JDN 2457303 EDT 19:56

As reported in The Washington Post and Fortune, the World Bank recently released a report showing that for the first time on record—possibly the first time in human history—global extreme poverty has fallen below 10% of the population. Based on a standard of living of $1.90 per day at 2011 purchasing power parity—that’s about $700 per year, a bit less than the average income in Malawi.

The UN World Millennium Development Goal set in 1990 was to cut extreme poverty in half by 2015; in fact we have cut it by more than two-thirds, reducing it from 37% of the world’s population in 1990 to 9.6% today. This is an estimate, based upon models of what’s going on in countries where we don’t have reliable data; ever the cautious scientists, the World Bank prefers to focus on the most recent fully reliable data, which says that we reduced extreme poverty to 12.7% in 2012 and therefore achieved the Millennium Development Goal.

Most of this effect comes from one very big country: China. Over 750 million people in China saw their standard of living rise above the extreme poverty level in the last 30 years.
The slowest reduction in poverty has been in Africa, specifically Sub-Saharan Africa, where extreme poverty has barely budged, from 53% in 1981 to 47% in 2011. But some particular countries in Africa have done better; thanks to good governance—including better free speech protection than the United States, shame on us—Botswana has reduced their extreme poverty rate from over 50% in 1965 to 19% today.

A lot of World Bank officials have been focusing on the fact that there is still much to be done; 10% in extreme poverty is still 10% too many, and even once everyone is above $1.90 per day that still leaves a lot of people at $3 per day and $4 per day which is still pretty darn poor. The project of global development won’t really seem complete until everyone in the world lives above not just the global poverty line, but something more like a First World poverty line, with a home to live in, a doctor to see, a school to attend, clean water, flush toilets, electricity, and probably even a smartphone with Internet access. (If the latter seems extravagant, let me remind you that more people in the world have smartphones than have flush toilets, because #weliveinthefuture.)

Pace the Heritage Foundation, the fact that what we call poverty in America typically includes having a refrigerator, a microwave, and a car doesn’t mean it isn’t actually poverty; it simply means that poverty in the First World isn’t nearly as bad as poverty in the Third World. (After all, over 9% of children in the US live in households with low food security, and 1% live in households with very low food security; hunger in America isn’t as bad as hunger in Malawi, but it’s still hunger.) Maybe it even means we should focus on the Third World, though that argument isn’t as strong as it might appear; to eliminate poverty in the US, all we’d need to do is pass a law that implements a basic income. To eliminate poverty worldwide, we’d need a global project of economic and political reforms to change how hundreds of countries are governed.

Yet, this focus on what we haven’t accomplished (as though we were going to cut funding to the UN Development Program because we’re done now or something) is not only disheartening, it’s unreasonable. We have accomplished something truly spectacular.

We are now on the verge of solving on one of the great problems of human existence, a problem so deep, so ancient, and so fundamental that it’s practically a cliche: We say “end world hunger” in the same breath as “cure cancer” (which doesn’t even make sense) or “conquer death” (which is not as far off as you may think). Yet, in a very real sense, we are on the verge of ending world hunger.

While most people have been focused on other things, from a narcissistic billionaire running for President to the uniquely American tragedy of mass shootings, development economists have been focused on one thing: Conquering global poverty. What this report means is that now, at last, victory is within our grasp.

Development economists are unsung heroes; without their research, their field work, and their advice and pressure to policymakers, we would never have gotten this far. It was development economists who made the UN Millennium Development Goals, and development economists who began to achieve them.

Yet perhaps there is an even more unsung hero in all of this: Capitalism.

I often have a lot of criticisms of capitalism, at least as it operates in the real world; yet it was in the real world that extreme poverty was just brought down below 10%, and it was done primarily by capitalism. I know a lot of people who think that we need to tear down this whole system and replace it with something fundamentally different, but the kind of progress we are making in global development tells me that we need nothing of the sort. We do need to make changes in policy, but they are small changes, simple changes—many of them could be made with the passing of a few simple laws. Capitalism is not fundamentally broken; on the contrary, it is the fundamentals of capitalism that have brought humanity for the first time within arm’s reach of ending world hunger. We need to fix the system at the edges, not throw it away.

Recall that I said most of the poverty reduction occurred in China. What has China been doing lately? They’ve been opening to world trade—that “free trade” stuff I talked about before. They’ve been cutting tariffs. They’ve been privatizing industries. They’ve been letting unprofitable businesses fail so that new ones can rise in their place. They have, in short, been making themselves more capitalist. Building schools, factories, and yes, even sweatshops is what has made China’s rise out of poverty possible. They are still doing many things wrong—not least their authoritarian government, which is now gamifying oppression in truly cyberpunk fashion—but they are doing a few very important things right.

World hunger is on the way out. And I can think of no better reason to celebrate.