How do inequality and poverty affect companies?

Reducing poverty and inequality in the 2030 Agenda


The project advises the Federal Ministry for Economic Cooperation and Development (BMZ) on the implementation of the 2030 Agenda, particularly with regard to goals 1 and 10 and the overarching principle of “Leave no one behind”. In order to efficiently reduce poverty and inequality, context-specific analyzes and individual solutions are required. The project is therefore developing and piloting a poverty analysis tool and inequality diagnostics. These are used to identify the causes and drivers of poverty and inequality in specific country contexts and to create a knowledge base. In addition, specific recommendations for action can be derived for greater consideration of the issues. In addition, advisory tools, project approaches and example indicators are developed with which the topics in project and policy work in partner countries of development cooperation are strengthened. These include the “Inequality Policy Mix Toolkit”, “Pro-Poor Digital Access Assessment Tool”, sample indicators on poverty, inequality and LNOB, as well as project approaches to reduce poverty in fragile states.

The project is also involved in a multi-actor network to reduce inequality. Together with representatives from science, politics and practice, numerous events take place that promote North-South exchange and the exchange on existing approaches between the various actors. Seminars and conferences were organized in Cape Town and Brussels, among others, which reached a total of 150 participants from various partner countries.

The “Inequality Challenge” innovation fund aims to exemplarily implement the issues of inequality and LNOB in the partner countries of German development cooperation, to generate learning experiences and to develop and apply innovative instruments to reduce inequality. The fund comprises ten projects in various partner countries around the world. In addition, implementation experience for LNOB is processed. As part of online training, important know-how and group learning (peer learning) between those involved in German development cooperation and external parties are promoted.


Poverty orientation: Selected groups are reached directly through individual funding measures in the partner countries. A “Multidimensional Poverty Peer Network” (MPPN) links countries that are introducing a multidimensional poverty index and using it for policy-making and reporting on the implementation of the 2030 Agenda.

Gender equality: Different policy areas are better coordinated with regard to equality between women and men. When implementing the innovation fund, for example, central aspects of reducing inequalities between the sexes are dealt with.

Human rights: The measures of the project have a positive effect on the observance of human rights. The strengthening of the LNOB principle is closely related to the promotion of human rights.
A lively transfer of knowledge between people is stimulated through seminars and training courses. This draws a great deal of attention at home and abroad to the core principles of the sector project.