In 1990, 43% of people on Earth lived in extreme poverty. Today it is around 10%. Over the same period, around eight million fewer children die each year before their fifth birthday.
That is one of the greatest achievements in human history, and most people have never heard about it. So what did it?
The global picture:
The fall in poverty has not come from aid or redistribution alone. It has come overwhelmingly from economies growing: more jobs, more trade, more productivity, more wealth created than before. The https://ourworldindata.org/poverty tells the same story decade after decade.
It has come overwhelmingly from growing economies: more jobs, more trade, more productivity, and more wealth created than before.
Poverty and Growth in India
India’s story: According to the World Bank, around 270 million Indians recently moved out of extreme poverty. The common thread is growth, and the opportunities it created for families and communities. Poverty remains a central challenge in some regions, guiding policy and international aid efforts.
The catch: Growth must outpace population growth. When an economy grows more slowly than its population, people, on average, get poorer, even as headline numbers rise.
Is growth greedy?
It is a fair question, and one I take head-on in the video. My view: growth is not about a few people getting rich. Without it, the poorest have the most to lose.
Why this matters for Britain
The same logic applies at home. Growth is what pays for nurses, pensions and rising wages without asking the same taxpayers for more, year after year. When growth stalls, every political debate becomes an argument about how to slice a smaller cake. Britain’s growth per person has slowed every decade since the 1980s, and that is exactly where this series goes next.
Key takeaways
- Extreme poverty has fallen from 43% to around 10% of the world.
- Economic growth, not just good intentions, made that possible.
- What matters is growth per person, and Britain’s has been slowing for decades.
Next episode: Where did Britain’s growth go? Follow the whole series here.
If you’d like me to speak on this topic at your organisation or community group, get in touch.
Inspired by The Morality of Growth by Robert Colvile (Centre for Policy Studies). Views expressed are my own.
Sources: World Bank (global and India poverty); WHO / UN IGME (child mortality).