Domestic policy is important for fighting poverty

Domestic policy is important for fighting poverty

In a comment, to data recently released by the World Bank, Charles Kenny and Andy Sumner highlight the fact that it is possible for poor countries to get richer.

New data from the World Bank suggest – according to Kenny and Sumner in a Guardian comment – that the number of poor countries (based on average gross national incomes) have gone down from 63 in 2000 to 35 in 2011.

Kenny and Sumner say that Foreign Direct Investments (FDI) plays a major role in this development, even though inequality still remains a huge issue.

The researchers underline that domestic policies are crucial in the fight against poverty and claims that “New research shows that the emerging middle classes may have a big role to play. Who they side with - the poorest or the economic elite - will determine what kind of development emerges in the new middle income countries.”

HEO

21.10.2014
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