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Global poverty is decreasing, but billions of people still do not have the resources they need to survive and thrive. Economic growth can reduce poverty, but it can also drive inequality that generates social and economic problems. And efforts at domestic resource mobilization through taxation, though critical to funding the SDGs, can negatively impact the poor. In this work, CGD experts offer suggestions to improve how the world tracks and tackles poverty and the inequities the international global system creates.
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According to The Economist, India's proposal to give every citizen a cash transfer using the digital platform Aadhar could reduce absolute poverty from 22 percent to 0.5 percent. For a country that is home to a third of the world's poor, could Universal Basic Income (UBI) fundamentally change the picture of poverty, health and well-being in India and the world?
A rise in protectionism and increased external uncertainty may compound already existing domestic weaknesses. Latin America cannot run the risk of being unprepared for the significant potential direct and indirect effects of such a menace to its exports, capital inflows and growth.
Yesterday, Lant Pritchett expressed his bewilderment at my open letter to Bill Gates advocating cash for the poor rather than chickens. I think Lant’s right and he’s wrong. We have to focus on the big picture and economic growth as a society, but I think there’s a strong argument for directly tackling the worst poverty now.
Martin Kirk and Jason Hickel published a piece earlier this week on the annual Gates Letter. The core critique is that the letter is too rosy. In particular, Kirk and Hickel say of the Gates' letter: "some of their examples are just wrong." The case they provide in illustration is the idea that poverty has been cut by half since 1990. The Gates "use figures based on a $1.25 a day poverty line, but there is a strong scholarly consensus that this line is far too low." Use other poverty lines, and global poverty "hasn’t been falling. In fact, it has been increasing—dramatically.” (See related pieces by Jason here and here). I don't think this critique holds up.
Using standard fiscal incidence analysis and the new methodological developments by the Commitment to Equity (CEQ) Institute, this paper estimates the impact of fiscal policy on inequality and poverty in sixteen countries in Latin America around 2010.
Americans have three choices regarding the low-paying, often hazardous jobs most don’t want: keep foreign labor here, continue to import the needed products, or use robots. To pretend otherwise is doing everyone a disservice.