Can $40 Billion Solve Global Poverty?


Theoretically yes, says Charles Kenny:

Chandy and Gertz suggest that by 2015 there may only be 586 million people living below $1.25 a day, suggesting that the annual cost of eliminating poverty in poor countries could be only $40 billion in four years' time. By that time, too, more countries will be rich enough to handle poverty on their own, and the income gap will have fallen further, meaning that the actual number could be even less.

He goes on to complicate the narrative, but still concludes that the astonishingly low figure of $100 billion could do the trick. Chart (pdf) from Brookings.