There's a lot of heat on the topic of global poverty, but fundamentally a lot of agreement, too. Here is our attempt at a brief consensus position.
CGD Policy Blogs
The world’s poorest people have been getting richer recently. But they remain incredibly poor. The 10 percent of the world’s population still consuming $1.90 or less a day are subsisting on a small fraction of the resources available to people at the US poverty line. So you’d hope that the governments of the countries where they live would be trying to raise their consumption levels. But the reality is more complex.
Moving beyond low income countries makes sense for an institution focused on ending extreme poverty. But does the IFC follow through by focusing on the countries that are home to the extreme poor? Not really.
On Wednesday, Angus Deaton published an op-ed in the New York Times that paints a compelling picture of the depth of poverty in America, and the need for more money and more policy attention to fix it. It's a sobering read, and we strongly agree that America’s most destitute deserve far more support. But in comparing US poverty to poverty in developing countries, we think he’s got his numbers wrong.