New uncertainties come to the fore now that the global economy, after six years of turmoil, is showing signs of a return to a more normal situation, where real interest rates in the United States turn positive and commodity prices stabilize at a somewhat lower level, due to a cooling of red-hot demand from China. How will Latin America, which has been buoyed by capital inflows seeking higher returns, respond to the return of normal? Will the economic and social progress observed during the past two decades hold?
CGD Policy Blogs
A $1 trillion financing partnership to support ending extreme poverty, stopping avoidable child deaths, and meeting other widely supported post-2015 development goals sounds far-fetched. But improbable action is what will be needed if we’re going to come close to making such historically unprecedented progress. Indeed, delivering on proposed zero goals is going to take a broad and deep global partnership that’s about far more than aid.
Lant Pritchett lambasts the donor focus on eliminating extreme poverty because getting the income of poor people to the $1.25/day threshold is a pathetic definition of success. A decade ago Lant had proposed $15/day as more sensible minimum for human wellbeing. Today, he worries that setting our sights too low prevents us from meeting the real goal of development—to build modern, prosperous societies.
This is a joint post with Christian Meyer.
As government workers and international humanitarian aid agencies scramble to respond to super-typhoon Haiyan, the devastation in the Philippines serves as a reminder about the disproportionately high costs of disasters—natural and man-made—for poor people in poor countries.
The World Bank has decided to make this problem – the divergence of the organization’s rhetoric on “extreme poverty” and their clients’ desire for support in their national development agendas – even worse. They have announced that their goal is to “eradicate extreme poverty” (while only “monitoring” the income of the poorest 40 percent in each country—but with no goal).