According to the latest publication from our world of data, world poverty has begun to decline. The research organization has regarded this as the most important progress in human history. However, the elimination of worldwide poverty still lies far ahead.
Max Roser, The Chief executive officer (CEO) of our world of data, delineated the possibility of leaving widespread poverty behind based on the reality of majority of the world being poor. He also revealed how far global economy needs to advance to end poverty.
With regard to the global exit from global poverty, Roser analyzed a country, which has achieved these feet. In the publication, Sweden, experienced despotic poverty two centuries ago. However, the Swedish economy began to develop resulting from adaption of mainstream technology for production.
Rosers words” Two centuries ago, the huge majority of people in Sweden lived in deep poverty. Every fourth child died, and close to 90% of the population was so very poor that they could not afford a tiny space to live, some minimum heating capacity, and food that would not induce malnutrition.
“From the late 19th century onwards Sweden’s economy increasingly adopted modern production technology and achieved the productivity gains that made economic growth possible. A century ago Swedes were still poor, but the majority had left the very worst poverty behind”
“Today the poverty line in Sweden is set at about $30 per day (this is adjusted for price differences between countries and measured in international-dollars).
“The strong economic growth in the last century made it possible that the majority of Swedes are living above the poverty line.”
Furthermore, Max Roser explained the reality of major economies around the globe still living in abject poverty. Reiterating that factoring price differentials, the latest statistics show that 85% of the world population live below this poverty line. He divulged that the only countries in which not nearly everyone lives in poverty are high-income countries.
“Taking into account the different price levels across countries, the latest statistics show that 85% of the world population live below this poverty line.
“The only countries in which not nearly everyone lives in poverty are high-income countries. No country, not even the richest countries, has eliminated poverty. There are no ‘developed’ countries, there is work to do for all. “ Roser explained
The CEO of our world of data concluded by vigorously elucidating how far the global economy needs to grow to eradicate poverty. He stressed that the share of poverty depends on the average level of income and the level of inequality, explaining that reduced income inequality has led to a proportional reduction in poverty but because the average income in the majority of countries in the world is much lower than $30-poverty-line, strong growth is necessary for global poverty to decline.
Roser’s words, “The economic history of today’s richest countries shows that widespread poverty is not inevitable. What needs to happen to achieve the same for all people in the world ?
“The share in poverty in any country depends on two factors: the average level of income and the level of inequality.”
“Some countries reduced inequality successfully and thereby reduced poverty. Lower inequality in the future can further reduce poverty. But because the average income in the majority of countries in the world is much lower than $30-poverty-line, strong growth is necessary for global poverty to decline.
“The global data makes clear why the world needs much more growth to end poverty. The world as a whole today is in a situation not so different from Sweden a century ago. The majority of the world left extreme poverty behind, but is still far poorer than $30 a day.
“Even after two centuries of the global fight against poverty, we are still in the early stages. The history of global poverty reduction has only just begun.”
Author: Ayeni Samson
