Macro-Structural Policies and Income Inequality in Low-Income Developing Countries

Macro-Structural Policies and Income Inequality in Low-Income Developing Countries
Author: Ms.Stefania Fabrizio
Publisher: International Monetary Fund
Total Pages: 42
Release: 2017-01-26
Genre: Business & Economics
ISBN: 1475566220

Despite sustained economic growth and rapid poverty reductions, income inequality remains stubbornly high in many low-income developing countries. This pattern is a concern as high levels of inequality can impair the sustainability of growth and macroeconomic stability, thereby also limiting countries’ ability to reach the Sustainable Development Goals. This underscores the importance of understanding how policies aimed at boosting economic growth affect income inequality. Using empirical and modeling techniques, the note confirms that macro-structural policies aimed at raising growth payoffs in low-income developing countries can have important distributional consequences, with the impact dependent on both the design of reforms and on country-specific economic characteristics. While there is no one-size-fits-all recipe, the note explores how governments can address adverse distributional consequences of reforms by designing reform packages to make pro-growth policies also more inclusive.

The Impact of Macroeconomic Policies on Poverty and Income Distribution

The Impact of Macroeconomic Policies on Poverty and Income Distribution
Author: François Bourguignon
Publisher: World Bank Publications
Total Pages: 362
Release: 2008-01-01
Genre: Political Science
ISBN: 0821357794

A companion to the bestseller, The Impact of Economic Policies on Poverty and Income Distribution, this title deals with theoretical challenges and cutting-edge macro-micro linkage models. The authors compare the predictive and analytical power of various macro-micro linkage techniques using the traditional RHG approach as a benchmark to evaluate standard policies, such as, a typical stabilization package and a typical structural reform policy.

Links Between Growth, Inequality, and Poverty: A Survey

Links Between Growth, Inequality, and Poverty: A Survey
Author: Ms. Valerie Cerra
Publisher: International Monetary Fund
Total Pages: 54
Release: 2021-03-12
Genre: Business & Economics
ISBN: 1513572660

Is there a tradeoff between raising growth and reducing inequality and poverty? This paper reviews the theoretical and empirical literature on the complex links between growth, inequality, and poverty, with causation going in both directions. The evidence suggests that growth can be effective in reducing poverty, but its impact on inequality is ambiguous and depends on the underlying sources of growth. The impact of poverty and inequality on growth is likewise ambiguous, as several channels mediate the relationship. But most plausible mechanisms suggest that poverty and inequality reduce growth, at least in the long run. Policies play a role in shaping these relationships and those designed to improve equality of opportunity can simultaneously improve inclusiveness and growth.

Pro-Poor Macroeconomics

Pro-Poor Macroeconomics
Author: G. Cornia
Publisher: Springer
Total Pages: 373
Release: 2006-09-29
Genre: Business & Economics
ISBN: 0230627900

This book tackles the disagreements that affect those looking to establish the macroeconomic policies needed to halve poverty over the next ten years. It presents a pro-poor macroeconomic policy allowing countries to recapture policy space, help promote growth, reduce inequality and diminish poverty in a sustainable way.

Macroeconomic Policies and Poverty

Macroeconomic Policies and Poverty
Author: Ashoka Mody
Publisher: Routledge
Total Pages: 413
Release: 2004-08-02
Genre: Business & Economics
ISBN: 1135994587

In this volume, world-renowned contributors, including Martin Ravallion, Michael Kremer and Robert Townsend, deal with the institutional characteristics of poverty resulting from the time pattern of aid, the nature of financial systems and the political economy of budgetary decisions. Going beyond the traditional literature on poverty, this original book deals with themes of broad interest to both scholars and policymakers in a clear yet technically sophisticated manner. Departing from conventional methods employed in poverty studies, these innovative essays enquire into the institutional characteristics of poverty, and using current case studies, they examine the crucial idea that periods of crises seriously affect poverty.

The Impact of Economic Policies on Poverty and Income Distribution

The Impact of Economic Policies on Poverty and Income Distribution
Author: François Bourguignon
Publisher: World Bank Publications
Total Pages: 440
Release: 2003
Genre: Economic assistance
ISBN: 0821354914

Reviews techniques and tools that can be used to evaluate the poverty and distributional impact of economic policy choices. This title describes the most robust techniques and tools, from the simplest to the most complex, and aims to identify best practices. It also addresses an evaluation technique and its applications.

Towards Human Development

Towards Human Development
Author: Giovanni Andrea Cornia
Publisher: OUP Oxford
Total Pages: 337
Release: 2014-04-17
Genre: Business & Economics
ISBN: 0191016284

Human Development is widely recognised as the overriding goal of development, yet its realization is challenged by growing inequality, macro-economic fluctuations, and recurrent financial crises. This edited collection reflects on the work of Richard Jolly and includes contributions from leading scholars of development, all of whom have worked with Richard Jolly at varying points in his distinguished career. The volume advances thinking in the area of Human Development by discussing the evolution of its conceptualization and the policy implications, and the achievements in related key areas such as education, social protection, and employment. It juxtaposes these theoretical and (at times) real life improvements with disturbing developments in terms of growing inequality and macro-economic instability. It documents the growing income inequality which has characterized both developing and developed countries. It shows that there has been a decline in some countries and identifies the policies adopted in these exceptional cases. It also shows also where and how public expenditure on Human Development in developing countries has been affected by the 2008 financial crisis and presents a new framework for a pro-growth pro-Human Development macro-economics, including suggestions for the countercyclical regulation of financial flows. The book also argues that a series of disruptive factors are nudging the innovation trajectory in new potentially pro-poor and pro-Human Development directions, especially if policies speed-up the diffusion of new efficient appropriate technologies in low and middle income economies.

Macroeconomic Performance and Poverty Reduction

Macroeconomic Performance and Poverty Reduction
Author: Ms.Anne Epaulard
Publisher: International Monetary Fund
Total Pages: 37
Release: 2003-04-01
Genre: Social Science
ISBN: 1451849362

This paper investigates the link between macroeconomic performance and the change in the poverty rate among 47 episodes of growth and 52 episodes of economic downturn in developing and transition economies. We show that, on average, (i) the greater the inequality, the lower the elasticity of poverty to growth, and the higher the mean income, the higher the elasticity; (ii) the country-specific elasticity is identical for episodes of economic growth and for episodes of economic downturn; and (iii) higher growth does not bring diminishing returns to poverty reduction. Moreover, we show that very high inflation is associated with a higher elasticity of the poverty rate to economic downturn, but at lower inflation, there is no relationship between inflation and the elasticity of the poverty rate to growth or recession. Trade openness and changes in the terms of trade explain part of the elasticity of the poverty rate to economic downturn.