Home
/
RELIGION & LIBERTY ONLINE
/
Absolute and relative poverty: The ‘dogma’ of economic equality
Absolute and relative poverty: The ‘dogma’ of economic equality
Jan 25, 2026 10:22 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
Life goes on in Deadwood
More than decade after the conclusion of the critically-acclaimed HBO series Deadwood, a finale has been released that brings the gold-rush era drama to a close. The Deadwood film premiered on HBO last week, and fans of the show will find much to remember and appreciate in this conclusion. Much remains familiar in Deadwood a decade later; the surviving characters are older, but the dynamics and cadences of their interactions remain. The series concluded with an epic clash between the...
New study exposes career training cronyism
Last week the Mackinac Center — a think tank that focuses on public policy in Michigan — published a new study: “Workforce Development in Michigan.” The study, authored by Hope College economics professor, Acton research fellow, and Journal of Markets & Morality associate editor Sarah Estelle, examines the wide variety of skills-training and employment programs in the state. As the Mackinac Center put it in their press release, The government has been actively involved in job training since the 1960s,...
The European left and immigration
Danish elections are usually not high on the list of must-watch political contests but the ing election on June 5 is one that I think worth watching. As this Guardian article illustrates, it is distinguished by the fact that the Danish Social Democrats—the main center-left party in Denmark—have revisited and substantially changed their approach to immigration. Under the leadership of Mette Frederiksen, the Danish Social Democrats have broken with the reigning consensus on the European left, essentially adopting many of...
What Christians should know about recessions
Note: This is the latest entry in the Acton blog series, “What Christians Should Know About Economics.” For other entries inthe series seethis post. What it means: The economy shifts from periods of increasing economic activity, known as economic expansions, to periods of decreasing economic activity, known as recessions. This is known as the business cycle and includes four phases: expansion, peak, contraction, and trough. An expansion is a period between a trough and a peak, and a recession is...
A new Member of European Parliament exposes Europe’s self-doubt
Last week’s elections for European Parliament swept a bountiful harvest of Euroskeptic thorns into the EU’s side. Among them are the Sweden Democrats; Trey Dimsdale has interviewed successful SD candidate Charlie Weimers for the Acton Line podcast, and Weimers contributes a book review of Kasja Norman’s stirring book Sweden’s Dark Soul: The Unraveling of a Utopia to Acton’s transatlantic website. The book’s evocative opening leads to probing questions of Sweden’s searing self-doubt. Weimers writes: Norman starts the book depicting hundreds...
Europe’s dream
Last week, EU voters went to the polls in the latest round of the project of pan-European governance, another step on the supposed road to further unity and prosperity. The results were varied and at odds with one another, and the only constant seems to be dissatisfaction with the status quo. Many nationalist parties—such as in Poland, Italy and the United Kingdom—posted strong results, while countries such as Spain went toward the opposite end of the spectrum and supported socialists....
When the Federal Reserve does too much
Note: This is post #123 in a weekly video series on basic economics. “If you think through all of the variables that shape a country’s economy, it’s no wonder that monetary policy is difficult,” says economist Alex Tabarrok. “It should e as no surprise that the Federal Reserve doesn’t always get it right. In fact, sometimes the Fed’s actions have made the economy worse off.” In this video by Marginal Revolution University, Tabarrok shows what happens when the Fed promotes...
How ‘conservatives’ became the war party
The only thing that can e the stupidity of modern-day progressives like Alexandria Ocasio-Cortez and the 24 people contending for the 2020 presidential nomination of the Democratic Party is an understanding of the price—and the consequences — of the policies that they preach. Progressive policy is expensive, very expensive, and a wise person should be extremely reluctant to spend other people’s money on utopian schemes like the Green New Deal. But people are not wise, and that is why America...
The Ahmari/French debate: A reading list
“If you printed out and stacked up every piece written about the dispute between First Things contributor Sohrab Ahmari and National Review writer David French, it wouldn’t quite go up 68,000 miles—that would be the $22 trillion national debt, stacked by ones—but it would be towering nonetheless,” says Matt Welch. For those who are late to the debate and want to catch up, I’ve collected a reading list of articles related to the controversy. I’ve included the original essay by...
Are rising education and healthcare costs our own fault?
Alex Tabarrok, professor of Economics at George Mason University and co-author of the Marginal Revolution blog, has co-authored a new book with Eric Helland exploring why prices have risen so sharply in healthcare and education. Helland and Tabarrok argue that most of these price increases are caused by the rising price of skilled labor in these fields, driven by what economists call the Baumol effect, The Baumol effect is easy to explain but difficult to grasp. In 1826, when Beethoven’s...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved