Getting Better

Humanity has never been in better shape – and despite growing challenges of global sustainability, the future should be even brighter.

1. The Income Gap Between Countries Is Stark, But It's Been Around A Long Time

The financial divide between rich and poor nations isn't new, nor is its magnitude a recent development. A billion people around the globe live on less than a dollar a day, underscoring the severity of the gap. Comparing these conditions to prosperous Western nations further highlights the discrepancies, where incomes and living standards have soared in the past fifty years.

Historical data points show how the income gap has widened over time. For example, in 1960, the GDP per capita in the United States was seven times larger than Senegal's and by 2004, it became twenty-six times larger. In Congo-Zaire, an average person in 2008 earned just $249 annually compared to $24,695 in the Netherlands. The issue isn’t isolated to Africa either. By 1993, India’s poorest citizens earned amounts comparable to English peasants in the 1400s.

Despite the ongoing wealth gap, understanding this global disparity emphasizes the starting points from which nations are coming. It also drives home just how privileged those in wealthier countries are by comparison.

Examples

• A billion people live on less than a dollar a day.
• Senegal's GDP per capita dropped from $1,776 in 1960 to $1,407 in 2004.
• India’s poorest had incomes in the 1990s similar to medieval English peasants' earnings.

2. There Is No Single Formula for Economic Growth

Economies are unique, and as such, there’s no universal strategy that can guarantee their success. Economic growth theories often impose generalized models, yet they fail in real-world applications. For example, policies emphasizing high investment correlate inconsistently with actual growth outcomes.

In Zambia, for instance, major investments from 1960 to 1994 were expected to yield a GDP per capita of $20,000. The reality? It reached a mere $600. Economists often end up explaining why wealth exists in certain places through retrospective analysis rather than projecting future growth accurately. Moreover, growth factors are so context-specific that any answer to the question “What fosters development?” is simply, “It depends."

This lack of a straightforward economic path reveals that the journey toward prosperity must account for trial, error, and adaptation, shaped by each nation’s circumstances, history, and available resources.

Examples

• Despite heavy investment, Zambia's GDP per capita reached only $600 by 1994.
• Economic models often predict growth inaccurately across different nations.
• Economist Francisco Rodríguez believes only one valid paper could summarize global growth data: "It depends."

3. Quality of Life Is Progressing Rapidly Across the Globe

Surprisingly, quality of life worldwide has improved tremendously, even in some of the poorest regions. Health care, education, and technological advances are driving this overall enhancement, making life today vastly better than it was a hundred years ago.

Consider infant mortality. Since 1960, global rates have been halved. Literacy rates, one of the key quality-of-life measures, doubled in Sub-Saharan Africa between 1970 and 1999. Moreover, life expectancy in the Middle East and North Africa increased dramatically from forty-eight years in 1962 to sixty-nine years by 2002. These advancements indicate that while income inequality persists, other indicators of human progress have made extraordinary leaps.

This progress is not limited to certain regions or demographics. Humanity as a whole now enjoys the best health and longest life expectancies in recorded history – even in areas where income levels might suggest otherwise.

Examples

• Global infant mortality rates dropped by half since 1960.
• Literacy rates in Sub-Saharan Africa doubled from 1970 to 1999.
• Life expectancy rose by twenty-one years in the Middle East and North Africa in just four decades.

4. Technology and Ideas Are Making Vital Needs Cheaper

Satisfying basic needs is less tied to high incomes today thanks to advancements in technology and the spread of life-changing ideas. Agricultural productivity, in particular, has transformed global living costs. Food became significantly more affordable in the latter half of the 20th century, contributing to lower living expenses even for the world’s poorest communities.

Take the decrease in famine likelihood: modern agricultural practices and innovation in food production drastically reduced prices. Health, too, has seen a low-cost revolution. Successful public health campaigns spread awareness worldwide, such as adding bleach to drinking water or using oral rehydration solutions to combat cholera and diarrheal diseases effectively.

Even as living standards improve, further technological investment will continue decreasing costs and improving access to essentials like clean water, electricity, and healthcare.

Examples

• Food prices dropped by 50% in the last half of the twentieth century.
• Bleach programs reduced diarrhea cases by 50 to 80% in some regions.
• Oral rehydration has saved countless lives for just pennies per treatment.

5. Quality of Life Outweighs Income Growth as a Development Metric

Economic development isn't just about income; it's a broader spectrum measuring education, health, freedom, and security. By focusing only on finances, we often neglect a more important question: are people better off?

Life expectancy is one of the clearest indicators. In 1870, a country earning $300 per capita had a life expectancy far lower than that of a $30,000-per-capita country. By 1999, life expectancy in poorer nations had climbed to nearly half that of wealthier ones, even when incomes stayed the same. This shows improvement in global well-being that’s independent of overall wealth.

Development policies should therefore prioritize human-centered objectives like education, public health, and access to essential resources – not just GDP percentages.

Examples

• 19th-century countries with low incomes had life expectancies a third of wealthier nations.
• Life expectancy in even the poorest nations rose dramatically by the late 20th century.
• Improving education and health often impacts future generations more tangibly than income boosts.

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Takeaways

1. Think beyond income. Measure development in terms of real-life progress like education, health, or freedoms.
2. Prioritize global aid efforts. Support initiatives that offer practical improvements, like hygiene awareness or food security programs.
3. Celebrate progress. Recognize how much better life is today compared to the past to inspire optimism for the future.