How to Fight Global Poverty

Have you heard the news? The number of people living in abject poverty—defined as living on less than $1.25 per day—has been halved since 1990. How did that happen? Prof. Stephen Davies explains that extreme poverty has been on the decline in part because two of the world’s most populous countries, China and India, have embarked on a path of economic liberalization and development over the past two to three decades. As more countries have embraced free trade and market-friendly policies, we have seen encouraging news of poverty reductions and greater access to clean drinking water. If such policies continue, Prof. Davies says, it’s not out of the question for extreme poverty to be eradicated in the foreseeable future. These gains are likely to be lost, however, if we make poor economic decisions that take us back toward protectionism and economic controls. With good economic policies and free markets, we can help many of the poorest people in the world.

18 Comments

  1. Daniel Pealer

    The sad part is that there are people who blame the policies that are actually lifting people out of poverty for poverty

  2. Matt Wavle

    It’s not really "protectionism", (which sounds like being protected), it’s just tyrannical control.

  3. Andrei-Claudiu Roibu

    Moral of the story: Right is might; Free trade for a free future; Small state = small problems and Meritocracy through Capitalism is the way an economy should work. 

  4. Anonymous

    While it can certainly be abused, "protectionism" in fact protects business owners (even as foreign protectionism puts limits on them).  Without tariffs, businesses with little or no wage, environment, or even product safety regulations can undercut their prices.  Also, farmers with subsidized goods can undercut the prices of those whose goods are not subsidized, as the US farmers did to farmers in Mexico.  In any event, cheap goods can flood the market and drive local businesses out of business.  A lack of protectionism means a lack of stability, even as an excess of protectionism leads to stagnation and monopoly.

  5. Vikhyat Prakash

    This is wonderful news. But we still have work to do. Lets have a world of some equality. 

  6. Kenny Legge

    There is so much more work yet to be done, but this video makes some great points.

Leave a Reply

Your email address will not be published. Required fields are marked *