• Extreme poverty is rising more now than it has for the last 20 years.
  • One Brazilian initiative eschews top-down solutions in favour of community-level problem solving.
  • It works with families in a structured way for two years, to improve their situation in terms of health, education, housing, income generation and citizenship.

Hundreds of millions of people live in poverty: from the shantytowns of South America to the slums of Africa and Asia. These vulnerable people urgently require decent housing, education, job opportunities, access to government services and medical care. Where to start?

In addition, extreme poverty rose in 2020 for the first time in more than two decades as the COVID-19 pandemic pushed an additional 88 million to 115 million people below the threshold of living on less than $1.90 a day, according to the World Bank.

That means more families who were just about managing before the pandemic will struggle to put food on the table and keep a roof over their heads as unemployment bites deep.

Many will be unable to withstand the “health shock” of a family member falling ill – a risk that was already very real and is even greater as coronavirus stalks overcrowded slums across the developing world.

Tackling the inter-linked challenges of poverty and health starts with a recognition that it is no good simply treating patients’ medical problems in isolation. Breaking the spiral of deprivation means addressing the underlying social determinants of health – whether that is bad housing, lack of education and training, or inadequate information about social services.

But a blueprint now exists for addressing this matrix of problems and it can be done at scale – at local, regional and even global levels.

One institute, five lines of attack

An initiative by the Dara Institute was built out of seeing one too many children from the favelas of Brazil being admitted to hospital for treatment, being discharged home, and then being re-admitted a few months later – often dying.

The reasons for this were not hard to fathom: if children are sent back to the same sub-standard living conditions that triggered their initial illness, there is every chance they will return to hospital – and that next time they will be even sicker.

The efforts of doctors in hospitals and clinics are of little use unless society also tackles the fundamental issues of malnutrition, poor sanitation, and damp and smoky housing. These lead to sometimes-fatal cases of pneumonia, asthma, gastrointestinal disorders and other diseases.

Food

What is the World Economic Forum doing to help ensure global food security?

Two billion people in the world currently suffer from malnutrition and according to some estimates, we need 60% more food to feed the global population by 2050. Yet the agricultural sector is ill-equipped to meet this demand: 700 million of its workers currently live in poverty, and it is already responsible for 70% of the world’s water consumption and 30% of global greenhouse gas emissions.

New technologies could help our food systems become more sustainable and efficient, but unfortunately the agricultural sector has fallen behind other sectors in terms of technology adoption.

Launched in 2018, the Forum’s Innovation with a Purpose Platform is a large-scale partnership that facilitates the adoption of new technologies and other innovations to transform the way we produce, distribute and consume our food.

With research, increasing investments in new agriculture technologies and the integration of local and regional initiatives aimed at enhancing food security, the platform is working with over 50 partner institutions and 1,000 leaders around the world to leverage emerging technologies to make our food systems more sustainable, inclusive and efficient.

Learn more about Innovation with a Purpose's impact and contact us to see how you can get involved.

Rather than focus on one issue, a multifaceted and long-term approach that takes account of all the needs of poor urban families is in order.

For nearly 30 years, the Dara Institute has been working to build a bridge between hospital care and families in their homes.

It has now developed a standard methodology – a kind of social technology – that provides support in the five key areas of health, education, housing, income generation and citizenship. Rather than imposing solutions from the top down, a plan (Family Action Plan, or FAP) is drawn up in conjunction with family members, with support typically provided for two years.

The proof is in the case studies

Women like Angel Silva, a 28-year-old from Santa Cruz to the west of Rio de Janeiro, are living proof the system works. She not only received help to feed her malnourished child but also got assistance when her home was devastated by floods. Since then she has gone on to train as a baker and she now runs a small business, Angel Cakes.

Over the years, this FAP strategy has spread to 23 locations across Brazil and has even been adopted as public policy in Belo Horizonte, the capital of the state of Minas Gerais. The lives of 75,000 Brazilians have been directly affected by our action plans, which typically cost around 900 reais ($170) a month to run.

There is hard data to demonstrate that this is money well spent. A study by researchers at Georgetown University found significant and sustained improvements in health and financial security among families graduating from the scheme, with incomes almost doubling and hospital readmissions falling by 86% three to five years after they had concluded their FAP.

What's more, the number of families owning their home rose from 28% to 50%.

What is the World Economic Forum doing to champion social innovation?

Social innovators address the world’s most serious challenges ranging from inequality to girls’ education and disaster relief that affect all of us, but in particular vulnerable and excluded groups. To achieve maximum impact and start to address root causes, they need greater visibility, credibility, access to finance, favourable policy decisions, and in some cases a better understanding of global affairs and access to decision makers.

The Schwab Foundation for Social Entrepreneurship is supporting more than 400 late-stage social innovators. By providing an unparalleled global platform, the Foundation’s goal is to highlight and expand proven and impactful models of social innovation. It helps strengthen and grow the field by showcasing best-in-class examples, models for replication and cutting-edge research on social innovation.

Meet the World-changers: Social Innovators of the Year 2020. Our global network of experts, partner institutions, and World Economic Forum constituents and business members are invited to nominate outstanding social innovators. Get in touch to become a member or partner of the World Economic Forum.

Positive knock-on effects: from families to the world

By empowering families to improve their own lives – through providing advice on everything from nutrition and healthcare to professional training and legal services – the benefits are also cascading throughout communities.

Cristiane Eusébio, 48, a resident of São Pedro da Aldeia to the east of Rio de Janeiro, has been engaged in a FAP since 2019. During the pandemic, Cristiane created a local network of women living in similar conditions and was able to assist several families in accessing government benefits.

The message is also spreading beyond Brazil. The University of Maryland has embraced the same FAP methodology and is applying it at the community level in deprived areas of Baltimore. The general principles set out by the Dara Institute have been taken up by other social entrepreneurs too, and exported to four continent.

Without a joined-up approach an endless cycle of deprivation rules, since poor housing spells poor health – particularly for children. Illness all too often tips families into devastating poverty.

It is possible to provide family-focused solutions to poverty and ill-health, and to do it at scale. The new challenge is for others the world over to roll out these initiatives. They are needed now more than ever as the long shadow of the pandemic clouds the economic prospects of millions of the world’s poorest and most vulnerable families.