International Day for the Eradication of Poverty

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Saturday 17. October 2015 was the International Day for the Eradication of Poverty. Many experts believe that the UN Millennium Development Goals have not been achieved: in the Sub-Sahara region of Africa and other countries are still a lot of poverty, about 700 million people live on less than 1.90 dollar a day (World Bank) worldwide. China is a success story: through progressive liberalization and integration of world trade (Axel Dreher, a development economist at the University of Heidelberg), it has been achieved that only one (1) Chinese of ten (10) is undernourished today, – 25 years ago it was one of four. However, experts criticize the unilateral trade relations and that economic growth has been achieved at the expense of the environment and society: the Triple Bottom Line Approach (People, Planet,Profit) had too little consideration!  They point out that the SDGs (Sustainable Development Goals) may serve as a valuable framework and reference, but the implementation of the SDGs has to be executed by national politics (which is often incapable and corrupt). It requires reliable institutions, which can be trusted, Rules of Law, good environment and conditions for companies and investors, and the fight against corruption. Alejandro Cunat, economist at the University of Vienna, views the SDGs skeptical: it makes little sense to put developing countries a list of required measures in their hand, because it depends on the will and the interest of governments too. There are many influential stakeholders in developing countries (not only in Greece) who are interested only in the trade of importing than exporting because much higher profits can be achieved not taking care of the economic and unemployment situation. Success stories of Singapore, Taiwan, South Korea and China cannot be transferred without adaptations, but it can be learned from them. In October 2015 received the poverty researcher Angus Deaton the Nobel Prize. He regards himself as “someone who’s concerned with the poor of the world and how people behave, and what gives them a good life.” Angus Deaton has enhanced this understanding by linking detailed individual choices and aggregate outcomes, his research has helped transform the fields of microeconomics, macroeconomics, and Development Economics. ->

Roland Leithenmayr, VfV

Source: Simon Moser, Erfolgsgeschichte mit 700 Millionen Ausnahmen, der Standard / Economics Sat. / So., 17/18. Oktober 2015