February 8, 2016 4:28PM 

# Poverty’s Decline and Its Causes 

By [Chelsea Follett](https://www.cato.org/people/chelsea-follett) 

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It is always refreshing to see journalists draw attention to the incredible decline in world poverty. An [article](http://www.csmonitor.com/World/2016/0207/Progress-in-the-global-war-on-poverty) that did just that appeared yesterday in the *Christian Science Monitor*. The piece shines a spotlight on three heartening facts in particular.

First, poverty is decreasing. Not only have poverty rates [fallen](http://humanprogress.org/story/3187), but the total number of people in poverty has [decreased](http://humanprogress.org/static/3186). This is incredible when one considers [population growth](http://humanprogress.org/static/3180)—there are more people alive today who *aren’t* in poverty than ever before. The Brookings Institution [projects](http://humanprogress.org/static/2579) poverty will be practically eliminated by 2030.

Second, average incomes are rising. World per capita GDP, adjusted for inflation and differences in the cost of living, has [never been higher](http://humanprogress.org/story/2249). And average income growth is not limited to developing countries: the average American has more disposable income left [after basic expenses](http://humanprogress.org/static/1937).

Finally, humanity is healthier. Globally, average life expectancy is at [an all-time high](http://humanprogress.org/story/2314), largely due to [plummeting](http://humanprogress.org/story/2386) infant mortality rates. More people have [enough to eat](http://humanprogress.org/story/2339) and enjoy access to [clean drinking water](http://humanprogress.org/story/2345) and [improved sanitation facilities](http://humanprogress.org/story/2190). The developed world has also seen health gains, with cancer death rates falling for both [men](http://humanprogress.org/story/2956) and [women](http://humanprogress.org/story/2957) in the OECD countries.

The article attributes improvements in well-being to three main factors: the fall of communism, the rise of trade and globalization, and the courage of those who stood up against tyranny.

While the *CSM* article gives some credit to international aid programs, it is important to recognize that aid is not a good driver of economic development. Even vocal aid-proponent Bono [acknowledges](https://www.youtube.com/watch?v=GQe5LIaOK4E&t=5m3s) that international aid and charity pale in comparison to the prosperity-creating power of people engaging in market exchange.

When given the freedom to do so, it is truly remarkable what ordinary people can achieve. Consider the [utter transformation](http://humanprogress.org/blog/singapore-power-economic-freedom) of Singapore from poverty to riches – that is the power of economic freedom!

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