The Economist recently reported that the poverty rate had decreased from 43% of the world's population in 1990 to 21% of the world's population in 2010, defined as subsisting below the internationally accepted poverty line of $1.25 a day. This is an amazing accomplishment, with much credit to China's transformation.
It is estimated that two thirds of the fall in poverty came from growth (and the associated increase in household consumption) and one third came from greater equality. The biggest poverty-reduction measure of all is liberalising markets to let poor people get richer. This means freeing trade between countries and within countries.
The decreasing trend of the global poverty rate is also promising. Based on trend estimates, the poverty rate can be further reduced to 5% by 2030. For this to occur, growth and income distribution would need to be sustained or improved, with the main challenge being sub-Saharan Africa.
It is interesting to note that aid had little to do with eliminating poverty [1] [2]. It was found that social programs that assist people in working towards improving themselves were much more effective.
In acknowledging that poverty has been largely eliminated, especially when taking into account that an even lower percentage of the world's population lack food and shelter, it is worth considering how charity should be redistributed. A lot of charity is concentrated on areas that do not need assistance, do not address the root causes of issues they claim to assist, and may actually be harmful. For example, giving money directly to selected relatively less well off families in developed countries. I believe that charity should be diverted to the greater planet, particularly the conservation of flora and fauna that we share this planet with.
It is estimated that two thirds of the fall in poverty came from growth (and the associated increase in household consumption) and one third came from greater equality. The biggest poverty-reduction measure of all is liberalising markets to let poor people get richer. This means freeing trade between countries and within countries.
The decreasing trend of the global poverty rate is also promising. Based on trend estimates, the poverty rate can be further reduced to 5% by 2030. For this to occur, growth and income distribution would need to be sustained or improved, with the main challenge being sub-Saharan Africa.
It is interesting to note that aid had little to do with eliminating poverty [1] [2]. It was found that social programs that assist people in working towards improving themselves were much more effective.
In acknowledging that poverty has been largely eliminated, especially when taking into account that an even lower percentage of the world's population lack food and shelter, it is worth considering how charity should be redistributed. A lot of charity is concentrated on areas that do not need assistance, do not address the root causes of issues they claim to assist, and may actually be harmful. For example, giving money directly to selected relatively less well off families in developed countries. I believe that charity should be diverted to the greater planet, particularly the conservation of flora and fauna that we share this planet with.
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