Thursday, June 13, 2013

WHAT IS REDUCING POVERTY WORLDWIDE?



I have written many times that if a person reads Scripture he/she cannot avoid the observation that God has great compassion for the poor.  Therefore, we Christians should do the same and we should be very excited about recent news.

The June 1st-7th issue of The Economist (2013) has both an editorial and an article about improvements in worldwide poverty.  The UN has released numbers that show world poverty has dropped from 43% of the world’s population to 21%, during the period 1990 to 2010.  This is astounding.  Nearly one billion people in twenty years have risen above the extreme poverty line of $1.25 income per day.

The Economist, surely not a conservative periodical, goes on to say that the biggest factor in producing this decline is economic growth.  In fact that is bigger than all other factors combined.  Nearly all the poverty reduction comes from Asian countries turning to capitalism and free markets.  Since China has taken to capitalism, 680 million Chinese have risen from the horrific daily life on less than $1.25 per day.

If we were serious about helping the poor, we would work day and night toward the goal of instituting capitalism in poverty stricken countries.  In Africa poverty is raging because, since the decline of colonialism, African governments have listened to liberal economists who tout big governments and massive regulation.  We have been told that poor countries need more aid but The Economist points out that aid to poor countries is nearly inconsequential.  “…it is hard to argue that aid had much to do with halving poverty.”

Many Christians have been led astray by anti-capitalists.  Let’s point out the facts to them.