Other Poverty Study
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Publication
Inequality in Southern Africa: An Assessment of the Southern African Customs Union
(Washington, DC, 2022)The Southern African Customs Union (SACU) is the most unequal region in the world. While there has been some progress in recent years, inequality has remained almost stagnant in the most unequal countries. Using an innovative framework, this report provides a systematic and comprehensive analysis of inequality in the region. The main conclusions are as follows: first, inherited circumstances over which an individual has little or no control (i.e., inequality of opportunity) drive overall inequality, and their contribution has increased in recent years. This is an important concern particularly because this type of inequality is not the result of people’s efforts. Second, lack of access to jobs and means of production (education, skills, land, among others) by disadvantaged populations slows progress towards a more equitable income distribution. In a context where jobs are scarce, having post-secondary or tertiary education is key to both accessing jobs, and obtaining better wages once employed. Third, fiscal policy helps reduce inequality through the use of targeted transfers, social spending, and progressive taxation, but results are below expectation given the level of spending. Fourth, vulnerability to climate risks and economic shocks makes any gains towards a more equal society fragile. Looking ahead, accelerating inequality reduction will require concerted action in three policy areas: (a) expanding coverage and quality of education, health, and basic services across subregions and disadvantaged populations to reduce inequality of opportunity; (b) strengthening access to and availability of private sector jobs. It is important to accompany structural reforms with measures that facilitate entrepreneurship and skills acquisition of disadvantaged populations, and to improve land distribution and productivity in rural areas; and (c) investing in adaptive social protection systems to increase resilience to climate risks and economic vulnerability, while enhancing targeting of safety net programs for more efficient use of fiscal resources. -
Publication
Assessment of Development Needs of Refugees and Internally Displaced Persons in Eastern Sudan
(Washington, DC, 2011-02-11)East Sudan has received a continuous influx of internally displaced persons (IDPs) and refugees over the last forty years. Mass influxes were witnessed during years when the region experienced natural catastrophes as droughts and floods, or an escalation of tensions and conflict in neighboring countries, mainly Eritrea and Ethiopia. Presently there is still a steady but smaller in numbers influx of refugees, mostly from Eritrea, but with an apparent change in their social composition and expectations. Present day internal population movements relate to more conventional forms of migration within Sudan, that is, households in search of work and economic opportunities. Still, the situation of the large number of IDPs that moved to the area over 15 years ago and are living in camps is precarious and needs urgent attention. Presently there are not the basic conditions required to provide a durable solution to the refugees in a protracted situation in eastern Sudan. To a large extent that also applies to IDPs with long permanence in camps; there are not conditions to achieve self-reliance by most of the displaced population given the situation of their locations in eastern Sudan in terms of natural environment and its capacity to support sustainable agriculture and other urban and rural economic activities. Within the overall mission of the World Bank, its strategic objective in contributing towards the durable solution of forced displacement situations is to bring the affected countries and displaced population back to the path of peace and development, enabling the application of pro-poor policies and fostering economic growth. Under these conditions, the World Bank will be in a better position to engage the affected countries through its regular operations. -
Publication
Mauritius - Enhancing and Sustaining Competitiveness : Policy Notes on Trade and Labor
(World Bank, 2010-12-03)Mauritius 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)Fourteen 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
Niger - Modernizing Trade During a Mining Boom : Diagnostic Trade Integration Study for the Integrated Framework Program
(World Bank, 2010-09-01)The Niger Diagnostic Trade Integration Study (DTIS) has been prepared under the Integrated Framework (IF) for trade related technical assistance to least developed countries in response to a request from the Government of Burkina Faso. The study is to build the foundation for accelerated growth by enhancing the integration of its economy into regional and global markets. This Diagnostic Trade Integration Study (DTIS) is intended to provide a broad overview of the key elements for successful integration into external markets, both through access to low-cost imports and especially through the development and diversification of exports. It pays particular attention to the role that trade can play in poverty reduction. It is fully in line with Niger's new strategy for accelerated development and poverty reduction. Indeed, that strategy refers to this study as a key input and identifies the same set of priority sectors as sources of growth - rural development, artisanal crafts, tourism and mining. This study is also consistent with the rural development strategy which emphasizes various export-oriented agro-pastoral subsectors. What this study to do is to provide more details and a sense of priorities in order to strengthen the trade component of these two strategies. -
Publication
Cameroon - Fiscal policy for growth and development
(World Bank, 2010-09-01)Cameroon's growth achievement is disappointing and the country is not likely to meet most of the Millennium Development Goals (MDGs) on its current trajectory. Underemployment is extremely high, with risks of social unrest and instability. The fallout of the current global economic crisis is making more challenging the attainment of growth targets foreseen in the new Growth and Employment Strategy (DSCE) and in the new vision 2035. This overall picture hides an even more worrisome divide between urban and rural areas, among provinces, and between farmers and all other socioeconomic groups. Cameroon has ended up in this situation as a result of several factors, including a legacy of poor public finance management, weak governance, and inequitable distribution of resources. The report also argues that the Government has the capacity to use fiscal policy as an effective instrument to address the legacy, governance, and distribution issues that are constraining growth, while providing basic services and necessary public goods to the population. The Government is committed to reviving growth and job creation, in line with vision 2035, and the recommendations in this report could help it to achieve these goals. The Government needs to act quickly, however, as the costs of delaying reforms can be high. It also needs to engage with the private sector, for example, in public private partnerships in the energy sector.