Other Poverty Study

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Sub-Saharan Africa

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Is the Sudan Cash Transfer Program Benefiting the Poor? Evidence from the Latest Household Survey

(World Bank, Washington, DC, 2020-03) Etang Ndip, Alvin ; Hassan, Fareed ; Osman, Eiman

The objective of this note is to assess the extent to which the CT program is benefiting intended poor households and the appropriateness of the benefit level under the current inflation situation for poverty reduction. This assessment is needed now more than ever as the impending reforms will require having an appropriate system in place for social safety net delivery for the poor and vulnerable. If CT programs are to reach and aid the poor, then ensuring a correlation between poverty and program beneficiaries must be prioritized. Are current beneficiaries of the Sudan CT program, poor households? If targeting is weak, and the answer to the question is no, then scaling up the existing CT program may not achieve its poverty reduction objective. The note proceeds as follows. Section two presents an overview of Sudan’s CT program, including background details, targeting approach used, the number of beneficiaries and the cash transfer amount. Section three shows the extent to which the CT program is benefiting intended poor households based on evidence from the latest household survey data. Section four evaluates the value of the cash transfer, proposing a correct amount required to lift households out of poverty. Section five concludes this note, and additionally, proposes a number of policy recommendations.
A Destiny Shaped by Water: A Diagnostic of Water Supply, Sanitation, and Hygiene and Poverty in Niger

(World Bank, Washington, DC, 2019-01-24) World Bank

The Water Supply, Sanitation, and Hygiene (WASH) Poverty Diagnostic (PD) in Niger is part of a global initiative to improve evidence on the linkages between WASH and poverty. The Diagnostic provides a detailed analysis of sector status, strengths, and weaknesses to inform the attainment of the new Sustainable Development Goals (SDGs) that aim for universal access to safely managed water supply and sanitation.
Welfare and Poverty Impacts of Cocoa Price Policy Reform in Cote d'Ivoire

(World Bank, Washington, DC, 2017-07-17) Katayama, Roy ; Dabalen, Andrew ; Nssah, Essama ; Amouzou Agbe, Guy Morel

Cote d'Ivoire is the world’s leading cocoa producer, supplying nearly 40 percent of world cocoa production. Developments in the cocoa sector can have significant implications for poverty reduction and shared prosperity given that the sector is a source of livelihood for about one-fifth of the population, as well as an important source of export and government revenues. Cocoa pricing has always been a major focus of public policy in the country, and in 2011 the government initiated a new round of cocoa sector reforms seeking to stimulate cocoa production and to secure the livelihoods of cocoa farmers through guaranteed minimum farm-gate prices. Policymakers will certainly like to know the likely impacts of this price policy reform on household welfare and poverty. This paper uses a nonparametric approach to policy incidence analysis to estimate the first-order effects of this policy reform. To assess the pro-poorness of the reform in cocoa pricing, variations in poverty induced by the policy are compared to a benchmark case. While increasing the cocoa farm-gate price has a potential to reduce poverty among cocoa farmers, it turns out that the increase in 2015-2016 translates into a relatively small drop in overall poverty. This variation is assessed to be weakly pro-poor. It is likely that this poverty impact can be amplified by additional policy interventions designed to address the key constraints facing the rural economy such as productivity constraints stemming from factors such as lack of relevant research and development, weak extension services, poor transportation and storage infrastructure, and generally poor provision of relevant public goods. Addressing these issues require a coherent policy framework that can be effectively implemented by accountable institutions to increase the role of agriculture as an engine of inclusive growth in Cote d'Ivoire.
Maintaining the Momentum While Addressing Service Quality and Equity: A Diagnostic of Water Supply, Sanitation, Hygiene, and Poverty in Ethiopia

(World Bank, Washington, DC, 2017-06-01) World Bank

This summary report presents the findings of the Ethiopia WASH Poverty Diagnostic (EWPD) study led by the World Bank`s Water and Poverty Global Practices. Though Ethiopia has made good progress in increasing access to water supply, sanitation, and hygiene (WASH) services in recent years, the quality of many services are below the standards set for meeting the Sustainable Development Goals (SDGs). The study review existing institutional structures and challenges that are inhibiting high-quality service delivery. The EWPD also reviews the quality and inequality in access to WASH service between those living in urban and rural areas, as well as different regions, areas of water insecurity and amongst the poorest households. EWPD also attempts to show the implications of poor access to WASH services on human development (health, nutrition, and education) and poverty reduction. The analysis aims to support the government and other stakeholders identify gaps in service delivery and answer questions on why these gaps exist. The report concludes by offering recommendations for moving Ethiopia`s WASH sector forward.
Does Fiscal Policy Benefit the Poor and Reduce Inequality in Namibia?

(World Bank, Washington, DC, 2017-06) Namibia Statistics Agency ; World Bank

Reducing poverty and inequality continues to be an important national priority in Namibia. Vision 2030 – the country’s guiding development strategy – has a subordinate vision that points to several goals: “Poverty is reduced to the minimum, the existing pattern of income-distribution is equitable and disparity is at the minimum.” Vision 2030 is being implemented via a series of five-year National Development Plans, with the current National Development Plan IV (NDP4) covering 2012 through to 2017. NDP4 sets specific numerical targets. One is reducing the incidence of extreme poverty to less than 10 percent of individuals by the end of FY2016/17, measured at the national lower bound poverty line of N$277.54 in 2009/10. This report demonstrates that Namibia’s progressive income tax and generous social spending programs substantially reduce poverty and inequality, but the analysis also underscores the limits of what redistributive fiscal measures alone can accomplish. The economy must ultimately create more jobs for the poorest members of society to change the underlying distribution of what might be called “pre-fiscal” income; i.e., the income before households pay taxes and receive benefits from social programs. This will require structural transformation through greater investment in activities that create employment for unskilled workers and offer the potential for continuous productivity increases. This report aims to measure the effectiveness of these efforts and draws comparisons to the experiences of other countries. It estimates how major taxes and social spending programs affect individual incomes. It then assesses who benefits from or bears the burden of each instrument and by how much. This way, the analysis estimates the contribution of each instrument to reducing the poverty headcount and the Gini coefficient, a standard measure of inequality. The analysis provides evidence that can shape public debates over government spending and the design of social programs.
Ghana Work Program (FY15): Poverty and Inequality Profile

(Washington, DC, 2015-06) World Bank

Since 1991 the national poverty rate of Ghana has more than halved. The estimated national headcount poverty ratio fell by 31.2 percentage points from 52.6 percent in 1991 to 21.41 percent in 2012. Heterogeneity of poverty outcomes is, however, high both across urban and rural areas and across regions. The robustness of these poverty trends is checked with trends of five correlates: urbanization and rural-urban migration, remittances, asset growth, labor market transformations, and agricultural productivity growth. Urbanization turns out to be highly correlated with poverty reduction. Poverty trends and asset index trends turn out to follow a similar pattern in both urban and rural areas and by regions: asset index increase where poverty decreases. In the report the authors try to understand the drivers of recent decrease in poverty in northern regions. The attention is focused on two different aspects, the agricultural productivity growth and the inflation patterns. In northern regions, there is a generalized increase in production of main food crops and an increase in productivity. To test the contribution of most of these drivers to poverty reduction, the authors estimated unconditional quintile regressions over the 20th, 40th, and 60th percentiles and decomposed the results using the Oaxaca Blinder method. To further strengthen the spatial analysis of poverty the authors constructed a new poverty map based on sixth Ghana living standard survey (GLSS 6) (conducted in 2012-13) in combination with the 2010 census, which was then compared with the 2000 map. This profile focuses on inequalities seen from three different perspectives: consumption inequality, inequalities of opportunities, and polarization.
Alternative Social Safety Nets in South Sudan: Costing and Impact on Welfare Indicators -- Poverty Note

(World Bank, Washington, DC, 2015-06) Pape, Utz ; Pontara, Nicola

The purpose of this note is to provide the monetary cost of various social safety net targeting schemes that can be deployed to reduce vulnerability and increase resilience. It is believed that gradually switching to the provision of social safety nets can reduce the chronic dependency on humanitarian (mainly food) aid. At the same time, it could help to alleviate reliance on patronage networks and switch a portion of the public spending from unproductive uses (e.g., military expenditure) toward strengthening the resilience and supporting the livelihoods of South Sudanese. In addition, a social safety net would address the fatigues of years of weak governance and ongoing efforts to find more direct, transparent ways to enable citizens to reap the benefits of independence and – once it materializes – peace.
Geography of Poverty in Mali

(World Bank, Washington, DC, 2015-04-23) World Bank

This study discusses the impact of economic geography and (low) population density on development outcomes in Mali and explores how policies to reduce poverty can be made more effective by taking these two factors into account. The crisis in north Mali which started in 2012 and continues to date has brought questions of economic geography to the center of attention. To help answer such questions, and to analyze how to reduce poverty in Mali as a whole, this study uses different sources of information to analyze the diversity of livelihood patterns, in access to services and in living standards. The study uses quantitative information from household surveys, population and firm censuses, administrative and geographic data, and qualitative information about livelihoods. This study argues that the authorities will need to employ all three policy instruments, while emphasizing that if the objective is poverty reduction, most attention should be focused on spatially blind approaches. The study is organized as follows: chapter one gives introduction. Chapter two emphasizes differences in population density which allows distinguishing between types of agglomeration from villages, to rural town, to large cities. Chapter three categorizes the country into various livelihood zones and considers how the agro-physical environment affects the way people live. In chapter four authors turn to household welfare. Chapter five considers access to services. Chapter six is forward looking.
Repbulic of Chad Poverty Notes : Dynamics of Poverty and Inequality following the Rise of the Oil Sector

(Washington, DC, 2013-09) World Bank

Chad's chronically unstable security situation has long undermined broad-based economic growth and sustainable poverty reduction. Since independence in 1960 Chad has suffered from sporadic political violence and ongoing tensions between different factions. The country's fragile security has been further compromised by interference from neighboring states and spillover effects from regional conflicts. However, after rebel attacks in 2008 and 2009, and following the recent conclusion of a peace agreement between Chad and Sudan, the security situation in the country has remained relatively calm, presenting a valuable window of opportunity for development efforts to take root. The objective of this Poverty Note is to examine changes in poverty and inequality in Chad since the emergence of the oil sector. It will focus on the evolution of poverty indicators from the 2003 pre-oil baseline captured in the Chadian Household Consumption and Informal Sector Survey, or ECOSIT2 to the more recent findings of the 2011 ECOSIT3 and compare current monetary and nonmonetary poverty conditions in Chad with those of comparable countries. It will go on to assess the impact of oil production on the non-oil sectors of the Chadian economy. Finally, it will evaluate the extent to which public expenditures in the social sectors benefit the poor by analyzing the progressivity of social spending.
Liberia's New National Development Strategy : Planning for Stronger Results in a Low Capacity Context

(Washington, DC, 2013-06) World Bank

Fragile countries face deep institutional constraints that require attention to achieve better development outcomes for their citizens. Underlying issues such as fragmented development efforts across sectors, limited capacity to drive change and lack of multi-stakeholder ownership weaken the possibility for results. Without addressing these constraints progress can be slowed or blocked. When World Bank Institute (WBI) partnered with the Government of Liberia and World Bank regional team to support the country s second Poverty Reduction Strategy (PRS), the objectives were to improve the capacity to formulate an effective, country-led and -owned PRS using practical, collaborative results tools; design the PRS to drive institutional change processes in the Liberia context; and integrate national planning, monitoring and budgetary processes around common development outcomes toward the country s new vision. The second Liberia PRS, the agenda for transformation, takes first steps in these directions. The government developed the PRS by engaging with a wide set of stakeholders and basing the strategy on achieving outcomes. The strategy is framed around addressing constraints to institutional change and integrates previously fragmented development efforts. Liberia s experience creates its strategy offers lessons for Liberia, other countries, WBI and the World Bank around how to conduct effective strategic planning for results in a low capacity and fragile context.