Economy, asked by guanduplessis6174, 1 year ago

policy implications of poverty and inequality

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Answered by InstaPrince
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Growth and poverty reduction: policy implications from qualitative research in Tanzania

Briefing papersDecember 2010Andrew Shepherd

Key issues in this policy brief include:

Poverty eradication policies have not paid enough attention to the growth of poor and very poor people’s incomes, which depends on productive asset accumulation in agriculture and the nonfarm economy. Making financial services accessible to the poor and very poor (for instance, by linking them to burial societies and other ROSCAs), and work effectively is a priority, as are measures which ease access to land, livestock and productive equipment. In the latter, policies which make land easier to rent (in and out) would be especially helpful. Policies focused on helping poor people acquire or rent farm assets (e.g. irrigation and oxen) and nonfarm business assets should complement measures focused on land.

Answered by Anonymous
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new.econ.uchile.cl

Characterizing Income Distribution: Policy implications for poverty and inequality

Rómulo Chumacero, Ricardo Paredes

Universidad de Chile, Facultad de Ciencias Económicas y Administrativas, Departamento de Economía, 2002

Different studies suggest that Chile has one of the most unequal income distributions in the world (see, for instance, Wold Bank, 1997 and 2000). Despite a relatively rapid reduction of poverty, Gini coefficients and other measures of income inequality have remained persistently high over the years. This persistence, and more importantly, the high inequality, have been accompanied by a good economic performance, well developed institutions to help the poorest, and a relatively recognized educational system (see, Mideplan, 1999; Beyer, 1999; Cowan and De Gregorio, 1996; and Valdés, 2002). Three stylized facts characterize the recent Chilean experience. First, income distribution, measured by different statistics, has remained virtually unchanged over time, and particularly, over the most dynamic period in Chilean history, going from 1990 to 1998 in which GDP grew over 7% per year. The Gini index in 1990 was the same in 1998 (0.58) and the income ratio between last and first quintile was of 14.0 in 1990 and 15.5 in 1998. Second, income distribution in Chile is more unequal than in otherwise comparable countries, showing largest Gini indexes than East Asia, the Middle East and North Africa (0.38), and even the South Saharan Africa (0.47). Third, poverty has been reduced consistently (the incidence of indigence and poverty felt from 14.3% and 39.4% in 1987 to 4.9% and 19.7% in 1996).

Even though these facts are widely accepted (Labbe and Riveros, 1985; Cowan and de Gregorio, 1996; Beyer, 1997; Larrañaga, 1994; Ruíz-Tagle, 1999), there is less clarity on the nature and origin of such inequality; and hence, the policies best suited to reduce it. The analysis of poverty has focused mainly on its quantification, providing little insights on its causes. Examples of such a practice are the models of physical deprivation (eg Ravallion, 1994; Lanjouw, 1997; and World Bank, 2000) that provide a somewhat arbitrary definition of poverty from an economic viewpoint. The idea of social exclusion (associated with poverty levels that make it difficult for some individuals to participate in activities that are accepted as welfare enhancing) appears to be provide a justification for policy interventions. However, social exclusion has not provided a rigorous analytical framework with which to apply such policies. Nevertheless, this avenue of research

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