The Positive Impact ‘Ending Extreme Poverty’ may drive on the Global Economy and on the Environment ( Part 1)

Throughout the course of Humanity, people have undertaken Actions over the years which has driven Positive Impacts in human society. Humanity is the human race, which includes everyone on Earth. It’s also a word for the qualities that make us human. Humanity means helping others when they need our help, whenever possible, at times ignoring our interests, extending unconditional love to each and every living being on Earth.
The present article is derived from a book (collection) titled “Positive Impact to Humanity“, available on Amazon and on Morebooks.   As the World is witnessing Environmental, Social and Health Crises occurring in the countries, the Book “Positive Impact to Humanity” is written to  for inciting Humanity on the need for the implementation of Positive Actions in human societies for improving Life on the planet.
The Book “Positive Impact to Humanity” is a collection comprising three works:
  1. an analysis on how reducing Extreme Poverty will drive a Positive Impact on the Global Economy and on the Environment.
  2. a narrative presenting the Positive Impacts Benjamin Franklin, the 15th of a family of 17 children, forced to leave school at the age of 10 due to financial difficulties, has contributed to make in Society throughout his life journey.
  3. the story about the martyrdom of the only surviving grandson of the Prophet Mohammad of Islam and descendant of a long line of divinely appointed Messengers, the Imam Hussein, along with his family and companions, in an epic battle between Good and Evil 1335 years ago in Karbala, which laid the ideological foundations for drawing Humanity’ international borders.

The Positive Impact ‘Ending Extreme Poverty’ may drive on the Global Economy and on the Environment. ( Part 1)

Is Reducing Poverty the answer for Boosting the Global Economy and for Driving a Positive Impact on the Environment ?

The available datas on extreme poverty published by the World Bank starts from 1981 onwards. Though, Researchers have reconstructed informations on the living standards of the more distant past. Two authors, Bourguignon and Morrison, wrote in 2002 a seminal paper on this. The authors reconstruct, in this paper, measures of poverty as far back as 1820 using the measure of ‘one dollar per day’, since the poverty line of 1.90 int.-$ per day was just introduced in 2015.

In 1820, the vast majority of the world’ population lived in extreme poverty and only a tiny elite enjoyed higher standards of living. Over the last 200 years, economic growth completely transformed our world, with the share of the world population living in extreme poverty falling continuously over the last two centuries. This is even more remarkable when we consider that the population increased 7-fold over the same time. In a world with no economic growth, facing an increase in the population would result in less and less income for everyone. The world population increasing 7-fold would be potentially enough to drive everyone into extreme poverty.  Yet, the exact opposite happened. In the time of unprecedented population growth, we managed to lift more and more people out of the extreme poverty of the past. To Compare income or consumption levels over long periods of time is very difficult because the available goods and services tend to change significantly, to the extent where even completely new goods and services emerge. This point is so significant that it would not be incorrect to claim that every person in the world was extremely poor in the 19th centuryNathan Rothschild, who was surely the richest man in the world in 1836, died from  an infection—a condition that can now be treated with antibiotics costing less than a couple of cents. Today, only the very poorest people  in the world  would die in the way that the richest man of the 19th century died. This example is a good indicator of how difficult it is to judge and compare levels of prosperity and poverty, especially for the distant past. The trend over time becomes more clear if one compares the availability of necessities like food, housing, clothing, and energy. As more and more countries were becoming industrialized and were increasing their work productivity, their economies started to grow and poverty began to decline. According to the paper from the two authors, Bourguignon and Morrison, by 1950 only a little more than a quarter of the world population was not living in poverty.

From 1981 onwards, we have better empirical data on global extreme poverty. The estimates for the past, from the two authors Bourguignon and Morrison, are based on national accounts and additional information on the level of inequality within countries. The data from 1981 onwards come from the World Bank, which bases their estimates on household surveys. According to these household surveys, 44% of the world population lived in extreme poverty in the year 1981. Since then, the share of extremely poor people in the world has declined very fast – in fact, faster than ever before in world history. The share of people living in extreme poverty was divided by 4 in 32 years, reaching levels below 10% in 2015. The mission of the World Bank Group, carved in stone at its Washington headquarters, states : “Our Dream is a World Free of Poverty.” This mission underpins all of the World Bank’ analytical, operational, and convening work in more than 145 client countries, and the mission is bolstered by its goals of ending extreme poverty within a generation and promoting shared prosperity in a sustainable manner across the globe.

There has been marked progress on reducing poverty over the past decades. In 2010, Five years ahead of schedule, the world attained the first Millennium Development Goal target – to cut the 1990 poverty rate in half by 2015. Despite the progress made in reducing poverty, the number of people living in extreme poverty globally remains unacceptably high. And given the forecasts on global growth, poverty reduction may not be fast enough to reach the target of ending extreme poverty by 2030.

( The article is to continue in Part 2)

Fadairo Kelly Wilfrid, is a contributor editor for the Long term Economy Blog

Kelly Wilfrid Fadairo

The Major Purpose of my Life is to contribute to the Global Effort undertaken for Building a Better World to be left as inheritance for the Coming Generations. I am a Christian

Kelly Wilfrid Fadairo has 4 posts and counting. See all posts by Kelly Wilfrid Fadairo

Kelly Wilfrid Fadairo

One thought on “The Positive Impact ‘Ending Extreme Poverty’ may drive on the Global Economy and on the Environment ( Part 1)

  • Stephen Saunders

    Fascinating statistics and line of thought on poverty, Kelly. It makes you wonder what the real issue is — the measuring of poverty, the causes and drivers of it, the effects of it, it’s scope, or it’s future. Benjamin Franklin said “necessity is the mother of invention”, so economic necessity must be the mother of economic invention. When I see a poor person I think to myself, what mindset has caused this? Whatever mindset it is, it cannot be far from my own mindset, as I am not rich either. I can save a little money here and there by altering my lifestyle and habits, but basically it seems I was destined to have the lot I have. I was not born into poverty, but not into riches either. So this seems the case for many. I look forward to part 2 of your series!

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