Other Poverty Study
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Publication
Trends and Determinants of Foreign Direct Investment in South Asia
(Washington, DC, 2013-06-16) World BankLike many other developing countries, South Asian nations have been experiencing increased Foreign Direct Investment (FDI) inflows over the past decade as developing countries get a larger share of cross-border investments once sent to developed countries. Nonetheless, South Asia's FDI inflows remain the lowest relative to Gross Domestic Product (GDP) among developing country regions. Over the next 20 years, more than one million new workers will be entering the South Asian labor market each month as the region's youth bulge matures and seeks employment. To absorb these workers and provide higher living standards and reduce poverty, South Asian countries will have to rely on more than just public investment. This report looks into the historical patterns of FDI in South Asia, examines its sectoral composition, and evaluates current policies and policy options that may help create an environment for increasing FDI flows. The launching point for this study is the substantial empirical literature that suggests that FDI is associated with growth, development, and productivity enhancement. The goal of the study is modest in that it does not seek to estimate the size of FDI spillovers on productivity growth, or address whether governments should actively subsidize FDI inflows over domestic investment as a means to enhance growth, but rather to understand whether the level of FDI flows as a share of GDP, its sectoral composition, and intra-regional flows are comparable to other developing regions and, if not, what might be some of the impediments to these flows. While FDI flows have increased over the past decade to South Asia, particularly from developed countries to South Asian service sectors, it has lagged in other sectors and remains relatively low overall. Overall, positive changes have taken place over the past few decades, while restrictions on FDI differ substantially among countries in South Asia. India's progress on FDI promoting policies has accelerated in recent years to make FDI policies more transparent, predictable, and simpler. Many other countries have also taken steps to improve transparency in regulations and reassure investors about the security of their investments in the country. Finally, the paper examines the determinants of FDI growth in South Asia. -
Publication
Market Accessibility and Regional Maps : Kyrgyz Republic
(World Bank, Washington, DC, 2013-04-01) Blankespoor, BrianAccess to markets is argued to have a significant role in development. In order to quantify the access of places to markets, policy makers are showing increasing interest in accessibility indicators (Yoshida and Deichmann 2009). This paper seeks to examine the spatial relationship of access to market in the Kyrgyz Republic using a recent census and household survey in order to identify possible linkages with rates of poverty and other micro (spatial) information. This analysis uses the market accessibility index that measures the potential connectivity of population or expenditures between village/towns and big cities via the transport network. Results show that high market accessibility is located near the large cities with a concentration of infrastructure, while low access is more in the rural areas. Future work will use this indicator in economic models to statistical identify its significance with regards to per capita expenditure and poverty. -
Publication
Liberia : Strategic Policy Options for Medium Term Growth and Development
(Washington, DC, 2012-03-15) World BankThis paper explores Liberia's policy options in support of the development of a Medium-Term Growth and Development Strategy (MTGDS) for 2013-2017 and its national vision, Liberia Rising 2030. At issue is the mismatch between available fiscal space and the enormous development needs that the government must resolve as it prepares to transform the economy into a middle-income country by 2040. This dilemma calls for the new administration to make trade-offs among various priorities if it is to achieve its aspirations. For this purpose, a Liberian version of a single-country Computable General Equilibrium (CGE) model, MAMS (Maquette for Millennium Development Goal, or MDG simulations), was developed and informed by analytical studies as well as sector strategies prepared in support of Liberia's MTGDS. This paper examines the likely impacts on macroeconomic and social indicators of alternate strategic policy scenarios. A base scenario (designed to represent a central case for the evolution of Liberia's economy up to 2030) was first established, and thereafter a set of different assumptions were introduced for the mining sector, government spending on infrastructure and human development, and foreign borrowing. The paper is organized into five sections including this introduction. Section two presents the basic features of MAMS. The simulation analysis, which is the focus of the paper, is covered in the next two sections: the base scenario in section three and a set of alternative scenarios, which are contrasted with the base scenario, in section four. The final section summarizes the main findings and conclusion. Appendices one and two include a set of figures with selected simulation results and a brief discussion of the Liberian database for MAMS, respectively. -
Publication
Coping with Conflict? Poverty and Inclusion in the West Bank and Gaza
(World Bank, 2011-07-29) World BankThe prevailing reality in the West Bank and Gaza, with its profound dependence on international aid and Israel, the stifling man-made regime of internal and external barriers to mobility, and the limited say on its economic policies and trade, is unique in the world. This report provides a detailed analysis of poverty and its close and enduring links with labor market outcomes and restrictions on the movement of goods and people in the West Bank and Gaza. The overarching objective of the report is to understand the trends in and determinants of poverty in the context of the ongoing conflict and closure regime. Covering the period after the second Intifada, this report is the first major analysis of poverty in the West Bank and Gaza since 2001, and unique in its use of multiple data sources, building a comprehensive and current picture of the economic and social well being of the Palestinian people. The dominant narrative of this report is one of divergence in important dimensions of poverty, growth and welfare between the West Bank and Gaza. -
Publication
2011 Philippines Development Report : Generating Inclusive Growth to Uplift the Poor
(World Bank, 2011-02-01) World BankThe theme of the 2011 Philippines development report is 'generating inclusive growth, uplifting the poor and vulnerable'. This theme is follows from the priorities set in President Aquino's Social Contract and the emerging 2011-2016 Philippines Development Plan (PDP). The PDP details the vision of inclusive growth and poverty reduction that underlies the social contract (chapter one). Accordingly, the PDP focuses on three strategic objectives: (1) attaining a sustained and high rate of economic growth that provides productive employment opportunities, (2) equalizing access to development opportunities for all Filipinos, and (3) implementing effective social safety nets to protect and enable those who do not have the capability to participate in the economic growth process. While the country's development agenda remains broadly the same over the last decade, the Aquino government is focusing on stepped-up implementation and delivery. The pressing development issues confronting the Philippines in 2011 are not radically different from those of previous years. The critical difference is the new government's focus on effective implementation and delivery of public goods and services, starting with a firm approach to fighting corruption and improving governance. -
Publication
Mauritius - Enhancing and Sustaining Competitiveness : Policy Notes on Trade and Labor
(World Bank, 2010-12-03) World BankMauritius is a well known successful development story. The country's Gross Domestic Product (GDP) per capita rose from 38 percent below the world average in 1981 to 16 percent above the average by 2008. Such a performance is not the fruit of luck or use of natural advantages as it was accomplished through man-made efforts and policy actions. The combination of (i) active industrialization policies together with opportunistic use of preferential trade access; and (ii) participatory institutions that assured voice and rent redistribution across the society ensured labor intensive growth and the emergence of a virtuous cycle in development. Mauritius knew what needed to be done. A National Long-Term Perspective Study (NLTPS), also known as Vision 2020, started in 1990 and was completed in 1997. The goal of opening up and diversifying the economy by moving towards high value-added, skill and knowledge intensive service sectors was already well articulated in the study - with explicit reference to the potential of 'computer services' which today is embedded in the Information and Communications Technology (ICT) sector. The global crisis in 2008 was a threatening reminder of vulnerabilities. Mauritius is structurally vulnerable to external shocks. With a small domestic market unable to promote or sustain production growth by itself and a high dependence on raw materials, food and energy imports, the country is necessarily tied to developments in the world economy. An overarching challenge for Mauritius to achieve the envisaged transformation towards a higher value added economy and sustain economic growth is to improve its productivity performance. This report focuses on two key fundamental instruments for that: (i) trade policy and (ii) labor policy. -
Publication
Liberia - Employment and Pro-Poor Growth
(World Bank, 2010-11-29) World BankFourteen years of civil conflict (1989-2003) have destroyed Liberia's social and economic infrastructure and brought the economy nearly to a halt. Workers who came of age during the conflict are largely unskilled, and the supply of workers exceeds demand by a substantial margin. The negative effects of unemployment, underemployment, and low productivity on economic growth have made employment the most urgent demand of the population and the top priority for Government action. This report offers guidance to the Government of Liberia in its development of a more strategic approach toward increasing productivity and employment, in order to achieve its pro-poor growth objectives. This report includes seven sections: employment is key for poverty reduction; one in five workers is unemployed or underemployed; the structure of Liberia's economy limits prospects for formal sector employment; transformation of the agriculture sector is essential for pro-poor growth; investment and job growth in the formal sector are constrained by three main factors; labor-intensive public works programs are necessary for the very poor; and education and training must be improved to enhance employability. -
Publication
Hashemite Kingdom of Jordan - Poverty Update : Main Report
(World Bank, 2009-11-01) World BankThis report is a joint product of the Jordanian Department of Statistics (DOS) and the World Bank. The report has four goals: 1) update the official Jordanian poverty line based on the 2006 Household Income and Expenditure Survey (HIES) using the methodology previously applied for the poverty assessment in 2002; 2) describe recent poverty trends; 3) understand the reasons for the discrepancy between the results of formal statistical analysis and popular perceptions of poverty trends; and 4) provide preliminary information about the distributional impacts of fuel subsidies and measures to compensate for fuel subsidy elimination. Using 2006 as the base year, the Jordanian poverty line was JD 46.3 per person per month. In 2006, 13 percent of the population was below the poverty line. The highest rate of poverty was observed in Mafraq governorate. Although Amman has the lowest poverty rate of all governorates, it is home to the largest number of poor individuals due to the concentration of population in Amman. Several sub-districts, including Rwashed, Wadi Araba and Aghwar Janoobiyah have very high rates of poverty. Disturbingly, income would have fallen for most Jordanians if not for growth in transfer income. The growth in transfer income was primarily due to transfers made to compensate for the April 2006 fuel price increases and gifts to government employees announced by the King on holidays. Income before transfers is comprised mainly of property/rental and labor income. Property/rental income fell between 2002 and 2006, apparently reflecting the dis-saving trend also observed at the macro level. Labor income was stagnant for most Jordanians, although the wealthiest quintile saw significant gains. -
Publication
Armenia : Implications of the Global Economic Crisis for Poverty
(World Bank, 2009-09-01) World BankThe global economic crisis seriously threatens the economic growth and poverty reduction that Armenia achieved in recent years. The most recent data indicate that the economy is now shrinking, with prospects worsening in 2009 and 2010 when the full impact of the crisis is expected to unfold. These developments are a setback for Armenia after a decade of nearly double-digit growth and substantial poverty reduction. Depending on the depth of the crisis in Armenia, in its main trading partners, and in its migrant workers' host countries, and depending on the effectiveness of policy responses, the crisis could have a protracted negative effect on Armenians' living standards. The economic downturn, coming on the heels of the food and fuel price increases last year, will have particularly difficult consequences for the poor and vulnerable who have limited coping means to deal with these successive shocks. The note identifies the main channels of transmission to households of the current global economic crisis and estimates its potential impact on poverty in Armenia. Given uncertainties regarding the scale of the crisis and how households are likely to cope, the note is intended to provide indicative estimates of the poverty impact of the crisis, rather than precise estimates. These estimates are made by simulating the effects of the anticipated slowdown on household consumption using data from the 2007 Integrated Living Conditions Survey (ILCS). The key messages that come out of the analysis are that the crisis will have potentially serious implications for poverty and that this calls for significant responses by the Government of Armenia and its development partners. The government is taking a number of steps to provide protection to the poor, including the protection of public spending on social protection and other pro-poor programs and to improve the targeting efficiency of the programs. These measures should help lessen the impact of the crisis on the poor and the vulnerable. -
Publication
Poverty and Social Impact Analysis (PSIA) : Reviewing the Link with In-Country Policy and Planning Processes - Synthesis Report
(World Bank, 2009-05-01) World BankThe synthesis report concerns to go beyond a summary of the country studies to provide lessons and recommendations on how to further improve Poverty and Social Impact Analysis (PSIA) effectiveness. To do so, it draws on findings from country case studies, the literature and recent internal Bank reviews (World Bank 2006, 2008) on PSIA. The synthesis is structured in three parts. Section two reviews the role of PSIA in country work drawing on internal guidance from the Bank and the wider literature. It introduces the PSIA framework and the main elements of an effective PSIA. Section two ends with a presentation of the review framework and the approach to sampling and methodology for the country studies. Section three presents the bulk of the review findings and lessons learned with a focus on lessons for embedding PSIA into country processes. Section four addresses the future of PSIA with recommendations aimed at: (i) improving the influence that PSIA has on policy and planning processes in-country, and (ii) ensuring that it is applied more routinely by partner governments and Bank programs.