Raj M. Desai, Homi Kharas, and Selen ΓzdoΔan
Where a person is born is the best predictor of their lifetime prospects. Yet, “spatial” income inequality has been widening. Geographic wealth disparities have been increasing in rich and poor countries alike. Eighty percent of global economic activity is generated on 3 percent of the landmass. Countries with worsening regional inequality, in the past decade, have seen greater political polarization, conflict, and government turnover.
In recent research, we examine spatial patterns in income levels and growth across 2,894 subnational areas in the world. The map in Figure 1 shows 538 administrative areas we call poverty hotspots—areas that are classified as low income in both 2000 and 2015 using the historical income thresholds provided by the World Bank. These were home to 1.12 billion people in 2015. Although largely concentrated in sub-Saharan Africa, Central, and South Asia they are distributed across 77 countries, far more than the 31 countries classified by the World Bank as low income.
Figure 1. World’s poverty hotspots
Subnational GNI per capita (Atlas method, current US dollars) below $755 in 2000 and $1,025 in 2015















