Shortfall of Domestic Resources to Eradicate Extreme Poverty by 2030

3 Results 3.1 The effect of balanced growth To estimate global poverty rates, the World Bank scales up the percentiles measured in household surveys by the country’s GDP growth between the survey year and the year of interest. [...] The anti-extreme-poverty tax rates on the “non-poor” in this 7% growth scenario are comparable to the rates on the non-acutely-poor in the baseline scenario. [...] 3.5 The credible potential of domestic redistribution A final way of approaching the issue is to set a tax schedule, compute how much revenues it would generate in each country, and estimate the income floor that these rev- enues could finance (by topping up the incomes of the poorest to the income floor). [...] Note that the value of the income floor depends on the whole income distribution: the top of the distribution determines the revenues that can be generated; and the bottom dictates the cost of raising low incomes up to a given floor. [...] 3.6 The potential of global redistribution In this section, we highlight the potential of globally redistributive policies to close the global poverty gap in 2030 in the baseline scenario of 3% growth.