Top PDF The composition of growth matters for poverty alleviation

The composition of growth matters for poverty alleviation

The composition of growth matters for poverty alleviation

After this sectoral-driven empirical analysis, the paper conducts a more direct test of the model by considering poverty reduction a function of not only aggregate growth (which would represent growth’s size effect) but also a measure of labor-intensive growth (which would represent its composition effect). The results confirm that poverty alleviation indeed depends on the size of growth. Moreover, they also indicate that poverty reduction is stronger when growth has a labor-intensive inclination. This central result of the paper is robust to the influence of outlier and extreme observations, holds true for various poverty measures (such as the headcount index, the average poverty gap, and the Watt’s index), and is not driven away by alternative explanations --such as the importance of agricultural growth in reducing rural poverty, the role of inequality in dampening the beneficial impact of growth, and the statistical discrepancy between household surveys and national accounts. Finally, analysis on the mechanisms through which labor-intensive growth reduces poverty allows us to conclude that this positive effect does not require or imply redistribution from rich to poor. Although labor- intensive growth improves the relative standing of the poor, its main effect on poverty is given by its beneficial impact on their absolute income.
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Microfinance and Poverty Alleviation

Microfinance and Poverty Alleviation

• Children’s Diet. Researchers from the Noguchi Memorial Medical Institute in Ghana (unpublished research by Dr. Margaret Armar-Klemesu, University of Ghana, Legon) conducted a dietary intake study of children of Credit with Education members and also non- participants. They investigated dietary intake of children 9–20 months old who were in the Ghana follow-up round of data collection. Dietary intake was assessed by the mother’s 24-hr recall of all breastfeeding episodes and all meals and snacks consumed by the child on two non-consecutive days. Mothers identified measures used to offer food to the children, how much was offered, and proportions consumed in reference to local measures and fist size. Samples of all foods reported were taken to the lab for calorie and nutrient content analysis using appropriate food composition tables. The study found that the dietary quality of the foods given to participants’ children was relatively higher. Also, the estimated caloric intake was significantly higher.
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Poverty alleviation programs, FDI led growth and child labour under agricultural dualism

Poverty alleviation programs, FDI led growth and child labour under agricultural dualism

These types of subsidy scheme are designed to benefit the poorer section of the working population who are the potential suppliers of child labour. It is therefore natural to expect that these fiscal measures will raise the earning opportunities of the poor households which in turn will lower the supply of child labour by these families through positive income effect. However, the matter is not as straightforward as it appears to be at the first sight. This is because apart from their impact on adult wages, these policies affect the output composition of different sectors and the demand for child labour and therefore earning opportunities by children as well. An expansion of backward agriculture resulting from an increase in Producers Support Price , for example, will result in a higher demand for child labour and raise the use of child labour in the economy. Even if there is a positive income effect due to increase in adult wages, the net effect on child labour may be perverse. Any policy effect on the child labour incidence should, therefore, be carried out in a multi-sector general equilibrium framework so as to capture various demand and supply linkages that may exist in the system.
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Contribution Of Human Development Index On Per Capita Income Growth And Poverty Alleviation In Indonesia

Contribution Of Human Development Index On Per Capita Income Growth And Poverty Alleviation In Indonesia

1. First, the Ravallion (2001), in his research, entitled "Growth, Inequality and Poverty: Looking Beyond the Average" conducted in developing countries, with the result that there was evidence that poverty in specific developing countries benefit or profit from the growing prosperity of aggregate and suffered losses in a declining economy. But there is a big difference between those countries, how big the poor people to have a share in the growth and impact of poverty among the assortment in the country. The correlation between diredupkan countries in matters of data and no doubt hide the impact of well-being; it can be beguiling development policy. It takes efforts on the growth and changes in the distribution of income. Only with a strong basis for identifying policy and program-specific programs are needed to fine-tune policies growh-oriented.
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Aid, Growth and Poverty Alleviation in Ethiopia

Aid, Growth and Poverty Alleviation in Ethiopia

as a result of limited supply as well as demand factors. 2 Our argument relies on the following assumption: the poorest section of the country would benefit equally when there is an increasing in rate of growth of real per capita GDP. This idea has been commonly shared by most development economists that growth policies are regarded as a tool to raise the share of income of the poorest section of the society (for details see Dollar and Kraay, 2000). 3 In fact some agree with the advantages that can be attained from achieving growth, tried to explain when this could be desirable. Hayami et al (2005) tried to paraphrase this and stated: in addition to the level of average per capita income, the distribution of income matters in determining the prevalence and severity of poverty. 4 Related to these issues there is a consensus among groups of economists and they emphasized higher rates of growth usually results in more rapid poverty reduction, especially over periods of a decade or more (comparison: studies in countries of Chile, and Zambia confirms that the average incomes raise faster, the incomes of poor people tend to raise faster as well) (DFID 2004, p. 1).
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Infrastructural Development, a Panacea to Poverty Alleviation

Infrastructural Development, a Panacea to Poverty Alleviation

1.6 Problem:From the various definitions, the level of accessibility to the following infrastructure; education, transportation, health, clean water and sanitation, social services and electricity supply were considered as major indexes to the determination of the level of the people’s welfare and by extension their level of poverty. Nigeria has continued to record high deficit in infrastructure. Worse still, it had not enjoyed the full benefits of its past investments on infrastructure. In Nigeria, soon after the facilities were completed and handed over to the beneficiaries after commissioning, the infrastructure broke down because of improper management and absence of built in maintenance (Lawal, 2000 and Lawal and Onahaebi, 2010). In its effort to improve infrastructure, the Nigeria government established the Infrastructure Concession Regulatory Commission (ICRC) with the mandate to provide adequate social infrastructures that would create employment for its citizens (ICRC, 2015). Regrettably, the Commission has been ineffective due to acute shortage of funds to carry out its activities.
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Women Entrepreneurship and Poverty Alleviation in Nigeria

Women Entrepreneurship and Poverty Alleviation in Nigeria

Poverty alleviation 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
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A Base-of-the-Pyramid Perspective on Poverty Alleviation

A Base-of-the-Pyramid Perspective on Poverty Alleviation

In addition to growing pressure on the aid industry to explore new approaches, a second trend is also leading to a greater focus on the role of markets in addressing poverty. The poor are not well served by the private sector; they are often ignored and lack access to many goods and services. Furthermore, even when their needs are met, they tend to pay more for the same products than the rich. This applies both to the poor in developed countries (Fellowes, 2006) and in the developing world, where the poor may pay ten to fifty times more for water, medicine or credit than their geographically-proximate wealthier counterparts (Prahalad & Hammond, 2002). These market failures, however, are also potential business opportunities. Indeed, this is a core assumption in the BoP perspective. Private sector and non-profit initiatives, though, may approach these market opportunities in different ways.
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Trade policy reform and poverty alleviation

Trade policy reform and poverty alleviation

In low income countries, the key complementary policies/institutions that need to be analyzed fall into the following major areas: (a) macro-economic, and especially exchange rate po[r]

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Microfinance and Rural Poverty Alleviation: A Reality?

Microfinance and Rural Poverty Alleviation: A Reality?

It is a truism that if Microfinance Institutions (MFIs) play their expected role, poverty will reduce and there will be more employment opportunity and adequate economic development particularly in the rural areas. Poverty is more devastating in Sub-Saharan Africa than the rest of the world. This paper examines the contributions of microfinance towards the rural poverty reduction. To achieve this objective, the study adopted multi-stage random sampling technique to collect primary data through the structured questionnaire. A total sample of 1,134 microfinance loan beneficiaries and non-beneficiaries were used as respondents from three (Ogun, Osun and Oyo states) out of six states in South- West Nigeria. Statistical Percentage Techniques were used to describe the characteristics of the sample from the study. The results revealed that microfinance has marginal effects on the rural poor in Southwest Nigeria. Policy makers are advised to provide adequate infrastructural facilities that will encourage MFIs to establish branches in the rural areas. MFIs should endeavor to create more awareness to the rural poor with realistic loan procedure that will encourage the poor to access microcredit loan.
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Poverty Alleviation and Unemployment Scenario in India

Poverty Alleviation and Unemployment Scenario in India

Poverty is the lack of basic necessities that all human beings must have i.e. food and water, shelter, education, medical care, security. Internationally an income of less than $1.25 per day per head of purchasing power parity is defined as extreme poverty. In world over the year poverty is drastically decline from 41.69 percent in 1990 to 20.6 percent in 2010. Out of total world’s poor 33.4% is accounted by India (World Bank 2013). Poverty line according to World Bank is the person who survive on less than $1.25 per day are comes under poor. By World Bank estimate, about 40% percent of Indians are extremely poor. The average poverty reduction per year get pace from 2004-05 onwards with 2.18% poverty reduction per year as compare to 0.74% between 1994-95 to 2004-05. One half of Indian poor is located in Bihar, U.P., M.P. and Maharashtra, W.B., Odisha accounts for 22.5% of Indian poor. Highest poverty percentage is shown in Chhattisgarh (39.93%) and lowest in Kerala (7.05%). Since India became part of the global economy and underwent economic reform in 1991, its economy is growing at a faster rate of nearly 10 per cent per annum1. In the process, India has become one of the largest economies in the world. In the last two decades, a significant proportion of the population across the country has reaped the benefits of this economic growth. But the fruits of economic growth have not benefited everyone uniformly. Some are left behind and some others are not touched by the benefits of economic growth. It is proved globally that the so-called trickle-down effect does not work in all the societies and India is no exception to this. In short, the modern economy is not generating much employment and sometimes it displaces and replaces labour with machines and tools.
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The Role Of Forestry In Poverty Alleviation In Kenya

The Role Of Forestry In Poverty Alleviation In Kenya

The overall objective of this paper is to determine the role played by forestry in alleviating poverty in Kenya. It also seeks to examine and analyse the extent of poverty among people living in Cherangani Hills, West Pokot; assess the benefits of forestry to rural communities; investigate the relationship between forest dependence and poverty and to make policy recommendations on ways of enhancing the contribution of forests in alleviating poverty. Two methods were used to derive data for the study. Secondary data was obtained by review of existing literature related to the subject while primary data was obtained through a survey among 200 households. The survey was based on Multistage sampling procedure. Data was collected through a structured questionnaire, an interview schedule and discussions with key informants and analyzed using descriptive statistics and regression analysis techniques. The findings revealed that 69.5% of the population had incomes falling below the official poverty line. Two categories of forest products had a net effect on rural poverty; timber products were mainly commercialized and traded by people with sufficient capital, while the poor mainly utilized non-timber forest products. The findings further revealed a significant positive relationship between poverty level and household size. There was a significant difference in poverty level among households having forestry as a source of income compared with those without it. On the basis of these findings, it was concluded that forests act to ameliorate the incidence of poverty in the study area. It was recommended that to further enhance this contribution, it was imperative to undertake conservation programmes that were sensitive and responsive to community needs and that aimed to strike a balance between utilization level of forest resources and their renewable rate.
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Poverty alleviation in India and Kerala: An overview

Poverty alleviation in India and Kerala: An overview

This in some senses marks the emergence of tension within policy discourse between providing ‘social security to all’ to providing targeted support to people living ‘Below the Poverty Line’ (BPL). In this regard, Williams et al (2011) rightly point out that the ownership of a BPL card has now become central in receiving benefits from government sponsored schemes. For instance, in Kerala with regard to the identification of BPL for the targeted Public Distribution System, the survey of BPL families is carried out by the state government department, Department of Local Self-Government while in urban areas, the survey is carried out by Corporation Directorates. Two forms are used to identify BPL families, Form A and Form B. Nine criteria for exclusion are listed in Form A (e.g if member of HH is a government employee, if owning and living in a concrete house above 1000 square feet, if member of HH is a non-resident Indian, if HH owns land of area over 1 acre). Form B sets out the criteria for inclusion (e.g. if a wage employed family, if the HH receives social security pension, HH members over 65or below 18 years, if member in family has chronic ailment, if HH member is a widow etc.). Form A would cover all families in the state and after the exclusion criteria have been applied, Form B would be used for the remaining households (Wadhwa 2010). But it remains to be seen if the opportunity for state governments in defining and measuring poverty will be affected with the rolling out of national BPL (below poverty line) surveys in June 2011.
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Poverty and it's Alleviation: Lessons for Nigeria

Poverty and it's Alleviation: Lessons for Nigeria

Actually, the above are the part and parcel of the ailments and features of what is obtainable in Nigeria. There is denial of opportunity and choice of work, education, place of settlement andregular violation of human right by the leaders and the people. The average populace is not fully empowered to have a say on issues and policies affecting them. Inability to secure enough to feed self and family members have resulted to upsurge of different forms of crimes such as obtaining by tricks, robbery, corruption, ritual killing, kidnapping, prostitution amongst others. The situation compelled few Nigerians to accept being refugees in another country even when there is no war.In addition, the land ownership system cut-off many Nigerians from access to land for farming or erecting a living batcher and embargo on public sector employment in some establishments, poor infrastructure, non-conducive environment for business activity, epileptic power supply, lack of portable water, low investment in the country gave rise to inability to secure a job or delve into business so as to generate income to improve living standard. Besides, no bank credit facilities to assist indigent students or local entrepreneurs who want to improve education or business venture. Hence, the people of the country are caught up in the vicious circle of poverty.
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Poverty Alleviation in Indonesia (An Empirical Review)

Poverty Alleviation in Indonesia (An Empirical Review)

Within a few decades before the economic crisis of 1997-1998, Indonesia made considerable progress in tackling poverty is measured from the level of consumption. The crisis in the late 1990s showed how vulnerable such advances. To expand the progress that has been achieved and move forward again, the definition of poverty need to be developed further by recognizing the reality of poverty dynamics in a broad and multi-dimensional it. Redefinition of poverty leads to strategic choices that are different from a policy based solely on fulfilling the needs "of the population chronically poor." (UNDP Poverty Report 2001).
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Managing rural finance for growth and poverty alleviation in Moldova - towards an efficient European integration

Managing rural finance for growth and poverty alleviation in Moldova - towards an efficient European integration

Over a short period of time economy of the Republic of Moldova firstly went through a sharp downfall (by 2/3 as regards GDP), later endured a stable depression (aggravated by consequences of the Russian financial crisis of 1998) and, finally, during the last seven years, experienced renewal of economic growth, increasing internal consumption and incomes of the population.

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THE ROLE OF SMALL BUSINESS IN ECONOMIC GROWTH AND POVERTY ALLEVIATION IN WEST VIRGINIA: AN EMPIRICAL ANALYSIS

THE ROLE OF SMALL BUSINESS IN ECONOMIC GROWTH AND POVERTY ALLEVIATION IN WEST VIRGINIA: AN EMPIRICAL ANALYSIS

Hence, the economic contribution of small business to economic growth and job creation is now well recognized and established in the literature (Birch, 1979; Markusen and Teitz, 1985; Storey, 1994; O’Neill, 1993; Karlsson, et al., 1993). In his initial study, David Birch (1979), for example, reported that 80 percent of the jobs created between 1969 and 1976 in the U.S. economy were in firms employing less than 100 workers. Firms employing fewer than 20 workers generated 88.1percent of net job growth and start-ups generated nearly as twice as many jobs as expansion of existing firms between 1980 and 1985 (Birch, 1987). Miller (1990) also found net employment growth in existing small rural firms to be much faster than in large firms over the period 1980-1986. Studies of the US economy in the 1990 showed that new firm births and small enterprise expansion were the major sources of job creation that played a significant positive role in regional economic change (Karlsson, et al., 1993). In most U.S. industries, small firms account for much of the capital stock, employment, and a large fraction of innovation (Acs and Audretsch, 1988, 1990). Research by the U.S. Small Business Administration showed that job creation capacity in the U.S. is inversely related to the size of the business. Between 1991 and 1995, the net job created in enterprises employing 1-4, 5-19, 20-99, 100-499 people were 3.843 million, 3.446 million, 2.546 million, and 1.011 million jobs respectively; whereas enterprises employing more than 500 people lost 3.182 million net jobs (U.S. Small Business Administration, 1999).
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The implications of smallholder agricultural productivity growth for poverty alleviation in post-apartheid South Africa

The implications of smallholder agricultural productivity growth for poverty alleviation in post-apartheid South Africa

De Janvry and Sadoulet (2010) presented evidence both on sectoral and household levels. Results showed that rural poverty reduction had been associated with growth in yields and in agricultural labour productivity, but that this relation varies sharply across regional contexts. GDP growth originating in agriculture induces income growth among the 40 percent poorest, which is in the order of three times larger than growth originating in the rest of the economy. The strength of agriculture came not only from its direct poverty reduction effect but also from its potential strong growth linkage effects to the rest of the economy. Decomposing the aggregate decline in poverty into rural contribution, urban contribution, and population showed that rural areas contributed more than half of the observed aggregate decline in poverty. Finally, using the example of Vietnam, they showed that rapid growth in agriculture 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 or context. Christiaensen (2011) conducted an empirical study that focuses on poverty as opposed to growth alone. Their argument is that the contribution of a sector to poverty reduction is 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 indicated that agriculture is significantly more effective 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.
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The Role of Micro Credit in Poverty Alleviation

The Role of Micro Credit in Poverty Alleviation

Poverty is one of the greatest problem and single most important economic and social issue on our planet today. It has been worldwide focus of the nation and communities. Poverty is affected the lives of communities extremely negatively. Poverty normally has the effect of contracting the prospects of opportunities. It saps energy not only for physical work but for opening the mentality to opportunities. Poverty is an indication of under-development and that is why, most of the underdeveloped countries are the worst hit by poverty and most horrible suffering. Poverty is not just a shortage of material goods. It is usually part of a syndrome, which includes lack of influence, low category in community, economic and political dependence and irregular and unbalanced sources of income. It also engaged with a limited range of economic and social opportunities. It is a concept not so difficult to grasp in the abstract but the same time so difficult to frame in a satisfactory prepared way. Although there is no single definition of poverty but in a general ‘poverty’ is a state of deprivation and the shortage of the basic necessities for the human being. The people have lake of resources and they are unable to fulfill their basic need of their families. They have lesser food lesser hype problem of genie, lack of knowledge, low standard shelter, lesser employment, lake of assets and capital and a result of these people have a reduced amount economic activities.
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Agricultural Expenditure and Poverty Alleviation in Nigeria

Agricultural Expenditure and Poverty Alleviation in Nigeria

the development of rural infrastructures. It was expected to provide basic amenities like access roads, rural electrification and potable water to ease the living conditions of the rural people (Lewu, 2011). Also, National Directorate of Employment (NDE) was launched in 1987 for the purpose of creating employment opportunities in form of self-employment and self-reliance aimed at poverty reduction among unemployed youths in rural and urban areas. Enterprise and Agriculture was introduced under the regime of Gen Babangida in 1989 for the employment of 62,000 graduates and non-graduates nation-wide as part of 166 extra-budgetary relief package by the federal government (ibid). Mass Mobilisation for Social Justice and Economic Reconstruction (MAMSER) was introduced in 1986 to mobilize and encourage the participation of grassroot people in development. Community Action Programme for Poverty Alleviation (CAPPA) was yet another Federal Government programme aimed at alleviating poverty. It was established in 1997 under the Military regime of Gen Abacha. Its objectives were to improve the living conditions of the poor through a targeted, cost-effective, demand-driven and promptly delivered programme. Family Economic Advancement Programme (FEAP) was introduced in 1993 as an investment promotion and poverty alleviation programme by the Federal Government. Aimed at stimulating appropriate economic activities nation-wide, it focused on the provision of loans to promote entrepreneurship and business opportunities
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