Workfare models have in general been based on the contributions of Besley and Coate (1992,1995) which provide a detailed analysis of workfare as an in- come maintenance (or povertyalleviation) program. They introduce a static model of adverse selection in which the primary aim of the social planner is to minimize the costs of a PAP and also ensure that all individuals are above a minimum income level, when income-generating ability is unobservable. Work- fare takes the form of a requirement to work in an unproductive public-sector job. They analyse two distinct incentive arguments to justify the use of work requirements in such programs: a screening argument suggesting it may serve as a means of giving transfers only to deserving individuals and a deterrent argu- ment defending it is a device to encourage poverty-reducing investments such as acquiring additional education. In case workfare is implemented, it crowds out some private-sector output by reducing time spent in private-sector work. It is shown that workfare may be part of a cost-minimizing policy when the govern- ment is unable to observe wage rates and incomes and also when incomes (but not wage rates) are observable. In a two-class model (Besley and Coate, 1992), the high ability individuals are o¤ered no bene…ts whereas those claiming to be of low ability are o¤ered an income transfer in exchange for a work requirement. However, those of high ability have no incentive to pretend to be of low abil- ity. In fact, the optimal work requirement is chosen so as to make high-ability individuals indi¤erent between claiming to be of low ability and receiving no bene…t at all. The optimality of workfare is more likely to occur if there is a large wage di¤erential between high and low ability workers and if the fraction of low-ability workers is small relative to the whole target population. When those conditions are met, the crowding-out e¤ect from workfare is modest and the cost-saving from excluding high-ability workers from bene…ts dominates the crowding-out e¤ect.
Abstract: This paper addresses the issue of good governance for povertyalleviation, citing Malaysia as a case study. Malaysia has experienced sustainable growth along with impressive record of poverty reduction. This has been made possible through good governance and pragmatic pro-growth and distribution policies, strategies and programs for povertyalleviation which was implemented since the era of the New Economic Policy (NEP, 1971-1990), National Development Plan (1991-2000) and will be carried over to National Vision Plan (NVP, 2001-2010). The good governance incorporates an enabling policy framework for povertyalleviation which includes the supportive role of the state, effective delivery system embodying an efficient planning and implementation machinery, incorporating top-down and bottom-up processes of strategic planning, targeting and participation, effective implementation coordination, monitoring and evaluation. The public sector has to shoulder good governance by efforts to improve the public service delivery system to make it more efficient, transparent and accountable. Direct targeting of beneficiaries results from identification of the poor and hardcore poor by rural and urban strata and states, supported by a specialized delivery system of a microcredit program, minimizes leakages of povertyalleviation program’s allocations and benefits. Pragmatic pro-growth and distribution policies and strategies in 5-year development plans ensures effective povertyalleviation.
This is the outline for the country‘s development, the first medium-term plan anchored on the 0-10 point Socioeconomic Agenda geared towards the Ambisyon Natin 2040 which enunciates the Filipino people‘s combined vision of a MATATAG, MAGINHAWA, AT PANATAG NA BUHAY PARA SA LAHAT. This PDP 2017-2022 consisted of seven parts. Part I offers the overall background for the Plan. Part II is about improving the social fabric to build the basics for a high-trust society. Part III stresses the significance of decreasing disparities in economic development opportunities. Part IV emphases on increasing possible growth. Part V calls for a supportive economic environment that will enable the economy to sustain growth, and Part VI is about foundations for inclusive and sustainable development. Finally, Part VII describes the institutional arrangements for implementation and monitoring––making sure that what is planned is implemented and that timely adjustments are done (NEDA 2016). It also takes into account the country‘s international commitments such as the 2030 Sustainable Development Goals.
Povertyalleviation is a serious business in under-developed and developing countries of the world. Nnamani (2003) noted that Nigeria is fully identified as sitting uncomfortably in the bowels of poverty and so earned 154 th of 172 countries in the World Marginal Index (WMI). In 2010, Eyuiche categorically asserted that poverty persists in Nigeria due to economic backwardness; occasioned by low labor efficiency, factor immobility, limited specialization, in occupation and in trade, economic ignorance, values and social structure that minimizes the incentives for sustainable economic change. Poverty affects almost every nation developed and developing alike. The difference is the type of poverty a nation faces. Some nations face absolute poverty while some others face relative poverty. Absolute poverty according to Agbionu (2013) is a state where majority of the citizens do not afford the basic necessities of life while relative poverty is a state where an aspect of the population are affected by poverty due to one reason or the other which ordinarily should not have been so. Anambra State where Awka belongs can be seen to be facing relative poverty and women who have been naturally made to be more in number than men in many nations of the world where Awka belongs can be fashioned to
Pauperism has been the focus of researchers and policy makers in the developing world wherein efforts have been made to quantify the poverty, thus defined, using essentially arbitrary poverty lines or norms with application of varying procedures for estimation. Planning Commission of Pakistan suggested an official poverty line in terms of minimum caloric requirement per adult (2350 per day) and the needed expenditure of Rs. 670 per person for 1998/99 which was changed for subsequent years taking into account the changes in the price level. Not only the caloric intake level is different than what has been used by other researchers but the procedures used to estimate poverty levels also vary, using essentially the same data source (HIES) House hold Income and Expenditure Survey. Obviously the poverty lines constructed vary with the caloric intake needed, their conversion into expenditure and estimated nonfood expenditure. In contrast to this so-called revealed preference a normative approach is also opted, wherein money value of bundle of commodities regarded as minimum acceptable level of living is used as a surrogate of poverty line. These include food, clothing, housing, health, education, transport, social interaction and recreation facilities. Because of varying poverty lines and procedures to estimate the poverty it is extremely difficult to arrive at firm data for a point of time or time trend.
Therefore, the overall results revealed that the microfinance beneficiaries have higher level of education, greater increase in household size, greater level of sales, greater level of income and moderate improvement in health standard than the non-beneficiaries from the loan programme. This indicates that microfinance loans extended to the rural poor have transformed their wellbeing. These assertions can be justified by the success glory ascribed to microfinance institutions in some parts of the world. For instance, Amanah Ikhtiar Malaysia (AIM) in Malaysia, Bank of Rakyat in Indonesia and Grameen Bank in Bangladesh (to mention three) have performed creditably towards the poverty reduction and increase in income of the rural poor households in their respective domains. In addition, the notion that microfinance can contribute towards the poverty reduction by increase in income, improved health standard, increase in the level of education and others have been confirmed by various studies (for example, Asghar (2012); Green et.al. (2006); Jha and Dang, (2010); Bashir, et.al., (2010); Muller and Bibi, (2010), Otu and Eko, (2011); Smith, (2010); Arun, et.al (2006); Khalily, (2004).
The World Bank defines the characteristics of poverty such as hunger, lack of shelter, because of illness and cannot visit a doctor, cannot go to school, illiteracy, work less, fear for the future, loss of a child due to illness, as well as the lack of representation and freedom (World Bank, 2005). Pakpahan et.al (1995) argues poverty is often characterized by one or a combination of: low income, infant mortality, poor nutritional status, poor housing, low education, and health status Indonesia experienced fluctuations in the number of people living below the poverty line long economic .Crisis has caused a significant increase. Of the 22.5 million people in 1996 to about 49.5 million in 1998. Although this number was reduced to 35 million people in 2005, but increased again to 39 million in 2006, due to rising fuel prices in late 2005 and early 2006. In 2015 the number people living below the prosperity line is 28.59 million people or 11.22% from the total. In the period September 2014-March 2015, both the Poverty Depth Index (P1) and Poverty Severity Index (P2) tends to increase (BPS 2015). This shows the failure of Indonesia to reduce poverty, and even the main objective of national development is to improve people's welfare. Failure to fight poverty can be seen from the failure of development.
Since the 1990s, the Indian government has been focussed on including indices of deprivation other than income poverty and in this regard, carried out ‘below poverty line’ census since 1992 (then in 1997 and in 2002). The 1992 BPL Census used the national income poverty line of Rupees 11000 per household to identify BPL households. The focus of this Census was to identify poor households and not poor individuals. A door-to-door enumeration collecting self-reported income data of the household was carried out by the Ministry of Rural Development of all the rural households in the country. Detailed guidelines were provided to enumerators to assess the annual income of the rural households. The 1992 BPL Census reported that around 52.5% of the rural population was estimated to be living in poverty. The 1997 BPL Census however, was different from the 1992 BPL Census in two ways: firstly, it excluded the visibly non-poor (by excluding e.g., households which possessed certain consumer durables such as television, refrigerator, whether households owned more than 2 hectares of land) and secondly, in addition to income data, it used a range of criteria to determine the total consumption expenditure from the remaining, visibly poor households. Then based on the poverty line set by the Planning Commission on the basis of per capita consumption expenditure, households were identified as BPL or not (Alkire and Seth 2009; Saxena 2009)
the realization of the SevenPoints’ Agenda will go a long way to alleviate poverty in Nigeria and raise the living standard of the people. Unfortunately, significant impact was not achieved. The real income of the people have remained very low, virtually all sectors of the economy is experiencing poor growth. President Jonathan came into the helm of leadership in 2010 after the translation of President Yar’Adua. He developed his own strategy which focused on building on the strength of the previous vision 20:2020 and the initial National Implementation Plan was to address most of the challenges of Nigeria at the period. One of the transformation agenda was job creation. In other to improve the economy, Jonathan also focused on the development of human capital, infrastructure and real sector. Some programmes aimed at poverty reduction include: Community Service Scheme (SURE-P), Graduate Internship Scheme (SURE-P), You-Win Programme, National Strategic Health Development programme among others(FGN, 2014). A visible change was seen with respect to infrastructure, emergence of new institutions of higher learning and improvement of schools but yet poverty in Nigeria could not be surmounted.
Economic analysis of crime and criminal law addresses the question of individual welfare (utility) maximization through optimal allocation of resources and time in accordance to their relative returns. India is chosen as the case study because it has to carefully channel its funds and resources towards economic growth, povertyalleviation and crime deterrence concomitantly. The results indicate a positive and statistically significant impact of poverty, inequitable income growth and low quality of the legal system on incidence of total property-related crimes. Moreover, the elasticity figures suggest that poverty has the highest impact on robberies. Most convincing result comes from the figures of elasticity of education with crime.
process, India has become one of the largest economy in the world. According to the National Sample Survey results, people living below poverty line have dramatically come down during the post economic reform era. People living below poverty line (BPL) came down from 45.3% in 1993-94 to 37.2% in 2004-05 and further to 21.9% in 2011-12. The percentage of persons below the Poverty Line in 2011-12 has been estimated as 25.7% in rural areas, 13.7% in urban areas and 21.9% for the country as a whole (Planning Commission). The proportion of children under three years of age who are underweight decreased from 43 percent in NFHS-2 to 40 percent in NFHS-3. According to the National Sample Survey data of the 66th round (2009-10) Average dietary energy intake per person per day was 2147 Kcal for rural India and 2123 Kcal for urban India. The proportion of households with calorie intake below average Kcal per consumer unit per day was 42.5% for rural and 45% for urban households. In 2011-12, India had 270 million persons below the Tendulkar Poverty Line as compared to 407 million in 2004-05, that is reduction of 137 million persons over seven year period. India accounts for one-third of the world poor, people living on less than USD 1.25 (about Rs 65) per day, a World Bank report (2013) on poverty has said. Urbanization in this country is mainly due to acute poverty in rural areas rather than due to the economic opportunities in urban areas. One half of India’s poor is located the three states of Bihar, Uttar Pradesh and Madhya Pradesh. Maharashtra, West Bengal and Odisha account for 22.5% of poverty. About two thirds of India’s population live in rural areas, and almost 170 million of them are poor (NSSO). Although many rural people are migrating to cities, 3 out of 4 of India’s poor people live in the vast rural parts of the country (NSSO). Poverty is deepest among scheduled castes and tribes in the country’s rural areas. India’s poorest people include 50 % of members of scheduled tribes and 40 % of people in scheduled castes (NSSO).On the map of poverty in rural India, the poorest areas lie in parts of Rajasthan, Madhya Pradesh, Uttar Pradesh, Bihar, Jharkhand, Chhattisgarh, Odisha and West Bengal. As per the latest NSSO survey reports there are over 80 million poor people living in the cities and towns of India. The Slum population is also increasing and as per estimates over 61.80 million people were living in slums. With over 575 million people, India will have 41% of its population living in cities and towns by 2030 of its nearly 1 billion inhabitants, an estimated 260.3 million are below the poverty line, of which 193.2 million are in the rural areas and 67.1 million are in urban areas (NSSO).
A concern with the analysis is that the Indian government has put forth many other development programs, whose implementation may affect the relationship between Monsoon and conflict at the same time and may be correlated with the roll-out of NREGA. In this case, the results would falsely attribute the observed inward rotation of the Monsoon-rainfall andconflict relationship to the employment guarantee scheme. The most prominent developmental scheme that was implemented around the same time is the Pradhan Mantri Gram Sadak Yojana (PMGSY). This scheme was introduced in 2000 and aims to provide improved road access for rural households. The scheme in particular aimed to provide roads to all villages with at least 1000 inhabitants by 2003, with a population of 500 and more by 2007 and had special provisions for tiny villages with at least 250 inhabitants for the hill states, tribal areas and desert areas. These were to be connected by 2007. As early NREGA districts are among the poorest and least urbanised, they are more likely to have received treatment through the PMGSY as well, which could partly explain my reduced form findings.
also justifies its overseas economic activities with development objectives that it helps developing countries to promote sustainable economic development and poverty reduction, but such development objectives have often been subordinated to strategic, diplomatic, or commercial considerations, (Omoruyi et al ,2017). China’s aid is closely related to China’s foreign direct investment. When one reads through the China’s White Paper which is a collation of information about China’s aid policy, one will realize that China has a cross sectional forms of aids. China classifies its aid activities into eight activities which includes complete projects, goods and materials, technical cooperation, human resources development cooperation, medical teams sent abroad, emergency humanitarian aid, volunteer programs in foreign countries and debt relief. Some of these activities are inherently link with China’s foreign direct investment thus making it very difficult to single out precisely China’s aid (Dopgima,2013). In 2000, the Forum for China-Africa Cooperation (FOCAC) was founded, where aid, trade, financial credits, and private equity have been drawn together. FOCAC is a triennial process at Heads of State level, bolstered by systematic annual visits to African countries by top Chinese leadership. In this framework, China-Africa trade soared, with China’s growth trajectory generating a global commodities boom and China’s globalization policies gaining African markets. Chinese foreign investment in Africa began to increase
561 powerlessness .On the other hand, the four broad categories of assets have been identified by Rogerson in 1999 for measuring poverty in the context of South African perspective these are; i. human capital, such as labour, education, health, ii. social and institutional assets, such as household relations, trust, access to decision-making, iii. natural resources, such as land, water, common property, and, iv. human made assets, such as housing, productive infrastructure, social infrastructure . The individuals, households and communities have or secure access to and those who are these assets managed, they are less vulnerable, on the other hand, those who are the greater the losses of their assets have more insecurity and they have associated poverty . However, poverty is a state of absolute economic deprivation in which the individual cannot independently have access to the basic human life-sustaining essentials such as food, clothing, protection, and shelter . The Western societies have become less tolerant against poverty over time, on the other hand, Asian societies tolerate high economic inequality or poverty .
The continuous regressions in the per capita income of the Sudanese people have triggered many suggestions to ameliorate their productive capabilities. One of them was the facilitations in financing programs through official channels. However, there are many structural impediments that inhibit those programs. One of the financial programs was the Small or miniature financing in addition to the establishment to specialized Banks as the Family Bank. The current paper discusses issues of financing in Sudan as part of programs initiated to improve income per capita. Islamic and regular financing systems are analyzed in order to explain existing impediments. Then Family Bank systems and financing facilities are discussed. Results explained in this paper clear the facts that there are other macroeconomic impediments and distortions that have negative impacts on feasibilities of conducting normalized productive activities. One of them is the accelerating inflations rates and foreign currencies exchange rates. That is in addition to the indigenous distortions of inflated taxation rates that render smaller capitals from gaining profits on small scale. The expected productive cycles and variables are not subjected to the rule of Ceteris Paribas where cost can change. That adds to the difficulties in gaining the financing per se which are represented in the required time, bureaucratic processes, required collaterals and higher interest rates. Even in the Islamic financing, the methodologies applied do not differ from the traditional in interest rates. Both are subtracted from final productive outputs. The expected Zero Interest Rates expected from such small production/income improvement financing projects do not exist. The final results are manifested in lesser beneficiaries, less expected incomes with diminishing internal return rates.
country’s relative world ranking. Export trade has been diversified in the recent past, easing reliance on ready made garments and through growth of industries such as pharmaceuticals and more recently, shipbuilding and electrical appliances. It is important to note however, that by and large the merits of these achievements are attributed to the fast growing private business sector. The resultant economic growth associated with the unprecedented strides made by a host of the non government organizations (NGOs) especially in rural Bangladesh have helped alleviate poverty over years. This is indicated as the proportion of people living below the poverty line fell over the last decade. This advancement of moving from below the poverty line to above the poverty line is well regarded by public and private policy bodies since this indicates an easing of the burden or sufferings of the extreme poor, also known as the poorest of the poor. However, the povertyalleviation or the easing of incidences of poverty in Bangladesh seems to be a suboptimal strategy in view of a number of concerns. Firstly, poverty line defined as $1.25 is used to identify the extreme poor people and not the poor in general. Given that a high majority of the population of the country is still poor, the povertyalleviation successes in a dynamic context may often convey misleading message as to what has been actually happening with the standard of living of the poor. This is so because many of the extreme poor who experience alleviated poverty fail to maintain the pace of improvement of their livelihood, and hence may face fluctuating living standards; in the worst case scenario of which they fall back below the poverty line for a short of prolonged span of time. There are a number of reasons why this may happen so. Secondly, poverty is often understood in terms of the money income of the poor and issues such as socio economic opportunities and the contexts in which the poor are exposed to are disregarded, although these aspects have been heavily emphasized by the group of economists led by Sen (1976, 1985, 1999). Thirdly, objectives of many of the rural advancement programmes including those promoting micro credit led by Grameen Bank could be often dubious or multifaceted. For example, micro credit programmes are known to have achieved both povertyalleviation and women empowerment in rural Bangladesh.
The findings show that in general the two institutions sought outreach to the poor and target the poor as major parts of their clients (50% - 80%) whereas K-MFI seek the poor as an exclusive target (90% and above). Notwithstanding the crowned objectives of serving the target population, the institutions only partially address the issue of financial exclusion of the poor. Both the institutions had not defined target groups which identify their potential target members. Services were not strictly directed to a well defined set of clients which have unique selection (eligibility) criteria which differentiate the target and non-target groups. For all intent and purpose, Salaam Financial Services and K-MFI have been less successful in reaching the hardcore poor. These are thousands which are often undernourished, are marginalized in society and often unable to get financial supports. The institutions under study had neither client empowerment facilities such as currently elected client representatives that voice the interest of the clients within and/or beyond the organizations nor social capital programs such as active spiritual development programs which contribute to the uplift and perfection of of the clients.
This paper aims to investigate the pro-poor tourism impact of the capacity building, stakeholders’ support and infrastructure development on povertyalleviation. This study focused on Malay, Iban, Bidayuh, Chinese, Kelabit, Penan, Berawan and others local communities; draws upon a sample of 520 from the Kuching and Miri division of Sarawak, Malaysia. Quantitative primary data method is used, and the data analyzed using partial least squares structural equation modeling (PLS-SEM) software. The findings showed the positive effect for capacity building on povertyalleviation (H1), stakeholders’ support on povertyalleviation (H2) and infrastructure development on povertyalleviation (H3). This study makes a significant theoretical contribution to human development theory by investigating how pro-poor tourism impact rise wage, food, education, healthcare, voice and securities in humans’ daily life. Furthermore, this study discussed several practical solutions for the local communities to benefit from pro-poor tourism. Especially on the formal and informal way of regular communication among the local government, private tourism organizations and semi-government tourism departments with local communities to increase the livelihood benefits.
Most of the Asian economies have relied on debt and other foreign resources to stimulate economic growth, lower poverty and reduce income inequality. Malaysia and Thailand are considerable success stories, whereas in Pakistan and Bangladesh unacceptable size of domestic and foreign debt has pre-empted such opportunities. This paper pinpoints the role of fiscal policy in general and public debt in particular for economic growth and poverty reduction. It is worth mentioning that public debt and other components of fiscal policy are interrelated; therefore, it is very important to keep the overall fiscal situation in view while analyzing the consequences of public debt situation. The objective of the study is to highlight major issues regarding the public debt and fiscal scenario in selected developing countries.