Economic Growth and Poverty
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Paula Diaz
College:
College of Business and Public Management
Major:
Economics
Faculty Research Advisor(s):
Chen Meng
Abstract:
Two centuries ago, the prevailing belief was that widespread poverty was inevitable; however, economic growth has demonstrated its capacity to reduce poverty over time. Despite significant strides, extreme poverty persists for nearly one in ten individuals globally, as highlighted by the 'international poverty line.' The stagnation of economies in the world's poorest regions presents a critical challenge, with millions trapped in destitution. This research examines the trajectory of extreme poverty over the past two centuries, revealing significant progress alongside persistent challenges. Utilizing data adjusted for inflation and regional disparities, the study underscores the importance of economic growth in lifting populations out of poverty. Analysis reveals that while many regions have experienced growth, certain countries, particularly in Sub-Saharan Africa, remain mired in extreme poverty due to economic stagnation. Without sustained growth, the prospect of eradicating extreme poverty remains uncertain, posing profound implications for global development and equity, especially in the face of emerging challenges like climate change. This research calls for increased attention to the economic plight of the world's poorest nations, emphasizing the urgency of addressing their stagnant economies to ensure continued progress against extreme poverty on a global scale.