Posted: May 21, 2013 2:14 am
If we talk about reducing absolute poverty (in at least developed countries), suggestions on any better alternative would this far be in a state of theoretical considerations rather than empirical such (see my earlier post). What we do know is that countries with relatively less welfare are negatively correlated to reduction of absolute poverty, in comparison to welfare states*.
Developed countries welfare expenditures are also positively correlated to giving more to foreign aid*. An explanation suggested is that welfare states creates a national ideal of giving, and that this ideal ''spills over'' to include other countries. National welfare states (in developed countries) are ''efficient'' for other countries as well.
*http://citation.allacademic.com/meta/p_mla_apa_research_citation/0/9/7/9/0/p97901_index.html?phpsessid=80b15uhhp3dp7ahop91l614e16
*Not to be confused with socialism