It seems intuitive that poor people would live in poor countries, but the combination of rapid economic growth in China and India with those countries' gigantic populations means that's no longer the case. Today, most poor people live in middle income countries according to an analysis from Laurence Chandy and Geoffrey Gertz for Brookings which also notes that many of the global poor live in states that are "fragile" in terms of their stability:
   
I think one way of reading this chart is also as underscoring the value of a functioning state. Low income countries that are stable have tended to graduate to middle income status pretty quickly. 
   
 
   
    
    
    
        Published on May 20, 2011 05:31