This paper proposes a decomposition framework for quantifying contributions of the determinants of poverty to spatial differences or temporal changes in poverty. This framework is then applied to address the issue why poverty incidence is higher in...
9 December 2013 S. Subramanian 1 Introduction It appears that the World Bank is planning to maintain and disseminate systematic information on a...
17 October 2013 James Foster describes the importance of moving beyond income poverty as a way of assessing 'who is poor?' and 'how poor?'...
Tony Addison and Miguel Niño-Zarazúa China and India are making immense strides in development. Growth in both countries has been impressive. But...
Tony Addison and Miguel Niño-Zarazúa China and India are making immense strides in development. Growth in both countries has been impressive. But...
Luc Christiaensen and Lorraine Telfer-Taivainen If a person suddenly becomes poor, for example, due to an unexpected death or illness in the family...
Poverty reduction has become the central goal of development policies over the last decade but there is a growing realization that the poorest people rarely benefit from poverty reduction programmes. Microfinance programmes can help poor people...
21 September 2012 The intricate dynamic between foreign aid to Africa, democratic transitions and consolidation is the topic of a series of research...
If uncertainty exists over the exact location of the poverty line or over which measure to use to compare poverty between distributions, one may want to check whether poverty dominance holds. We develop a consistent statistical test to test the null...
This note points to certain similarities of orientation and outcome between Derek Parfit’s quest for a theory of beneficence and Amartya Sen’s quest for a suitable real-valued representation of poverty. It suggests that both projects, in a certain...
In a heterogeneous population which can be partitioned into well-defined subgroups, it is plausible that the extent of measured aggregate poverty should depend upon the distribution of poverty across the subgroups. A judgment in favour of an equal...
The literature on the economics of happiness in the developed economies finds discrepancies between reported measures of wellbeing and income measures. The ‘Easterlin paradox’, for example, shows that average happiness levels do not increase as...
Current urban interventions, particularly in cities in developing countries like Santiago de Chile, evidence major neglect in understanding the way contemporary living takes place and how it is changing under processes of globalization, global...
This paper surveys the various composite well-being indices that have been inter-country assessments over the last 40 or so years, including the well known Human Development Index (HDI). A number of issues are considered, including the choice of...
This paper points to some elementary conflicts between the claims of interpersonal and intergroup justice as they manifest themselves in the process of seeking a real-valued index of poverty which is required to satisfy certain seemingly desirable...
This paper considers the use of participatory methods in international development research, and asks what contribution these can make to the definition and measurement of well-being. It draws on general lessons arising from the project level, two...
Typical welfare and inequality measures are required to be Lorenz consistent which guarantees that inequality decreases and welfare increases as a result of a progressive transfer. We explore the implications for welfare and inequality measurement of...
This paper proposes a concept of inequality comparisons with ordinal multidimensional categorical data. In our model, one population is more unequal than another when they have common arithmetic median outcomes and the first can be obtained from the...
Tracking poverty is predicated on the availability of comparable consumption data and reliable price deflators. However, regular series of strictly comparable data are only rarely available. Poverty prediction methods that track consumption...
Analysing a large sample of 1980–2004 unbalanced panel data, the current study presents comparative global evidence on the role of (income) inequality in poverty reduction. The evidence involves both an indirect channel via the tendency of high...
The present study examines the degree to which income distribution affects the ability of economic growth to reduce poverty, based on 1990s data for a sample of rural and urban sectors of African economies. Using the basic needs approach, an analysis...
Motivated by the siloed nature of much poverty research, as well as the challenge of finding inclusive operational definitions of poverty, this study reflects on the merits of seeking to reconcile economic (quantitative) and anthropological...
This paper uses six nationally representative household consumption surveys to develop successive poverty profiles for Indonesia over a fifteen-year period of sustained high growth followed by rapid contraction. Adopting a ‘cost-of-basic-needs’...
Over the last decade, India has been one of the fastest growing economies, and has experienced considerable decline in overall income poverty. However, in a vast country like India, poverty levels vary significantly across the different states. In...
Two precisely comparable national household surveys relating to 1988 and 1995 are used to analyse changes in the inequality of income in urban China. Over those seven years province mean income per capita grew rapidly but diverged across provinces...
In this study, we combined the Cambodian socioeconomic survey for 1997 and the country’s population census of 1998 to produce poverty measures at the commune-level in Cambodia using the small-area estimation technique developed by Elbers, Lanjouw and...
This paper offers a critical review of the conventional economic classification, measurement and valuation of output, and related performance indicators, for the service sector. The paper also explores and contrasts long-standing views on the service...
Measuring poverty remains a complex and contentious issue. This is particularly true in sub-Saharan Africa where poverty rates are higher, information bases typically weaker, and the underlying determinants of welfare relatively volatile. This paper...
The study presents recent global evidence on the transformation of economic growth to poverty reduction in developing countries, with emphasis on the role of income inequality. The focus is on the period since the early/mid-1990s when growth in these...
This paper surveys recent research on aid and growth. It also provides an overview of research on inter-recipient aid allocation. The overall focus of the paper is on the relevance of these issues for poverty-efficient aid, defined as a pattern of...
Bourguignon and Fields (‘Poverty Measures and Anti-Poverty Policy’) and Gangopadhyay and Subramanian (‘Optimal Budgetary Intervention in Poverty Alleviation Schemes’) have derived optimal budgetary rules for the redress of poverty through direct...
This paper is a review and commentary, from both ethical and informational perspectives, of some known results in optimal anti-poverty budgetary rules for two kinds of intervention, direct income transfers and wage employment programmes.
This note advances a family of poverty measures, Πα, which are derived as simple, normalized Minkowski distance functions. The Πα indices turn out to be the αth roots of the corresponding Foster, Greer and Thorbecke Pα indices. The re-calibration of...
In estimating the prevalence of undernourishment in a region or country it has been common practice to choose a benchmark - or, as some would say, a critical limit - which reflects nutrition requirements and then to calculate the percentage of the...
This paper establishes the principles which should govern the welfare and inequality analysis of heterogeneous income distributions. Two basic criteria—the ‘equity preference’ condition and the ‘compensation principle’—are shown to be fundamentally...
In order to reduce poverty you must be able to measure it. It sounds so obvious, but in my experience policy makers think that measuring poverty is...
In the age of globalization, the question whether inequality in the world rose or fell down, is a hot topic. Leading scholars in the field of economic inequality measurement developed methods to estimate empirically the distribution of welfare...
The objective of this paper is to review a number of issues related to poverty, while taking stock of the ongoing research. Most of the remaining unresolved issues in poverty analysis are related directly or indirectly to the dynamics of poverty...
Economic measures of income have ignored large areas of human well-being and are poor measures of well-being in the areas to which they attend. Despite increased recognition of those distortions, ‘GNP per capita continues to be regarded as the...
The United Nations Millennium Declaration commits to halving extreme poverty between 2000 and 2015. The South African government has set a goal of halving poverty by 2014, although the meaning of this goal has not yet been defined. This article...
Many developing and transition countries have considerable regional variation in average household income, poverty, and in health and educational status. National human development indicators can therefore mislead policy-makers when large regional...
This issue analyses the impact of globalization on Africa and present an overview of the six Africa case studies.
The six papers in this Special Issue to provide insights into advances in conceptualizing and measuring vulnerability, in particularly household vulnerability to poverty and country and regional vulnerability to external shocks. All of the papers...
This paper performs a multidimensional first order dominance analysis of child wellbeing in the Democratic Republic of Congo (DRC). This methodology allows the ordinal ranking of the 11 provinces of the DRC in terms of their wellbeing based upon the...
This paper decomposes differences between the official poverty estimates of Malawi and a set of revised estimates by Pauw et al. (2016) with respect to five methodological differences: (i) the use of a revised set of unit conversion factors; (ii) the...
We adapt the standardized Poverty Line Estimation Analytical Software (PLEASe) computer code stream based on Arndt and Simler’s (2010) utility-consistent approach to analyse poverty in Ethiopia in 2000, 2005, and 2011. Several data-related issues...
We adapt the standardized Poverty Line Estimation Analytical Software–PLEASe computer code stream based on Arndt and Simler’s (2010) utility-consistent approach to measuring consumption poverty in order to analyse poverty in Madagascar in 2001, 2005...
In Sub-Saharan Africa we find some of the highest levels of income inequality in the world. Nevertheless, we generally know very little about the historical development of inequality. In this paper we look at how inequality developed in colonial and...
The degree of choice households have over their consumption expenditure is critical in deciding their economic class. Applying our measure to Egyptian household budget surveys, we estimate the population size of the middle class in Egypt and assess...
This paper attempts to measure the extent of inequality within households and its contribution to overall levels of inequality in child well-being. The paper analyses the distribution of resources (outcomes) between girls and boys for four indicators...
Local institutional and structural (meso) factors can play a role in mediating the returns to a macro-social policy. I focus on the Brazilian cash-transfer-programme Bolsa Familia and check how contextual features influence the returns to transfers...
Amelia U. Santos-Paulino and Guanghua Wan China and India have become global economic powers. Even at the market exchange rate, China overtook Japan...
Wim Naudé, Amelia U. Santos-Paulino and Mark McGillivray The global economic crisis, which erupted about one year ago with the US sub-prime mortgage...
We provide a comprehensive approach for analyzing the evolution of poverty using Mozambique as a case study. Bringing together data from disparate sources, we develop a novel 'back-casting' framework that links a dynamic computable general...
Globalization offers new opportunities for accelerating development and poverty reduction, but also poses new challenges for policymakers. And there is much concern about the distribution of benefits; in particular whether the poor gain from...
Ghana is relatively rare among Sub-Saharan African countries in having had sustained positive growth every year since the mid-1980s. This paper analyses the nature of the growth and then presents an analysis of the evolution of both consumption...
After many years of relatively slow growth, Tanzania’s national accounts data report accelerated aggregate growth since around 2000. Our analysis shows that there has been somewhat slower growth in private consumption and in sectors such as...
This paper investigates how two effects drive wedges between nominal and real inequality estimates. The effects are caused by (i) differences in the composition of consumption over the income distribution coupled with differential inflation of...
This Policy Brief focuses on links between the developing countries of Brazil, India, China and South Africa and the global economy, with a special emphasis on the implications of China’s spectacular growth on developing economies and the rest of the...
People often move in and out of poverty, and the length of time spent in poverty can vary widely, likely affecting prospects of escaping and staying out of poverty. Current poverty measures do not account for these aspects. Should they? Are there...
Official poverty figures in Uganda are flawed by the fact that the underlying poverty lines are based on a single national food basket that was constructed in the early 1990s. In this paper, we estimate a new set of poverty lines that accounts for...
Our hypothesis is that Nigeria is going through a process of economic polarization. An analysis of this type is new for Nigeria; the limited availability of comparable data has hindered an investigation that requires data series not too close in time...
As in much of sub-Saharan Africa, Tanzania has attained rapid economic growth accompanied by only marginal reductions in poverty. Is this mismatch between high economic growth and less significant poverty reduction due to how growth and poverty are...
Post-apartheid poverty and inequality trends have been the subject of intensive analysis, yet relatively little attention has been devoted to the impact of differential price movements on the measurement of poverty and inequality. This paper aims to...
This paper seeks to measure and explain changes in incomes, inequality, and poverty in Kenya. It starts from a very long-term perspective covering the last century, but then focuses on a more detailed analysis of the recent period for which data from...
While the economic opportunities offered by globalization can be large, a question is often raised as to whether the actual distribution of gains is fair, in particular, whether the poor benefit less than proportionately from globalization and could...
This Policy Brief is an outcome of the UNU-WIDER research project 'Social Development Indicators'. The overall aim of the project was to provide insights into how human well-being might be better conceptualized and, in particular, measured, by...
In this paper we argue that the recent evidence on individuals’ decision making is of high relevance for the measurement of poverty when switching from a static and certain to a dynamic and uncertain framework. The numerous proposed measures of multi...
Disappointment was widespread when rapid economic growth since 2005, coupled with a smallholder-targeted fertilizer subsidy program, failed to significantly reduce poverty in Malawi. Official estimates for 2011 showed a 1.7 percentage point decline...
This paper discusses dimensions of inequality in sub-Saharan Africa and their causes. It starts with a review of the empirical evidence about inequality during the colonial period as well as the post-independence era. Then it discusses the forces...
This paper performs a multidimensional first order dominance (FOD) analysis of child wellbeing in the Democratic Republic of Congo (DRC). This methodology allows the ordinal ranking of the 11 provinces of the DRC in terms of their wellbeing based...
The official estimates of poverty in Pakistan have shown a remarkable and consistent decline in the poverty headcount during the previous decade. This paper examines trends in poverty between 2001 and 2011 using the official food energy intake and...
Every person desires some level of inner fulfilment at different stages of life and this could come from a combination of several factors including material and resource acquisition and social prestige. The challenge, however, is whether happiness...
This paper summarizes a comprehensive revision and update of UTIP’s work on the inequality of pay and incomes around the world, from 1963 to 2008. The new UTIP-UNIDO (University of Texas Inequality Project-United Nations Industrial Development...
We introduce two separate datasets—the Global Consumption Dataset and the Global Income Dataset—containing an unprecedented portrait of consumption and income of persons over time, within and across countries, around the world. The benchmark version...
A recent trend in the study of poverty is to consider a relative poverty line, one that is responsive to the nature of the income distribution. We develop an axiomatic approach to the determination of an amalgam poverty line. Given a reference income...
At the end of the 1980s, Côte d’Ivoire entered a deep macroeconomic crisis that put an end to the often-praised ‘Ivorian miracle’. After the death of the founding father Houphouet-Boigny, unrestrained political competition added to bad economic...
This paper investigates inequalities across the major black ethnic groups in South Africa, accounting for 80 per cent of the country’s population. We demonstrate that there is an important ethnic gap in the poverty levels of the Xhosa and the Zulu...
Social protection programmes have emerged as one of the most important anti-poverty policy strategies in developing countries. Their effects on poverty and well-being have been widely studied. Yet, there is limited knowledge on how a transfer...
This paper reflects on the relationship between economic (quantitative) and anthropological (qualitative) approaches to the analysis of poverty in developing countries. Drawing on detailed evidence from Mozambique, we argue that different research...
This paper examines trends in income distribution and its linkages to economic growth and poverty reduction in order to understand the prospects for achieving poverty reduction in Africa. We examine the levels and trends in income distribution in...
This paper relates Amartya Sen’s capability approach to the literature on equivalence scales. Synthetic indicators of well-being are constructed by adjusting individual incomes for differences in functionings. An exploratory comparative application...
This paper addresses issues related to the dynamics of income poverty using unique household panel data for urban and rural areas of Ethiopia covering the period 1994-97. The percentage of households that remained in poverty was twice as large in...
Spatially disaggregated maps of the incidence of poverty can be constructed by combining household survey data and census data. In some countries (notably China and India), national statistics agencies are reluctant, for reasons of confidentiality...
This paper examines the relationship between poverty dynamics, causal pluralism, and mixed method research approaches. It reviews the nature and significance of the shift from the analysis of poverty status to poverty dynamics, discusses different...
The effects of conditional cash transfers (CCTs) on poverty and well-being have been widely studied. However, there is limited knowledge on how a CCT should respond to the dynamics of poverty. How should program administrators treat beneficiaries...
It is often argued that multi-dimensional measures of well-being and poverty—such as those based on the capability approach and related views—are ad hoc. Rankings based on them are not, for this reason, robust to changes in the selection of weights...
A plethora of what are loosely described as social and political indicators of well-being exist. Both the range and country coverage of these indicators has increased appreciably in recent years. In this paper we ask what contribution these...
I use a dynamic microsimulation model to analyse the distributional effects of an expansion of education in Côte d’Ivoire in the medium and long term. The simulations are performed in order to replicate several policies in force or subject to debate...
The capabilities approach has emphasized that inequalities can be analyzed in various dimensions of human functioning. Indicators of these inequalities can be incorporated into assessments of well-being. The capabilities approach also highlights the...
This paper discusses the measurement of poverty and well-being. A historical overview is given of the last fifty years. This is followed by discussion of three groupings of indicators: those measures based primarily on economic well-being; those...
This investigation studies human well-being from a subjective well-being approach. On the basis of a Mexican database the investigation shows that there is a weak relationship between subjective well-being and indicators of well-being such as income...
During the past three years NATSEM has developed pathbreaking spatial microsimulation techniques, involving the creation of synthetic data about the socioeconomic characteristics of households at a detailed regional level. The data are potentially...
This essay aims at a broad, main-stream account of the literature on inequality and poverty measurement in the space of income and, additionally, deals with measures of disparity and deprivation in the more expanded domain of capabilities and...
This paper provides a review and critical discussion of indicators, which attempt to combine the measurement of sustainability with that of well-being. It starts with some commonly agreed definitions of sustainability, showing how most well-being...
From the book: Oxford Handbook of Africa and Economics, Vol. 1.
Tony Addison With the ice floes now gone from the harbour outside the UNU-WIDER building, and with the snow replaced by an icy hail, there is a...
Tony Addison I started writing this ‘From the Editor’s Desk’ in Accra, to the sound of an African drum band, preparing for a ceremony to mark the...
Tony Addison It’s now February, and Helsinki remains deep in snow. We had an extended blizzard last weekend, with temperatures hovering around minus...
Tony Addison This year has rushed by at speed. For UNU-WIDER it’s been a year of big successes. We will have published some 110 working papers by the...
Part of Book Growth and Poverty in Sub-Saharan Africa
Part of Book Growth and Poverty in Sub-Saharan Africa
Tony Addison With this issue, Angle returns refreshed from its Nordic summer break. The sun continues to shine on the Baltic, although it is getting...
Tony Addison With our temperatures now well above zero, we head for the official end of the Finnish winter on 1st May (the ‘Vappu’ holiday). As...
Tony Addison As autumn moves into winter in Helsinki, it is time to bring you the October edition of UNU-WIDER’s newsletter, WIDER Angle. Regular...
Tony Addison As we come to the end of November, the snow has yet to arrive in Helsinki. We continue to enjoy clear skies and spectacular sunsets...
Poor governance and lack of state capabilities in around 45 countries pose a threat to global security and development. The involvement of the international community is required to help these states break out of their low-development–high-conflict...
The study examines welfare changes in China during the reform period (1978- ) by analysing various welfare indicators, the causes of change, and the shifting models. It provides an empirical case to the general debate over the relationship between...
The predominant perception is that the world's food problems are now concentrated in Sub-Saharan Africa. Declining food production and recurrent famine in many African countries are the focal points of much recent work on food problems. This paper...
We develop an approach for making welfare comparisons between populations with multidimensional discrete well-being indicators observed at the micro level. The approach is rooted in the concept of multidimensional first order dominance. It assumes...
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