Bill Gates: Ignoring World's Poor 'Would Hurt Our Economic Future'
Why We Must Stay Committed to Alleviating Poverty
Bill Gates believes that development aid is a small investment that generates huge returns — not only for poorer countries that receive it but for rapidly growing and wealthier nations as well. In the last 50 years, development aid has saved a billion people from starvation, fostered strong economic growth in countries such as Brazil and Mexico, and expanded markets for the U.S. and other developed countries. In tough economic times like we’re facing today, some people believe one way to reduce government spending is to cut development aid to poor countries.
He told the G20 leaders, development aid doesn’t just benefit people in poor countries. It benefits us all. Just think about the economic miracles that have occurred over the last couple of decades in countries like China, Brazil, India, Indonesia, Korea, Mexico and Turkey. The people in those countries are largely responsible for the incredible progress that has occurred, and economic aid from wealthier countries played a key supporting role.
And now, these countries – having recently figured out how to reduce poverty and increase their technical capabilities – are in a unique position to work alongside other better-off nations to help the world’s poorest 2 billion people. Over time, this positive cycle of strategic aid will reduce the amount of economic assistance that will be required of wealthier countries. Even more importantly, it enables the worst-off countries to feed, educate, and employ their people, which will lead to greater economic self-sufficiency. And that, in turn, will expand global markets for trade – benefitting all countries, including the U.S.
On the other hand, if wealthier countries cut their contributions to development, people in poor countries will continue to suffer and their economies won’t grow. The world hardly needs more suffering. And poverty does nothing to improve economic and political stability around the world.
The U.S. spends about 1 percent of its total budget on development aid – about the same as many other wealthier countries. As I will say in my report to the G20, that amount of money isn’t causing the fiscal problems in the U.S. or Europe, and cutting back on development assistance isn’t going to solve them.
The fact is, development aid is a small investment that generates huge returns. In the past 50 years, it has played an important role in agricultural advances that have saved a billion people from starvation. Innovations in the development and distribution of vaccines, and health advances, has reduced the number of children under the age of 5 who die each year – from 20 million to fewer than 8 million. This is even more amazing when you consider that the world population has more than doubled in that time.
Bill Gates says the world’s developed nations need to ensure that they aid the world’s poor. And the best way to do this, according to the billionaire philanthropist? A tax on financial transactions.
In an interview with BBC News, the Microsoft co-founder, said that while the plight of impoverished people in developed nations may seem like it has little to with the economies of rich countries, it affects everyone.
“Not caring about the instability of these countries really would hurt our economic future quite dramatically, whether it’s unrest, whether it’s disease,” Gates told BBC News. “On the other hand, if you bring these people into the world economy then you get this very positive, virtuous cycle.”
One of his most popular proposals seems to be the institution of a tax on trades on stocks, bonds and derivatives, also known as the Robin Hood tax.
A similar tax is already in the works. Senator Tom Harkin (D-IA) and Representative Peter DeFazio (D-OR) proposed a bill that would levy a 0.03 percent tax on stock, bond and derivative trades. Likewise, Adbusters, the anti-capitalist group that made the initial call for Occupy Wall Street, has already made its support known for the Robin Hood tax by demanding G20 leaders get behind it at the summit.
Gates, who recently aligned himself with fellow billionaire Warren Buffett in saying that the rich should pay more in taxes than other Americans, still faces significant opposition to the Robin Hood tax in the United States, according to ThinkProgress. The Obama administration remains opposed to the tax, the Wall Street Journal reports. Some argue that such a tax would not only help to decrease the budget deficit, it would have the added benefit of deterring types of trading known to increase market volatility, ThinkProgress notes.
But Gates’ main priority is foreign aid, not tax reform.
See his video on his website,
Tags: Anti-poverty strategies, Bill Gates, poverty