In 2015, the UN defined the Sustainable Development program. Goal 1 is to eradicate poverty, and the first way to achieve defined objectives is to invest in underdeveloped countries.

The needs of developing countries are estimated at $ 3.3 trillion to $ 4.5 trillion per year.

Such subsidies would immediately increase incomes of poor countries (which have a GNI of less than $ 3,628 per person) to 26% to 29% of average national income per person in the world. At present, national income per person in poor countries accounts for an average of 16% (from 3% in Burundi to 32% in Micronesia) of average national income per person in the world.

Nothing special. If we were distributing to all poor countries in proportion to their needs, $ 3.3 trillion, then in India the poverty rate would be about the same as it is in Swaziland, and after $ 4.5 trillion – as in Palestine now.

Such subsidies ($ 3.3 trillion to $ 4.5 trillion), under current socio-economic systems, would immediately reduce the number of malnourished people by 88 million to 108 million, respectively (now in the poor countries there are 440 million undernourished people).

Even in rich countries there is a small percentage of poor and malnourished people. The complete elimination of poverty requires a new social welfare system, such as “Universal basic income“. Continue reading “Sustainable Development Goals”