From Deprivation to Distribution: Is Global Poverty Becoming A Matter of National Inequality?

Authors


Summary

This paper asks the following question: does the shift in global poverty towards middle-income countries (MICs) mean that global poverty is becoming a matter of national inequality? This paper argues that many of the world's extreme poor already live in countries where the total cost of ending extreme poverty is not prohibitively high as a percentage of GDP. And in the not-too-distant future, most of the world's poor will live in countries that do have the domestic financial scope to end at least extreme poverty and, in time, moderate poverty. This will likely pave the way for addressing poverty reduction as primarily a domestic issue rather than primarily an aid and international issue; and thus a (re)framing of poverty as a matter of national distribution and national social contracts and political settlements between elites, middle classes and the poor.

Acronyms
FCAS

Fragile and Conflict-Affected States

GDP

Gross Domestic Product

GNI

Gross National Income

HIC

High-Income Country

IDA

International Development Association

IMF

International Monetary Fund

LDC

Least Developed Country

LIC

Low-Income Country

LMIC

Lower Middle-Income Country

MTR

Marginal Tax Rate

MIC

Middle-Income Country

ODA

Official Development Assistance

OECD

Organisation for Economic Co-operation and Development

PC

Per Capita

PINCI

Pakistan, India, Nigeria, China And Indonesia

PPP

Purchasing Power Parity

UMIC

Upper Middle-Income Country

Ancillary