Home
/
RELIGION & LIBERTY ONLINE
/
Absolute and relative poverty: The ‘dogma’ of economic equality
Absolute and relative poverty: The ‘dogma’ of economic equality
Jan 1, 2026 9:51 AM

On Friday April 11, the Vatican newspaper, L’Osservatore Romano, featured a front-page article on the progress made in international development since Pope Paul VI wrote the encyclical Populorum Progressio in 1967. The author of the article, Fr. Gian Paolo Salvini, S.J., is director of the journal La Civiltà Cattolica. He has a degree in economics and since he has lived in Brazil for many years, he has first-hand experience of development issues.

Salvini’s article is entitled plete Development” (“Uno sviluppo pleto”) but his overall assessment of what has happened over the last 40 years is positive. He cites various statistics showing that “spectacular progress” has been made in terms of reducing absolute poverty. The number of people who have to live on less than one dollar a day has fallen from 29 to 18 per cent between 1990 and 2004. Also the data for longevity, child mortality and literacy show clear improvements.

Salvini identifies international trade as one of the key factors that has contributed to this trend. He is aware that progress has been uneven and that improvements in Asia have been far more marked than in Africa. This highlights that “the greatest success stories are due to the formula industrialize for exports”.

His most striking example to illustrate this point is that of South Korea. The fact that the country’s economic indicators were similar to those of Zaire (today the Democratic Republic of Congo) in the 1960s reflects the central importance of engaging with international trade: Korea’s achievement is largely due to its ability to export its manufacturing products to North America and Europe. This also explains why Dependency Theory, which was fashionable in the sixties and which advised developing countries to disengage with global trade, “is not taught anymore”.

The power of trade to transform poor countries is nowadays beyond doubt and Salvini notes that today it is often “the developing world which is asking for more free trade”, whereas Europe and the United States are obstructing the free flow of goods in agriculture.

But towards the end of the article, Salvini raises a more critical point regarding achievements in international development. He says that in contrast to absolute poverty, relative poverty is increasing: “The distance between those who are doing well and those doing badly, or to put it better, those who are doing well and those who are doing less well is growing.”

Salvini does not provide any data to illustrate this point and his assertion is, in fact, questionable. At the Populorum Progressio conference organized by Istituto Acton in Rome in February, Prof. Philip Booth from the Institute of Economic Affairs in London, specifically addressed the issue of relative poverty:

We should recognise that relative poverty has decreased during the process of globalisation .… Most dramatically, the gap between countries that have recently seen rapid growth and those countries that have been relatively well off for many decades has narrowed significantly … Whilst European Union countries, the US, the UK and Japan grow well below the world average (indeed disposable es are broadly stagnant across much of the developed world), over half the world’s population now lives in 40 countries that are growing at more than 7% per year. Development is happening and is benefiting huge numbers of previously-poor people.

Salvini may be referring to an increase in e inequality within countries but in that case he is not looking at poverty in terms of human needs and real deprivations, but pared to an abstract “ideal”.

Reducing e inequality may seem like a noble aspiration, but it is of minor importance. Prioritizing the alleviation of relative poverty would yield the absurd situation where society as a whole is made poorer only to make it more equal. A desire for greater equality should not justify giving up the real and tangible benefits globalization has brought the poor over the last couple of decades.

Comments
Welcome to mreligion comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
RELIGION & LIBERTY ONLINE
Should Faith-Based Refugee Resettlement Groups Be Debt Collectors?
Over the past few months there has been a lot of discussion about refugees and resettlement. But not much is said about the logistical problems the refugees have to e. For example, how exactly do they get to the United States? The answer is that they have to travel—and thatcosts money. For those who can’t afford to cover the cost themselves, the U.S. government issues interest-free loans through the U.S. Refugee Resettlement Program. The loan repayments are due every month,...
Frankenfish? No, It’s Just a Salmon
My many mentors over the course of my lifetime thus far have advised me, to a person, to be more optimistic and less cynical. The glass, they told me, always should be perceived as half-full regardless the circumstances. Remembering this advice, I’ll forego reprimanding the U.S. Food and Drug Administration for its dithering the past 19 years whether genetically engineered salmon should be sold and, if so, labeled. Instead, I celebrate their long-awaited affirmative decision to allow the sale of...
How a College Is Partnering with Churches to Boost Employment for the Disabled
Contrary to popularperceptions, people with disabilities are equipped with unique skills and creative capacity, giving them a powerful role to play in the world economy, whether as restauranteurs, goldsmiths, warehouse workers, marine biologists, car washers, or Costco employees. Unfortunately, those gifts are not always recognized by the marketplace. According to the U.S. Department of Labor, the unemployment rate for those with disabilities is more than doublethe average for thosewithout. Thankfully, that blind spot is slowly being revealed, whether by forward-thinking...
How We Tax the Poor
Imagine you’re a single mom with one child who receives $19,300 a year in government benefits. A local business offers to hire you full-time at an hourly rate of $15 an hour. At 2,000 hours a year (40 hours for 50 weeks) you would earn $30,000. Should you take the job or stay on the government dole? The additional $10,700 a year certainly sounds enticing. But because you would lose your benefits and have to pay taxes, your disposable e...
IRS Back-Door Enforcer of Shareholder Activists’ Agenda
I’m not entirely sure, but it seems a safe bet that Chicago bluesman Willie Dixon wasn’t referring to the Internal Revenue Service when he wrote his classic “Back Door Man.” But, as it turns out, the IRS is serving as a convenient back-door resource for the progressive movement to name and shame donors to causes and organizations opposed by leftist shareholder activists. The IRS is proposing rules that will grant nonprofit organizations the option of disclosing donors of $250 or...
Why the ‘Proto-Communism’ of Early Christians Doesn’t Work for Modern Society
“There are solid grounds for believing that the first Christian believers practiced a form munism and usufruct [i.e., the right to enjoy the use and advantages of another’s property short of the destruction or waste of its substance],” wrote Peter Marshall in Demanding the Impossible: A History of Anarchism. As evidence Marshall cites the second chapter of the book of Acts: And all who believed were together and had all things mon. And they were selling their possessions and belongings...
Video: Marina Nemat on Finding Faith in an Iranian Prison
On November 19, the Acton Institute was pleased to e Marina Nemat to the Mark Murray Auditorium as part of the 2015 Acton Lecture Series. Marina was born in 1965 in Tehran, Iran, in what was at the time a relatively secular and free nation. (Granted, she lived under the dictatorship of Mohammad RezaPahlavi – the Shah of Iran – but as we were reminded a couple of weeks ago by Jay Nordlinger, when es to dictators you have to...
The Perversion of the Establishment Clause
“Nothing in the Constitution has been so judicially perverted from its original intent as the establishment clause,” says Zack Pruitt in the first entry of this week’s Acton Commentary. “The same clause went from protecting the people from a tyrannical state-run church to punishing those who dare to voluntarily pray on government property.” A football coach in Washington was recently suspended from his duties because he made a habit of praying at midfield following games. Players or students were never...
Nuns Pose as Prostitutes to Fight Sex Trafficking
It sounds like the plot of a Hollywood production: Nuns dressing up as prostitutes to infiltrate brothels and rescue woman and children from sexual abuse. But the organization of religious sisters called Talitha Kum, which translated from Aramaic means “arise child” (Mark 5:41), is real—and they’re expanding across the globe. Talitha Kum, also known as the International Network of Consecrated Life Against Trafficking in Persons, is a network within the International Union of Superiors General which originates from a project...
Black Friday and the Moral Goodness of the Market Economy
“The real question is not does morality inform the market,” says Rev. Gregory Jensen in the second entry of this week’s Acton Commentary, “but whose morality informs the market.” Consumer disapproval of Black Friday has caused a drop in demand. Consequently, retailers have curtailed their investment in these kinds of sale events. If economics is agnostic as to what motivates the change in demand, as a Christian I can’t be. Retailers are responding to the moral cues of shoppers and...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved