Home
/
RELIGION & LIBERTY ONLINE
/
Economic growth lifted another hundred million people out of extreme poverty
Economic growth lifted another hundred million people out of extreme poverty
Apr 3, 2025 11:31 PM

The number of people living in extreme poverty continues to decline, notes a report released yesterday by the World Bank.

In 2013, the year of the prehensive data on global poverty, an estimated 767 million people were living below the international poverty line of $1.90 per person per day. This is a decrease of about 100 pared with 2012. The decline is primarily attributed to the reductions in the number of the extreme poor in South Asia (37 million fewer poor) and East Asia and the Pacific (71 million fewer poor). Those areas show a changein the extreme poverty headcount ratio of 2.4 and 3.6 points, respectively

The one region where poverty remains doggedly persistent is Sub-Saharan Africa. This area has the world’s largest headcount ratio (41.0 percent) and is home tothelargest number of the poor (389 million)—more than all other regions of the bined. The report points out that this is a “notable shift with respect to 1990, when half of the poor were living in East Asia and Pacific, which, today, is home to only 9.3 percent of the global poor.”

The key difference between East Asia and the Pacific and Sub-Saharan Africa?Economic growth. Unfortunately, while noting this fact, the researchers who wrote the World Bank’s report claim the real problem is inequality. While inequality may be symptomatic of extreme poverty, it is not the primary cause—as the World Bank’s own report reveals.

For example, the report tut-tuts the increase in e of the top 1 percent (which is a key driver of e inequality):

In many economies in which information on the top 1 percent of the e distribution is available, such as Argentina; India; the Republic of Korea; South Africa; Taiwan, China; and the United States, the share of the top 1 percent in total e has been increasing. In South Africa, the top e share roughly doubled over 20 years to parable with those observed in the United States.

But notice that the areas where e of the top 1 percent has increased are also the areas where extreme poverty has either been eliminated or reduced.The report also admitsthat policies that reduce inequality tend not to affect other areas and do not even have long-term effects on inequality:

Overall, these country cases also highlight that success in reducing inequality and boosting shared prosperity in a given period does not necessarily translate into similar success on other economic, social, or political fronts, nor into sustainable reductions in inequality over time.

This perverse obsession with e inequality has to stop. If we truly want to help the global poor we need to stop worrying about whether the rich (or middle class) are getting richer and focus more on how to raise the poor out of poverty. Historically, the only way that has ever been plished is by increasing economic growth. It’s the reason why about 1.1 billion fewer people are in poverty today—and the reason why the next billionwill be lifted out of poverty tomorrow.

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
Is Your Child “Richer” Than the “Poorest” 2 Billion People in the World Combined?
“The bottom half of the world’s population owns the same as the richest 85 people in the world.” The stat was quoted last month in a report by the development organization Oxfam, but similar claims have mon.You’ve probably seen this statistic—or one like it—before in articles about economic inequality and assumed they must be somewhat true. But they aren’t. In reality, they pletely meaningless. One of the problems is that parisons are based on net worth (assets minus liabilities). If...
A Parable for the Entrepreneur
In this week’s Acton Commentary, “A Parable for the Unemployed,” I provide a brief survey of the biblical view of work, concluding with reference to the parable of the workers in the vineyard in Matthew 20. As I argue, this parable “might just as well be called the parable of the jobless. It teaches us to wait patiently and expectantly for ways that we can be of service to God through serving others.” Or as the Theology of Work mentary...
A Note of Thanks
There’s a good deal of new research that connects things like happiness and satisfaction to experiences rather than to material goods. If you want to be happy, the advice goes, buy experiences, not things. There’s some truth to this, of course, but the reality is a bit plex. After all, don’t you also have “experiences” when you use “things”? In fact, I want to take a moment to write a brief note of thanks for a little material item that...
5 Reasons Why Christians Should Care About Economics
I recently pointed to a helpful talk by Greg Forster to highlight how understanding economics is essential for developing a holistic theology of work, vocation, and stewardship. Economics connects the personal to the public, and prods our attentions and imaginations to the broader social order. In doing so, it alerts us to a unique and powerful mode of Christian mission. In his latest book, Flourishing Faith: A Baptist Primer On Work, Economics, And Civic Stewardship, Chad Brand expands on this...
C.S. Lewis on Vocation in the Economy of Wisdom
In Abraham Kuyper’s newly translated Scholarship, he explores the Christian’s role in the Economy of Wisdom. Addressing students of Free University in Amsterdam, he asks, “What should be the goal of university study and the goal of living and working in the sacred domain of scholarship?” Though he observes certain similarities with other forms of labor — between teacher and farmer, professor and factory worker — and though each vocation is granted by God, Kuyper notes that the scholar is...
Federal Court Rules Religious Organizations Can Hire (and Fire) for Religious Reasons
Earlier today a federal appeals court handed down an important ruling that protects the liberties of religious organizations. In the case of Alyce Conlon v. InterVarsity Christian Fellowship/USA, the United States Court of Appeals for the Sixth Circuit rejected a plaintiff’s attempt to enforce state and federal gender discrimination laws on one of the nation’s largest Christian campus ministries. According to the court opinion, Alyce Conlon worked at InterVarsity Christian Fellowship/USA (IVCF) in Michigan as a spiritual director, involved in...
Jonathan Witt: Free Economy Equals Clean Water
At The Stream, Jonathan Witt questions why nations with free economies have cleaner water. After all, wouldn’t it seem more likely that countries with heavy government regulations regarding the environment have cleaner water? An examination of the most polluted rivers and streams in the world paints a different picture. With only a handful of exceptions, the dirtiest rivers in the world are located within some of the most restrictive countries. In contrast, three of the top five cleanest streams orin...
Video: Arthur C. Brooks Outlines The Formula For Happiness
The 2015 Acton Lecture Series continued on January 29th with a presentation by American Enterprise Institute President Arthur C. Brooks, who delivered a great talk on whatreally leads to happiness in life. In an era when Americans are finding less and less satisfaction with their nation while enjoying great pared to much of the rest of the world and overall human history, what can we do to regain our confidence in the American enterprise system that has lifted much of...
Mini-Grants on Free Market Economics
Are you a professor interested in free market principles? Do you know of one? The Acton Institute is offering mini-grants between $1,000-$10,000 for faculty at colleges, universities, and seminaries in the United States and Canada. The purpose of these mini-grants is to enhance the effectiveness in the teaching and scholarship of market economics. In the past, these mini-grants were only available for business and economics faculty at Christian schools, but this year any faculty (in the U.S. and Canada) working...
Unemployment as Economic-Spiritual Indicator — January 2015 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 thelatest numberswe need to know (see...
Related Classification
Copyright 2023-2025 - www.mreligion.com All Rights Reserved