Poverty rates in rich countries: New Zealand's ranking revealed

Lovemoney

 

Poverty rates in rich countries: New Zealand's ranking revealed

 

https://www.msn.com › en-nz › news › others › povert...

 

 

 

 

Wealthy nations with rampant poverty

Nearly 10% of the world's population is forced to live on less than $1.90 (£1.56) a day. As the super-rich get richer, millions of people are struggling to survive in extreme poverty, even in some of the wealthiest nations on the planet. Using the most recent OECD figures, which range from 2017 to 2021, we reveal the rich nations with the highest rates of poverty, based on the percentage of their citizens whose income is less than half the national median income. Is your country on the list? Read on to find out.

All dollar values in US dollars unless otherwise stated.

 

Poverty rates in rich countries: New Zealand's ranking revealed

Story by Alice Cattley • 2023.02.24

 

Norway: 8.4% of the population in poverty

Like the Netherlands, Norway has a robust social security system in place. This is bankrolled by high taxes, with the nation implementing a transparent taxation system that's designed to suppress wealth inequality. That said, inequality is still rife, with immigrants accounting for around 43% of Norway's poor. 

 

Netherlands: 8.2% of the population in poverty

Between 2013 and 2017, the number of people living in poverty in the Netherlands decreased from approximately 790,000 to 618,000. However, the latest figures from the OECD suggest the country's poverty rate is now 8.2%, which represents a small but steady increase over the last few years. The Netherlands currently doesn't have a universal basic income but is renowned for its social security system, which provides a safety net for those who fall on hard times. 

 

 

Belgium: 8.1% of the population in poverty

Compared to other advanced economies, the gap between rich and poor is narrow in Belgium. Various factors, from the country's high minimum wage of €13.60 ($13.91/£11.46) an hour to its well-funded welfare system, keep the overall poverty rate comparatively low.

 

France: 8.4% of the population in poverty

The poverty rate in France is low despite the country's relatively high unemployment rate, which had trended at around 8% since 2019 before dropping to 7.2% as of 2022. Again, this comes down to the nation's comprehensive welfare system, which provides decent benefits for out-of-work citizens.

 

Sweden: 8.9% of the population in poverty

Like its fellow Scandinavian nations, Sweden has a comprehensive social security system that aims to keep poverty rates low. According to The Borgen Project, the country boasts over 100 trade unions and almost all employees belong to one, helping to protect citizens' careers despite the lack of a national minimum wage. Meanwhile, high taxes fund a free universal healthcare sector.

 

 

Hungary: 9.2% of the population in poverty

With a poverty rate of 9.2%, Hungary is the 25th most impoverished rich nation on our list. The number of citizens at risk of poverty has actually fallen over the years, from a record 34.8% in 2013 to 17.8% in 2020. 

 

Poland: 9.8% of the population in poverty

Poverty in Poland has been on the decline for decades, falling from 11.1% to 9.8% in just the last few years. Data from Statista shows that the groups most at risk of falling into extreme poverty are children and students. 

 

Germany: 9.8% of the population in poverty

In 2020 Germany's poverty rate reached its highest level ever, according to the German Paritätische Wohlfahrtsverband (Paritätische Welfare Association). From that level of 16.1%, it's since dropped down to 9.8%, making Germany – the world's fourth-largest economy – the 23rd most impoverished country in our round-up.

 

Switzerland: 9.9% of the population in poverty

Switzerland's poverty rate has increased over the last few years, jumping from 7.5% in 2016 to 8.2% in 2017. It's currently 9.9%, its highest rate in over a decade. Residents who qualify for Swiss welfare receive a monthly payment referred to as the "basket of goods," which is designed to cover the cost of essential food, clothes, housing, and transportation. Roughly half of people who receive this support only need to it for a year or less. 

 

Austria: 10% of the population in poverty

One of the most affluent countries in the world, Austria has a poverty rate of 10%. Unemployment is relatively low in the country, falling to 5.5% in June 2022, while job security and wages are high. This prevents the vast majority of citizens from falling below the breadline.

 

Luxembourg: 10.5% of the population in poverty

The poverty rate in notorious tax haven Luxembourg is 10.5%. The gap between the wealthiest and poorest people in Luxembourg is relatively high. According to a Capgemini report in 2021, the nation is home to 46,200 millionaires, while more than 105,000 people lived below the poverty line in 2019. 

 

Portugal: 10.6% of the population in poverty

Youth unemployment is high in Portugal and, as a result, poverty is higher among younger people in the country. To make matters worse, unemployment benefit is only available to citizens who have actually worked, and payments cease after a set period of time.

 

Greece: 11.5% of the population in poverty

Greece is still recovering from the devastating economic crisis that saw incomes plummet by around 30%, but the good news is that its poverty rate has been trending downwards in recent years. The current poverty rate of 11.5% makes the nation the 18th most impoverished in our round-up. 

•  

Canada: 11.6% of the population in poverty

Canada may be an affluent, resource-rich country, but the North American nation has a relatively high rate of poverty compared to other advanced economies. This isn't helped by Canada's low social assistance rates. On the plus side, however, the country's poverty rate has fallen dramatically over the last decade. Back in 2008, Canada reportedly had one of the highest poverty rates of any OECD member country; by 2019, the poverty rate had fallen to its lowest level in history. 

•  

United Kingdom: 12.4% of the population in poverty

According to OECD data, the poverty rate in the UK is 12.4%. The rate is even higher according to the Joseph Rowntree Foundation, which measures poverty based on the relative poverty rate after housing costs. By this measurement, more than one in five UK citizens currently lives in poverty, the equivalent of around 14.5 million people. 

 

New Zealand: 12.4% of the population in poverty

Like the UK, wealthy New Zealand has a poverty rate of 12.4%. The Borgen Project reports that economic reform in the 1980s has resulted in a more unequal society, with some people much better off than others. Those most at risk of poverty are the Māori people and children of all ethnicities, although the nation has pledged to cut the number of impoverished children by 50% by 2030. 

 

Australia: 12.4% of the population in poverty

The poverty rate in Australia is also 12.4%, according to the OECD. In early 2020, before the COVID-19 pandemic caused global poverty rates to soar, a study by the Australian Council of Social Service found that 3.24 million people in the country were living below the poverty line of AU$457 ($318/£263) per week.

 

Italy: 14.2% of the population in poverty

With a poverty rate of 14.2%, Italy is currently home to around 1.7 million families and 4.6 million individuals who are living on less than €657 ($672/£556) a month. The country does have an extensive social security system, known as "previdenza sociale," but the poverty rate has still increased over the last few years.

 

Türkiye: 14.4% of the population in poverty

A cavernous gap between the urban rich and rural poor is evident in Türkiye (formerly known as Turkey). In many rural areas of the country, education is poor, jobs are hard to come by and social security is virtually nonexistent, fuelling the country's poverty rate of 14.4%.

 

Spain: 14.7% of the population in poverty

Like its neighbour Portugal, Spain is struggling with an exceptionally high rate of unemployment among its under-25s, which means that poverty in the country is concentrated among the younger generation. That said, its poverty rate has fallen slightly from over 15% to 14.7% in the last few years.

 

Estonia: 14.9% of the population in poverty

Poverty is a big problem in Estonia. An inadequate education system, lack of good jobs, and negligible state benefits for citizens who are unable to work have pushed a relatively large section of society into chronic poverty. 

 

South Korea: 15.3% of the population in poverty

In contrast to many other countries, the poverty rate in South Korea is especially high among the over-65s at over 40%. This is explained in part by the country's meagre state pension, which has been estimated to cover just 16% of the minimum cost of living.

 

 

Lithuania: 15.4% of the population in poverty

Another Baltic country with high levels of poverty and low wages, Lithuania's poverty rate is currently 15.4%. Though wealth inequality and unemployment in the country are relatively low, rural poverty is shockingly prevalent. And according to the Borgen Project, around one-third of Lithuanians live in rural areas. 

 

Japan: 15.7% of the population in poverty

At 15.7%, Japan's poverty rate is the seventh highest in our round-up. According to the Borgen Project, figures from 2018 showed that less than 1% of Japanese society was experiencing homelessness. However, low levels of homelessness are reportedly the result of high government spending rather than effective reform, and clearly don't translate to low levels of poverty. 

 

Chile: 16.5% of the population in poverty

Chile may be one of the wealthiest countries in South America, but a significant proportion of its population lives below the breadline. Income inequality is high in the country and the public education system is poor, trapping many citizens in a cycle of poverty. Its poverty rate has increased from 16.1% to 16.5% in the last few years, according to the OECD. 

 

Mexico: 16.6% of the population in poverty

OECD data from 2020 shows that the poverty rate in Mexico is 16.6%. The country particularly struggles with child poverty; shockingly, around 14% of children under the age of five have experienced stunted growth due to malnutrition, despite the fact that Mexico has one of the top 20 largest economies in the world. 

 

Latvia: 16.9% of the population in poverty

The provisional poverty rate for Latvia is 16.9%, a slight increase from the previous OECD figures, which quoted 16.2% for the Baltic state. Like its neighbour Estonia, Latvia has deep-seated issues with poverty. The typical salary in the country is just over $17,000 (£13.8k), while the nation's welfare system is severely lacking.

 

Israel: 17.3% of the population in poverty

The OECD's most recent data for Israel, which comes from 2019, states the poverty rate is 17.3%. But according to figures quoted in The Times of Israel, 233,000 new households fell into "financial distress" over the course of the COVID-19 pandemic. This suggests that the poverty rate could be much higher than 17.3% in 2022.

 

USA: 18% of the population in poverty

America is one of the most unequal countries on the planet in terms of wealth distribution, with a huge gap between the rich and poor. Low social security benefits and a lack of universal healthcare only add to the country's poverty problem, yet 70% of Americans believe it's a necessary byproduct of living in a free market economy, according to data from Statista. Even more shockingly, 13 million US residents know somebody who died because they couldn't afford medical care. And the issue is only getting worse, as the percentage of people in poverty has risen from 16.8% as recorded by the OECD back in 2014. 

•  

South Africa: 27.7% of the population in poverty

Financial inequality is rife in South Africa, where approximately 65% of wealth is held by just 10% of the population. This is even higher than in the US, where an estimated 45% was held by the top 10% in 2016. The good news is that South Africa's sky-high poverty rate is decreasing, but still remains at a staggering 27.7%. This hasn't been helped by the COVID-19 pandemic; in 2021 the country reported its highest ever unemployment rate of 35.3%.