The other economic trajectory: Global poverty in decline
A boy chases pigeons at the central park in Guatemala City, July 12, 2019. According to the World Bank, Guatemala has the largest economy in Central America but is among the worst in Latin America on indicators of inequality and poverty, particularly in rural areas and among indigenous communities.
Oliver de Ros/AP
At a time of some big economic challenges, here鈥檚 a brighter perspective: The world in general has been making some big economic progress over the long term. Poverty is way down. Incomes are up.
This doesn鈥檛 mean the world can rest easy when it comes to the basics of work, opportunity, and safety nets in nations around the world. But it does show that there鈥檚 progress for those nations to defend, at a time when the public focus lately has been on everything from a trade war and fears of recession to political unrest.
Led by progress in Asia, extreme poverty has fallen from a level affecting about 36% of the world鈥檚 population in 1990 to 10% today. And the World Bank is targeting an achievable goal bringing that below 3% by 2030. More-open trade, freer markets, and stable governments have been big parts of that story.
Why We Wrote This
Often the media focus on economic challenges, such as widening inequality, persistent poverty, or stagnant incomes. That鈥檚 important, but so is taking note of real progress.
Big gaps remain. Income inequality remains high, even as Asia鈥檚 catch-up to the West has rebalanced the global distribution of income somewhat. And 鈥媔nequality has been widening within many nations, 鈥媤hich hints at why many people in the United States, for example, are questioning whether capitalism needs reform.
鈥淧eople realize that it鈥檚 not enough to know how GDP is growing,鈥� said in a conversation this month with the group Equitable Growth in Washington, 鈥漷hey want to know how income is growing for people like them.鈥�