In 2011, just under half of Tanzanians lived in extreme poverty. That figure was 86 per cent in 2000.
Chelsea Follett —
Earlier this month, the United Nations urged the world to celebrate the International Day for the Eradication of Poverty, advertising it on social media using the hashtag #EndPoverty. The UN noted the incredible progress on the issue:
Poverty has declined globally, from 1.7 billion people in 1999 to 767 million in 2013, a drop in the global poverty rate from 28 percent in 1999 to 11 per cent in 2013. The most significant progress was seen in Eastern and South-Eastern Asia, where the rate declined from 35 per cent in 1999 to 3 per cent in 2013.
Unfortunately, the UN seems to misunderstand the source of that progress. It argues that government action and top-down technocrat-led programs are to thank for poverty’s remarkable decline. The UN statement continues:
Countries have taken action to end poverty… The Government of Tanzania, for example, started a massive overhaul of its current national programme, the Tanzania Productive Social Safety Nets, to reach people living below the food poverty line.
It is an accidentally instructive example. Tanzania has made impressive progress against poverty, but that is not because of increased government spending on food for the poor. In fact, Tanzania’s government is today far less redistributionist than in the past — and those past policies of redistribution led to near-starvation for the poorest Tanzanians.
In 2011, the most recent year for which the World Bank has data, just under half of Tanzanians lived in extreme poverty. That figure was 86 per cent in 2000.
The real cause of that reduction is pretty straightforward: economic freedom. Tanzania has gradually dismantled the socialist or “ujamaa” economic policies enacted by the dictator Julius Nyerere, since he stepped down in 1985. Nyerere was widely praised by leftist intellectuals in developed countries for his sincere belief in socialism, relatively low level of corruption, and not intentionally slaughtering his own people like so many other dictators.
But Nyerere instituted policies that, according to Dr. John Shao, resulted in intense food shortages, a collapse of agricultural and industrial production, deteriorating transportation infrastructure, economic crisis and “general distress of the population” by the 1980s. Nyerere also banned opposing political parties to consolidate his authority and prevent debate about his ruinous policies.
Post-Nyerere, Tanzania managed to speed up its economic growth rate by removing price controls, liberalizing trade, and freeing its people to engage in private enterprise.
The UN’s attribution of progress to government programs, and its insistence on the importance of foreign aid to development, is as worrying as it is unsurprising.
Nyerere was able to hold onto power for so long despite his disastrous programs thanks to billions of dollars of aid money. As my colleague Doug Bandow put it, “The World Bank, demonstrating that it lacked both a conscience and common sense, directly underwrote his brutal ujamaa scheme.”
Not only is government aid ineffective compared to market-led development, but aid programs often ignore the property rights of the poor and the need for institutional reform. Other examples of dictators who received aid money include Idi Amin of Uganda, Mengistu Haile Mariam of Ethiopia, Mobutu Sese Seko of Zaire (now the Democratic Republic of the Congo) and even the infamously brutal Pol Pot of Cambodia.
The money often props up authoritarian regimes while they pursue destructive policies such as stealing their citizens’ farmland through nationalization. That was the case in Tanzania, which received billions of dollars in foreign aid while its socialist government nationalized hundreds of farms — slashing agricultural production and leading to the aforementioned massive food shortages. The store shelves were empty, and people waited for rations of food.
“When I first came to Tanzania in the 1980s, we used to have whole wards of kids very debilitated with malnutrition, some too far gone to survive,” recalls an aid worker for the World Food Program, the food-assistance branch of the United Nations, “now there will only be up to one or two at any time, and we would usually find a social cause, such as an alcoholic father, or being orphaned, or inheriting HIV.” The page containing that quote goes on to claim that the U.N. food program “made a difference”, but the reason far fewer children resort to using the food program today compared to the 1980s is conspicuously absent.
Reducing trade barriers is far more effective at improving the quality of life for those in poor areas of the world than sending aid or technocrats to help design government programs. To get serious about eradicating poverty, countries should pursue policies of economic freedom. Because, ultimately, countries don’t fight poverty. Individuals free of excessive regulations and able to participate in global trade do.
Global Extreme Poverty Rate Fell from 2022 to 2025
“Global poverty estimates up to 2023 were updated today on the Poverty and Inequality Platform (PIP), including nowcasted estimates up to 2025. The update includes three main changes to the PIP data (See the What’s New document for more details): First, the update brings new survey data for several country-years, including important updates to data from India; second, it includes the adoption of the 2021 Purchasing Power Parities (PPPs); and third, based on the new PPPs and new survey data, including new national poverty lines, the update revises the global poverty lines.
As a result of these combined changes, the global extreme poverty rate in 2022 is revised up from 9.0 to 10.5 percent, corresponding to an increase in the number of individuals living below the international poverty line from 713 to 838 million…
While revised poverty lines, underlying data revisions, and changes in PPPs affect the level of poverty, from a historical lens, the trends remain similar. The following graph shows the estimated poverty rates by regions since 1990. The graph also depicts the updated nowcasts of poverty following the methodology introduced in the September 2024 update. The nowcast suggests a modest decline in the global extreme poverty rate from 10.5 percent in 2022 to 9.9 percent in 2025. Based on the latest data, the South Asia region experienced the most significant decline in extreme poverty between 2022 and 2025. Conversely, the Middle East and North Africa was the only region to experience an increase in poverty during this period, up from 8.5 percent in 2022 to 9.4 percent in 2025.”
Jamaica’s Poverty Prevalence Has Declined Dramatically
“Jamaica’s poverty prevalence for 2023 was estimated at 8.2 per cent, a decline from 16.7 per cent in 2021.
Planning Institute of Jamaica (PIOJ) Director General, Dr. Wayne Henry, disclosed that it was ‘the lowest figure ever recorded since poverty rates were first measured in 1989.'”
Morocco’s Multidimensional Poverty Halved Since 2014
“The High Commission for Planning (HCP) has unveiled a new map of multidimensional poverty in Morocco, drawing on data from the 2014 and 2024 general censuses. This initiative aims to offer a clearer picture of the various forms of deprivation tied to deficits in education, health, housing, and access to basic infrastructure.
According to HCP, Morocco has seen a substantial decline in multidimensional poverty between 2014 and 2024. The proportion of the population experiencing poverty fell from 11.9% to 6.8%, representing a drop from around 4 million to 2.5 million people. The intensity of poverty, measured by the average deprivation rate, also saw a slight decrease, from 38.1% to 36.7%. As a result, the overall Multidimensional Poverty Index was nearly cut in half, falling from 4.5% to 2.5%.”
Poverty Declines Significantly in Bhutan from 2017 to 2022
“The report highlights Bhutan’s remarkable progress in poverty reduction, with the national poverty rate declining from 28 percent to 11.6 percent during this period. Key drivers include robust economic growth, improved labor market outcomes, enhanced agricultural productivity, effective COVID-19 relief programs, and strong remittance inflows.”