To end global poverty, we have to end global capitalism

Vijay Prasad in Jacobin:

In December, the United Nations sounded the alarm. Releasing its report on the World Social Situation of 2013, entitled “Inequality Matters,” the UN warned that inequality was deepening, and that no country was immune from the contagion. In the Global South, the hemorrhaging of incomes among working people has been about as dramatic as in the Global North. If there is one social process that the planet shares, it is global inequality.

How does the UN explain this rise in inequality? What the data suggests, the UN reports, is that “inequality has increased mainly because the wealthiest individuals have become wealthier, both in developed and developing countries.” The top 1% has siphoned off the social wealth for its private gain, and the bottom 99% — which produced the social wealth – has to live off its crumbs. What’s clear is that capitalism is incapable of ending poverty or substantially reducing inequality.

Word comes from China and India that they have dramatically reduced poverty. Take the case of India. Based on official data on poverty, things appear better now than before. But the data is based on a reassessment of the indicators.

The government created a new measure – one is poor if one consumes less than twenty-four pounds of grain per month. The UN World Food Program asked quite simply if it was reasonable to assume that the person who had twenty-five pounds of grain per month was not poor.

More here.