Showing papers on "Poverty published in 2010"

Smallholder market participation: concepts and evidence from Eastern and Southern Africa.

Abstract: This paper reviews the evidence on smallholder market participation, with a focus on staple foodgrains (i.e., cereals) in eastern and southern Africa, in an effort to help better identify what interventions are most likely to break smallholders out of the semi-subsistence poverty trap that appears to ensnare much of rural Africa. The conceptual and empirical evidence suggests that interventions aimed at facilitating smallholder organization, at reducing the costs of intermarket commerce, and, perhaps especially, at improving poorer households’ access to improved technologies and productive assets are central to stimulating smallholder market participation and escape from semi-subsistence poverty traps. Macroeconomic and trade policy tools appear less useful in inducing market participation by poor smallholders in the region.

Acute Multidimensional Poverty: A New Index for Developing Countries

Abstract: This paper presents a new Multidimensional Poverty Index (MPI) for 104 developing countries. It is the first time multidimensional poverty is estimated using micro datasets (household surveys) for such a large number of countries which cover about 78 percent of the world´s population. The MPI has the mathematical structure of one of the Alkire and Foster poverty multidimensional measures and it is composed of ten indicators corresponding to same three dimensions as the Human Development Index: Education, Health and Standard of Living. Our results indicate that 1,700 million people in the world live in acute poverty, a figure that is between the $1.25/day and $2/day poverty rates. Yet it is no $1.5/day measure. The MPI captures direct failures in functionings that Amartya Sen argues should form the focal space for describing and reducing poverty. It constitutes a tool with an extraordinary potential to target the poorest, track the Millennium Development Goals, and design policies that directly address the interlocking deprivations poor people experience. This paper presents the methodology and components in the MPI, describes main results, and shares basic robustness tests.

Early‐Childhood Poverty and Adult Attainment, Behavior, and Health

Abstract: This article assesses the consequences of poverty between a child’s prenatal year and 5th birthday for several adult achievement, health, and behavior outcomes, measured as late as age 37. Using data from the Panel Study of Income Dynamics (1,589) and controlling for economic conditions in middle childhood and adolescence, as well as demographic conditions at the time of the birth, findings indicate statistically significant and, in some cases, quantitatively large detrimental effects of early poverty on a number of attainment-related outcomes (adult earnings and work hours). Early-childhood poverty was not associated with such behavioral measures as out-of-wedlock childbearing and arrests. Most of the adult earnings effects appear to operate through early poverty’s association with adult work hours.

Economic Status, Education and Empowerment: Implications for Maternal Health Service Utilization in Developing Countries

Abstract: Background Relative to the attention given to improving the quality of and access to maternal health services, the influence of women's socio-economic situation on maternal health care use has received scant attention. The objective of this paper is to examine the relationship between women's economic, educational and empowerment status, introduced as the 3Es, and maternal health service utilization in developing countries. Methods/Principal Findings The analysis uses data from the most recent Demographic and Health Surveys conducted in 31 countries for which data on all the 3Es are available. Separate logistic regression models are fitted for modern contraceptive use, antenatal care and skilled birth attendance in relation to the three covariates of interest: economic, education and empowerment status, additionally controlling for women's age and residence. We use meta-analysis techniques to combine and summarize results from multiple countries. The 3Es are significantly associated with utilization of maternal health services. The odds of having a skilled attendant at delivery for women in the poorest wealth quintile are 94% lower than that for women in the highest wealth quintile and almost 5 times higher for women with complete primary education relative to those less educated. The likelihood of using modern contraception and attending four or more antenatal care visits are 2.01 and 2.89 times, respectively, higher for women with complete primary education than for those less educated. Women with the highest empowerment score are between 1.31 and 1.82 times more likely than those with a null empowerment score to use modern contraception, attend four or more antenatal care visits and have a skilled attendant at birth. Conclusions/Significance Efforts to expand maternal health service utilization can be accelerated by parallel investments in programs aimed at poverty eradication (MDG 1), universal primary education (MDG 2), and women's empowerment (MDG 3).

Acute Multidimensional Poverty: A New Index for Developing Countries

Abstract: This paper presents a new Multidimensional Poverty Index (MPI) for 104 developing countries. It is the first time multidimensional poverty is estimated using micro datasets (household surveys) for such a large number of countries which cover about 78 percent of the world’s population. The MPI has the mathematical structure of one of the Alkire and Foster poverty multidimensional measures and it is composed of ten indicators corresponding to same three dimensions as the Human Development Index: Education, Health and Standard of Living. Our results indicate that 1,700 million people in the world live in acute poverty, a figure that is between the $1.25/day and $2/day poverty rates. Yet it is no $1.5/day measure. The MPI captures direct failures in functionings that Amartya Sen argues should form the focal space for describing and reducing poverty. It constitutes a tool with an extraordinary potential to target the poorest, track the Millennium Development Goals, and design policies that directly address the interlocking deprivations poor people experience. This paper presents the methodology and components in the MPI, describes main results, and shares basic robustness tests.

The (Evolving) Role of Agriculture in Poverty Reduction

Abstract: The role of agriculture in development remains much debated. This paper takes an empirical perspective and focuses on poverty, as opposed to growth alone. The contribution of a sector to poverty reduction is shown to depend on its own growth performance, its indirect impact on growth in other sectors, the extent to which poor people participate in the sector, and the size of the sector in the overall economy. Bringing together these different effects using cross-country econometric evidence indicates that agriculture is significantly more effective than nonagriculture in reducing poverty among the poorest of the poor (as reflected in the $1-day squared poverty gap). It is also up to 3.2 times better at reducing $1-day headcount poverty in low-income and resource-rich countries (including those in sub-Saharan Africa), at least when societies are not fundamentally unequal. However, when it comes to the better-off poor (reflected in the $2-day measure), non-agriculture has the edge. These results are driven by the much larger participation of poorer households in growth from agriculture and the lower poverty-reducing effect of non-agriculture in the presence of extractive industries.

Trends in South African Income Distribution and Poverty since the Fall of Apartheid

Abstract: This report presents a detailed analysis of changes in both poverty and inequality since the fall of Apartheid, and the potential drivers of such developments. Use is made of national survey data from 1993, 2000 and 2008. These data show that South Africa’s high aggregate level of income inequality increased between 1993 and 2008. The same is true of inequality within each of South Africa’s four major racial groups. Income poverty has fallen slightly in the aggregate but it persists at acute levels for the African and Coloured racial groups. Poverty in urban areas has increased. There have been continual improvements in non-monetary well-being (for example, access to piped water, electricity and formal housing) over the entire post-Apartheid period up to 2008. From a policy point of view it is important to flag the fact that intra-African inequality and poverty trends increasingly dominate aggregate inequality and poverty in South Africa. Race-based redistribution may become less effective over time relative to policies addressing increasing inequality within each racial group and especially within the African group. Rising inequality within the labourmarket – due both to rising unemployment and rising earnings inequality – lies behind rising levels of aggregate inequality. These labour market trends have prevented the labour market from playing a positive role in poverty alleviation. Social assistance grants (mainly the child support grant, the disability grant and the old-age pension) alter the levels of inequality only marginally but have been crucial in reducing poverty among the poorest households. There are still a large number of families that are ineligible for grants because of the lack of appropriate documents. This suggests that there is an important role for the Department of Home Affairs in easing the process of vital registration.

Poverty Capital: Microfinance and the Making of Development

Abstract: 1. Small Worlds: The Democratization of Capital and Development 2. Global Order: Circuits of Capital Truth 3. Dissent at the Margins: Development and the Bangladesh Paradox 4. The Pollution of Free Money: Debt, Discipline, and Dependence in the Middle East 5. Subprime Markets: Poverty Capital

Reconsidering Culture and Poverty

Abstract: Culture is back on the poverty research agenda. Over the past decade, sociologists, demographers, and even economists have begun asking questions about the role of culture in many aspects of poverty and even explicitly explaining the behavior of the low-income population in reference to cultural factors. An example is Prudence Carter (2005), who, based on interviews with poor minority students, argues that whether poor children will work hard at school depends in part on their cultural beliefs about the differences between minorities and the majority. Annette Lareau (2003), after studying poor, working-class, and middleclass families, argues that poor children may do worse over their lifetimes in part because their parents are more committed to “natural growth” than “concerted cultivation” as their cultural model for child rearing. Mario Small (2004), based on fieldwork in a Boston housing complex, argues that poor people may be reluctant to participate in beneficial community activities in part because of how they culturally perceive their neighborhoods. David Harding (2007, 2010), using survey and qualitative interview data on adolescents, argues that the sexual behavior of poor teenagers depends in part on the extent of cultural heterogeneity in their neighborhoods. Economists George Akerlof and Rachel Kranton (2002), relying on the work of other scholars, argue that whether students invest in schooling depends in part on their cultural identity, wherein payoffs will differ among “jocks,” “nerds,” and “burnouts.” And William Julius Wilson, in his latest book (2009a), argues that culture helps explain how poor African Americans respond to the structural conditions they experience.

The Crime Reducing Effect of Education

Abstract: In this article, we study the crime reducing potential of education, presenting causal statistical estimates based upon a law that changed the compulsory school leaving age in England and Wales. We frame the analysis in a regression-discontinuity setting and uncover significant decreases in property crime from reductions in the proportion of people with no educational qualifications and increases in the age of leaving school that resulted from the change in the law. The findings show that improving education can yield significant social benefits and can be a key policy tool in the drive to reduce crime.

State of the World's Cities 2010/11 : Cities for All: Bridging the Urban Divide

Abstract: The world's urban population now exceeds the world's rural population. What does this mean for the state of our cities, given the strain this global demographic shift is placing upon current urban infrastructures? Following on from previous State of the World's Cities reports, this edition uses the framework of 'The Urban Divide' to analyse the complex social, political, economic and cultural dynamics of urban environments. In particular, the book focuses on the concept of the 'right to the city' and ways in which many urban dwellers are excluded from the advantages of city life, using the framework to explore links among poverty, inequality, slum formation and economic growth. The volume will be essential reading for all professionals and policymakers in the field, as well as a valuable resource for researchers and students in all aspects of urban development. Published with UN-Habitat.

The poverty implications of climate-induced crop yield changes by 2030

Abstract: Accumulating evidence suggests that agricultural production could be greatly affected by climate change, but there remains little quantitative understanding of how these agricultural impacts would affect economic livelihoods in poor countries. Here we consider three scenarios of agricultural impacts of climate change by 2030 (impacts resulting in low, medium, or high productivity) and evaluate the resulting changes in global commodity prices, national economic welfare, and the incidence of poverty in a set of 15 developing countries. Although the small price changes under the medium scenario are consistent with previous findings, we find the potential for much larger food price changes than reported in recent studies which have largely focused on the most likely outcomes. In our low-productivity scenario, prices for major staples rise 10–60% by 2030. The poverty impacts of these price changes depend as much on where impoverished households earn their income as on the agricultural impacts themselves, with poverty rates in some non-agricultural household groups rising by 20–50% in parts of Africa and Asia under these price changes, and falling by significant amounts for agriculture-specialized households elsewhere in Asia and Latin America. The potential for such large distributional effects within and across countries emphasizes the importance of looking beyond central case climate shocks and beyond a simple focus on yields – or highly aggregated poverty impacts.

Building Social Business: The New Kind of Capitalism That Serves Humanity's Most Pressing Needs

Abstract: Nobel laureate Muhammad Yunus looks more deeply into the concept of social business, an alternative to unfettered capitalism that channels the best energies of capitalism while addressing pressing human needs, by showing how the theory and practice of this idea is growing in the business, academic and philanthropic worlds. Muhammad Yunus, the practical visionary who pioneered microcredit and, with his Grameen Bank, won the 2006 Nobel Peace Prize for his world-changing efforts, here develops his bold new concept that promises to revolutionize the free-enterprise system: social business. Designed to fill the gap between profit-making and human needs, social business applies entrepreneurial thinking to problems like poverty, hunger, pollution, and disease, creating self-supporting, self-replicating enterprises that create jobs and generate economic growth even as they provide goods and services that make the world a better place. Partnering with some of the world's greatest corporations, Yunus and Grameen Bank have already launched several social businesses that are addressing challenges like malnutrition, lack of potable water, and endemic illness in Yunus' homeland of Bangladesh, and other organizations around the world are developing their own experiments in social business. In this book, Yunus traces the development of the social business idea; explains its lessons for entrepreneurs, social activists, and policy makers; offers practical guidance for those who want to create social businesses of their own; and, shows why social business holds the potential to redeem the failed promise of free enterprise.

Agricultural Growth and Poverty Reduction: Additional Evidence

Abstract: Agricultural growth has long been recognized as an important instrument for poverty reduction. Yet, measurements of this relationship are still scarce and not always reliable. The authors present additional evidence at both the sectoral and household levels based on recent data. Results show that rural poverty reduction has been associated with growth in yields and in agricultural labor productivity, but that this relation varies sharply across regional contexts. Gross domestic product (GDP) growth originating in agriculture induces income growth among the 40 percent poorest, which is on the order of three times larger than growth originating in the rest of the economy. The power of agriculture comes not only from its direct poverty reduction effect but also from its potentially strong growth linkage effects on the rest of the economy. Decomposing the aggregate decline in poverty into a rural contribution, an urban contribution, and a population shift component shows that rural areas contributed more than half the observed aggregate decline in poverty. Finally, using the example of Vietnam, the authors show that rapid growth in agriculture has opened pathways out of poverty for farming households. While the effectiveness of agricultural growth in reducing poverty is well established, the effectiveness of public investment in inducing agricultural growth is still incomplete and conditional on context.

Integrating Poverty and Environmental Concerns into Value-Chain Analysis: A Conceptual Framework

Abstract: Many policy prescriptions emphasise poverty reduction through closer integration of poor people or areas with global markets. Global value chain (GVC) studies reveal how firms and farms in developing countries are upgraded by being integrated in global markets, but few explicitly document the impact on poverty, gender and the environment, or conversely, how value chain restructuring is in turn mediated by local history, social relations and environmental factors. This article develops a conceptual framework that can help overcome the shortcomings in ‘stand-alone’ value-chain, livelihood and environmental analyses by integrating the ‘vertical’ and ‘horizontal’ aspects of value chains that together affect poverty and sustainability.

Price Indexes, Inequality, and the Measurement of World Poverty

Abstract: I discuss the measurement of world poverty and inequality, with particular attention to the role of purchasing power parity (PPP) price indexes from the International Comparison Project. Global inequality increased with the latest revision of the ICP, and this reduced the global poverty line relative to the US dollar. The recent large increase of nearly half a billion poor people came from an inappropriate updating of the global poverty line, not from the ICP revisions. Even so, PPP comparisons between widely different countries rest on weak theoretical and empirical foundations. I argue for wider use of self-reports from international monitoring surveys, and for a global poverty line that is truly denominated in US dollars.

Just Give Money to the Poor: The Development Revolution from the Global South

Abstract: Amid all the complicated economic theories about the causes and solutions to poverty, one idea is so basic it seems radical: just give money to the poor. Despite its sceptics, researchers have found again and again that cash transfers given to significant portions of the population transform the lives of recipients. Countries from Mexico to South Africa to Indonesia are giving money directly to the poor and discovering that they use it wisely – to send their children to school, to start a business and to feed their families. Directly challenging an aid industry that thrives on complexity and mystification, with highly paid consultants designing ever more complicated projects, Just Give Money to the Poor offers the elegant southern alternative – bypass governments and NGOs and let the poor decide how to use their money. Stressing that cash transfers are not charity or a safety net, the authors draw an outline of effective practices that work precisely because they are regular, guaranteed and fair. This book, the first to report on this quiet revolution in an accessible way, is essential reading for policymakers, students of international development and anyone yearning for an alternative to traditional poverty-alleviation methods.

A relational approach to durable poverty, inequality and power.

Abstract: The article argues for what can be called a ‘relational’ approach to poverty: one that first views persistent poverty as the consequence of historically developed economic and political relations, ...