis of 2014 – and also during the pandemic – “revealing that urban poverty is more likely to increase in times of economic downturn than rural poverty”.

It argues that the post-pandemic rise in the cost of living affected urban households more, pushing households into poverty and worsening the living conditions of those who were already poor.

Urban households are more tied to the market economy than rural households, making them more vulnerable to economic fluctuations and related changes in employment.

In contrast, rural livelihoods allow households to use strategies such as subsistence farming, reallocation of labour, community support or selling assets such as livestock to cope with shocks. These are options that urban residents generally do not possess.

Another salient feature of the new face of urban poverty is that it is often concentrated in informal settlements on the peripheries of cities, where overcrowding and limited access to basic services create additional challenges.

Thus, in the Venezuelan case, “the features of poverty and vulnerability that stand out in urban poverty have to do with the precariousness of public services and the lack of opportunities,” Roberto Patiño, founder of Convive, a community development organisation, and Alimenta la Solidaridad, a welfare organisation, told IPS.

Patiño believes that “the burden of the cost of living and inflation is difficult to bear for people living in poverty in both urban and rural areas, even though in rural areas the food issue may be less serious”.

This is because in rural areas “people have access to smallholdings, to their own crops, and also, being farming areas, food costs tend to be lower than in the city, but health issues and other services such as transport, health and education are very precarious”, the activist pointed out.

Patiño mentioned another mark on the new face of poverty, that of the millions of Venezuelans who migrated to other South American countries in the last decade and who “have not recovered from the pandemic, from an economic point of view, with many of the migrants living in a precarious situation”.

A teenager doing homework in the Delmas 32 slum in Port-au-Prince. Credit: Dominic Chávez / WB

Seeking solutions

The UNDP argues that addressing poverty in urban and rural areas requires differentiated strategies, as policies that work in rural areas, such as promoting agricultural productivity and improving access to assets and markets, do not sit well with the plight of the urban poor.

For them, the cost of housing and food inflation are relevant concerns.

Fernández said that “much of the social policy that was implemented in the region decades ago, which is ongoing, was designed with a very rural poverty in mind, how to help the agricultural sector, how to achieve greater productivity in agriculture, how to meet basic unsatisfied needs in rural areas”.

“Now we must move toward a social policy that focuses a little more on the unsatisfied needs of urban poverty,” she said.

She believes that “urbanisation allows for another series of opportunities. For example, the greater agglomeration of people allows for easier access to services”, although there may also be negative effects such as a more difficult insertion in the labour market or health problems associated with overcrowding.

Among the solutions, Fernández ranked the need for greater economic growth first, “because we are not going to be able to reduce poverty if we do not grow”.

The economist then ranked education, good in quantity (coverage), but which must now focus on quality, in second place, in order to address the digital transition that is underway and the need for more training for workers.

Finally, the need for social protection – and despite slower growth and a tighter fiscal balance across the region, Fernández acknowledges –and investment in protecting people more, with policies and measures that include, for example, care, employability, productivity and insurance.

“It is no longer enough to lift people out of poverty; we have to think about the next step, to continue on this path, so that the population can consolidate, with a stable middle class that has mechanisms so that in times of stress or shock its consumption does not fall sharply,” said Fernández.

In other words, so that those who have their basic needs covered do not have to slide back down the poverty chute with every economic or health shock.

By Jyotsna Mohan Singh
NEW DELHI, India, Dec 9 2024 – South Africa’s G20 Presidency begun in December, with only 12% of SDG targets on track and significant backsliding on more than 30%. As we write this today, there is an urgent need for a paradigm shift and practical solutions for a progressive, people-centred, and development-driven agenda in a fractured global landscape that needs collective healing.

This sense of urgency was pinned down at the recent G20 Summit in Brasil, where South Africa assumed the Presidency amidst calls from global civil society at the Civil20 (C20) Summit to address today’s most pressing challenges: climate change, gender inequality, social inequalities, economic injustice and attacks on civic space.

This year, the Brasilian Association of NGOs (Abong), chaired the C20, amplifying the demands of social movements and civil society for global justice, highlighting the importance of gender in public policies, anti-racist economies, climate justice, the fight against hunger and the urgent need for a reform of international governance.

“Civil society is not merely a participant; it is a driving force for justice, equity, and sustainability. Without our voices at the table, solutions risk being incomplete, inequitable, and disconnected from the realities of the most vulnerable,” says Henrique Frota, Executive Director of Abong.

Yet, while the G20 leaders addressed major global crises, from climate change to economic inequities, the voices of those most affected by these challenges—grassroots movements, communities that have been historically marginalised, and civil society actors—still struggle to resonate within the halls of power. In fact, gaps persist in ambition and action, exposing a troubling disconnect between commitments made in international forums and the lived realities of citizens from across the globe.

Civil Society as Equal Partners: Moving Beyond Symbolism

The G20 Rio de Janeiro Declaration, emphasizes inclusivity and acknowledges civil society’s role , but it omits the issue of shrinking civic space in many member countries. The G20 should adopt concrete measures to protect civic freedoms and support CSOs in challenging environments. Futhermore, while the Declaration noted the inclusion of civil society groups in dialogues like the G20 Social Summit, it stopped short of guaranteeing institutionalised access for CSOs.

Jyotsna Mohan Singh, Forus, C20

Aoi Horiuchi, Senior Advocacy Officer at the Japan NGO Center for International Cooperation (JANIC) shared that despite opportunities for C20 to meet, decision-makers and submit recommendations, “access is still limited”. The meeting with President Lula happened just days before the Leaders’ Summit. He emphasizes, “civil society as an official stakeholder group, should have access to all preparatory meetings and have space for speaking up. To truly “leave no one behind”, we need to maintain the momentum and push for more progressive policies on taxing and economic justice.”

Meaningful engagement with civil society cannot be an afterthought. Governments must ensure that civil society has the autonomy, resources, and protected spaces necessary to contribute fully to global governance processes. Expanding civic engagement is crucial, especially at the national level. Data shows that 87% of the global population lives in countries where civic freedoms are restricted.

As we approach the first G20 Summit on the African continent in 2025, “breaking silos, shifting power, and amplifying Global South movements must become central priorities for global governance reform,” says Anselmo Lee, Lead from the Asia Civil Society Partnership for Sustainable Development.

“We must move beyond a purely event-driven approach and establish clear, systematic mechanisms for reviewing decisions and ensuring their effective implementation,” adds Harsh Jaitli, Chief Executive Officer of the Voluntary Action Network India (VANI). Over the years, along with other national platforms, VANI has worked towards strengthening the voice of civil society in this space.

Inequality and Systemic Change: Missing the Mark

The Declaration rightly identified inequality as a root cause of global challenges but failed to propose bold measures to dismantle the structures that sustain the giant inequality pyramid. The creation of the Global Alliance Against Hunger and Poverty is a step forward. Specifically on access to food, the declaration identifies hunger as a pressing global issue, affecting 733 million people in 2023, and emphasizes the G20’s commitment to eradicating hunger. The vague language and lack of binding commitments undermine these efforts. Specific timelines and accountability frameworks are missing.

We need clear action to address inequalities and extreme wealth concentration, fair financing and reforms of multilateral development banks (MDBs) and public development banks (PDBs) to provide financing that directly benefits marginalised communities and an increase in support to local actions, notably investing in community-driven solutions that prioritise equity and sustainability. In the narratives and the actions, there is insufficient detail on the mobilization of resources for grassroots and community-led initiatives, a critical element of Forus’s advocacy for inclusive and sustainable financing.

Policy Coherence: Balancing the Scales and Building a Holistic Approach to Sustainability

While the G20 Declaration highlighted policy coherence as essential for achieving the SDGs, it leans heavily on private sector-driven solutions. Blended finance and private capital mobilization dominated the agenda, sidelining civil society and community-led initiatives and reinforcing the systemic inequities that perpetuate inequality.

A just and sustainable world cannot be achieved through fragmented efforts. Instead, a holistic approach that leverages the collective expertise and experiences of all stakeholders, public, private, and civil society. From a CSO perspective, a critical gap persists in aligning economic growth objectives with environmental, social, and human rights priorities. Without such alignment, conflicting objectives risk perpetuating systemic inequalities and ecological harm, undermining the promise of the SDGs. Moreover, the recent trend of certain governments, such as Argentina’s proposed withdrawal from the Paris Agreement, highlights a dangerous backslide from climate commitments and a disregard for sustainable development goals.

Gender Equality: From Rhetoric to Reality

The G20 Declaration’s recognition of gender equality and commitments to combating gender-based violence are important steps forward. However, the absence of concrete action plans undermines their potential impact. Women and girls continue to face systemic barriers, including unequal access to education, healthcare, and economic opportunities, as well as the pervasive threat of gender-based violence. To achieve meaningful progress, policies must go beyond rhetoric and actively dismantle discriminatory norms while creating leadership opportunities for women across all sectors.

The C20 group, has emphasised the need to address exclusion in all its forms. Expanding spaces for groups that have historically been marginalised and ensuring their full, equal, and meaningful participation in governance processes is not only a matter of justice but also a prerequisite for the type of development that We want. This includes acknowledging the intersecting challenges faced by rural and Indigenous women and those experiencing multiple forms of discrimination.

“Beyond commitments, we need frameworks that address intersectional inequalities and create leadership opportunities for all women, including rural, Indigenous, and LGBTIQ+ communities,” says Alessandra Nilo, C20 Sherpa, Director of Gestos, Brasil.

Reforming Global Governance for a Just Future

The G20 Declaration acknowledges the urgent need to reform global governance systems to address the complex crises of our time—geopolitical tensions, economic inequities, and climate emergencies. Commitments to the UN reform and enhancing transparency in global governance are promising. The emphasis on anti-corruption measures and progressive taxation aligns with civil society’s struggles.

A critical starting point is amplifying the voice of World Majority countries in global decision-making. The inclusion of the African Union as a full G20 member is a welcome development, signaling progress toward inclusivity. However, current power imbalances, where wealthier nations disproportionately influence global policy agendas, must be dismantled to ensure fairness and inclusivity.

As the G20, a premier global forum, assumes increasing responsibility for shaping the global agenda, it is imperative that it takes a strong stance on these issues and “shift powers”.

As the C20 Declaration reminds us, the solutions to today’s challenges lie in inclusive governance that empowers those most affected by global crises. We urge governments and G20 stakeholders to institutionalise civil society participation, prioritise rights-based solutions, and deliver on commitments to equity and sustainability. By weaving together the principles of rights, equity, sustainability, and collaboration, we can begin to build a future where “no one is left behind” not just in theory but also in practice.

IPS UN Bureau

Follow @IPSNewsUNBureau
!function(d,s,id){var js,fjs=d.getElementsByTagName(s)[0],p=/^http:/.test(d.location)?’http’:’https’;if(!d.getElementById(id)){js=d.createElement(s);js.id=id;js.src=p+’://platform.twitter.com/widgets.js’;fjs.parentNode.insertBefore(js,fjs);}}(document, ‘script’, ‘twitter-wjs’);