In two centuries, the world has seen such a profound transformation that we sometimes forget how recent and fragile it is. Since 1820, the average global yield (GDP per capita), adjusted to inflation, has multiplied by 16. At the same time, the percentage of the world population living in extreme poverty-defined as living less than 2 dollars a day, in parity of purchasing power-fell from overwriting 79% to just 8.5% in 2024.
This economic miracle did not happen by chance. It was the result of technological revolutions, industrialization, international trade, advances in medicine, better sanitary infrastructures and, above all, the widening of access to education. Between 1820 and the mid -twentieth century, the improvements were slow but structural. In 1950, even more than half of humanity (53.3%) lived in absolute misery. The big leap took place from the 1980s, when many economies opened up to trade and innovation-especially China, which removed hundreds of millions of poverty thanks to greater economic opening.
Critics of this progress like to point out inequalities that persist. It is true that the benefits did not reach everyone equal. But ignoring the overall trend is a dangerous error: never so many people have had access to sufficient food, vaccines, energy or education. And all this became possible because the economy grew, creating wealth where there was once only scarcity.
The lesson is clear. Those who advocate to combat poverty without taking care of economic growth is part of an illusion. Subsidies may mitigate punctual needs, but do not change the structural conditions that allow a community to prosper sustainably. History shows that economic development is, by large margin, the most powerful weapon against extreme poverty.
More than ever, in a world concerned with new challenges – from climate change to demographic aging – it is important not to lose sight of what brought us here: innovation, openness and growth. The biggest mistake we can make is to guarantee the miracle it cost so much to build.
- The facts seen to the magnifying glass by André Pinção Lucas e Juliano Ventura – A partnership of the postcard with the Institute
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