History Channel

Given these issues, it is clear that the standard public narrative about the history of extreme poverty needs reassessment. In this paper we assess this narrative against three indicators of welfare (real wages, human height, and mortality) for five world regions (Europe, Latin America, sub-Saharan Africa, South Asia, and China) from roughly the 16th century onward. These datasets point to three conclusions:

First, it is unlikely that 90% of the global population lived in extreme poverty prior to the rise of capitalism. Historically, unskilled urban labourers in all regions tended to have wages high enough to support a family of four above the poverty line by working 250 days or 12 months a year. Extreme poverty seems to arise predominantly in periods of severe social and economic distress, like famines, wars and institutionalized dispossession, particularly under colonialism. Rather than being the natural condition of humanity, extreme poverty is a symptom of social dislocation and displacement. It is important to emphasize that the data here focuses on extreme poverty, as it is defined in the relevant literature, not the higher consumption thresholds that are required to achieve “decent living” today (e.g., Edward, 2006, Kikstra et al., 2021).

The second conclusion is that the rise of capitalism coincided with a deterioration in human welfare. In every region studied here, incorporation into the capitalist world-system was associated with a decline in wages to below subsistence, a deterioration in human stature, and a marked upturn in premature mortality. In parts of Latin America, sub-Saharan Africa, and South Asia, key welfare metrics have still not recovered.

Our third conclusion is that in those regions where progress has occurred (as opposed to recovery from an earlier period of immiseration), it began much later than the Ravallion/Pinker graph suggests. In the core regions of Northwest Europe, welfare standards began to improve in the 1880s, four centuries after the emergence of capitalism. In the periphery and semi-periphery, progress began in the mid-20th century. Further research is needed to establish the causal drivers of these improvements, but existing data indicates that progress was achieved with the rise of organized labour, the anti-colonial movement, and other progressive social movements, which organized production around meeting human needs, redistributed wealth, and invested in public provisioning systems