World Bank Study Finds That Deregulation Reduces Extreme Poverty

Craig Eyermann

Regardless of where you might live around the world, if you live on less than $2 a day, you would be considered to be living in extreme poverty.

According to the World Bank, in 2015 about 736 million people around the world, or just under 10 percent of the world’s population, had incomes that put them below this international poverty line. Believe it or not, that is extraordinarily good news because poverty rates around the world have fallen dramatically since 1981 when 42 percent of the world’s population lived on an inflation-adjusted $1.90 or less per day.

World Bank economists studying a portion of this decline in the nine years from 2005 through 2013, when the extreme poverty rate was cut nearly in half from 21 percent to 11 percent, have discovered that much of this reduction in global poverty came about because of deregulation, as governments around the world have been reducing the regulatory burdens they impose on their citizens.

Click here to read more of this Beacon article by Craig Eyermann.