Home
/
RELIGION & LIBERTY ONLINE
/
Absolute and relative poverty: The ‘dogma’ of economic equality
Absolute and relative poverty: The ‘dogma’ of economic equality
Nov 29, 2025 5:10 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
Alejandro Chafuen in Forbes: The U.S. economy in 2019 – challenges and lower expectations
Where is the economy heading in 2019? Changes in economic growth are much less volatile than the performance of stock markets. In order to forecast what will happen in an economy it is better to focus on the fundamentals, which is to say, examining causes rather than effects. In my forecast for 2018, I included as a factor of my optimism the increase in value of U.S. stocks during the first years of the presidency of Donald J. Trump. This...
Criminal justice reform: Possible effects of the First Step Act
This is part three of a series on criminal justice reform. The First Step Act was one of the last laws passed by the 115th Congress and signed by President Trump before the current federal government shutdown. The act, which largely focuses on recidivism reduction through prison reform and some sentencing reforms, is also notable for the generally bipartisan support it received. In this finalpart of a three-part series on criminal justice reform, we’ll consider some of the implications of...
How do we measure inflation?
Note: This is post #105 in a weekly video series on basic economics. Inflation is an average rise in prices. But how exactly is this average rise in prices measured? In this video by Marginal Revolution University,Alex Tabarrok explains how inflation in the United States can be measured using theBureau of Labor Statistics’ Consumer Price Index (CPI)—a weighted average of the price increases. We can calculate the inflation rate by the percentage change in the CPI over a given period...
Reviving the spirit of free trade
The current support for tariffs in the United States has left me disappointed, frustrated, and in many unproductive debates. The French political philosopher, Frédéric Bastiat, best articulated my sentiments in an 1847 letter to Richard Cobden, “And I want not so much free trade itself as the spirit of free trade for my country. Free trade means a little more wealth; the spirit of free trade is a reform of the mind itself, that is to say, the source of...
6 Quotes by Teddy Roosevelt on virtue and character
Yesterday was the centennial anniversary of the death of Theodore Roosevelt. There are many areas of policy and politics where those of us at the Acton Institute would differ with America’s 26th president. But we share mitment to virtue and character, and its importance for both individual flourishing and for public life. In honor of this anniversary, here are six quotes by Roosevelt on those character and virtue: On virtue and success in life: “There are many qualities which we...
Explainer: What you should know about the U.S. president’s emergency powers
What just happened? Last Friday President Trump said he was considering using his national emergency powers to secure funding for the construction of a border wall between U.S.-Mexico border. “We can call a national emergency and build it very quickly,” said the president. What are national emergency powers? The President of the United States has certain powers that may be exercised in the event that the nation is threatened by crisis, exigency, or emergency circumstances (other than natural disasters, war,...
What Alexandria Ocasio-Cortez gets wrong about Europe
During her interview with 60 Minutes on Sunday, newly sworn in Congresswoman Alexandria Ocasio-Cortez justified her vision of democratic socialism by invoking a caricature of Europe. When asked if she wanted to turn the United States into a version of Venezuela or the Soviet Union, Ocasio-Cortez demurred with an incredulous smile. “What we have in mind,” she said, according to the transcript, “and what of my — and my policies most closely re— resemble what we see in the U.K.,...
Unemployment as economic-spiritual indicator — December 2018 report
Series Note: Jobs are one of the most important aspects of a morally functioning economy. They help us serve the needs of our neighbors and lead to human flourishing both for the individual and munities. Conversely, not having a job can adversely affect spiritual and psychological well-being of individuals and families. Because unemployment is a spiritual problem, Christians in America need to understand and be aware of the monthly data on employment. Each month highlight the latest numbers we need...
Is capitalism making us fat?
As workers emerge from the holidays an average of one pound heavier, weight loss tops every list of New Year’s resolutions. Yet in 2019, physicians are asking politicians to classify obesity as a disease to be treated by taxing sugary foods – and mentators are blaming our penchant for overindulgence on the capitalist system. If obesity is a disease, then in the West it is an epidemic. Some 40 percent of Americans and 30 percent of adults in the UK...
6 Quotes: Richard John Neuhaus on politics and religion
Richard John Neuhaus, founder of First Things magazine, died ten years ago today. Fr. Neuhaus was a Lutheran minister before ing a Catholic priest, and a radical liberal activist before ing a leading voice for religious and political conservatives. In honor of this anniversary of his passing, here are six quotes by Fr. Neuhaus on politics and religion: On politics, culture, and religion: “Politics is chiefly a function of culture, at the heart of culture is morality, and at the...
Related Classification
Copyright 2023-2025 - www.mreligion.com All Rights Reserved