The world-wide improvement in poverty rates has been due to a move toward markets and away from government-managed economies (even as inequality in those countries has increased)

See Want to Reduce Inequality? Consult China, Vietnam and India: In 1981, half of the developing world earned less than $1.25 daily. By 2011, the portion had dropped to 17% by Edward P. Lazear. Excerpts: 

"the past three decades have seen a dramatic improvement in the standard of living of the world’s poor, most notably in China and India."

"there is little doubt that the cause for the improvement has been a move toward markets and away from government-managed economies."

"In 2013, the World Bank reported that the number of people world-wide living on less than $1.25 a day had decreased dramatically since the early 1980s. In 1981 half those in the developing world had income below this threshold. By 2011 only 17% lived on less than $1.25 a day. In China 84% fell below the level in 1981, a proportion that shrunk to 6% by 2011. In India the figure fell to 24% in 2011 from 66% in 1979.

The fact that inequality within India and China has grown is of minor consequence. What’s important is that the average citizen of these countries, once among the poorest in the world, has seen income rise substantially."

"In 1993, Vietnam had 64% of its then nearly 70 million people in poverty. But by 2008, after implementing market-based reforms, and with a population of 85 million, the percentage of Vietnamese in poverty had fallen to 17%, according to the World Bank.

In China, reduction of state control began in the 1980s under Deng Xiaoping. These included domestic policies that replaced much of the centrally planned economy with market-based activity as well as opening China to international trade and foreign investment."

"India undertook major reforms in the early 1990s after obtaining a bailout from the IMF, conditioned on economic liberalization, which included reductions in tariffs, deregulation and lower taxes. By 1996 the average tariff in India was 26%, down from 87% in 1990. Licensing requirements, which restrict entry and resource mobility, were eliminated in most industries."

"In Vietnam, collective farming ended in 1986 and control over state-owned facilities was loosened. In 1989 reforms liberalized all prices, including interest and foreign-exchange rates. The consequence has been a sharp reduction in poverty and impressive growth rates"

"there is no compelling evidence that the poorest citizens of rich countries fare better when there is more government control of the economy."

"the bulk of those who have moved out of poverty in the recent past have done so because their governments have turned away from state control and toward markets"