In this article, we shall discuss the 30 most miserable countries in the world. To skip our detailed analysis of the current macroeconomic outlook in 2024, the intricate link between poverty alleviation and sustainability, and corporate efforts underway to alleviate poverty rates and address climate challenges, go directly and see 10 Most Miserable Countries in the World.
According to the IMF’s World Economic Outlook 2024, the baseline forecast for the global economy is to continue its current growth trajectory at 3.2% during 2024 and 2025 at virtually the same pace as 2023. The report does demarcate a slightly advanced acceleration for larger economies, where growth is expected to rise from 1.6% in 2023 to 1.7% in 2024 and 1.8% in 2025. However, this is offset by a slight slowdown in many of the world’s emerging markets and the most miserable countries in the world from 4.3% in 2023 to 4.2% in 2024 and 2025. Despite central banks hiking rates to restore price stability and geopolitical turbulence disturbing supply lines, the global economy has shown surprising resilience. One of the major reasons for this has been the low interest rates mortgage and housing markets which have offset the near-term impact of policy rate hikes.
To put the slowdown of the global economy in perspective, the World Bank, in its recent March 2024 update has noted that the first of its Sustainable Development Goals to end extreme poverty in the most miserable countries in the world by 2030 will likely not be met. The Bank estimates that nearly 574 million people, nearly 7 percent of the global population, will likely be living under the revised poverty line of $2.15 a day by the end of the decade. Today, much of extreme poverty is exclusively focused in sub-Saharan Africa, a region home to more than 400 million people living under the poverty line. The region in inflicted with weak governance, political and economic instability, and conflict.
A report by the UNDP disagrees with the conventional use of the poverty line in determining global poverty. In order to achieve a more holistic overview of what constitutes poverty, the UNDP report measures global poverty using the Multidimensional Poverty Index, which measures interconnected deprivations across multiple indicators like health, education, and standard living. The MPI uncovers poverty as a much more serious global issue by claiming that more than 20% of the global population lives in acute multidimensional poverty across 110 of the most miserable countries in the world whilst experiencing weighted deprivations ranging from 50% to 100%. 65% of people living below the poverty line according to the MPI (Multidimensional Poverty Index) are concentrated in five of the 30 Unhappiest Countries in the World, namely China, Indonesia, Myanmar, Sudan, and Yemen. Across the most miserable countries in the world, the incidence of poverty ranges from less than 1% in 21 countries to over 50% in 22 countries, 19 of which are located in sub-Saharan Africa. The report also highlights that rural poverty dominates considerably in every world region, as 84% of poor people are concentrated in rural locations.
According to a study by the National Institutes of Health, poverty is intricately interconnected to mental health problems like depression and anxiety, which in turn highlights global health inequalities in many of the most miserable countries in the world. As poverty reduction efforts slow down, the demand for anti-depressants and other anti-psychotic medication around the world is on the rise. The global anti-depressant market was valued at more than $16.6 billion in 2023 and is projected to amount to $17.32 billion by the end of 2024, at a CAGR of 4.3%. This stark year-over-year growth can be attributed to heightened mental health awareness coupled with reduced stigma around depression, advancements in diagnostic methods, and government initiatives geared towards mental health. Top players dominating the anti-depressant space in 2024 are Pfizer Inc. (NYSE:PFE) with its flagship antidepressant PRISTIQ, Eli Lilly and Company (NYSE:LLY) with its flagship drugs Prozac and Cymbalta, and Allergan plc (NYSE:AGN) with its experimental drug rapastinel and apimostinel.
Sustainability for Poverty Reduction: An Analysis
A report by McKinsey explores how economic growth which may lead to better living standards for the global population is dependant upon ensuring a greener future. It focuses on the economics of addressing poverty and climate change in tandem, with an exclusive focus on the trade-offs involved. It notes on the poverty side that though there have been tremendous efforts in making historic strides against extreme poverty, there is a need to adopt the MPI as a sustainable framework of analysis when devising policy structures to combat poverty. On the sustainability end of the spectrum, the Paris Agreement lays out an achievable framework to restrict temperature rise to below 2.0°C relative to pre-industrial levels. The report defines the current empowerment gap as the total boost in global consumption required to recognize and meet everyone’s basic needs by 2030, whilst the net-zero gap can be defined as the total investment on low-emissions technologies needed by 2030. Since both are incredibly urgent challenges, there is a glaring need to integrate efforts to offer more holistic solutions, considering the interplay between growth, economic inclusion, and the global net-zero transition.
With global efforts underway to mitigate the effects of climate change and reduce the impact of multidimensional poverty in many of the most miserable countries in the world, prominent climate change ETFs like the Franklin S&P 500 Paris Aligned Climate UCITS ETF (LON:500P), which provides investors exposure to US large-cap stocks aligned to the low carbon transition and seeks to mirror the performance of the S&P 500 Net Zero Index, is raking in increased investments. With net assets north of $270.6 million and 346 holdings as of April 2022, the fund holds major stocks like Mastercard Inc. (NYSE:MA) and Microsoft Corp. (NASDAQ:MSFT). In the last five years, the fund is up 67.57% as of April 22. Another ETF which provides investors access to equities geared towards sustainability and poverty alleviation is the Goldman Sachs Future Planet Equity ETF (NYSE:GSFP), which uses a deep bench of 80+ experienced investors around the world to conduct active, bottom-up security selection of companies which address environmental problems across clean energy, resource efficiency, sustainable consumption, the circular economy and water sustainability like NextEra Energy Inc. (NYSE:NEE) and Waste Management Inc. (NYSE:WM). As investor sentiment around climate-friendly stocks ramps up post slow economic growth rates in 2023, the fund is up more than 0.5% year-to-date, as of April 22.
Companies Working Towards Poverty Alleviation: An Overview
One major company which has diverted significant investment into global poverty alleviation is CVS Health Corp (NYSE:CVS), which makes sure to ensure equal access to employment in rural communities across the world, thereby providing poor people access to quality healthcare. In January 2023, the company launched the CVS Health Community Equity Alliance to acutely address barriers to care in underserved, poorer communities across the United States. CVS Health Corp (NYSE:CVS) is also on the frontlines of the fight against the ‘pink tax’, a premium which marginalizes women from lower income backgrounds from purchasing essential hygiene products. In October 2022, CVS Health (NYSE:CVS) announced cutting the price off of CVS-brand period products by more than 25% across US retail stores to account for the increased sales tax on products in more than 12 states.
Another company on the frontlines of the war against poverty is Nestle S.A. (OTC:NSRGY) has launched numerous initiatives across many countries to alleviate poverty rates and ensure premium quality nutrition to even the world’s most impoverished communities. The company has initiated multiple programs for poverty reduction geared towards some of the most marginalized communities in countries Nestle S.A. (OTC:NSRGY) operates in. Like Nestle S.A. (OTC:NSRGY), Mastercard Inc. (NYSE:MA) as also divested significant investments in poverty reduction by implementing initiatives targeted at financial inclusion, education, and vocational training. Under the ‘Young Africa Works’ initiative for instance, Mastercard Inc. (NYSE:MA) strategizes solutions for Africa’s youth employment challenge in a bid to develop a sustainable avenue out of the poverty trap.
Copyright: halfpoint / 123RF Stock Photo
Our Methodology
To compile our list of the 30 most miserable countries in the world, we decided to build upon the global misery index by economist Arthur Okun by expanding it beyond the simple calculation of the seasonally adjusted unemployment rate to the annual inflation rate in a country. According to a study by the Centre for Economic Performance (CEP), there is a need to redefine misery by offering more perspective. The study builds upon the Okun’s misery index by measuring life satisfaction, the primary criteria for which are poverty (below 60% of median income), seasonally adjust unemployment rates, annual inflation rate, and rates of diagnosed depression and anxiety.
Therefore in our index, we considered four primary metrics to measure misery in each country. We assigned an equal weightage to each metric according to the CEP study: poverty (25 points), unemployment (25 points), inflation (25 points), and depression rates (25 points). To determine poverty in each country, we decided to use the index from our article 50 Poorest Countries Based on GDP Per Capita (2023 PPP). To determine unemployment, we used data from our article 25 Countries with the Highest Employment Rates in the World. To determine countries with the highest inflation rates, we used index we created in our article 20 Countries With The Highest Inflation in 2023. Lastly, to list the countries with the highest depression rates, we used data from our article on 20 Countries With Most Antidepressant Users In The World.
We created primary rankings for each metric by listing the top 50 countries in each of the four areas, poverty, unemployment, inflation, and depression rates. As expected, there was significant overlap amongst all four primary lists. Then, we assigned points to each country based on its relative position in each primary list. For instance, if a country ranked number 1 on a list, it received 25 points. If it ranked second, it received 24.5 points, and so on. We then tabulated the total number of points scored by each country out of 100 to arrive at a cumulative score for each entry. We then ranked each entry based on these cumulative scores, from lowest to highest.
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30 Most Miserable Countries in the World
30. Egypt
Insider Monkey’s Score: 54
The political instability and war situation in its neighboring countries has led Egypt to experience economic challenges as the tourism industry faces a decline and the price of food and fuel increases, making it one of the most miserable countries in the world.
29. Tunisia
Insider Monkey’s Score: 57.5
The standard of living in Tunisia has deteriorated to a great extent as the price of necessities increases and wages decrease. This has also led to a lot of people migrating out of Tunisia.
28. Eswatini
Insider Monkey’s Score: 58
Currently, the unemployment rate in Eswatini is the highest in over a decade. This is mainly due to the low quality of education, lack of labor skills, and inequality in the consumption of resources throughout the country.
27. Lesotho
Insider Monkey’s Score: 61
Lesotho has the greatest suicide rates in the world. One of the reasons why the suicide rates are so high in the country is the lack of resources to address and treat mental health disorders like depression.
26. Iraq
Insider Monkey’s Score: 63.5
In the current years, the unemployment rates have increased, especially amongst the youth. This is primarily due to the increase in inflation rates and a decrease in production, altogether.
25. South Korea
Insider Monkey’s Score: 68
Some of the main problems in South Korea include unemployment among the youth, dangerous working conditions, and poverty. Thus, South Koreans have been experiencing various challenges regarding houses and pricing.
24. Uzbekistan
Insider Monkey’s Score: 68.5
In recent years, the people of Uzbekistan have experienced a decline in freedom of speech and a rise in domestic violence and torture. This has greatly impacted and impaired the mental health of the people of Uzbekistan.
23. Brazil
Insider Monkey’s Score: 69
Brazil has an extremely high percentage of its citizens suffering from mental health problems, especially after the COVID-19 pandemic. The minority groups are also greatly marginalized by the government and community.
22. Tajikistan
Insider Monkey’s Score: 71.5
Tajikistan is one of the most miserable countries in the world primarily because the citizens of the country have been deprived of personal freedom. They also experience violence and poverty to a great extent.
21. Democratic Republic of Congo
Insider Monkey’s Score: 73
The armed conflict and political instability are some of the main problems in the Democratic Republic of Congo. This conflict results in violation of human rights and gender-based violence in the country, making it one of the most miserable countries in the world.
20. Bosnia and Herzegovina
Insider Monkey’s Score: 76.5
Bosnia and Herzegovina is highly deindustrialized. In addition to that, the unemployment rates in the country are high to the extent that a large proportion of its youth is without a job, which impacts the standard of living in the country.
19. Rwanda
Insider Monkey’s Score: 77
The most common types of psychological disorders in Rwanda include Post-Traumatic Stress Disorder (PTSD) and depressive disorder. A big percentage of the youth in Rwanda suffer from a psychological disorder.
18. Botswana
Insider Monkey’s Score: 79
High rates of unemployment are a serious problem in Botswana, primarily because most of its unemployed population consists of youth. Even though Botswana’s economy is comparatively stable, its unemployment rates continue to rise.
17. Tonga
Insider Monkey’s Score: 82.5
Hardship and poverty are some of the primary issues faced by the people of Tonga. Due to a limited number of resources, the country depends on external resources, which increases food insecurity and poverty.
16. Sierra Leone
Insider Monkey’s Score: 83
Currently, Sierra Leone is facing surging rates of inflation that have occurred due to the depreciation of the currency of the country as well as an increase in food and fuel prices.
15. Haiti
Insider Monkey’s Score: 84
For decades, Haiti has faced a prevalence of political and economic instability. Due to this, the violence in the country has increased, resulting in high crime rates and mental health problems among the citizens, making it one of the most miserable countries in the world.
14. Ghana
Insider Monkey’s Score: 84.5
In recent years, Ghana has experienced extremely high rates of inflation, which has led to a decline in the value of the currency and increased the prices of fuel and food. The inflation rates continue to increase every year.
13. Cuba
Insider Monkey’s Score: 86
The people of Cuba have been facing a wide range of challenges, mainly related to political and economic problems. Cuba has been experiencing political repression and the citizens of the country are often denied basic rights, making it one of the most miserable countries in the world.
12. Ukraine
Insider Monkey’s Score: 87
Ukraine is one of the most miserable countries in the world, primarily because of the high unemployment rates in the country. This has occurred because of the sharp reductions in the country’s GDP.
11. Argentina
Insider Monkey’s Score: 89
Psychological discomfort or mental health problems related to depression and anxiety are highly common in Argentina. This is primarily because of the high inflation rates which impairs the mental health of the citizens.
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Disclosure: None. 30 Most Miserable Countries in the World is originally published on Insider Monkey.