Publication: Poverty Reduction and Growth : Virtuous and Vicious Circles
Loading...
An error occurred retrieving the object's statistics
Date
2006
ISSN
Published
2006
Author(s)
Editor(s)
Abstract
Poverty Reduction and Growth is about the existence of these vicious circles in Latin America and the Caribbean about the ways and means to convert them into virtuous circles in which poverty reduction and high growth reinforce each other. This publication is organized as follows: Chapter 1: From vicious to virtuous circle; Chapter 2: Dimensions of well-being, channels to growth; Chapter 3: How did we get here? Chapter 4: The relative roles of growth and inequality for poverty reduction; Chapter 5: Pro-poor growth in Latin America; Chapter 6: Does poverty matter for growth? Chapter 7: Subnational dimensions of growth and poverty; Chapter 8: Microdeterminants of incomes: labor markets, poverty, and traps?; and Chapter 9: Breaking the cycle of underinvestment in human capital in Latin America.
Link to Data Set
Citation
“Perry, Guillermo E.; Arias, Omar S.; López, J. Humberto; Maloney, William F.; Servén, Luis; Arias, Omar. 2006. Poverty Reduction and Growth : Virtuous and Vicious Circles. World Bank Latin American and Caribbean Studies;. © World Bank. http://hdl.handle.net/10986/6997 License: CC BY 3.0 IGO.”
Associated URLs
Associated content
Other publications in this report series
Journal
Journal Volume
Journal Issue
Related items
Showing items related by metadata.
Publication Pending Issues in Protection, Productivity Growth, and Poverty Reduction(World Bank, Washington, DC, 2005-12)This paper selectively synthesizes much of the research on Latin American and Caribbean labor markets in recent years. Several themes emerge that are particularly relevant to ongoing policy dialogues. First, labor legislation matters, but markets may be less segmented than previously thought. The impetus to voluntary informality, which appears to be a substantial fraction of the sector, implies that the design of social safety nets and labor legislation needs to take a more integrated view of the labor market, taking into account the cost-benefit analysis workers and firms make about whether to interact with formal institutions. Second, the impact of labor market institutions on productivity growth has probably been underemphasized. Draconian firing restrictions increase litigation and uncertainty surrounding worker separations, reduce turnover and job creation, and poorly protect workers. But theory and anecdotal evidence also suggest that they, and other related state or union induced rigidities, may have an even greater disincentive effect on technological adoption, which accounts for half of economic growth. Finally, institutions can affect poverty and equity, although the effects seem generally small and channels are not always clear. Overall, the present constellation of labor regulations serves workers and firms poorly and both could benefit from substantial reform.Publication Ghana - Job Creation and Skills Development : Main Report(World Bank, 2009-05-29)According to Government, Ghana is facing many challenges in the area of skill development and job creation. The Government is particularly concerned with: (i) unemployment among the youth (6.1 percent in 2005 for 15-24 years old), which has been attributable to the rapid population growth rate of the youth, the rapid urbanization rate, the quality of labor supply, and low labor absorption rate of the economy; and (ii) the external efficiency of the education training system and its ability to supply the skills demanded by a diversified and competitive economy. Moreover, other related concerns include: channeling economic growth toward creating jobs, including 'good jobs'; better understanding the functioning of the informal sector; explaining the mismatch between skills development and jobs; improving labor market indicators; monitoring and evaluating employment programs' outcomes; reviewing the role of labor market regulations in job creation; and reforming technical vocational education and training (TVET) systems. The key objective of Ghana's development policy is to accelerate economic growth and put the creation of new and better jobs at the center of the Government agenda. In this context, and complementing the recent Country Economic Memorandum (CEM) and earlier Bank's work on youth employment, this report addresses labor market challenges that Ghana is facing, particularly as it strives for middle income status by 2015. This report: (a) briefly reviews the determinants of labor demand; (b) analyzes labor market outcomes based on recent survey data; (c) reviews the role of labor policies, institutions and programs; and (d) examines education and skills development policies and their links to labor market outcomes.Publication Mexico - Improving Productivity for the Urban Poor(World Bank, 2009-04-01)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.Publication Labor Market Adjustment, Reform and Productivity in Colombia : What are the Factors that Matter? Volume 1, Issues and Policy Brief(Washington, DC, 2005-11)This report carries out a detailed evaluation of the 2002 labor reform in Colombia, and in doing so, it also assesses the performance of the Colombian urban labor market and identifies the main policy challenges faced in this area. The report has three broad goals: First, to provide additional evidence to inform the intense debate taking place in the country around labor market issues, especially the reform. Second, to shed light on the key factors preventing a swift recuperation of the labor market. Third, to offer sensible policy alternatives that complement the step taken with the labor reform and address those key factors. The analyses are carried out for the key labor market outcomes: employment, unemployment, formality and wages, as well as productivity. Through the analysis of these variables the report tries to enhance the understanding of issues such as informality, labor market rigidities, job creation, protection against shocks and private sector performance. By and large, these determine whether people can find gainful employment, be adequately protected against shocks and whether firms are profitable so that, on the one hand, investment and technology adoption take place and, on the other, employment and wages grow, which are the truly important concerns for policy makers. The report illustrates key problems faced by Colombia: slow growth reflecting poor productivity performance, high and persistent unemployment and labor market rigidities that help in keeping unemployment high and productivity low. The 2002 labor reform shows positive results in some areas, while the impact on others was uncertain or moderate. Thus, the country today has three broad challenges. First, making the labor market as efficient as possible; second, increasing productivity growth as a precondition for stronger economic performance, and third, providing effective and inclusive services of social protection for the most vulnerable. These are the channels that will ultimately enable the increase of formal employment and favor wage growth.Publication Bolivia Poverty Assessment : Establishing the Basis for Pro-Poor Growth(World Bank, Washington, DC, 2006-05)This brief discussion of Bolivia's poverty assessment notes that Bolivia's growth prospects remain vulnerable to domestic instability and external circumstances. Because of the depth and breadth of poverty in Bolivia, and the skewed income distribution, high GDP per capita growth rates about 4 to 5 percent per year are necessary in the medium and longer term, if the country's poverty level is to be significantly reduced. The national MDG target of reducing the incidence of extreme poverty in half by 2015 could be achieved with growth rates in this range, along with other pro-poor policy interventions. Even higher per capita growth is needed to meet the MDG of reducing poverty in half. Economic simulations indicate that the country can improve its future growth potential through a comprehensive strategy of mutually-reinforcing reforms that includes macroeconomic stability.
Users also downloaded
Showing related downloaded files
Publication World Bank Annual Report 2024(Washington, DC: World Bank, 2024-10-25)This annual report, which covers the period from July 1, 2023, to June 30, 2024, has been prepared by the Executive Directors of both the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA)—collectively known as the World Bank—in accordance with the respective bylaws of the two institutions. Ajay Banga, President of the World Bank Group and Chairman of the Board of Executive Directors, has submitted this report, together with the accompanying administrative budgets and audited financial statements, to the Board of Governors.Publication Business Ready 2024(Washington, DC: World Bank, 2024-10-03)Business Ready (B-READY) is a new World Bank Group corporate flagship report that evaluates the business and investment climate worldwide. It replaces and improves upon the Doing Business project. B-READY provides a comprehensive data set and description of the factors that strengthen the private sector, not only by advancing the interests of individual firms but also by elevating the interests of workers, consumers, potential new enterprises, and the natural environment. This 2024 report introduces a new analytical framework that benchmarks economies based on three pillars: Regulatory Framework, Public Services, and Operational Efficiency. The analysis centers on 10 topics essential for private sector development that correspond to various stages of the life cycle of a firm. The report also offers insights into three cross-cutting themes that are relevant for modern economies: digital adoption, environmental sustainability, and gender. B-READY draws on a robust data collection process that includes specially tailored expert questionnaires and firm-level surveys. The 2024 report, which covers 50 economies, serves as the first in a series that will expand in geographical coverage and refine its methodology over time, supporting reform advocacy, policy guidance, and further analysis and research.Publication The Quality of the Legal System, Firm Ownership, and Firm Size(World Bank, Washington, D.C., 2004-03)Employment in developing countries is disproportionately concentrated in very small firms. The authors examine the extent to which the distribution of firm size is related to the quality of the legal system using data from Mexico. They combine Lucas' (1978) model of firm size with Himmelberg, Hubbard, and Love's (2001) consideration of idiosyncratic risk in a framework in which the distribution of entrepreneurial talent and aversion to idiosyncratic risk combine to determine the optimal size of firms. Their data allows them to focus on the differential impact of the legal system on proprietorships and corporations. Moreover, by focusing on firms in a single country, the data draw attention to the importance of variation in the administration of justice and the enforcement of legal verdicts. The authors find that Mexican states with more effective legal systems have larger firms. A one-standard deviation improvement in the quality of the legal system increases the average firm size by about 10-15 percent. The impact of the legal system is greatest in sectors in which proprietorships dominate. This pattern is consistent with better legal systems increasing the investment of firm owners by reducing the idiosyncratic risk they face. All of these findings are upheld when the authors instrument for institutional variables using the log of indigenous population in 1900 and the active presence of the drug trade in the state.Publication Classroom Assessment to Support Foundational Literacy(Washington, DC: World Bank, 2025-03-21)This document focuses primarily on how classroom assessment activities can measure students’ literacy skills as they progress along a learning trajectory towards reading fluently and with comprehension by the end of primary school grades. The document addresses considerations regarding the design and implementation of early grade reading classroom assessment, provides examples of assessment activities from a variety of countries and contexts, and discusses the importance of incorporating classroom assessment practices into teacher training and professional development opportunities for teachers. The structure of the document is as follows. The first section presents definitions and addresses basic questions on classroom assessment. Section 2 covers the intersection between assessment and early grade reading by discussing how learning assessment can measure early grade reading skills following the reading learning trajectory. Section 3 compares some of the most common early grade literacy assessment tools with respect to the early grade reading skills and developmental phases. Section 4 of the document addresses teacher training considerations in developing, scoring, and using early grade reading assessment. Additional issues in assessing reading skills in the classroom and using assessment results to improve teaching and learning are reviewed in section 5. Throughout the document, country cases are presented to demonstrate how assessment activities can be implemented in the classroom in different contexts.Publication Sierra Leone Public Expenditure Review 2021(World Bank, Washington, DC, 2021-06)This Fiscal and Debt Sustainability Note, the first module of a programmatic multisectoral Public Expenditure Review (PER), reviews the recent macro-fiscal challenges, analyzes their causes and consequences and provide policy options for enhancing the conduct of fiscal and PFM policies in the country. The first part of this module draws on the Boost database to provide a comprehensive overview of the budget covering both revenues and expenditures. It analyzes the composition of the budget (based on economic and functional classifications) and discusses the most critical PFM issues the country faces. It also assesses budget execution and the efficiency of public expenditure. The second part of the module focuses on fiscal risks and their implications for medium-term fiscal and debt sustainability. It examines the recent evolution of public debt, its main drivers and relationship to economic growth. It describes recent reforms to address fiscal and debt vulnerabilities and how these reforms have been affected by the global pandemic. It also analyzes the main fiscal risks with a focus on those stemming from State-Own Enterprises (SOEs), local councils, litigations, natural disasters, and health crises. This part uses simulations to analyze the most likely evolution of the public debt path over the next 20 years under alternative risk scenarios. Finally, the module proposes practical and actionable policy options to help improve the macro-fiscal environment over the short term and preserve debt sustainability over the medium term.