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From the Editor's Desk (March 2012)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 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...
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...
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...
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...
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 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...
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...
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...
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...
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...
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...
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...
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...
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...
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...
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...
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...
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...
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...
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...
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...
The role of agriculture in development remains much debated. This paper takes an empirical perspective and focuses on poverty, as opposed to growth alone. The contribution of a sector to poverty reduction is shown to depend on its own growth...
From the book: Oxford Handbook of Africa and Economics, Vol. 1.
In this paper I examine the trend in income inequality and poverty among the self-employed workers in Mexico over the last two decades (1984–2002). This is the period over which Mexico opened its economy to the global market through trade and...
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...
by Ravi KanburThe last 30 years in the analysis of inequality and poverty has seen a phase of conceptual advancement (1970-mid 1980s) followed by a...
by Martin Ravallion There has been much debate about how much poor people in developing countries gain from trade openness, as one aspect of...
by James K. Galbraith I t is well-known that economic inequality rose drastically in Russia during the transition (Sheviakov and Kiruta 2001). For...
Identifying the poorest for selection into social transfer programmes is a major challenge facing programme implementers. An innovative cash transfer programme in northern Kenya trialed three targeting mechanisms to learn lessons about which approach...
This paper introduces a concept of inequality comparisons with ordinal bivariate 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...
We develop a poverty decomposition method that is based on a consumption regression model. Because this method uses an integral of the partial derivatives of a poverty measure with respect to time, the resulting poverty decomposition satisfies time...
The paper provides a comparative analysis of the incidence of evaluation methods in antipoverty transfer programmes in Latin America and sub-Saharan Africa. The paper identifies two broad explanations for the incidence of evaluation in antipoverty...
South African household surveys typically contain coarsened earnings data, which consist of a mixture of missing earnings values, point responses and interval-censored responses. This paper uses sequential regression multivariate imputation to impute...
Macroeconomic instability has been increasingly considered as a factor lowering average income growth and, in this way, is a factor slowing down poverty reduction. But it can also result in slower poverty reduction for a given average rate of growth...
How a person assesses the wellbeing derived from income is often determined as much by its contrast with a reference point as by the level of income itself. In this paper, I use a household survey from Mexico to examine how subjective poverty...
We examine the measurement of individual poverty in an intertemporal context. Our aim is to capture the importance of persistence in a state of poverty and we characterize a corresponding individual intertemporal poverty measure. Our first axiom...
This paper demonstrates the implications of adopting an approach to measuring poverty that takes into account the lifetime experience of individuals rather than simply taking a static or cross-sectional perspective. Our approach follows the...
The analysis of poverty dynamics yields important insights about the expected effectiveness of alternative social policies on poverty reduction. This paper analyses the effect of spell recurrence on poverty dynamics taking into account multiple...
This paper demonstrates that the property of 'replication invariance', generally considered to be an innocuous requirement for the extension of fixed-population poverty comparisons to variable-population contexts, is incompatible with other plausible...
This paper overviews the debate on the relationship between the measures of globalization, economic growth and pace of urbanization, and speculates on its impact on the quality of life and poverty in the context of Asian countries. After experiencing...
Constrained by resource limitations and challenged by the increasing incidence of poverty in the country, the Philippine government embarked on an anti-poverty programme that sought to identify where the poorest people were, what were their specific...
Growth that reduces poverty is often considered pro-poor regardless of whether the poor benefit from it more than the non-poor. Such growth could simply be termed poverty-reducing growth. This paper argues that for growth to be pro-poor it should...
This paper considers how the conditionality inherent in HIPC debt relief should be constituted to promote pro-poor policies. There are two dimensions to this. First, the extent to which the policies proposed are pro-poor. Second, the potential for...
Recent development literature has placed priority on poverty reduction, and on possible growth enhancement from a more equal distribution of assets and income. At the same time, empirical work consistently shows that economic growth is no more than...
This paper investigates the factors that influence market participation in rural economies. This is based on the premise that participation in the market is an important channel through which the global economy impacts on the rural areas and can have...
Current approaches of measuring vulnerability to natural hazards generally use a rather static perspective that focuses on a single point in time—often before a hazardous event occurs. In contrast, the paper argues that vulnerability assessment...
The international donor community has grave concerns about the prospects for poverty reduction in what it terms fragile states. A state is classified as fragile if its country policy and institutional assessment (CPIA) score falls below a particular...
Part of Journal Special Issue A Collection of UNU-WIDER articles in Chinese
More than a billion people live in extreme poverty. Many face the risk of never escaping from poverty. These risks are exacerbated by natural hazards, ill-health, and macroeconomic volatility. Consequently, vulnerability has become the defining...
The rise of China and India is rapidly reshaping the world economy, with far-reaching implication for every national and regional government, business community, and individual citizen. Arising from the UNU-WIDER research project 'Southern Engines of...
What exactly is spatial inequality? Why does it matter? And what should be the policy response to it? These questions have become important in recent years as the spatial dimensions of inequality have begun to attract considerable policy interest. In...
Hailed in its initial publication as a work with urgent implications for countless lives, Dréze and Sen's The Political Economy of Hunger is the classic analysis of an extraordinary paradox: in a world of food surpluses and satiety, hunger kills...
Part of Journal Special Issue Well-being Achievements in Pacific Asia
Part of Journal Special Issue A Collection of UNU-WIDER articles in Chinese
Part of Journal Special Issue A Collection of UNU-WIDER articles in Chinese
Part of Book Spatial Disparities in Human Development
Within-country income inequality has risen since the early 1980s in most of the OECD, all transitional, and many developing countries. More recently, inequality has risen also in India and nations affected by the Asian crisis. Altogether, over the...
Across the world, while income inequality among countries is declining, there is clear evidence that health related inequities are on the increase. Health is a key component of an individual’s well being, having both intrinsic and instrumental value...
Overcoming state fragility is one of the most important international development objectives of the 21st century. Many fragile states have turned into failed states, where millions of people are caught in deprivation and seemingly hopeless conditions...
Asia is widely regarded as the region which has benefited most from the dynamic growth effect of the recent wave of globalization: poverty has been steadily declining over the last three decades in most Asian countries. The 'shared growth' model...
Human well-being is a core global issue. Achieving and sustaining higher levels of well-being is challenge for individual citizens, governments and international organisations world-wide. Measures of human well-being levels are an integral part of...
China, India, Brazil, and South Africa are reshaping the world economy. These Southern Engines countries have experienced a dramatic transformation in their productive and trade capabilities, consequently turning into global super powers. The current...
Globalization and poverty epitomize two of the most pressing issues in international development today. While the process of globalization possesses an enormous potential capacity to accelerate economic growth and development, the depth of poverty...
With more than a billion people living on less than one dollar per day, human well-being is a core issue for both researchers and policy-makers. The Millennium Development Goals are a powerful reminder of this point. We now know more about human well...
What exactly is spatial inequality? Why does it matter? And what should be the policy response to it? These questions have become important in recent years as the spatial dimensions of inequality have begun to attract considerable policy interest. In...
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...
Trade policies can promote aggregate efficiency, but the ensuing structural adjustments generally create both winners and losers. From an incomes perspective, trade liberalization can raise GDP per capita, but rates of emergence from poverty depend...
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...
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...
Food insecurity and hunger have traditionally been measured by aggregate food supplies or by variables correlated with food insecurity. Because these measures often poorly reflect individuals’ true deprivation, economists have turned to surveys with...
Before effective anti-poverty policy can be designed and implemented, the extent, trend and distribution of poverty must be identified. In this sense, poverty measurement is a crucial intermediate step in public policymaking and development planning...
The purpose of this paper is to develop two poverty decomposition frameworks and to illustrate their applicability. A given level of poverty is broadly decomposed into an overall inequality component and an overall endowment component in terms of...
In recent decades, absolute poverty incidence declined in most countries of Southeast Asia, even though in some of these countries inequality increased at the same time. This paper examines the relationship between these outcomes and the rate of...
This paper suggests how the targeting efficiency of government programmes may be better assessed. Using the ‘pro-poor policy’ (PPP) index developed by authors, the study investigates the pro-poorness of not only government programmes geared to the...
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...
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’...
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...
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...
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...