Corruption, Not Globalization, Is To Blame For Poverty

Por Alejandro Chafuen: Publicado el 7/1/20 en:  https://www.forbes.com/sites/alejandrochafuen/2020/01/07/corruption-not-globalization-is-to-blame-for-poverty/?fbclid=IwAR2OnmE09agthau4qFnO610UQVElohX7nzJMZ1nRo98yFO-ZoQAGQ_1qbGM#66d1fdb02ff5

 

When discussing globalization, advocates of the free economy usually start by stressing the large number of people who have risen out of extreme poverty in the last three decades. This period of poverty reduction showed a parallel growth in globalization. But it has not been even.

Those who try to prove that we are living in the best of times usually use monetary statistics – they count the number and percentage of people who earn less than $1.90 per day. Thanks to progress and some inflation, the threshold for extreme poverty is being revised upward to $3 and even to $5 per day. “Optimistic” economists also provide statistics for factors such as access to clean water, access to electricity, and better and cheaper communications. In most countries human development indices have also improved. Their message is often summarized as “we never had it so good.”

It is only during the last three decades that we have seen think tanks, NGOs, and international bodies introduce indices that measure economic freedom, globalization and respect for the rule of law. Surprising as it might seem, we still do not have reliable international poverty statistics. It seems shocking that the World Bank and its multimillion-dollar bureaucracy – which states that poverty reduction is one of its main goals – can’t come up with up-to-date comparable figures. Most countries use different measures and thresholds and do not report on a yearly basis.

 

Alejandro A. Chafuén es Dr. En Economía por el International College de California. Licenciado en Economía, (UCA), es miembro del comité de consejeros para The Center for Vision & Values, fideicomisario del Grove City College, y presidente de la Atlas Economic Research Foundation. Se ha desempeñado como fideicomisario del Fraser Institute desde 1991. Fue profesor de ESEADE. Síguelo en @Chafuen