Other Poverty Study

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Are Skills Constraining Growth in Bosnia and Herzegovina?

(World Bank, 2009-12-01) World Bank

The shortage of skills sought by key export-oriented and import competing industries in Bosnia and Herzegovina (henceforth, 'BH') is substantial and if left unaddressed, threatens to constrain future economic growth of the country. Prior to the onset of the global economic crisis, BH enjoyed strong rates of economic growth based to a significant degree on the growth of exports. On average, exports grew at an impressive 34 percent per year between 1995 and 2008. Our analysis however confirms that the growth of exporting, as well as import-competing industries is increasingly becoming constrained by the shortage of skills in the labor force. In this report we seek to identify these shortages and their likely causes and recommend reforms and policies which can prevent the plummeting of economic growth due to lack of adequate skills. Firm-level evidence confirms that the shortage of qualified workers is becoming a serious obstacle to growth of BH exporting companies. This report investigates what types of skills firms are looking for and are not finding in the marketplace. The policy recommendation section of this study seeks to provide ideas and direction for the BH government to address these labor market challenges.
Hashemite Kingdom of Jordan - Poverty Update : Appendices

(World Bank, 2009-11-01) World Bank

This 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.
Hashemite Kingdom of Jordan - Poverty Update : Main Report

(World Bank, 2009-11-01) World Bank

This 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.
Armenia : Implications of the Global Economic Crisis for Poverty

(World Bank, 2009-09-01) World Bank

The 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.
Bulgaria - Poverty implications of the global financial crisis

(World Bank, 2009-05-01) World Bank

There are visible signs that the global financial crisis is affecting economic growth and poverty reduction in Bulgaria. After a period of strong economic growth through 2008, Gross Domestic Product (GDP) in 2009 is projected to shrink by 3.5 percent due to the crisis, with important implications for poverty. The note identifies the following channels as having particular relevance for poverty in Bulgaria: (i) the labor market and (ii) foreign remittances. Due primarily to its effect on trade and investment, the global financial crisis could affect household welfare through contraction in the labor market and slowdown in wage growth. Remittances from abroad, which are significant contributor to consumption of nearly 7 percent of the Bulgarian households, are likely to slow down in 2009. The note estimates the potential impact on poverty of the crisis. The poverty impact is projected by simulating the effects of the anticipated slowdown in growth and remittances on household consumption using data from the 2007 Multitopic Household Survey (MTHS) and macro and sectoral growth and employment projections. 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.
Czech Republic : Report on Vision and Strategy for an Integrated Revenue Administration

(World Bank, 2009-04-22) World Bank

This report is a result of the mission of the World Bank to the Czech Republic during November 17 to 27, 2008 for providing advisory service to the Government of the Czech Republic for the design and development of a modern, integrated revenue authority. Earlier, between February and April 2008, a World Bank mission had reviewed the draft merger plan prepared by the Ministry of Finance of the Czech Republic in January 2008 and examined the key issues for the merger of tax and customs administrations and the integration of the collection, enforcement and audit functions of social contributions. The preliminary findings of the World Bank are contained in the 'report on an integrated revenue administration' in two volumes which was disseminated in June 2008. This mission in November 2008 is the first in a series of missions over the next eighteen months for providing the advisory services as requested to the Government of the Czech Republic. During this first mission, the Bank has worked with the Czech counterparts to develop for the new Jednotni Inkasni Misto (JIM): (i) an integrated vision and key concepts (ii) major objectives and key elements of reform; (iii) a comprehensive strategy for reform of the organizational structure, human resources, business processes, and information systems; (iv) project management structure; (v) change management strategy; and (vi) key performance indicators.
Mexico - Improving Productivity for the Urban Poor

(World Bank, 2009-04-01) World Bank

This report is part of an ongoing dialogue between the World Bank and Secretaria de Desarrollo Social (SEDESOL) on poverty reduction. It builds on the findings and messages of the World Bank poverty programmatic reports, which included a poverty assessment, detailed follow-up analysis of urban and rural poverty, social protection, and poverty and decentralization. This report responds to a request from the SEDESOL for support in refining its programmatic approach to poverty reduction via further analysis and more detailed recommendations and guidance regarding the next generation of poverty reduction/social development programs. This report is the first of three technical pieces agreed with SEDESOL as part of the work program on increasing the productivity of the poor. The two remaining pieces are: a) reviewing international evidence and experience on selected policies and programs; and b) developing the implication for social development/poverty reduction policies and programs in Mexico. This report begins with a short summary of main findings. Chapter one analyzes recent trends in urban poverty, with emphasis in the recovery in poverty levels after the mid-1990s peso crisis. Chapter two discusses the characteristics of the urban poor and their labor market performance. Chapter three reviews the legal and regulatory environment and its affects on labor market performance. Chapters four to six provide assessments of selected interventions to improve the income and job opportunities of the poor, and offers suggestions that could better their results. The last chapter concludes and discusses areas of future work.
Bangladesh - State of the Economy and Near to Medium-Term Challenges

(Washington, DC, 2009-02) World Bank

The Awami league, voted to power by Bangladesh's electorate in last December's national elections, has laid out a vision that promises to take Bangladesh to a middle-income status by 2021. According to this vision 'poverty will be drastically reduced; where our citizens will be able to meet every basic need and where development will be fast track, with ever increasing rates of growth.' How can the new government deliver on its economic promises? What issues does it need to tackle in the immediate near-run as well as medium- to long-run to take the country forward on the growth enhancing and poverty reducing path? What steps are needed to deal with the likely impact of the still unfolding global economic crisis? This note provides a broad overview of the current state of the Bangladesh economy, the immediate challenges it faces from the ongoing global crisis and the medium-term policy priorities for accelerating growth and reducing poverty.
Informal Employment in Argentina : Causes and Consequences

(Washington, DC, 2008-03) World Bank

This report presents the final results and conclusions of a two-year program developed by a World Bank team in Argentina, to analyze the determinants of informality and its impact on poverty and equity. Informality in the labor market has become a central concern for policy makers and the society at large in Argentina. The long upward trend in informal employment until recent year has been viewed as a deterioration in working conditions that is behind the sustained rise in poverty and inequality in the last quarter of the twentieth century. While some of the possible causes for the rise in informality have been studied, their relative importance remains unclear and its links with poverty and inequality have not been examined in detail. A primary objective of the program is to deepen the shared work with the Argentine government and civil society on socio-economic development and equity issues. The aim has been to analyze and propose policy options for the labor market that respond to the Government's priorities, are technically sound, and provide an open menu for discussion. The study of informality in the labor market is not an empty field in Argentina. Many local analysts have studied its causes and consequences, and this report built on this work. A key aspect of the program was to draw on the extensive local analytical studies on the issues and sustain an active interaction with government counterparts and civil society through technical workshops, meetings and other outreach efforts. This report focused on discussing the evolution, determinants, and policy options to reduce labor informality in Argentina and its impacts. By developing a common base of diagnoses with the government, the program set a path for further discussions and collaborations. Following this process, the Ministry of Labor has already asked the Bank to collaborate on a new program that will focus on labor markets, social protection, and income distribution, looking for policies that would result in better and more effective policies to increase equity in Argentina.
Romania : Poverty Monitoring Analytical and Advisory Assistance Program, First Phase Report, Fiscal Year 2007

(Washington, DC, 2007-11) World Bank

The objective of this report is to contribute towards institutional capacity building for regular monitoring and analysis of poverty, as well as other indicators of living conditions and social inclusion. This report analyzes the poverty trends and profile using the national absolute poverty line, which measures changes in the level of welfare and allows for a more straightforward interpretation of comparisons over time. Chapter 1 presents an overview of poverty dynamics using both relative and absolute measures of poverty, and explores the reasons for the observed difference in trends between the two measures. Chapter 2 investigates the relationship between economic growth, inequality and poverty in Romania during the period 1995 and 2006.