Two myths that keep the world poor

Global poverty is a hot topic right now. But anyone serious about ending it needs to understand the true causes, argues Indian environmentalist Vandana Shiva.

Vandana Shiva

From rock singer Bob Geldof to UK politician Gordon Brown, the world suddenly seems to be full of high-profile people with their own plans to end poverty. Jeffrey Sachs, however, is not a simply a do-gooder but one of the world’s leading economists, head of the Earth Institute and in charge of a UN panel set up to promote rapid development. So when he launched his book The End of Poverty, people everywhere took notice. Time magazine even made it into a cover story.

But, there is a problem with Sachs’ how-to-end poverty prescriptions. He simply doesn’t understand where poverty comes from. He seems to view it as the original sin. “A few generations ago, almost everybody was poor,” he writes, then adding: “The Industrial Revolution led to new riches, but much of the world was left far behind.”

This is a totally false history of poverty. The poor are not those who have been “left behind”; they are the ones who have been robbed. The wealth accumulated by Europe and North America are largely based on riches taken from Asia, Africa and Latin America. Without the destruction of India’s rich textile industry, without the takeover of the spice trade, without the genocide of the native American tribes, without African slavery, the Industrial Revolution would not have resulted in new riches for Europe or North America. It was this violent takeover of Third World resources and markets that created wealth in the North and poverty in the South.

Two of the great economic myths of our time allow people to deny this intimate link, and spread misconceptions about what poverty is.
First, the destruction of nature and of people’s ability to look after themselves are blamed not on industrial growth and economic colonialism, but on poor people themselves. Poverty, it is stated, causes environmental destruction. The disease is then offered as a cure: further economic growth is supposed to solve the very problems of poverty and ecological decline that it gave rise to in the first place. This is the message at the heart of Sachs’ analysis.
The second myth is an assumption that if you consume what you produce, you do not really produce, at least not economically speaking. If I grow my own food, and do not sell it, then it doesn’t contribute to GDP, and therefore does not contribute towards “growth”.

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