Showing papers on "Poverty published in 2003"

Education, Poverty and Terrorism: Is There a Causal Connection?

Abstract: The paper investigates whether there is a connection between poverty or low education and terrorism. We review evidence on hate crimes, which are closely related to terrorism; the occurrence of hate crimes is largely independent of economic conditions. We analyze data on support for attacks against Israeli targets from public opinion polls conducted in the West Bank and Gaza Strip; support for violent attacks does not decrease among those with higher education and higher living standards. The core contribution of the paper is a statistical analysis of the determinants of participation in Hezbollah militant activities; having a living standard above the poverty line or a secondary or higher education is positively associated with participation in Hezbollah. We also find that Israeli Jewish settlers who attacked Palestinians in the West Bank in the early 1980s were overwhelmingly from high-paying occupations. Although our results are tentative and exploratory, they suggest that neither poverty nor education has a direct, causal impact on terrorism.

The Measurement of Multidimensional Poverty

Abstract: Many authors have insisted on the necessity of defining poverty as a multidimensional concept rather than relying on income or consumption expenditures per capita. Yet, not much has actually been done to include the various dimensions of deprivation into the practical definition and measurement of poverty. Existing attempts along that direction consist of aggregating various attributes into a single index through some arbitrary function and defining a poverty line and associated poverty measures on the basis of that index. This is merely redefining more generally the concept of poverty, which then essentially remains a one dimensional concept. The present paper suggests that an alternative way to take into account the multi-dimensionality of poverty is to specify a poverty line for each dimension of poverty and to consider that a person is poor if he/she falls below at least one of these various lines. The paper then explores how to combine these various poverty lines and associated one-dimensional gaps into multidimensional poverty measures. An application of these measures to the rural population in Brazil is also given with poverty defined on income and education.

Microfinance and poverty - evidence using panel data from Bangladesh

Abstract: Micro-finance supports mainly informal activities that often have low market demand. It may be thus hypothesized that the aggregate poverty impact of micro-finance in an economy with low economic growth is modest or nonexistent. The observed borrower-level poverty impact is then a result of income redistribution or short-run income generation. The author addresses these questions using household level panel data from Bangladesh. The findings confirm that micro-finance benefits the poorest and has sustained impact in reducing poverty among program participants. It also has positive spillover impact, reducing poverty at the village level. But the effect is more pronounced in reducing extreme rather than moderate poverty.

World Development Report 2004 : making services work for poor people

Abstract: The World Development Report (WDR) 2004 warns that broad improvements in human welfare will not occur unless poor people receive wider access to affordable, better quality services in health, education, water, sanitation, and electricity. Without such improvements, freedom from illness and from illiteracy, two of the most important ways poor people can escape poverty, will remain elusive to many. This report builds an analytical and practical framework for using resources, whether internal or external, more effectively by making services work for poor people. The focus is on those services that have the most direct link with human development, education, health, water, sanitation, and electricity. This presents an enormous challenge, because making services work for the poor involves changing, not only service delivery arrangements, but also public sector institutions, and how foreign aid is transferred. This WDR explores the many dimensions of poverty, through outcomes of service delivery for poor people, and stipulates affordable access to services is low especially for poor people in addition to a wide range of failures in quality. The public responsibility is highlighted, addressing the need for more public spending, and technical adjustments, based on incentives and understanding what, and why services need to be improved. Thus, through an analytical framework, it is suggested the complexity of accountability must be established, as well as instruments for reforming institutions to improve services, illustrated through various case studies, both in developing, and developed countries. The report further outlines that scaling up reforms means sectoral reforms must be linked to ongoing or nascent public sector reforms, in areas such as budget management, decentralization, and public administration reform, stimulated through information as a catalyst for change, and as an input to prod the success of other reforms.

Poverty and common mental disorders in developing countries

Abstract: A review of English-language journals published since 1990 and three global mental health reports identified 11 community studies on the association between poverty and common mental disorders in six low- and middle-income countries. Most studies showed an association between indicators of poverty and the risk of mental disorders, the most consistent association being with low levels of education. A review of articles exploring the mechanism of the relationship suggested weak evidence to support a specific association with income levels. Factors such as the experience of insecurity and hopelessness, rapid social change and the risks of violence and physical ill-health may explain the greater vulnerability of the poor to common mental disorders. The direct and indirect costs of mental ill-health worsen the economic condition, setting up a vicious cycle of poverty and mental disorder. Common mental disorders need to be placed alongside other diseases associated with poverty by policy-makers and donors. Programmes such as investment in education and provision of microcredit may have unanticipated benefits in reducing the risk of mental disorders. Secondary prevention must focus on strengthening the ability of primary care services to provide effective treatment.

Do Rural Banks Matter? Evidence from the Indian Social Banking Experiment

Abstract: Lack of access to finance is often cited as a key reason why poor people remain poor. This paper uses data on the Indian rural branch expansion program to provide empirial evidence on this issue. Between 1977 and 1990, the Indian Central Bank mandated that a commercial bank can open a branch in a location with one or more bank branches only if it opens four in locations with no bank branches. We show that between 1977 and 1990 this rule caused banks to open relatively more rural branches in Indian states with lower initial financial development. The reverse is true outside this period. We exploit this fact to identify the impact of opening a rural bank on poverty and output. Our estimates suggest that the Indian rural branch expansion program significantly lowered rural poverty, and increased non-agricultural output.

Catastrophe and impoverishment in paying for health care: with applications to Vietnam 1993–1998

Abstract: This paper presents and compares two threshold approaches to measuring the fairness of health care payments, one requiring that payments do not exceed a pre-specified proportion of pre-payment income, the other that they do not drive households into poverty. We develop indices for 'catastrophe' that capture the intensity of catastrophe as well as its incidence and also allow the analyst to capture the degree to which catastrophic payments occur disproportionately among poor households. Measures of poverty impact capturing both intensity and incidence are also developed. The arguments and methods are empirically illustrated with data on out-of-pocket payments from Vietnam in 1993 and 1998. This is not an uninteresting application given that 80% of health spending in that country was paid out-of-pocket in 1998. We find that the incidence and intensity of 'catastrophic' payments - both in terms of pre-payment income as well as ability to pay - were reduced between 1993 and 1998, and that both incidence and intensity of 'catastrophe' became less concentrated among the poor. We also find that the incidence and intensity of the poverty impact of out-of-pocket payments diminished over the period in question. Finally, we find that the poverty impact of out-of-pocket payments is primarily due to poor people becoming even poorer rather than the non-poor being made poor, and that it was not expenses associated with inpatient care that increased poverty but rather non-hospital expenditures.

Microfinance and poverty : evidence using panel data from Bangladesh

Abstract: Micro-finance supports mainly informal activities that often have low market demand. It may be thus hypothesized that the aggregate poverty impact of micro-finance in an economy with low economic growth is modest or nonexistent. The observed borrower-level poverty impact is then a result of income redistribution or short-run income generation. The author addresses these questions using household level panel data from Bangladesh. The findings confirm that micro-finance benefits the poorest and has sustained impact in reducing poverty among program participants. It also has positive spillover impact, reducing poverty at the village level. But the effect is more pronounced in reducing extreme rather than moderate poverty.

Banker to the Poor: Micro-Lending and the Battle Against World Poverty

Abstract: Muhammad Yunus is that rare thing: a bona fide visionary. His dream is the total eradication of poverty from the world. In 1983, against the advice of banking and government officials, Yunus established Grameen, a bank devoted to providing the poorest of Bangladesh with minuscule loans. Grameen Bank, based on the belief that credit is a basic human right, not the privilege of a fortunate few, now provides over 2.5 billion dollars of micro-loans to more than two million families in rural Bangladesh. Ninety-four percent of Yunus's clients are women, and repayment rates are near 100 percent. Around the world, micro-lending programs inspired by Grameen are blossoming, with more than three hundred programs established in the United States alone. Banker to the Poor is Muhammad Yunus's memoir of how he decided to change his life in order to help the world's poor. In it he traces the intellectual and spiritual journey that led him to fundamentally rethink the economic relationship between rich and poor, and the challenges he and his colleagues faced in founding Grameen. He also provides wise, hopeful guidance for anyone who would like to join him in "putting homelessness and destitution in a museum so that one day our children will visit it and ask how we could have allowed such a terrible thing to go on for so long." The definitive history of micro-credit direct from the man that conceived of it, Banker to the Poor is necessary and inspirational reading for anyone interested in economics, public policy, philanthropy, social history, and business. Muhammad Yunus was born in Bangladesh and earned his Ph.D. in economics in the United States at Vanderbilt University, where he was deeply influenced by the civil rights movement. He still lives in Bangladesh, and travels widely around the world on behalf of Grameen Bank and the concept of micro-credit.

Does it Matter that we do not Agree on the Definition of Poverty? A Comparison of Four Approaches

Abstract: While there is world-wide agreement on poverty reduction as an overriding goal of development policy, there is little agreement on the definition of poverty. Four approaches to the definition and measurement of poverty are reviewed in this paper: the monetary, capability, social exclusion and participatory approaches. The theoretical underpinnings of the various measures and problems of operationalizing them are pointed out. It is argued that each is a construction of reality, involving numerous judgements, which are often not transparent. The different methods have different implications for policy, and also, to the extent that they point to different people as being poor, for targeting. Empirical work in Peru and India shows that there is significant lack of overlap between the methods with, for example, nearly half the population identified as in poverty according to monetary poverty but not in capability poverty, and conversely. This confirms similar findings elsewhere. Hence, the definition of povert...

Exploring the forest–poverty link: key concepts, issues and research implications

Abstract: This paper provides a global review of the link from forests to poverty alleviation. Definitions are clarified and the key concepts and indicators related to livelihoods and policy reduction and prevention are explored--distinguishing between the analysis and the measurements of poverty. Reviewing the macro-level literature on the relationship between economic growth, inequality and poverty, the authors found that economic growth usually does trickle down to the poor and that poverty reduction without growth is in practice very difficult to achieve. The potentials and limitations of forests in regard to poverty allevition are canvassed and their possible roles as safety nets, poverty traps and pathways out of poverty are explored. The core discussion addresses how forests can contribute to poverty reduction, distinguishing three main benefit categories. Firstly, non-timber forest products serve subsistence needs, may have important gap filling or safety net functions. Secondly, timber has not traditionally been very pro-poor but the current trends of increased local ownership of natural forests, growing tree commercialisation and small scale wood processing could modify that picture. Thirdly, ecological service payments are emerging rapidly but it is uncertain how much the poor will benefit. In conclusion, this paper outlines ten promising research topics, within three broader fields: assessing current forest-based benefits to the poor; exploring emerging market opportunities; and evaluating cross-cutting institutional and extra-sectoral issues.

Monitoring Poverty and Social Exclusion

Abstract: Annual report on the state of poverty and social exclusion in the UK. The report is based on 50 indicators and covers low income, worklessness, debt, ill health, poor education and problems in communities.

Gender Mainstreaming in Poverty Eradication and the Millennium Development Goals

Abstract: Neglect of gender inequalities in the distribution of resources, responsibilities and power in the processes of economic accumulation and social reproduction has a high cost for women, children and other dependents and for the development of society as a whole. This book highlights the interconnections between production and reproduction within different societies; women's critical role in straddling both and points to various synergies, tradeoffs and externalities which these generate. Naila Kabeer's book will be of significant use to policymakers, practitioners, researchers and other stakeholders committed to the pursuit of propoor and humancentred development.

THE IMPACT OF RESEARCH LED AGRICULTURAL PRODUCTIVITY GROWTH ON POVERTY REDUCTION IN AFRICA, ASIA AND LATIN AMERICA / доклад на 25 конференции IAAE, Reshaping Agriculture’s Contribution to Society, International Convention Centre, Durban, South Africa, 16-23 August 2003

Abstract: Twenty percent of the world population, or 1.2 billion live on less than $1 per day; 70% of these are rural and 90% in Asia and Sub-Saharan Africa. Research led technological change in agriculture generates sufficient productivity growth to give high rates of return in Africa and Asia and has a substantial impact on poverty, currently reducing this number by 27 million per annum, whereas productivity growth in industry and services has no impact. The per capital cost of poverty reduction by means of agricultural research expenditures in Africa is $144 and in Asia $180, or 50 cents per day, but this is covered by output growth. By contrast, the per capita cost for the richer countries of Latin America is over $11,000.

Decentralisation and poverty reduction in Africa: the politics of local–central relations

Abstract: Decentralisation advocates argue that decentralised governments are more responsive to the needs of the poor than central governments and thus are more likely to conceive and implement pro-poor policies. Recent evidence from a selected group of sub-Saharan African countries is reviewed in a comparative framework that highlights factors associated with success in poverty reduction. It is argued that the degree of responsiveness to the poor and the extent to which there is an impact on poverty are determined primarily by the politics of local–central relations and the general regime context—particularly the ideological commitment of central political authorities to poverty reduction. In most of the cases, ‘elite capture’ of local power structures has been facilitated by the desire of ruling elites to create and sustain power bases in the countryside. Popular perceptions of the logic of patronage politics, combined with weak accountability mechanisms, have reinforced this outcome. The conclusion from these African cases is that decentralisation has not empowered challenges to local elites who are resistant or indifferent to pro-poor policies. Thus, decentralisation is unlikely to lead to more pro-poor outcomes without a serious effort to strengthen and broaden accountability mechanisms at both local and national levels. Copyright © 2003 John Wiley & Sons, Ltd.

Cities Transformed: Demographic Change and Its Implications in the Developing World

Abstract: Virtually all of the growth in the worlda (TM)s population for the foreseeable future will take place in the cities and towns of the developing world Over the next twenty years, most developing countries will for the first time become more urban than rural The benefits from urbanization cannot be overlooked, but the speed and sheer scale of this transformation present many challenges A new cast of policy makers is emerging to take up the many responsibilities of urban governancea "as many national governments decentralize and devolve their functions, programs in poverty, health, education, and public services are increasingly being deposited in the hands of untested municipal and regional governments Demographers have been surprisingly slow to devote attention to the implications of the urban transformation Drawing from a wide variety of data sources, many of them previously inaccessible, Cities Transformed explores the implications of various urban contexts for marriage, fertility, health, schooling, and childrena (TM)s lives It should be of interest to all involved in city-level research, policy, planning, and investment decisions

Groundwater and its susceptibility to degradation : a global assessment of the problem and options for management

Abstract: The Millennium Development Goals (MDGs) were adopted by member countries of the UN in 2000 as a global consensus on objectives for addressing poverty. Water has a key role in strategies for achieving all of the MDGs, which include a target to reduce by half the proportion of people without access to a safe water supply and a commitment to ensure environmental sustainability. The 2002 World Summit on Sustainable Development (WSSD) in Johannesburg made an important advance when it placed poverty eradication at the heart of efforts to achieve sustainable development. The Summit brought the development and environment movements together and committed the international community to a systematic effort both to reduce poverty and pursue sustainable development. A new target on sanitation and a commitment to have water resource plans for all countries in place by 2005 were made at WSSD. The importance of water and its fundamental contribution to sustainable development is now recognised, but the contribution of water to poverty reduction will only be realised if it is set in the broader context of social and economic development and environmental improvement.

Racial/Ethnic Disparities in the Use of Mental Health Services in Poverty Areas

Abstract: Objectives. This study examined racial/ethnic disparities in mental health service access and use at different poverty levels. Methods. We compared demographic and clinical characteristics and service use patterns of Whites, Blacks, Hispanics, and Asians living in low-poverty and high-poverty areas. Logistic regression models were used to assess service use patterns of minority racial/ethnic groups compared with Whites in different poverty areas. Results. Residence in a poverty neighborhood moderates the relationship between race/ethnicity and mental health service access and use. Disparities in using emergency and inpatient services and having coercive referrals were more evident in low-poverty than in high-poverty areas. Conclusions. Neighborhood poverty is a key to understanding racial/ethnic disparities in the use of mental health services.

Poverty, Inequality, And Discrimination As Sources Of Depression Among U.S. Women

Abstract: Poverty, inequality, and discrimination endanger women's well-being. Poverty is one of the most consistent predictors of depression in women, probably because it imposes considerable stress while attacking many potential sources of social support. Economic inequalities within societies are associated with reduced life expectancy and a variety of negative physical health outcomes. Parallel research on economic inequalities and depression has just begun. Discrimination maintains inequalities, condemns women to lives of lessened economic security, and exposes them to unmerited contempt. Although the mental health impact of poverty is documented and largely understood, the implications of inequality and discrimination are less well known. Much important work remains to be done, particularly research that connects individuals' mental health to ecological characteristics of the communities and societies in which they live.

Microfinance and Poverty: Evidence Using Panel Data from Bangladesh

Abstract: Micro-finance supports mainly informal activities that often have low market demand. It may be thus hypothesized that the aggregate poverty impact of micro-finance in an economy with low economic growth is modest or nonexistent. The observed borrower-level poverty impact is then a result of income redistribution or short-run income generation. Khandker addresses these questions using household level panel data from Bangladesh. The findings confirm that micro-finance benefits the poorest and has sustained impact in reducing poverty among program participants. It also has positive spillover impact, reducing poverty at the villate level. But the effect is more pronounced in reducing extreme rather than moderate poverty. This paper - a product of Rural Development, Development Research Group - is part of a larger effort in the group to analyze the impact of targeted programs on the poor.

Can information and communications technology applications contribute to poverty reduction? Lessons from rural India

Abstract: Information and Communications Technology (ICT) can reduce poverty by improving poor people's access to education, health, government and financial services. ICT can also help small farmers and artisans by connecting them to markets. It is clear that in rural India -as well as in much of the developing world- realization of this potential is not guaranteed. This paper outlines a sample model to explain why a digital divide may exist between rich and poor. Low-cost access to information infrastructure is a necessary prerequisite for the successful use of ICT by the poor, but it is not sufficient. The implementation of ICT projects needs to be performed by organizations and individuals who have the appropriate incentives to work with marginalized groups. Furthermore, grassroots intermediaries and the involvement of the community are identified as the key factors that foster local ownership and the availability of content and services that respond to the most pressing needs of the poor.

Halving global poverty

Abstract: The goal of central importance to this paper is to cut in half the proportion of people living below $1 a day from around 30 percent of the developing world's population in 1990 to 15 percent by 2015. Based on population projections in 1990 this would correspond to around one billion people exiting poverty. This paper begins by discussing poverty trends on a global scale -- where the poor are located in the world and how their numbers have been changing over time. It then discusses the relationship of economic growth and income distribution to poverty reduction. Finally, it suggests an evidence-based agenda for poverty reduction in the developing world. Full text available at Official URL.