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Showing papers in "Journal of International Development in 2002"


Journal ArticleDOI
TL;DR: In this paper, the authors propose a framework for the social benefits of micro-finance in terms of six aspects: worth, cost, depth, breadth, length, and scope.
Abstract: Wide agreement about the goal of microfinance—to improve the welfare of the poor—has not led to wide agreement about how best to achieve that goal. To aid discussion, I propose a framework for outreach—the social benefits of microfinance—in terms of six aspects: worth, cost, depth, breadth, length, and scope. The framework encompasses both the poverty approach to microfinance and the self-sustainability approach. The poverty approach assumes that great depth of outreach can compensate for narrow breadth, short length, and limited scope. The self-sustainability approach assumes that wide breadth, long length, and ample scope can compensate for shallow depth. I show how to use the framework for BancoSol of Bolivia. Copyright © 2002 John Wiley & Sons, Ltd.

359 citations


Journal ArticleDOI
TL;DR: In this article, the authors argue that financial services for the poor are essentially a matter of helping the poor turn their savings into sums large enough to satisfy a wide range of business, consumption, personal, social and asset-building needs.
Abstract: This paper reviews the achievements of the 'microfinance revolution', through reference to the now extensive literature. It finds that there are many opportunities to improve and innovate. To illustrate this finding, the paper concentrates on examining what we need to know to design and deliver better financial products to the poor, especially the poorest. It argues that financial services for the poor are essentially a matter of helping the poor turn their savings into sums large enough to satisfy a wide range of business, consumption, personal, social and asset-building needs. The range of such 'swaps' should be wide enough to cater for short, medium and long-term needs, and they must be delivered in ways which are convenient, appropriate, safe and affordable. Providing poor people with effective financial services helps them deal with vulnerability and can thereby help reduce poverty. However, the relationship is driven by complex livelihood imperatives and is not simple. Microfinance is not a magic sky-hook that reaches down to pluck the poor out of poverty. It can, however, be a strategically vital platform that the poor can use to raise their own prospects for an escape from poverty. Copyright # 2002 John Wiley & Sons, Ltd.

246 citations


Journal ArticleDOI
TL;DR: The idea that ICTs lead to the ''death of distance'' and the ''level playing field'' in which the small and the new compete on equal terms with the large and the well-established, and permit leapfrogging to an information economy has been discussed as discussed by the authors.
Abstract: Arrival of the Internet in the late 1990s as a ?global? phenomenon has sparked many changes. One has been a change in terminology. Where before we talked simply of information technology (IT), we now talk of information and communication technology (ICT). This reflects the convergence of digital computing and telecommunications. Computers were largely focused on the processing of information. ICTs undertake both processing and communication of information, with recent interest tending to highlight the latter. These changes have also affected development. e-Development ? use of electronic ICTs like the Internet to support development ? has arrived. Donors, attracted by a combination of the hype and hope generated by ICTs, have altered their funding priorities and pushed ICTs up the development agenda. Within that agenda has begun to appear the idea that ICTs lead to the ?death of distance?, create a ?level playing field? in which the small and the new compete on equal terms with the large and the well-established, and permit leapfrogging to an ?information economy?. If ICTs are thus seen as critical to development, then great concern must be expressed about those who lack access to ICTs. Hence, the creation of bodies like the G-8?s DOTForce to combat this ?digital divide?: seen by some as a key target for development action.

221 citations


Journal ArticleDOI
TL;DR: In this paper, the relationship between economic growth in small states and their vulnerability is investigated, and the results highlight some conceptual shortcomings in the analytical literature on small states, particularly islands, as well as suggest that the Vulnerability Index is mis-specified.
Abstract: This paper is concerned with the relationship between economic growth in small states and their vulnerability. A critical argument in much of the literature on small states, particularly small island states, is that their growth performance is greatly constrained by their vulnerability to exogenous shocks because of their size. These shocks include economic, political and environmental factors, which together dampen the long-run growth rate of these economies. The paper makes use of a global small state data set and appropriate quantitative techniques to test the relationship between growth and vulnerability using the results of Briguglio's Vulnerability Index. The results highlight some of the conceptual shortcomings in the analytical literature on small states, particularly islands, as well as suggesting that the Vulnerability Index is mis-specified. Copyright © 2002 John Wiley & Sons, Ltd.

169 citations


Journal ArticleDOI
TL;DR: In this article, the role of information and information-handling technologies within the many rural microenterprises that currently lack access to ICTs is discussed, and the authors find that poor rural entrepreneurs rely heavily on informal, social and local information systems.
Abstract: This paper focuses on the role of information and information-handling technologies within the many rural microenterprises that currently lack access to ICTs. On the basis of field research in Botswana, it finds that poor rural entrepreneurs rely heavily on informal, social and local information systems. While highly appropriate in many ways, these systems can also be constrained and insular. Priorities for breaking this insularity will be greater access to shared telephone services. ICTs may play a supplementary role. They will need to be based in intermediary organizations that can provide complementary inputs of finance, skills, knowledge and other resources. Copyright © 2002 John Wiley & Sons, Ltd.

163 citations


Journal ArticleDOI
TL;DR: This paper explored the knowledge economy of NGDOs in Ghana, India, Mexico and Europe and found it to be largely donor-controlled and generally top-down, often against the will of committed individual actors.
Abstract: Non-government organizations working in development form a transnational community which has a new role in imperialism today. We explored the knowledge economy of this community with NGDOs in Ghana, India, Mexico and Europe and found it to be largely donor-controlled and generally top-down, often against the will of committed individual actors. Governability is arguably a greater priority to donors than the most effective poverty reduction. The new managerialism and its audit culture impose demands on NGDOs that tend to work against any ‘listening’ to southern NGDOs or their clients, so that the sharing of local knowledge and ideas is very restricted. Copyright © 2002 John Wiley & Sons, Ltd.

151 citations


Journal ArticleDOI
TL;DR: In this paper, the authors attempted to categorize the size of 190 states according to population, land area and total income, and proposed a classification based on non-hierarchical cluster analysis.
Abstract: There is no widely accepted definition of a small state. Most previous definitions have been based upon arbitrarily chosen cut-off values of selected criteria. The present study attempts to categorize the size of 190 states according to population, land area and total income. An initial categorization is based upon observation of each series to identify discontinuities in the distributions. Cluster analysis is then employed to identify groups of countries that share similar size-related characteristics. A classification based on non-hierarchical cluster analysis is proposed, generating four clusters from equally spaced initial cluster-centres. On this basis, 79 countries are classified as ‘small’. The reasons for deviation from recent categorizations of small countries are explored, the primary cause being the inclusion of some countries with very low levels of income. Copyright © 2002 John Wiley & Sons, Ltd.

143 citations



Journal ArticleDOI
TL;DR: This article studied the impact of micro credit on income distribution in the Zambian Copperbelt and found that the impact depends upon who obtains loans, who graduates, who exits and group dynamics.
Abstract: While much research has addressed the impact of microcredit on poverty, less attention has been paid to inequality. This paper draws on research on the Zambian Copperbelt to show how impact on income distribution depends upon who obtains loans, who graduates to larger loans, who exits and group dynamics. Some initial levelling up of business income was found, but the more marked overall effect among borrowers was of income polarisation. To gain a full picture, more research is needed into the wider impact of the big gainers not only on their competitors, customers and employees, but also on political tolerance of inequality. Copyright © 2002 John Wiley & Sons, Ltd.

129 citations



Journal ArticleDOI
TL;DR: In this article, fuzzy set theoretic poverty measures are used to examine vulnerability and "definite poverty" in various dimensions of the quality of life, and the analysis suggests that the distinction between human and financial poverty, and that between definite poverty and extreme vulnerability, are important for policy, in particular as regards the inter-provincial distribution of funds.
Abstract: It is sometimes argued that poverty is multi-dimensional and that the borderline between the poor and the non-poor is vague. In this paper fuzzy set theoretic poverty measures are used to examine vulnerability and ‘definite poverty’ in various dimensions of the quality of life. The focus of the paper is on inter-provincial rankings in these dimensions at the time of the 1996 Census in South Africa. While various methodological difficulties are noted, the analysis suggests that the distinction between human and financial poverty, and that between definite poverty and extreme vulnerability, are important for policy, in particular as regards the inter-provincial distribution of funds. Copyright © 2002 John Wiley & Sons, Ltd.

Journal ArticleDOI
Sarah White1
TL;DR: The authors argue that multiple relations among and between adults and children comprise aspects of both mutual interest and contradiction, and are always implicated in power, and advocate a person-centred approach to both analysis and practice.
Abstract: This paper considers the distinctiveness of children as development subjects and the challenges this poses to default development ‘target group’ approaches. It focuses on two key issues: the embeddedness of children within key relationships, and the transformative nature of age-based difference. Rather than viewing adults and children as two fixed categories, it argues that multiple relations amongst and between adults and children comprise aspects of both mutual interest and contradiction, and are always implicated in power. Offering practical tools as well as conceptual discussion to explore these, overall it advocates a person-centred, rather than category-centred, approach to both analysis and practice. Copyright © 2002 John Wiley & Sons, Ltd.

Journal ArticleDOI
TL;DR: This article argued that those who enthusiastically embrace ICT tend to operate within a modernization discourse, while sceptics are influenced by dependency and post-colonial discourses of development, and argued that a more fruitful approach is to analyse the role ICTs play in the power-knowledge nexus.
Abstract: The ICT revolution's promises and threats for developing countries can be brought into clearer perspective if we pay attention to the underlying discourses on development and knowledge employed in this debate. This paper suggests that those who enthusiastically embrace ICTs tend to operate within a modernization discourse, while sceptics are influenced by dependency and post-colonial discourses of development. Both perspectives operate with a liberal notion of knowledge as separate from power. The paper argues that a more fruitful approach is to analyse the role ICTs play in the power–knowledge nexus. Copyright © 2002 John Wiley & Sons, Ltd.



Journal ArticleDOI
TL;DR: The impact of information and communication technologies (ICTs) on development largely depends on the existing economic, social and cultural fabric into which they are introduced as discussed by the authors, and ICT policies must therefore take account of the gendered roles, norms and practices that affect both labour markets and households because these, in turn, affect both the outcome and sustainability of ICT-based development.
Abstract: The impact of information and communication technologies (ICTs) on development largely depends on the existing economic, social and cultural fabric into which they are introduced. This can be seen in the case of Kerala in India, which has been implementing an ICT-based strategy that particularly seeks to create growth and employment through software production. A gendered perspective on software production shows that ICTs create opportunities for women. However, they also reproduce gender inequalities seen in the broader fabric of society. ICT policies must therefore take account of the gendered roles, norms and practices that affect both labour markets and households because these, in turn, affect both the outcome and sustainability of ICT-based development.

Journal ArticleDOI
TL;DR: In this paper, the authors discuss how damage from childhood poverty can be resisted or reversed, both during childhood and in adulthood, by altering behavioral relationships between individuals. But they do not consider the effects of childhood poverty on later life.
Abstract: Does childhood poverty lead to adult poverty? Evidence shows childhood is a sensitive period for developing cognition, physical vitality and personality. This is traceable to specific behavioural and biological mechanisms. However such science could easily drive over- deterministic views about how childhood affects later life. The paper therefore discusses how damage from childhood poverty can—at least sometimes and partially—be resisted or reversed, both during childhood and in adulthood. As people reach biological maturity, alterations to their developmental trajectories rely increasingly on alterations in behavioural relationships. Opportunities remain vital throughout life for sustained socioeconomic attainment. Copyright # 2002 John Wiley & Sons, Ltd.

Journal ArticleDOI
TL;DR: In this article, an integrated empirical framework is proposed to test for long-run spatial market integration between price pairs using a dynamic vector autoregressive model and cointegration, and results show that rice markets are perfectly integrated and that Dhaka dominates near markets but is dominated by more distant markets.
Abstract: Recent studies of spatial market integration have adopted error correction models to test for its existence and for market dominance. An integrated empirical framework is proposed here which tests for long-run spatial market integration between price pairs using a dynamic vector autoregressive model and cointegration. Hypotheses tests of market integration, perfect market integration, and causality are conducted sequentially. The approach is illustrated using monthly prices from rice markets in Bangladesh since trade liberalisation in 1992. Results show that rice markets are perfectly integrated and that Dhaka dominates near markets but is dominated by more distant markets. Copyright © 2002 John Wiley & Sons, Ltd.

Journal ArticleDOI
Francie Lund1
TL;DR: The impact of state intervention in the care of the elderly and children has been investigated in the context of the South African National Pension Scheme (SOPES) as discussed by the authors, which has been shown to increase household incomes and stimulate the formation of very small businesses.
Abstract: A central issue for both economic and social policies aimed at addressing poverty is the appropriate role of the state, and the interaction between public and private measures of support. One tradition in economics has been concerned that public spending will ‘crowd out’ private savings and private pension provision. The substantial South African programme of state assistance to elderly people presents a unique opportunity to understand the impact of state intervention. The non-contributory old age pension raises household incomes, and ‘crowds in’ care of the elderly and of children, enhances household security, and stimulates the formation of very small businesses, as well as local markets. The positive performance of this programme, both in poverty reduction and as a development tool, is used to raise broader questions for international social policies which are designed on increasingly outdated notions of ‘households’ and of ‘work’. Copyright © 2002 John Wiley & Sons, Ltd.

Journal ArticleDOI
TL;DR: In this article, the authors present evidence that non-farm and off-farm activities are carried out by a significant proportion of adults and make an important contribution to livelihoods in highland Wolayta.
Abstract: Drawing on research from southern Ethiopia this article presents evidence that non-farm and off-farm activities are carried out by a significant proportion of adults and make an important contribution to livelihoods. It shows that there is a high involvement of women in diversification and that the contribution of diversification activities to cash incomes is particularly important for poorer households. The single most important activity is trading, while labouring for others is also important. The paper also shows the need for greater historical depth in the understanding of livelihood diversification. In highland Wolayta non-farm activities (particularly trading and labouring for others) have a long history. In the case of the latter people worked as labourers as part of a set of arrangements that enabled them to gain access to key resources. These arrangements were deeply embedded in complex social relations. As these institutional arrangements have changed, so ‘diversification activities’ have become more visible. Consideration of the historical and social contexts is thus critical for a firm understanding of livelihood change and the changing role and importance of diversification activities. Copyright © 2002 John Wiley & Sons, Ltd.

Journal ArticleDOI
Sarah White1
TL;DR: In this article, the authors question the logic of child rights and its validity for the cultural context of Bangladesh, and suggest that a strong stress on child rights at the programme level may not be sustainable and can have contradictory outcomes for poor children.
Abstract: Drawing on primary research in development organizations and with working children themselves, this paper questions the logic of child rights, and its validity for the cultural context of Bangladesh. A strong stress on child rights at the programme level may not be sustainable and can have contradictory outcomes for poor children. Working children place a premium on the quality of relationships and show a strong sense of (in)justice and entitlement. This suggests ‘child rights’ work should re-examine the cultural constitution of entitlements and responsibilities and how these intermesh with the material, social and political factors that make and keep children poor. Copyright © 2002 John Wiley & Sons, Ltd.

Journal ArticleDOI
TL;DR: In this article, the authors argue that the development of foodcrop agriculture needs to be considered as a pivotal poverty reduction strategy in Africa, in spite of the sector's erratic performance which has seen a number of mini-green revolutions take off, falter and crash back to earth.
Abstract: In opposition to a number of the presentations at the Conference, we argue that the development of foodcrop agriculture needs to be considered as a pivotal poverty reduction strategy in Africa—in spite of the sector's erratic performance which has seen a number of ‘mini-green revolutions’ take off, falter and crash back to earth. We insist that for at least five reasons—the scale-neutrality of hybrid seed technology, its labour-intensity, its tendency to reduce risks, its ability to reduce the prices of poor people's basic foods and its ability to stimulate off-farm linkages—the hybrid seed revolution, partial though it has been, needs to be supported and sustained, and not dismissed as fated to fail in African conditions. We support this conclusion by two estimates of poverty impact of these ‘new’ technologies—a quick and dirty estimate based on four channels of impact only (income of adopter households, labour market, consumer prices and off-farm linkages) and an estimate derived from a multi-market model of Uganda, in which about one-tenth of the poverty reduction achieved in Uganda since 1992 is ascribed to productivity change in maize and cassava. We note that a number of domestic and aid policy factors—from weak rural infrastructure and financial systems to food aid—have tended to reduce either the incentive to introduce new technologies, and/or the poverty-elasticity of their introduction. To reduce many of the different poverties from which Africa suffers, we argue, the policies responsible for the underdevelopment of its cereal crops need coordinated reform across many countries; in preparing such reform, inspiration can be taken from the policies which preceded the surge in agricultural productivity in India, Indonesia and China 30 years ago. Copyright © 2002 John Wiley & Sons, Ltd.


Journal ArticleDOI
TL;DR: This paper showed that Dollar and Kraay's empirical work is based on theoretically unsound equations, the data are seriously flawed, and the policy variables are not defined appropriately, nor are they tested in a consistent manner.
Abstract: In a recent paper Dollar and Kraay come to sweeping conclusions about economic growth and the poor. On the basis of empirical work they assert that standard World Bank and IMF policy packages are good for the poor. This paper demonstrates that (i) the empirical work is based on theoretically unsound equations; (ii) the data are seriously flawed; and (iii) the policy variables are not defined appropriately, nor are they tested in a consistent manner. These problems imply that the policy conclusions of the authors are unsafe. Copyright © 2002 John Wiley & Sons, Ltd.

Journal ArticleDOI
TL;DR: This article found that development agencies have too readily adopted approaches from the Northern corporate sector that are inappropriate to development needs, and that alternative approaches are required, that focus on the knower and on the context for creating and sharing knowledge.
Abstract: What happens when corporate knowledge management monoculture meets the diverse international development sector? This paper finds that development agencies have too readily adopted approaches from the Northern corporate sector that are inappropriate to development needs. These approaches treat knowledge as a rootless commodity, and information and communications technology as a key knowledge tool. Alternative approaches are required, that focus on the knower and on the context for creating and sharing knowledge. ICT tools need to support this approach, helping people develop appropriate or alternative scenarios and improving the accessibility of information and knowledge for people with different cultural, social, or educational backgrounds. Copyright © 2002 John Wiley & Sons, Ltd.

Journal ArticleDOI
TL;DR: In this article, the authors examined the financial services and devices used by dwellers of Kalibasti, a squatter settlement in West Delhi, and concluded that access to adequate services does not necessarily correspond with access to formal or semi-formal services as is often presented by micro finance advocates.
Abstract: This paper examines the financial services and devices used by dwellers of Kalibasti, a squatter settlement in West Delhi. It discusses to what extent people are able to put together effective money management strategies through available devices and to what extent we might perceive ‘service’ or ‘product gaps’ which point to where new or existing providers could step in. It highlights the embeddedness of financial devices used by residents in wider kinds of relationships with relatives, co-residents, employers, ‘patrons’ and others. The paper concludes that access to adequate services does not necessarily correspond with access to formal or semi-formal services as is often presented by microfinance advocates. Rather it reflects people's awareness, job and income security, and capacity to leverage personal networks, all of which contribute to the capability of squatter residents to make financial relations and services work for them. The paper ends by making some tentative suggestions as to how our findings might be of interest to prospective microfinance providers in squatter settlements such as Kalibasti. Copyright © 2002 John Wiley & Sons, Ltd.

Journal ArticleDOI
TL;DR: In this article, the authors provide a test of both the Todaro-type probabilistic models of migration and a distinctly different view of the labour migration process which sees the rural-urban migration flow as consisting of two distinct streams, with separate incentives.
Abstract: This paper provides a test—using an India data set—of both the Todaro-type probabilistic models of migration and a distinctly different view of the labour migration process which sees the rural–urban migration flow as consisting of two distinct streams, with separate incentives—one group migrating to the informal sector where wages are competitively determined and the other group to the formal sector with jobs mostly prearranged (and with rural–urban migration not contributing to an increase in unemployment in any meaningful sense). The policy implications of this alternative view of the labour migration process are clearly substantially different from those derived from the Todaro and the Harris–Todaro-type models. The evidence presented in this paper are seen to support this alternative view. The paper also considers the role of the social factors in migration decisions and examines the extent to which the variables which explain the migration for employment also explain the migration behaviour of those who gave various reasons other than employment for migration. Copyright © 2002 John Wiley & Sons, Ltd.

Journal ArticleDOI
TL;DR: In this article, the authors examined the rationale, practice and implications of contract farming under the MNCs in vegetable crops in the Indian Punjab from the new institutional economics perspective, and found that the contracts are biased against the farmer, and the contract crops perpetuate many of the existing problems of the farming sector like high chemical input intensity, unstable future incomes, and social differentiation.
Abstract: This paper examines the rationale, practice and implications of contract farming under the MNCs in vegetable crops in the Indian Punjab from the new institutional economics perspective. It is found that the MNCs deal with relatively large producers, their contracts are biased against the farmer, and the contract crops perpetuate many of the existing problems of the farming sector like high chemical input intensity, unstable future incomes, and social differentiation, though contracting has led to higher farm incomes and labour employment, especially for women. There is an inherent contradiction in the objectives of the contracting parties and that of the local economy and suitable institutions and organisations are not present in the state. Copyright © 2002 John Wiley & Sons, Ltd.

Journal ArticleDOI
TL;DR: In this paper, the authors conjecture that the crisis-hit South-east Asian countries (Indonesia, Malaysia, Thailand and Philippines) made a mistake in effectively pegging to the US dollar rather than in pegging per se.
Abstract: Recent financial crises seem to have led to the broad consensus that developing countries should steer clear of exchange rate regimes that lie anywhere between the two extremes or 'corner solutions' of credibly fixed or flexible arrangements. But is this a reasonable position to adopt? Would developing countries be well advised to follow this policy recommendation? Should developing countries opt only for the corner solutions? Did the crisis-hit South-east Asian countries (Indonesia, Malaysia, Thailand and Philippines), make a mistake in effectively pegging to the US dollar rather than in pegging per se? Did pegging to the US dollar constitute a sub-optimal peg? If it did, what would have been the optimum peg? This paper attempts to provide answers to the preceding questions. The paper also conjectures more broadly about monetary policy in developing countries. © 2002 John Wiley and Sons, Ltd.

Journal ArticleDOI
TL;DR: In this paper, a phenomenographic approach was used to elicit five hierarchically related, qualitatively different understandings of information literacy needs within the development context, revealing possible directions for those workers involved in bringing ICTs into workplace settings within developing communities.
Abstract: Information literacy is about people’s information practices in their ICT environment. Increasing access to ICTs to bridge the digital divide has implications for the information literacy needs of people in developing communities. The research described in this paper, investigated development workers’ perceptions of information literacy needs amongst local staff participating in community development projects in cross-cultural situations. A phenomenographic approach was used to elicit five hierarchically related, qualitatively different understandings of information literacy needs within the development context. The results reveal possible directions for those workers involved in bringing ICTs into workplace settings within developing communities.