Other Poverty Study
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Publication
Do Labor Markets Limit the Inclusiveness of Growth in the Dominican Republic?
(World Bank, Washington, DC, 2017-08-01) World BankThe strong economic growth enjoyed by the Dominican Republic following its 2003 domestic crisis was not matched by similarly substantial progress in poverty reduction. While labor productivity grew by an estimated 39 percent between 2000 and 2013, real wages fell with the crisis in 2003/04, and, in 2013, remained below their pre-crisis level. This report presents an assessment of factors related to the functioning of the labor markets that constrained more inclusive growth in the Dominican Republic. It explores several hypotheses related to labor supply factors, job creation, and global trends in returns to labor, as well as issues with statistical measurements that contribute to explain the weak relationship observed between growth and poverty reduction. The analysis finds that growth appears to have been driven by productivity increases rather than by increases in labor inputs. At the same time, low-skilled workers became increasingly concentrated in low-quality jobs and in sectors that saw low productivity growth, a trend enhanced by the loss of manufacturing jobs since 2000. Low rates of labor force participation, particularly among the poor, further limited the ability of households to benefit from growth. -
Publication
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 MorelCote 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. -
Publication
Does Fiscal Policy Benefit the Poor and Reduce Inequality in Namibia?
(World Bank, Washington, DC, 2017-06) Namibia Statistics Agency ; World BankReducing 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. -
Publication
Drivers of Poverty Reduction in Lao PDR
(World Bank, Vientiane, 2015-10-01) World Bank GroupPoverty in Lao PDR declined from 33.5 percent to 23.2 percent over the 10 year period between 2002/3 and 2012/13. The number of poor people declined by about half a million to 1.35 million in 2013 and Lao PDR has met its MDG target of reducing poverty to below 24 percent by 2015. Improvements in welfare are evident in the changes in other socio-economic indicators such as the ownership of televisions and access to electricity, which doubled, and the number of households living in houses built with bricks or concrete, which nearly tripled, while the proportion of those without a toilet halved. Net secondary enrollment increased from 27 percent in 2002/3 to 50 percent in 2012/13 showing significant improvements in education. -
Publication
Poverty and Shared Prosperity in Brazil's Metropolitan Regions: Taking Stock and Identifying Priorities
(Washington, DC, 2015-07-08) World Bank GroupIn the 20th Century, Brazil rapidly urbanized and is now not only an urban nation but a metropolitan one. Brazils sprawling regioes metropolitanas (metropolitan regions, or RMs, which are municipal clusters) are now home to almost 50 million people and much of the countrys economic vitality. The RM spatial level and its supporting governmental institutions have thus become critical to Brazils future development. While challenges remain for tackling deprivation in rural areas, poverty in Brazil is now predominantly urban. More than six in 10 Brazilians in extreme poverty were living in urban settings as of 2012. Of these, over a fourth was concentrated in the 10 largest RMs. -
Publication
Alternative Social Safety Nets in South Sudan: Costing and Impact on Welfare Indicators -- Poverty Note
(World Bank, Washington, DC, 2015-06) Pape, Utz ; Pontara, NicolaThe 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. -
Publication
Kyrgyz Republic: Food Prices and Household Welfare
(World Bank, Washington, DC, 2015-05-28) World Bank GroupBetween 2008 and 2012 the urban/rural poverty divide substantially narrowed down, which was the result of relatively stable rural and rising urban poverty rates. Over the same period, food inflation spiked, whereby strong links between domestic and global price movements were observed owed to major import dependence on food. The high shares of consumption that households dedicate to food, especially among the poor, leave limited scope to deal with food price surges by economizing on non-food expenditure. Food price increases of 5, 10, and 15 percent are estimated to increase poverty rates between 2 and 5 percentage points in the baseline scenario. -
Publication
Kyrgyz Republic: Poverty Profile for 2013
(World Bank, Washington, DC, 2015-05-21) World Bank GroupOver the last decade, the Kyrgyz Republic experienced volatile but positive economic growth. Since the early 2000s, the share of working age population has been growing robustly and foreign labor markets have been an important source of employment. The Kyrgyz Republic has achieved large reductions in poverty over the past decade, but in recent years progress has diminished. During 2003-2012, the Kyrgyz Republic saw significant convergence between urban and rural poverty rates. Poverty reduction during 2003-2013 was driven mostly by growth rather than redistribution. -
Publication
FYR of Macedonia: Measuring Welfare using the Survey of Income and Living Conditions
(Washington, DC, 2015-05) World BankThis note expands the analysis on poverty and income distribution reported by the FYR Macedonia SSO for 2010 and 2011. The present work is based on an analysis performed in-situ by World Bank staff on the offices of the FYR Macedonian SSO. -
Publication
An Update on Poverty and Inequality in Albania: Nine Stylized Facts
(Washington, DC, 2015-05) World BankThis note presents 9 stylized facts that emerge related to the evolution of poverty and inequality over the 2002 to 2012 period, especially from 2008 to 2012, as well as some insights into the drivers of poverty changes. It complements existing work on monitoring and understanding shared prosperity – the second corporate goal of the World Bank along with reducing poverty - in Albania and the Western Balkans. Albania poverty estimates are based on the Living Standards Measurement Survey (LSMS). The LSMS is conducted by the Albania Statistics Office (INSTAT) with donor funding and has been carried out in 2002, 2005, 2008 and recently in 2012.