Poverty-Reducing Growth Strategy in Poor Countries

Author(s):  
Rodney Schmidt

This paper synthesizes and develops research undertaken by participants in The North-South Institute project, "Macroeconomic policy choices for growth and poverty reduction" in low- income developing countries.1 The project analysed the features of poverty and growth in seven poor countries of varying circumstances and proposed macroeconomic and growth policies for poverty reduction for them. The research was guided by the question: "How does poverty inform growth strategy?" Our research provides evidence of the channels through which growth and distribution or poverty processes depend on each other and respond to policy together. We encapsulate the messages of these case studies in the following six propositions, discussed at length in the paper: i) macroeconomic stability reduces poverty; ii) land redistribution enhances growth; iii) income poverty traps constrain growth; iv) urban-rural growth disparities drive income inequality; v) regional poverty traps resist growth, and vi) ley growth policies can aggravate poverty gaps.  The propositions suggest growth policies that may be either of two types in terms of impact on growth and distribution. They have the potential to enhance both growth and distribution (win-win) or to enhance growth while aggravating income gaps or vice versa (win-lose).

Policy Papers ◽  
2008 ◽  
Vol 2008 (57) ◽  
Author(s):  

This paper provides a semi-annual review of the status of financing for Poverty Reduction and Growth Facility-Exogenous Shocks Facility (PRGF-ESF) lending, subsidization of emergency assistance to PRGF-eligible countries, and Heavily Indebted Poor Countries (HIPC) and Multilateral Debt Relief Initiative (MDRI) debt relief. The last review was completed by the IMF Executive Board on April 21, 2008.


Author(s):  
Justin Yifu Lin ◽  
Célestin Monga

Countries that ignite a process of rapid economic growth almost always do so while lacking what experts say are the essential preconditions for development, such as good infrastructure and institutions. This book uses this paradox to explain what is wrong with mainstream development thinking—and to offer a practical blueprint for moving poor countries out of the low-income trap regardless of their circumstances. The book begins with an observation of the increasingly globalized world economy in which technological development allows the use of factors of production in locations that maximize returns and utility, and countries gain mutually by trading with each other if their strategies focus on comparative advantage. The prospects for sustained and inclusive growth are even greater for low-income economies that enjoy the benefits of backwardness. The book advocates implementing viable strategies to capture new opportunities for industrialization, which can enable low-income economies to set forth on a dynamic path of structural change and lead to poverty reduction and prosperity. It concludes with an evaluation of lessons from development thinking and experience and identifies the main reasons why past intellectual and policy frameworks failed to yield the expected results. It then offers a pragmatic blueprint for allowing low-income countries to ignite and sustain economic growth without preconditions.


2017 ◽  
Vol 16 (3 (2017)) ◽  
pp. 284-301
Author(s):  
Viktoriia Adamyk

The problem of developing countries’ choice of the optimal foreign trade strategy through the prism of poverty reduction is considered. Attention is focused on the arguments in favour of free-trade and protectionism, as well as the positive and negative consequences of implementing the export-oriented growth strategy. The main conceptual approaches to the study of the impact of international trade liberalization on the economic situation of the developing countries are grouped together. Based on the analysis, it has been shown that the concept of ultra-liberalism is unacceptable for the development of Periphery countries in the context of increasing their welfare. The focus is on the implementation of an export-oriented strategy for the development of poor countries, and these groups of Periphery countries are presented, where this strategy can be successful. The main reasons for the low efficiency of export expansion of developing countries are determined, and the directions of its increase are proposed, which concern, first and foremost, the need for the internal institutional transformation of these countries.


2020 ◽  
pp. 11-22
Author(s):  
Yazmin Denisse Salvador-Garcia ◽  
Erika Guadalupe May-Guillermo ◽  
Samuel De La Cruz-May

The objective of this document is to analyze the distribution of income in the states of the southeast region of Mexico during the period 2010-2016, to identify the levels of inequality in economic matters. For this, a documentary, descriptive and longitudinal investigation was carried out, analyzing six economic indicators reported by the Consejo Nacional de Evaluación de la Política de Desarrollo Social (CONEVAL) for the period studied: 1) Gini coefficient, 2) population in poverty situation, 3) vulnerable population by income, 4) population in extreme poverty, 5) population with income below the extreme poverty line by income and 6) population with income below the income poverty line. The results indicate that Chiapas, Guerrero and Oaxaca were the most vulnerable states due to low income levels, high poverty in general, and prevailing inequality in the region. In contrast, the state with the least economic vulnerability was Quintana Roo. The main contribution of the study lies in the identification of the poorest and most vulnerable states in the southeast of Mexico, as well as in the formulation of recommendations for the better distribution of income and poverty reduction in the analyzed region.


Author(s):  
Alyshia Gálvez

In the two decades since the North American Free Trade Agreement (NAFTA) went into effect, Mexico has seen an epidemic of diet-related illness. While globalization has been associated with an increase in chronic disease around the world, in Mexico, the speed and scope of the rise has been called a public health emergency. The shift in Mexican foodways is happening at a moment when the country’s ancestral cuisine is now more popular and appreciated around the world than ever. What does it mean for their health and well-being when many Mexicans eat fewer tortillas and more instant noodles, while global elites demand tacos made with handmade corn tortillas? This book examines the transformation of the Mexican food system since NAFTA and how it has made it harder for people to eat as they once did. The book contextualizes NAFTA within Mexico’s approach to economic development since the Revolution, noticing the role envisioned for rural and low-income people in the path to modernization. Examination of anti-poverty and public health policies in Mexico reveal how it has become easier for people to consume processed foods and beverages, even when to do so can be harmful to health. The book critiques Mexico’s strategy for addressing the public health crisis generated by rising rates of chronic disease for blaming the dietary habits of those whose lives have been upended by the economic and political shifts of NAFTA.


Author(s):  
Phi Hung Cuong ◽  
Vu Van Anh

Income is an important indicator for assessing the level of economy development as well as identifying and assessing living standards. The population in Northeast border is poor, facilities are outdated, people’s life is difficult, but it hold great potentials for economic development. However, the region’s biggest challenge today is low living standards and high poverty rate. Differences in income and living standards across regions and strata tend to increase the gap. The sustainability of the trend of income increase and improvement of living standards of the population is not stable. As a result, the development of mountainous areas is dependent on poverty reduction solutions for ethnic minorities through the increase of incomes and improvement of market connectivity for ethnic minorities in mountainous areas.


2017 ◽  
Vol 50 (30) ◽  
pp. 3300-3314 ◽  
Author(s):  
Jian-Xin Wu ◽  
Ling-Yun He

2021 ◽  
Vol 21 (1) ◽  
Author(s):  
Lindsey Haynes-Maslow ◽  
Stephanie B. Jilcott Pitts ◽  
Kathryn A. Boys ◽  
Jared T. McGuirt ◽  
Sheila Fleischhacker ◽  
...  

Abstract Background The North Carolina Healthy Food Small Retailer Program (NC HFSRP) was established through a policy passed by the state legislature to provide funding for small food retailers located in food deserts with the goal of increasing access to and sales of healthy foods and beverages among local residents. The purpose of this study was to qualitatively examine perceptions of the NC HFSRP among store customers. Methods Qualitative interviews were conducted with 29 customers from five NC HFSRP stores in food deserts across eastern NC. Interview questions were related to shoppers’ food and beverage purchases at NC HFSRP stores, whether they had noticed any in-store efforts to promote healthier foods and beverages, their suggestions for promoting healthier foods and beverages, their familiarity with and support of the NC HFSRP, and how their shopping and consumption habits had changed since implementation of the NC HFSRP. A codebook was developed based on deductive (from the interview guide questions) and inductive (emerged from the data) codes and operational definitions. Verbatim transcripts were double-coded and a thematic analysis was conducted based on code frequency, and depth of participant responses for each code. Results Although very few participants were aware of the NC HFSRP legislation, they recognized changes within the store. Customers noted that the provision of healthier foods and beverages in the store had encouraged them to make healthier purchase and consumption choices. When a description of the NC HFSRP was provided to them, all participants were supportive of the state-funded program. Participants discussed program benefits including improving food access in low-income and/or rural areas and making healthy choices easier for youth and for those most at risk of diet-related chronic diseases. Conclusions Findings can inform future healthy corner store initiatives in terms of framing a rationale for funding or policies by focusing on increased food access among vulnerable populations.


2021 ◽  
Vol 13 (8) ◽  
pp. 4203
Author(s):  
Bin Du ◽  
Ying Wang ◽  
Jiaxin He ◽  
Wai Li ◽  
Xiaohong Chen

Based on the fundamental concept of sustainable development, this study empirically analyzes the spatio-temporal characteristics, formation mechanisms and obstacle factors of the urban-rural integration of shrinking cities in China, from 2008 to 2018. The conclusions are as follows: the overall level of the urban-rural integration of shrinking cities in China is low; the internal differences of urban-rural integration are also small, and the changes are slow. Next, the space difference is high in the east and low in the west, high in the south and low in the north. Moreover, differences exist among different levels of urban agglomerations. Urban economic efficiency, urban resources and environment, urban social equity and rural economic efficiency are the main factors affecting the urban-rural integration of shrinking cities in China. Urban and rural economic efficiency are the two most prominent shortcomings that restrict the urban-rural integration of shrinking cities. The spatial resistance mode of each city is more than the two-system resistance; the main resistance of shrinking cities with a higher level of urban-rural integration also comes from the non-economic field. This study expands the research scope that up till now has ignored the discussion of urban-rural issues in the research of shrinking cities at home and abroad, and provides practical guidance for the sustainable development of shrinking cities in China.


2021 ◽  
Vol 13 (9) ◽  
pp. 5294
Author(s):  
Boglárka Anna Éliás ◽  
Attila Jámbor

For decades, global food security has not been able to address the structural problem of economic access to food, resulting in a recent increase in the number of undernourished people from 2014. In addition, the FAO estimates that the number of undernourished people drastically increased by 82–132 million people in 2020 due to the COVID-19 pandemic. To alleviate this dramatic growth in food insecurity, it is necessary to understand the nature of the increase in the number of malnourished during the pandemic. In order to address this, we gathered and synthesized food-security-related empirical results from the first year of the pandemic in a systematic review. The vast majority (78%) of the 51 included articles reported household food insecurity has increased (access, utilization) and/or disruption to food production (availability) was a result of households having persistently low income and not having an adequate amount of savings. These households could not afford the same quality and/or quantity of food, and a demand shortfall immediately appeared on the producer side. Producers thus had to deal not only with the direct consequences of government measures (disruption in labor flow, lack of demand of the catering sector, etc.) but also with a decline in consumption from low-income households. We conclude that the factor that most negatively affects food security during the COVID-19 pandemic is the same as the deepest structural problem of global food security: low income. Therefore, we argue that there is no need for new global food security objectives, but there is a need for an even stronger emphasis on poverty reduction and raising the wages of low-income households. This structural adjustment is the most fundamental step to recover from the COVID-19 food crises, and to avoid possible future food security crises.


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