According to the Brookings Institute, in some developing nations the help of the richest billionaire in the country would be enough to drastically reduce poverty. This model is based on the respective billionaire donating at least half of their fortune.
For example, the generosity of just one billionaire would probably be enough to boost the economy of the tiny African country of Swaziland. If this model were applied in Swaziland, Colombia and Georgia, poverty within these struggling countries would be nearly eradicated.
It is worth noting that this ideology would not work in the same way in every country. While the poverty rate will always fall with donations from billionaires, the amount would vary. Some countries in Africa may be harder to impact significantly due to “the depth of poverty” and high prices on the continent.
The Brookings Institute model not only looks at potential donations from the richest billionaire in a country, but in places with multiple billionaires they could collaborate and work together to reduce poverty. The more donations from billionaires that are received, the more people who will rise above the global poverty line.
Bill Gates’ Giving Pledge, which encourages billionaires to give away much of their earnings to charity, follows a similar model. Facebook creator Mark Zuckerberg also pledged to donate 99 percent of his income to poverty reducing efforts and other charitable campaigns.
In addition to donating, billionaires may also be wise to invest in poor nations, as a boost in the economy of the country would likely cause a major increase in the number of consumers of foreign goods and services. Stronger economies result in an increased number of markets.
If billionaires around the world chip in to boost their local economies, the global wealth gap will decrease as the amount of consumption.
– Carrie Robinson