Search

An introduction is presented in which the editor discusses various reports within the issue on topics including poverty, economic development, and behavioral economics.

This paper explores the relation between economic growth and poverty, and develops the methodology to measure separately the impact of changes in average income and income inequality on poverty The paper also provides a link between the growth rates in various sectors of the economy and the total poverty. The methodology proposed is applied to the data taken from the Côte d'Ivoire Living Standards Survey conducted in 1985. [ABSTRACT FROM AUTHOR]

This paper proposes a new type of growth rate, called the “poverty equivalent growth rate” (PEGR), which takes into account both the growth rate in mean income and how the benefits of growth are distributed between the poor and the non-poor. The proposed measure satisfies a basic requirement that the proportional reduction in poverty is a monotonically increasing function of the PEGR. Thus, maximizing the PEGR implies a maximum reduction in poverty. The paper demonstrates that the magnitude of PEGR determines the pattern of growth: whether growth is pro-poor in relative or absolute sense or is “poverty reducing” pro-poor. The pattern of growth has been analyzed for Brazil using the National Household Survey (PNAD) covering the period 1995–2005. [ABSTRACT FROM AUTHOR]

The African continent has grown by more than 4 percent yearly on average during the past decade. However, the link between this remarkable growth rate and poverty reduction is neither obvious nor simple. This paper focuses on the elasticity of poverty with respect to GDP growth at the sectoral level and takes into account the fact that economic growth may affect poverty directly as well as indirectly through sectoral labor share intensity. It develops a methodology that sheds light on the contribution of sectoral growth to poverty reduction country-by-country in Africa, guiding policy recommendations. As the composition of growth matters at least as much as its overall intensity, it is key to identify the sectors that have the strongest impact on poverty reduction and unleash their potential; if growth happens to concentrate in sectors with scarce pro-poor potential, like commodity-driven growth, redistributive strategies are necessary to compensate the weak effect on poverty. [ABSTRACT FROM AUTHOR]

The EU-wide survey ' Statistics on Income and Living Conditions' ( EU- SILC) is extremely important for international social science research and policy advice. It is therefore crucial to ensure that the data are of the highest quality and international comparability. This paper is aimed at identifying unexpected developments in income levels, income mobility, and inequality in the EU- SILC data between 2005 and 2009. We examine the consistency of EU- SILC by comparing cross-sectional results with findings based on two-year longitudinal samples. Although the data represent similar populations, for several countries the results of this comparison differ widely. One important outcome is the high degree of variability over time in countries that obtain their income information from register data. This suggests methodological challenges in the clear designation of new subsample members, in the reweighting of the data, in imputation of missing values, and in other areas. [ABSTRACT FROM AUTHOR]

An income growth pattern is pro-poor if it reduces a (chosen) measure of poverty by more than if all incomes were growing equiproportionately. Inequality reduction is not sufficient for pro-poorness. In this paper, we explore the nexus between pro-poorness, growth, and inequality in some detail using simulations involving the displaced lognormal, Singh- Maddala, and Dagum distributions. For empirically relevant parameter estimates, distributional change preserving the functional form of each of these three-parameter distributions is often either pro-poor and inequality reducing, or pro-rich and inequality exacerbating, but it is also possible for pro-rich growth to be inequality reducing. There is some capacity for each of these distributions to show trickle effects (weak pro-richness) along with inequality-reducing growth, but virtually no possibility of pro-poorness for growth which increases overall inequality. Implications are considered. [ABSTRACT FROM AUTHOR]

Many low- and middle-income countries are achieving good rates of economic growth, while high inequality remains a priority concern. Some countries meanwhile have low growth, high inequality, and pervasive poverty-often linked to their fragility. There is now active debate on how countries should set themselves goals for achieving both absolute poverty reduction and lower inequality. But policy action needs to be better served by analysis and data. [ABSTRACT FROM AUTHOR]

This paper provides evidence on growth and income poverty in Latin America and the Caribbean (LAC). Results are obtained by processing microdata from household surveys of 18 LAC countries covering the 1990s and early 2000s. Over this period the LAC economies experienced heterogeneous patterns of growth and poverty changes. Most countries in the region had a rather meager performance in terms of poverty reduction. Episodes of positive, significant and unambiguously pro-poor income growth have been rare in Latin America. [ABSTRACT FROM AUTHOR]

This paper investigates the impact of economic growth, and more specifically robust economic growth along with other macroeconomic determinants, on poverty levels using both the U.S. official measure of poverty and an estimated time series of Sen indices of poverty. The results reveal that the period of robust economic expansion that the U.S. economy experienced during the 1990s did not have a significant impact on poverty using either measure. In addition, we find that the impact of growth and other macro controls is dramatically different when a subset of the poverty population, namely non-white poverty, is investigated. The percentage of households headed by women is shown to be a significant factor in examining poverty for this subgroup. [ABSTRACT FROM AUTHOR]

While Africa may have overcome its growth tragedy, it is facing a statistical tragedy, in that the statistical foundations of the recent growth in per-capita GDP and reduction in poverty are quite weak. In many countries, GDP accounts use old methods, population censuses are out of date, and poverty estimates are infrequent and often not comparable over time. The proximate reasons have to do with weak capacity, inadequate funding, and a lack of coordination of statistical activities. But the underlying cause may be the political sensitivity of these statistics, and some donors' tendency to go around countries' own National Statistical Development Strategies ( NSDS). Greater openness and transparency of statistics, and a higher profile for the NSDS, possibly with 'naming and shaming' of those who try to circumvent it, may help Africans turn around their statistical tragedy. [ABSTRACT FROM AUTHOR]

This paper represents a first attempt to bring together the issues of multidimensional poverty and growth 'pro-poorness' assessments. More specifically, we suggest the use of sequential dominance procedures to test the 'pro-poorness' of observed growth spells when poverty is measured on the basis of income and another discrete well-being attribute. Sequential procedures are also used to obtain graphical tools that are consistent with the spirit of Ravallion and Chen's growth incidence curve and Son's poverty growth curve. Contrary to traditional unidimensional tests, our method makes it possible to take into account the importance of deprivation correlations at the individual level and thus may reverse results observed with the traditional tools used to check the 'pro-poorness' of growth. An illustration of our approach is given using Turkish data for the period 2003-05. [ABSTRACT FROM AUTHOR]

This paper investigates the properties of various measures of poverty and of the ‘difficulty of alleviation of poverty’. It is found that the ranking properties of both kinds of indices can be quite counter-intuitive and that they could be misleading if used for policy evaluation. An alternative index is proposed; it is compared to the other indices and seems to fare rather well. To illustrate, a special reference is made to S. Anand's recent article on poverty in Malaysia. [ABSTRACT FROM AUTHOR]

Economic growth had less impact on poverty rates in the 1980s than in the 1960s. Could this explained by Lake Anderson's observation that the higher median income, the greater the amount of growth need to achieve a percentage point fall in the poverty rate? No, higher poverty rates are due instead to the rise in income inequality. With higher inequality, however, trickle down could be as effective in the 1990s as it was in the late 1960s. More generally, assessments of anti-poverty policy must recognize that inequality is as vital to chants in the poverty rate as growth in mean income. [ABSTRACT FROM AUTHOR]