The End of Poverty

(3 of 11)

One part of the puzzle is relatively easy. Most people in the world, with a little bit of prodding, would accept the fact that schools, clinics, roads, electricity, ports, soil nutrients, clean water and sanitation are the basic necessities not only for a life of dignity and health but also to make an economy work. They would also accept the fact that the poor may need help to meet their basic needs. But they might be skeptical that the world could pull off any effective way to give that help. If the poor are poor because they are lazy or their governments are corrupt, how could global cooperation help?

Fortunately, these common beliefs are misconceptions--only a small part of the explanation of why the poor are poor. In all corners of the world, the poor face structural challenges that keep them from getting even their first foot on the ladder of development. Most societies with the right ingredients--good harbors, close contacts with the rich world, favorable climates, adequate energy sources and freedom from epidemic disease--have escaped extreme poverty. The world's remaining challenge is not mainly to overcome laziness and corruption, but rather to take on the solvable problems of geographic isolation, disease and natural hazards, and to do so with new arrangements of political responsibility that can get the job done. We need plans, systems, mutual accountability and financing mechanisms. But even before we have all of that apparatus in place--what I call the economic plumbing--we must first understand more concretely what such a strategy means to the people who can be helped.

Nearly half the 6 billion people in the world are poor. As a matter of definition, there are three degrees of poverty: extreme (or absolute) poverty, moderate poverty and relative poverty. Extreme poverty, defined by the World Bank as getting by on an income of less than $1 a day, means that households cannot meet basic needs for survival. They are chronically hungry, unable to get health care, lack safe drinking water and sanitation, cannot afford education for their children and perhaps lack rudimentary shelter--a roof to keep rain out of the hut--and basic articles of clothing, like shoes. We can describe extreme poverty as "the poverty that kills." Unlike moderate or relative poverty, extreme poverty now exists only in developing countries. Moderate poverty, defined as living on $1 to $2 a day, refers to conditions in which basic needs are met, but just barely. Being in relative poverty, defined by a household income level below a given proportion of the national average, means lacking things that the middle class now takes for granted.