By Jonathan Power
March 23rd, 2017
The Asian economies are picking up speed again. After the big hit from Wall Street when the bank, Lehman Brothers, collapsed in a heap in 2008, sending shock waves everywhere, a recovery is now in the works.
How many child deaths in the Third World did these bankers cause?
Another question is will future growth be like the past- fast but severely inequitable? The same growth before 2008 that reduced absolute poverty created a widening gulf between the haves and have-nots.
But isn’t that sufficient for the day, many ask? Absolute poverty must be the key mark of progress- raising incomes, giving people more money to seek education for their children or medical care or filling the coffers for the state so that it can fund bore holes in the countryside and sewers in the urban slums.
After all in the period of rapid growth from 1990 to 2008 the number of people living in extreme poverty was almost halved, from more than 1.5 billion to 850 million.
China’s poverty fell dramatically from when 85% of the population lived on less than $1.25 a day to when only 13% lived in poverty. India has also reduced poverty rapidly, particularly under the last Congress government of Manmohan Singh and Sonia Gandhi, but the voters still fell for the opportunistic populism of the BJP and voted Congress out.
Of course there are good arguments why the progress made has not been seen as enough, not just because of rising inequality but because India and China between them have two-thirds of the world’s poor.
Escaping poverty is not enough.Read More »