Home
/
RELIGION & LIBERTY ONLINE
/
Absolute and relative poverty: The ‘dogma’ of economic equality
Absolute and relative poverty: The ‘dogma’ of economic equality
Jan 12, 2026 10:34 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
Study: How overregulation is stifling the food truck revolution
As protestors continue to boldly decry “corporate greed” with little definition or discernment, progressive policymakers are just as quick to push a range of wage controls and market manipulations to mitigate the supposed vices of free and open exchange. The painful irony, of course, is that the victims of such policies are not the fat-cat cronyists at the top, but the scrappy challengers at the bottom. We’ve seen it with the recent embrace of the $15 minimum wage, which continues...
How the principle of ‘eye for an eye’ advanced human equality
“An eye for an eye leaves the whole world blind” is a claim frequently attributed to Mohandas Gandhi. But while the quote might fit the attitude of a non-violent civil rights leader, it misses how the concept of “eye for an eye” changed the world for the better. The phrase “eye for an eye” is taken from passages in the Old Testament that refer to what is often called thelex talionis, the “law of retaliation.” While it sounds harsh, it...
It’s Friday—but Sunday’s comin’
memoratesthecrucifixion of Jesus and his death at Calvary, the most significantly tragic event in human history. But as pastorS.M. Lockridge(1913-2000) reminds us in this brief Easter meditation, the darkness of this historical Friday pales parison to the light es on Sunday morning. It’s Friday Jesus is praying Peter’s a sleeping Judas is betraying But in’ It’s Friday Pilate’s struggling The council is conspiring The crowd is vilifying They don’t even know That in’ It’s Friday The disciples are running Like...
Taxation and Catholic Social Teaching
“Tax policies and tax levies are an unavoidable part of civilized life,” says Robert G. Kennedy in this week’s Acton Commentary. “The social tradition of the Church emphasizes the duty of citizens to support their government as well as the duties of civil authorities to govern wisely and to respect the ownership rights of individuals and families.” Kennedy outlines five things the tradition Catholic social teaching teaches us about taxation and four things it does not. What the Tradition teaches:...
5 facts about the assassination of Martin Luther King, Jr.
Today marks the 50thanniversary of the assassination of Martin Luther King, Jr. Here are five facts you should know about the killing of the civil rights leader in Memphis, Tennessee. 1. The killing of King in 1968 was the second attempt on his life. A decade before he was assassinated, King was nearly stabbed to death in Harlem when amentally ill African-American womanwho believed he was conspiring against her munists, stabbed him in the chest with a letter opener. He...
Radio Free Acton: Discussing ‘Communism & Christian Faith’; Upstream with mystery novelist Sally Wright
On this episode of Radio Free Acton, Acton’s Drew McGinnis and Dan Hugger discuss the book Communism & Christian Faith with Pavel Hanes, professor in the department of theology at Matej Bel University in Slovakia. Communism & Christian Faith was written by Lester DeKoster at the height of the Cold War and is newly reissued in the Acton bookshop. Then we have an Econ Quiz segment on trade deficits: what are they and how are they measured? Finally, on the...
Why we should learn how to ‘kill American democracy’
During the Cold War, the U.S. military would conduct wargaming simulations in which some units would act as the United States (the blue team) and some would pretend to be Soviet troops (the red team). Through such exercises the military discover the weak points in their strategy before they were exposed bat situations. Over the years, the term “red teaming” came to be used to describe this practice of viewing a problem from an adversary petitor’s perspective. The military and...
‘I, Pencil,’ continued: How man cooperates with nature
In Leonard Read’s famous essay,“I, Pencil,”he marvels over the cooperation and collaboration involved in the assemblyof a simple pencil — plex coordination among global creators that is, quite miraculously,uncoordinated. Read’s lesson is simple: Rather than try to stifle or control these creative energies, we ought to “organize society to act in harmony with this lesson,” permitting “these creative know-hows to freely flow.” In doing so, we will see similar stories manifest, fostering further evidence fora faith “as practical as the...
Adam Smith on the causes—and cures—of crony capitalism
“For Adam Smith, crony capitalism fails on two grounds,” says Lauren Brubaker. “It is unjust, favoring a few at the expense of the many, and it is destructive of the desired end of political economy—economic growth.” Brubaker says Smith’s writings can help us properly frame the problems of crony capitalism, understand the causes, and formulate solutions for preventing or mitigating the corruption of free markets: For Smith, the tendencies to cronyism, which are anchored in human nature, can be tempered...
Gresham’s Law and social media for sale
In his latest column for Forbes, Alejandro Chafuen, the managing director of Acton’s international activities, has a ranking of free-market think tanks measured by social media impact, and discussesGresham’s Law as it relates to social media: The current discussions about the manipulation of social media for political purposes and mercial interests of social-media giants has raised important questions about its impact and deserves much further analysis. In his surprising announcement that he was going to retire in 16 months, Arthur...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved