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Poverty Relief

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Title: Poverty Relief


1
Poverty Relief Economic Development
  • Development Economics
  • HU Berlin
  • 28.11.2005

2
Outline
  • Introduction
  • Measurement of poverty
  • Millennium Development Goals
  • Pro-poor Growth
  • Trade and Poverty
  • Conclusion Policy Implications
  • Discussion

3
What is poverty?
Introduction - Measurement - MDGs - Pro-poor
Growth - Trade and Poverty
  • In Russia people say"a life free from daily
    worries about lack of money."
  • In Brazil "low salaries and lack of jobs. And
    its also not having medicine, food and clothes.
  • In Ethiopia poor people say"We are skinny.
  • A woman in Uganda "When one is poor, she has no
    say in public, she feels inferior. She has no
    food, so there is famine in her house no
    clothing, and no progress in her family.
  • An Argentine says "You have work, and you are
    fine. If not, you starve. That's how it is.
  • In Kenya a man says "Don't ask me what poverty
    is because you have met it outside my house. Look
    at the house and count the number of holes. Look
    at my utensils and the clothes. Look at
    everything and write what you see. What you see
    is poverty.

4
Poverty lines
Introduction - Measurement - MDGs - Pro-poor
Growth - Trade and Poverty
  • Cut-off points separating the poor from the
    non-poor.
  • monetary (e.g. a certain level of income,
    consumption) or
  • non-monetary (e.g. a certain level of literacy).
  • There are two main ways of setting poverty lines
  • Relative poverty lines
  • defined in relation to the overall distribution
    of income or consumption for example, the
    poverty line could be set at 50 percent of the
    countrys mean income or consumption.
  • Absolute poverty lines
  • anchored in some absolute standard of what
    households should be able to count on in order to
    meet their basic needs for example, the poverty
    line could be set at one dollar per day.

5
Absolute poverty lines
Introduction - Measurement - MDGs - Pro-poor
Growth - Trade and Poverty
  • The food-energy intake method
  • defines the poverty line by finding the
    consumption expenditures or income level at which
    a persons typical food energy intake is just
    sufficient to meet a predetermined food energy
    requirement.
  • The Cost of Basic Needs method
  • values an explicit bundle of foods typically
    consumed by the poor at local prices first.
  • The Less than One Dollar per Day method
  • takes into account different price levels by
    measuring poverty as anyone living on less than
    1 a day in purchase power parity.
  • independent of the level of national per capita
    income.

6
Poverty Measures
Introduction - Measurement - MDGs - Pro-poor
Growth - Trade and Poverty
  • statistical function which translates the
    comparison of the indicator of well being and the
    poverty line.
  • many alternative measures exist but the following
    three measures are most commonly used
  • 1. Incidence of poverty
  • 2. Depth of poverty
  • 3. Poverty severity

7
Incidence of poverty (headcount index)
Introduction - Measurement - MDGs - Pro-poor
Growth - Trade and Poverty
  • share of the population which is poor, i.e. the
    proportions of the population whose income Y is
    below the poverty line Z.
  • suppose that we have a population size n in which
    q people are poor. Then the headcount is defined
    as

8
Depth of poverty (poverty gap)
Introduction - Measurement - MDGs - Pro-poor
Growth - Trade and Poverty
  • provides information regarding how far off
    households are from the poverty line or the
    amount of resources necessary to eradicate
    poverty.
  • represents the amount that one would have to
    transfer to the poor under perfect targeting to
    bring them all out of poverty.
  • it is defined as follows

9
Poverty severity (squared poverty gap)
Introduction - Measurement - MDGs - Pro-poor
Growth - Trade and Poverty
  • takes into account not only the distance
    separating the poor from the poverty line (the
    poverty gap), but also the square of that
    distance.
  • when using the squared poverty gap, the poverty
    gap is weighted by itself and will give more
    weight to the poor taking inequality also into
    account.
  • it is obtain as follows

10
Example
Introduction - Measurement - MDGs - Pro-poor
Growth - Trade and Poverty
11
Multidimensional Poverty
Introduction - Measurement - MDGs - Pro-poor
Growth - Trade and Poverty
  • Many authors have insisted on the necessity of
    defining poverty as a multidimensional concept
    rather than relying on income or consumption
    expenditures per capita.
  • alternative way
  • specify a poverty line for each dimension of
    poverty
  • consider that a person is poor if he/she falls
    below at least one of these various lines.

12
Policy Implications
Introduction - Measurement - MDGs - Pro-poor
Growth - Trade and Poverty
  • The well-being of a population depends on both
    monetary and non-monetary variables.
  • income as the sole indicator of well-being is
    inappropriate
  • Alternative indicators housing, literacy, life
    expectancy, provision of public goods.
  • Advices for a sensible approach to poverty
    measurement
  • Real expenditure per single adult on market goods
  • Non-income indicators as access to non-market
    goods
  • Indicators of intra-household distribution such
    as child nutritional status

13
Introduction - Measurement - MDGs - Pro-poor
Growth - Trade and Poverty
  • Example of multidimensional measure of
    well-being
  • Human Development Index
  • It aggregates, at country level, functioning
    achievements in terms of the attributes life
    expectancy, per capita real GDP and educational
    attainment rate.

14
HDI of nation-states, world 2005
Introduction - Measurement - MDGs - Pro-poor
Growth - Trade and Poverty
15
The Millennium Development Goals
Introduction - Measurement - MDGs - Pro-poor
Growth - Trade and Poverty
  • We will have time to reach the Millennium
    Development Goals worldwide and in most, or even
    all, individual countries but only if we break
    with business as usual.
  • We cannot win overnight. Success will require
    sustained action across the entire decade between
    now and the deadline. It takes time to train the
    teachers, nurses and engineers to build the
    roads, schools and hospitals to grow the small
    and large businesses able to create the jobs and
    income needed.
  • So we must start now. And we must more than
    double global development assistance over the
    next few years.
  • Nothing less will help to achieve the Goals."
  • Kofi A. Annan, United Nations Secretary-General
  • 2005 World Summit, United Nations Headquarter
    NY, 14-16 September 2005

16
What are the MDGs?
Introduction - Measurement - MDGs - Pro-poor
Growth - Trade and Poverty
  • Elaborated at the Millennium Summit in 2000
  • Based on the International Development Goals
  • Part of the Road Map for implementing the
    Millennium Declaration
  • Eight time-bound and quantified goals to reduce
    poverty and increase welfare
  • Subdivided into 18 targets and over 50 indicators
  • Time frame 25 years (from 1990 until 2015)
  • See www.developmentgoals.org

17
The goals are
Introduction - Measurement - MDGs - Pro-poor
Growth - Trade and Poverty
  • Eradicate extreme poverty and hunger
  • Achieve universal primary education
  • Promote gender equality and empower women
  • Reduce child mortality
  • Improve maternal health
  • Combat HIV/AIDS, malaria, and other diseases
  • Ensure environmental sustainability
  • Develop a global partnership for development

18
Example
Introduction - Measurement - MDGs - Pro-poor
Growth - Trade and Poverty
  • Goal 1 Eradicate extreme poverty and hunger
  • Target 1 Halve, between 1990 and 2015, the
    proportion of people whose income is less than 1
    a day
  • 1. Proportion of population below 1 (PPP) a day
  • 1a. Poverty headcount ratio (percentage of
    population below national poverty line)
  • 2. Poverty gap ratio (incidence x depth of
    poverty)
  • 3. Share of poorest quintile in national
    consumption
  • Target 2 Halve, between 1990 and 2015, the
    proportion of people who suffer from hunger
  • 4. Prevalence of underweight in children (under 5
    years of age)
  • 5. Proportion of population below minimum level
    of dietary energy consumption

19
Why are the goals important?
Introduction - Measurement - MDGs - Pro-poor
Growth - Trade and Poverty
  • Broadly supported, comprehensive and specific
  • By the year 2015, all the 191 United Nations
    member states have pledged to reach this goals
  • Development policy is based on them
  • Life-and-death issue for many people who live in
    extreme poverty
  • New global partnership between the developed and
    the developing countries

20
In 2015...
Introduction - Measurement - MDGs - Pro-poor
Growth - Trade and Poverty
  • More than 300 Million people will no longer
    suffer from hunger
  • 30 Million children will be saved from dying
    before their 5th birthday
  • 2 million mothers lives will be saved
  • Better drinking water supply and basic sanitation
  • More than 500 million people will be lifted out
    of poverty

21
Remember Target 1 ...
Introduction - Measurement - MDGs - Pro-poor
Growth - Trade and Poverty
  • Halving Global Poverty, Besley Burgess,
    Journal of Economic Perspectives, Vol. 17, 2003
  • Poverty trends on a global scale
  • Relationship of economic growth and income
    distribution to poverty reduction
  • Evidence-based agenda for poverty reduction in
    the developing world

22
Poverty trends on a global scale
Introduction - Measurement - MDGs - Pro-poor
Growth - Trade and Poverty
  • 1990 30 of the world population lived below the
    1 poverty line 1,62 out of 5,4 billion people
  • 1999 1,2 billion people below 1 a day
    (estimated)
  • 2015 world population 7,1 billion people
    (forecast)
  • Goal 15 below the 1 poverty line
  • Still 1,07 billion people below the 1 poverty
    line

23
World Development Report 2000/01
Introduction - Measurement - MDGs - Pro-poor
Growth - Trade and Poverty
24
World Development Report 2000/01
Introduction - Measurement - MDGs - Pro-poor
Growth - Trade and Poverty
91
25
Did you know that...
Introduction - Measurement - MDGs - Pro-poor
Growth - Trade and Poverty
  • The fraction of poverty falls, but absolute
    numbers dont show big changes
  • Most of the countries in the sub-saharan region
    will miss most or all of the goals
  • Big winner China
  • Excluding China, the number of people living on
    less than 1 a day has INCREASED from 916 million
    in 1990 to 936 million in 1999
  • In 1999 2,8 billion people lived on less than 2
    a day in developing countries

26
Econ. growth income distribution
Introduction - Measurement - MDGs - Pro-poor
Growth - Trade and Poverty
  • The main sources of economic growth are
    accumulating
  • Human capital
  • Physical capital
  • Technological change
  • Example
  • Assess the antipoverty effectiveness of growth
  • (estimated) elasticity of poverty with respect
    to income per capita

27
Example Elasticity of poverty
Introduction - Measurement - MDGs - Pro-poor
Growth - Trade and Poverty
  • Headcount poverty rate for country i at time t
  • Country fixed effect
  • Elasticity of poverty
  • Real per capita national income for country i at
    time t
  • Error term

28
Growth and Poverty, 1990 - 2015
Introduction - Measurement - MDGs - Pro-poor
Growth - Trade and Poverty
29
Policy implications
Introduction - Measurement - MDGs - Pro-poor
Growth - Trade and Poverty
  • Finding ways to increase economic growth is
    important to reducing poverty
  • Analyse the drivers of growth at a local level
    (microeconomics of growth)
  • Economic growth by itself isnt enough to cut the
    poverty rate in half
  • Identify policy and institutional changes that
    can directly reduce poverty (redistribution and
    reforms)
  • Improve the mapping of growth onto poverty

30
Redistribution and poverty
Introduction - Measurement - MDGs - Pro-poor
Growth - Trade and Poverty
  • income inequality for country i at
    time t
  • Relation between inequality and the level of
    poverty within a country

31
Results (supplemental)
Introduction - Measurement - MDGs - Pro-poor
Growth - Trade and Poverty
32
Agenda for poverty reduction
Introduction - Measurement - MDGs - Pro-poor
Growth - Trade and Poverty
  • Priority Achieve redistribution promote
    reforms
  • Strengthen and protect property rights
  • Increase access to credits
  • condition stable monetary sector
  • Improve the delivery of public services
  • Expand education (Human capital)

33
Economic science provides...
Introduction - Measurement - MDGs - Pro-poor
Growth - Trade and Poverty
  • ... the theoretical framework to evaluate policy
    and institutional reforms
  • ... the quantification of the effects of various
    measures
  • ... advances that build a basis for an agenda
    with more weight on institutional change
  • ... a better understanding of the microeconomic
    processes that generate income growth

34
Conclusion
Introduction - Measurement - MDGs - Pro-poor
Growth - Trade and Poverty
  • Mainstream economic thinking on how to reduce
    poverty in the world has evolved
  • Neoclassical model is insufficient
  • Agenda for growth still emphazizes accumulation
    of physical and human capital in a climate of
    macroeconomic stability
  • Domestic reforms have to do the lions share
  • Economic Growth that reduces inequality has a
    large impact on poverty reduction

35
Pro-poor growth
Introduction - Measurement - MDGs - Pro-poor
Growth - Trade and Poverty
  • Based on
  • World Development Report 2000/2001 Attacking
    Poverty World Bank Group 2000
  • Martin Ravallion, 2004. Pro-Poor Growth A
    Primer, Policy Research Working Paper Series
    3242, The World Bank.

36
What is Pro-poor growth?
Introduction - Measurement - MDGs - Pro-poor
Growth - Trade and Poverty
  • Definition 1 Situation in which any
    distributional shifts accompanying economic
    growth favour the poor
  • meaning that poverty falls more than it would
    have if all incomes had grown at the same rate.
  • -gt focus on changes in inequality during the
    growth process
  • Income of the poor grows at a higher rate than
    for non-poor
  • Problem contracting economy

37
What is Pro-poor growth?
Introduction - Measurement - MDGs - Pro-poor
Growth - Trade and Poverty
  • Definition 2 pro-poor if and only if poor
    people benefit in
  • absolute terms, as reflected in an
    appropriate
  • measure of poverty (Ravallion Chen)
  • -gt depends on what happens to the distribution
    and to average living standards
  • focus on what happens to poverty rate of change
    in poverty

38
Is growth typically pro-poor?
Introduction - Measurement - MDGs - Pro-poor
Growth - Trade and Poverty
  • On average, surveys state no correlation between
    growth and inequality
  • -gt growth is distribution-neutral on average !
  • absolute changes more obvious than proportional
    changes to people
  • Absolute poverty measures tend to fall with
    growth! (Kraay, Ravallion)
  • Significant negative correlation between poverty
    reduction and growth!

39
Poverty falls but at different rates gt Can be
said economic growth is typically pro-poorBut
wide range of impact
Introduction - Measurement - MDGs - Pro-poor
Growth - Trade and Poverty
40
China and India an Example
Introduction - Measurement - MDGs - Pro-poor
Growth - Trade and Poverty
  • Table Growth incidence curves for China and
    India
  • growth rate rises as moving up on distribution
    variation of 3-9 between poorest richest
    percentile
  • India U-shape, lowest growth rate in third
    percentile from bottom, but also peak at high end
    of the curve
  • Rate of pro-poor growth positive in both cases,
    higher in China

41
Growth with decreasing inequality
Introduction - Measurement - MDGs - Pro-poor
Growth - Trade and Poverty
  • Rwanda
  • Growth in 1990s on average 5 p.a.
  • All income groups profited from growth!
  • 1992-98 share of people living in poverty from
    56 44 !!
  • Gini coefficient had fallen from 0.36-0.34 in
    only 5 years
  • Consumption changes
  • the poorest decile 27
  • the richest decile 15
  • Poverty among crop producer fell more than twice
    as much as for the whole country

42
Growth growing inequality
Introduction - Measurement - MDGs - Pro-poor
Growth - Trade and Poverty
  • Bangladesh
  • GDP grew at 2 p.a. during the 1990s
  • BUT poverty declined slowly !!!!
  • 1983-96
  • share of poor fell from 40,9 35,6
  • share of moderate poor 58,5 53,1
  • Rural poverty remained very high

43
Income inequality has impact on success of growth
Introduction - Measurement - MDGs - Pro-poor
Growth - Trade and Poverty
  • Why so slow?
  • Increasing inequality in rural urban areas
  • 1992-96 increasing Gini coefficient 0.26 0.31
    !!!
  • Around 1/5 to 1/3 of poverty reduction potential
    of growth lost through inequality increase
  • If no growing inequality, expected 7-10points
    lower in 95/96

44
What makes growth more pro-poor?
Introduction - Measurement - MDGs - Pro-poor
Growth - Trade and Poverty
  • Rate of growth is a clearly important
    determinant of the rate of absolute poverty
    reduction
  • but why these differences?
  • 2 sets of factors
  • 1. initial level of inequality
  • 2. how inequality changes over time

45
Introduction - Measurement - MDGs - Pro-poor
Growth - Trade and Poverty
  • Initial level of inequality
  • - the higher the initial inequality, the less
    the poor profit from
  • growth
  • Systemic differences in initial conditions are
    important!
  • - poverty responds slowly to growth in high
    inequality countries
  • -gt must grow at higher rates to achieve rapid
    poverty
  • reduction

46
Introduction - Measurement - MDGs - Pro-poor
Growth - Trade and Poverty
  • 2. Changing income distribution
  • Country-specific factors tax system, trade
    regime, changes in demographics, welfare policy
    regime
  • Geographical and sectoral patterns of growth
  • Incidence of rural and urban economic growth
  • Special aspect sector in which growth occurs
  • Growth in sectors where poor people work
    (agriculture) leads to big benefit for the poor
    against poverty
  • If not growth bypasses them!
  • They cannot take the opportunities

47
Is poverty an impediment to growth?
Introduction - Measurement - MDGs - Pro-poor
Growth - Trade and Poverty
  • Often seen as a feedback effect
  • In developing countries capital market failure
  • - investments too low due to missing credits
  • - or moral hazard incentive to accumulate
    wealth in
  • high inequality countries
  • Macroeconomic instability possible -gt impedes
    reforms growth
  • the higher the proportion of poor people in an
    economy, the lower the rate of growth
  • gt poverty is self-perpetuating!!!

48
Conclusion
Introduction - Measurement - MDGs - Pro-poor
Growth - Trade and Poverty
  • Growth has a positive net effect on poverty
    reduction!!!
  • In higher inequality countries faster growth
    needed to reduce poverty faster
  • In developing countries with average inequality
    growing inequality increasing in growth
  • gt just higher rates of growth needed to reduce
    poverty (Kraay)
  • BUT growth is not sufficient!
  • Making growth more pro-poor requires combination
    of
  • more growth
  • more pro-poor patterns of growth and
  • success in reducing antecedent inequalities that
    limit the prospects for poor people to share in
    the opportunities unleashed in a growing economy.
  • Ideal combination varies with country
    circumstances!

49
Policy implications
Introduction - Measurement - MDGs - Pro-poor
Growth - Trade and Poverty
  • Many things government can do to reduce poverty
    and encourage pro-poor growth!
  • high priority to public action (skills, health
    etc in growth stage)
  • Measures to limit the growth of inequality
  • Growth must reach the poor and therefore the
    rural areas
  • insure poor to help underpin their long-term
    prospects of escaping poverty
  • doing less damage (often biases against poor in
    tax system, spending policies e.g. allocation of
    infrastructure spending)
  • well-designed direct public action against
    poverty can help promote growth and hence
    longer-term poverty reduction!

50
Introduction - Measurement - MDGs - Pro-poor
Growth - Trade and Poverty
  • gt The challenge for policy is to combine
    growth-promoting reforms with the right policies
    to assure that the poor can fully participate in
    the opportunities unleashed, and so contribute to
    that growth
  • (Ravallion 2004, p.20)

51
Trade and Growth
Introduction - Measurement - MDGs - Pro-poor
Growth - Trade and Poverty
  • Literature
  • Jagdish N. Bhagwati T. N. Srinivasan, 2002.
    Trade and Poverty in the Poor Countries,
    American Economic Review, American Economic
    Association, vol. 92(2), pages 180-183.
  • L. Alan Winters Neil McCulloch Andrew McKay,
    2004. Trade Liberalization and Poverty The
    Evidence So Far, Journal of Economic Literature,
    American Economic Association, vol. 42(1), pages
    72-115.

52
General arguments and evidence
Introduction - Measurement - MDGs - Pro-poor
Growth - Trade and Poverty
  • Freer trade openness in trade - said to be
    economically benign!
  • -gt increases the pie
  • Anti-globalization critics openness is socially
    malign
  • Results from cross-country analysis, surveys etc.
    show ambiguity
  • Caused by heterogeneity of poverty!
  • -gt there are many reasons why people are
    poor!!!
  • -gt Outcome of trade policy varies from case to
    case !!!

53
Problem how to identify impact on the poor?
Introduction - Measurement - MDGs - Pro-poor
Growth - Trade and Poverty
  • We need information about
  • Specific trade reform measures
  • Economic environment (also policies)
  • Characteristics of the poor (sector, employment,
    production, consumption etc.)
  • Definition measurement of poverty
  • Concern is poverty not inequality

54
Key areas of analysis
Introduction - Measurement - MDGs - Pro-poor
Growth - Trade and Poverty
  • Economic Growth Stability
  • Households and Markets
  • Wages and Employment
  • Government Revenue and Spending

55
Economic Growth and Stability
Introduction - Measurement - MDGs - Pro-poor
Growth - Trade and Poverty
  • Trade liberalization aids growth
  • Growth aids poverty alleviation
  • BUT NOT AUTOMATICALLY !!!
  • In the long run and on average
  • Key to poverty alleviation is
  • gt Economic growth !!!
  • Attention Liberal trade is only one indicator of
    openness

56
Advantages of openness
Introduction - Measurement - MDGs - Pro-poor
Growth - Trade and Poverty
  • Inflation seems to be lower
  • Enhances income level
  • Access to new technology, more and new knowledge,
    better intermediate goods
  • Increased competition gt higher productivity
  • Export efficient firms export and grow faster
  • Import weak and inefficient companies disappear
  • Volatility of growth and stability no real
    agreement found
  • More volatility more instability due to
    uncertainty

57
Effects of competition
Introduction - Measurement - MDGs - Pro-poor
Growth - Trade and Poverty
  • Problem
  • in Africa many firms unable to cope with import
    competition they disappear
  • Lack of preparation for competition (quick
    adaptation also important)
  • Absence of policies promoting technological
    improvements
  • Poor technological and human infrastructure

58
Households and Markets
Introduction - Measurement - MDGs - Pro-poor
Growth - Trade and Poverty
  • Important factors for transmission of prices
  • Transport costs
  • Infrastructure
  • Domestic taxes and regulations
  • Privatisation
  • Can lead to higher prices higher income
    better supplies
  • Or killing industry by under pricing
  • -gt abandoning remote areas
  • gt deterioration of infrastructure
  • -gt higher transaction costs -gt more insulation

59
Introduction - Measurement - MDGs - Pro-poor
Growth - Trade and Poverty
  • Market creation or destruction
  • Important are the policy measures accompanying
    trade liberalization!
  • E.g. privatization of marketing arrangements
  • E.g. forcing international companies to buy
    local products, not to import goods cheaper (due
    to subsidies like in EU or US)
  • Keynesian multiplier effect important, also on
    household level
  • -gt creation of backward and forward linkages !!!

60
Wages and Employment
Introduction - Measurement - MDGs - Pro-poor
Growth - Trade and Poverty
  • Stolper-Samuelson Theorem
  • increase in price of a labour-intensive good
    will increase its production and hence increase
    its real wage
  • not sufficient for real world as world is
    multi-factor
  • Evidence 1 household gains, 1 loses from price
    increase

61
Introduction - Measurement - MDGs - Pro-poor
Growth - Trade and Poverty
  • Segmentation into formal vs. subsistence vs.
    informal sector
  • Skilled and unskilled labour (skills gap)
  • Trade on average more unskilled labour needed
  • But dependence on natural resources
    outsourcing is negative
  • Liberalization of agriculture very important
  • -gt reaches the poorest and very low-skilled (if
    well done)
  • Important aspect is openness encouraging
    education?

62
Government Revenue and Spending
Introduction - Measurement - MDGs - Pro-poor
Growth - Trade and Poverty
  • With trade reforms comes potential reduction in
    revenues, especially in low-income countries
  • -gt unbalancing government budget
  • Alternative resources not easy to mobilize, but
    available
  • Careful with regressive replacement taxation and
    public expenditure cuts!
  • Harms the poor!
  • No need to cut social spending which has big
    effect on the poor, but not inevitable if trade
    liberalization comes with losses in revenue
  • But
  • with political will social spending oriented
    towards the poor, poverty alleviation will be
    possible

63
Important for policies
Introduction - Measurement - MDGs - Pro-poor
Growth - Trade and Poverty
  • 1. Impact on trade liberalization depends on
    existing and building environment, also the
    policies coming with it!

64
Introduction - Measurement - MDGs - Pro-poor
Growth - Trade and Poverty
  • Much evidence that the poorest households are
    less able to protect themselves against negative
    effects or to profit from positive opportunities
    created by policy reform.
  • Complementary policies strengthening social
    protection for losers
  • Enhance ability for the poorest to take
    opportunities and beneficial changes
  • Desirable also without trade liberalization, but
    especially important in case of effects of the
    trade reforms on the poor or near-poor
  • Attention to each countrys circumstances

65
Introduction - Measurement - MDGs - Pro-poor
Growth - Trade and Poverty
  • Trade liberalization is not necessarily the most
    powerful mechanism to address poverty in the
    country, but it is one of the easiest to change.
  • tariff reduction uniformity, abolition of
    non-tariff barriers
  • -gt easy to do
  • Often it also saves resources
  • Therefore
  • trade reform may be one of the most cost
    effective anti-poverty policies available to
    governments!
  • (Winters, McCulloch McKay 2004, p.108)

66
Questions???
Introduction - Measurement - MDGs - Pro-poor
Growth - Trade and Poverty
67
Introduction - Measurement - MDGs - Pro-poor
Growth - Trade and Poverty
  • Thanks for your attention!

68
10 key recommendations
Introduction - Measurement - MDGs - Pro-poor
Growth - Trade and Poverty
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