This book is about how to reduce poverty and improve global living standards. Topics include economic growth, income inequality, corruption, sustainable development, the future of technology, and much more.
Below is a sample of questions answered th...
The Charities Aid Foundation creates an annual World Giving Index. It ranks countries by how charitable they are based on the percentage of the population that donates money, volunteers at non-profit organizations, and helps strangers.
Figure 39 shows a strong correlation between standard of living and countries' scores on the World Giving Index. Nations with more charitable citizens tend to have better living standards.
Figure 39
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Sources: Charities Aid Foundation's World Giving Index (2014) | Standard of Living Index
No data for Norway or Switzerland
The horizontal axis is countries' scores on the World Giving Index. The vertical axis is their scores on the Standard of Living Index. R^2=0.61, which means every 1% increase in charity correlates with a 0.61% improved quality of life. Countries that are twice as charitable have 61% better living standards on average.
Charity is also correlated with GDP per capita. See figure 40.
Figure 40
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Sources: Charities Aid Foundation's World Giving Index (2014) | IMF
The horizontal axis is countries' scores on the World Giving Index. The vertical axis is their per capita GDPs. Countries that are twice as wealthy are 59% more charitable.
There will always be a percentage of people that do volunteer work regardless of how rich or poor society is. But charity rises when GDP goes up. Why?
First, abundance makes volunteerism easier. It provides tools and opportunities that aren't available to people in poorer societies. One can do amazing things for others with just a handful of inexpensive 21st century tools.
Also, if you live in a wealthy country, the risk of entering poverty from volunteering or donating is lower. Someone that earns only a few dollars per day is constantly struggling to stay alive. But a wealthier individual can afford to spend more time and resources helping others without much risk.
