Home
/
RELIGION & LIBERTY ONLINE
/
Absolute and relative poverty: The ‘dogma’ of economic equality
Absolute and relative poverty: The ‘dogma’ of economic equality
Dec 31, 2025 1:23 PM

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
What you should know about structural unemployment
Note: This is post #101 in a weekly video series on basic economics. As we saw in the last video, some forms of unemployment—such as short-term, frictional unemployment—can indicate a healthy, growing economy. But what about persistent, long-term unemployment? When a large percentage of those who are considered unemployed have been without a job for a long period of time and this has been true for many years, it’s considered structural unemployment. Structural unemployment can result from shocks to an...
Book Review – Work: Theological Foundations and Practical Implications
“Work: Theological Foundations and Practical Implications”presents a thoughtful prehensive guide to the intersection of theology and work. The text’s contributors are made up of scholars from a variety of studies, including economics, church history, and theology, among others, who offer unique perspectives on work. In the introduction, editors R. Keith Loftin and Acton’s Director of Program Outreach, Trey Dimsdale, ask the question, “Why would anyone remain interested or indeed e interested in a religion that ignores nine-tenths of their life?”...
Access vs. aid: The economic promise of Africa’s new trade agreement
In battling poverty in the developing world, the West is often consumed in debates about foreign aid. Yet many of the core problems stem from more basic lack of access to the pond and opportunities create, participate, and collaborate therein.Last spring, in an effort to address those problems, 44 African leaders and government officials agreed to create theAfrican Continental Free Trade Area(AfCFTA), seeking to improve access to markets and bolster intra-Africa trading relationships across the continent. The participating countries have...
The Acton Institute awards 2018 Novak Award to Lucas G. Freire
Fr. Robert Sirico presented the Acton Institute’s 2018 Novak Award to Brazilian professor Lucas G. Freire on Monday, November 5. Freire’s acceptance speech offered reflections on the “idolatrous distortions” evidenced in modern public discourse by placing too much trust in the state, and too little faith in markets and individuals. He then presented insights from the Reformed tradition as expressed by Abraham Kuyper. Fr. Sirico personally handed Freire – an assistant professor at Mackenzie Presbyterian University in São Paulo, Brazil,...
5 facts about veterans
Today is the official observance of Veterans Day, a U.S. public holiday set aside to thank and honor all those who served honorably in the armed forces both in wartime or peacetime. (Because the federal holiday falls on Sunday this year, the official observance is moved to Monday.) Here are five facts you should know about veterans in the United States: 1. The Veteran’s Administration estimates there are currently 19,998,799 living veterans (18,115,951 men and 1,882,848 women). Out of that...
C.S. Lewis on free will and the key to history
“What Satan put into the heads of our remote ancestors,” says C.S. Lewis, “was the idea that they could ‘be like gods’—could set up on their own as if they had created themselves—be their own masters—invent some sort of happiness for themselves outside God, apart from God. And out of that hopeless attempt e nearly all that we call human history—money, poverty, ambition, war, prostitution, classes, empires, slavery—the long terrible story of man trying to find something other than God...
The sharing economy: How do we maintain a culture of ownership?
As we survey the modern economy, individual ownership appears to be on the demise. We see an increasing preference for access over ownership and collaborative consumption,from the streaming- and cloud-centric features of the latest technology to the increasingly “share-happy” habits of American consumers amid a burgeoning “gig economy.” On the surface, such a shift would seem to bring endless benefits: more options, more flexibility, better quality, cheaper prices, fewer risks, and (presumably) more freedom. Yet despite such benefits, a void...
4 ways Protestants approach the government (video)
Is participating in government a duty or a sin? When Christians have asked how they should engage the public square, Protestant leaders’ responses have run the gamut plete separation (because “this world is not my home”) to the belief that government service is “the most sacred, and by far the most honorable, of all stations in mortal life.” How should Bible-believing Christians look at peting views? Rev. Richard Turnbull, Ph.D. analyzed four historic teachings about the Christian’s role in public...
How missionaries have transformed the world
Despite the negative stereotypes, says Robert Woodberry, missionaries have effectively improved health, education, economic development, and political representation around the world—seemingly more effectively than government aid and secular NGOs: On average, people from countries that had one more Protestant missionary per 10,000 inhabitants 90 years ago currently have 1.5 years more education and 1.3 years more life expectancy. Similarly, for each additional year of Protestant mission activity, countries have $25.72 more GDP per capita on average. Even after rigorous attempts...
Amazon’s HQ2: Alexandria Ocasio-Cortez is right, and wrong
After much anticipation, Amazon announced yesterday that it will open its new headquarters, HQ2, in two locations: Queens, New York, and Crystal City, Virginia. It will also open a third “Operations Center of Excellence” in Nashville. Controversy attended the announcement, as all three cities promised pany subsidies and tax incentives topping $2.2 billion. New York pledged $1.525 billion between tax incentives and grants. Virginia and Arlington agreed to an $800 million package, more than half-a-billion of it in cash grants....
Related Classification
Copyright 2023-2025 - www.mreligion.com All Rights Reserved