Global poverty is a complex issue that has long plagued the world. There exists no interchangeable template to fix poverty throughout the world. Strategies that work in the U.S. will not necessarily work in places like Africa or the Middle East. One could argue that the principles to combat poverty are more or less the same, but their application has to be region-specific and there will always be differing opinions on the best application strategy.

For the past decades, we have been experiencing an upswing and spread of wealth throughout the world. The U.S. National Intelligence Council believes this is the answer to reducing global poverty. Yet, while decades of global integration and advancing technology enriched the richest nations and lifted billions out of poverty, mostly in Asia, that also hollowed out the Western middle classes and stoked pushback against globalization. Additionally, migrant flows are greater now than in the past 70 years, thus raising the specter of drained welfare coffers and increased competition for jobs, and reinforcing nativist, anti-elite impulses.

The U.S. National Intelligence Council has determined that there is currently an unprecedented shift in economic wealth taking place from western states to eastern ones. This is driven by the global demand for oil and commodities, which generates excessive revenues for the Gulf States and Russia. Asia has also cornered the market for cheap manufacturing and service industries, thus leading to a large portion of manufacturers outsourcing production to Asia. Tellingly, the U.S. imports over 500B worth of goods per year from China alone.

The economic approach of these states has not been a traditional one. They are not following the Western liberal model for self-development. They are instead using a different model: state capitalism. Economists define state capitalism as the economic system that is centered on the state management of the market.