Home
/
RELIGION & LIBERTY ONLINE
/
Absolute and relative poverty: The ‘dogma’ of economic equality
Absolute and relative poverty: The ‘dogma’ of economic equality
Dec 30, 2025 2:03 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
Discerning God’s Call
For the next two weeks I’m privileged to be teaching a course on Christian ethics and contemporary culture at Farel Reformed Theological Seminary in Montreal, Quebec. This morning’s class focused on the issue of calling and the Christian life. We discussed some of the ways in which God’s call to follow es to different individuals in a variety of circumstances and in a variety of means. As background, we read Alissa Wilkinson’s short essay, “Vocation Takes Patience.” Discerning God’s call...
Audio: Sirico on the Moral Case for the Free Economy
Rev. Robert A. Sirico, President of the Acton Institute, is making the rounds in the national media promoting his new book, Defending the Free Market: The Moral Case for a Free Economy. This morning, Father Sirico was on the air in the Decatur, Illinois area as the guest of Brian Byers of Byers & Company on WSOY AM: [audio: Next up, he took to the airwaves on the Great Voice of the Great Lakes, WJR Radio in Detroit, Michigan, as...
Louisiana’s Valuable Commodity: Prisoners
Why is Louisiana the world’s prison capital? Are the residents of the Bayou State more criminal than other people around the world? Is the state’s law enforcement exceptionally skilled at catching bad guys? Or could the inflated prison population be, at least in part, the result of theperverse economic incentives of crony capitalism? The hidden engine behind the state’s well-oiled prison machine is cold, hard cash. A majority of Louisiana inmates are housed in for-profit facilities, which must be supplied...
Defending the Free Market review: More than Mere Economics
On his Koinonia blog, Rev. Gregory Jensen reviews Rev. Robert Sirico’s new book, Defending the Free Market: The Moral Case for a Free Economy. Jensen: “Daring though the argument is, especially for a Catholic priest, it is also essential that it be made since for too many people (including business people), free market economic theory and policies are little more than a justification for greed. While not denying the excesses of capitalism and real sins of capitalists, Fr Sirico wisely...
Catholic Diocese of Washington, DC and Forty Other Groups Sue Obama Administration
At least forty Catholic dioceses and organizations in the United States have filed suit against the Obama Administration for violation of First Amendment rights. According to , The suits filed by the Catholic organizations focus on the regulation that Health and Human Services Secretary Kathleen Sebelius announced last August and finalized in January that requires virtually all health-care plans in the United States to cover sterilizations and all Food and Drug Administration-approved contraceptives, including those that can cause abortions. The...
Free Acton Institute eBooks on Judaism, Law and the Market Economy (May 20-24)
Beginning today, the conference “Religion and Liberty — A Match Made in Heaven?” gets underway in Jerusalem. Sponsored by the Jerusalem Institute for Market Studies (JIMS), the Acton Institute and others, the event asks questions such as, “Is capitalism not only efficient but also moral?” In conjunction with this May 20-24 conference, Acton is offering its two Jewish monographs through Amazon Kindle at no charge. The two titles: Judaism, Law & The Free Market: An Analysis by Joseph Lifshitz. [Kindle...
The Death of Liberal Catholicism
Is it “game-over” for so-called cafeteria or dissenting Catholics? In a Crisis Magazine article, Acton’s Samuel Gregg, Director of Research, says it is. The demographic evidence for impending extinction is striking. The average age of members of female religious orders that are moving “beyond Jesus” into an alternative spiritual universe is over 70. This contrasts with those orders who joyfully embrace Catholic faith in all its fullness. They’re positively flourishing. Similarly, it’s very hard to find dissenters among seminarians –...
If Christ is Lord, Everything Matters
Recently we had an excellent discussion on twitter about the following idea that @JakeBishop8 shared: “Our greatest fear should not be of failure but of succeeding at things in life that don’t really matter.” In response to this idea we retweeted, another Jake (@JakeBelder) jumped in with: “If Christ is Lord over all, is it right to say there are things that don’t really matter?” What ensued was a great interaction between two “Jakes” about what matters in God’s Kingdom....
The Spiritual Temptation of the Welfare State
The conditions under which the government transfers wealth are different than the conditions under which the church transfers wealth, says James R. Rodgers. Yet many Christian leaders are tempted to use the power of the state to dowhat is required of the church: Ginning up donations, however, is the hard road. Given the imperative that the needy should be fed, how much easier it is to step around the church and the power of the Gospel, and instead to make...
Media Events for “Defending the Free Market”
Fr. Robert Sirico, President and Co-founder of the Acton Insitute, has a busy media schedule to promote his new book, Defending the Free Market: the Moral Case for a Free Economy. Here are just a few that you might want to catch: Tuesday, May 22, 2:40 p.m. EST: The Bob Dutko Show Wednesday, May 23, 6:30 p.m. EST: Book Signing at the Catholic Information Center in Washington, DC – live coverage from C-SPAN Thursday, May 24, 10:30 a.m. EST: The...
Related Classification
Copyright 2023-2025 - www.mreligion.com All Rights Reserved