Poverty in Bangladesh: Measurement,decomposition and intertemporal comparison

This article, using the methodology developed by Foster, Greer, and Thorbecke to measure and decompose poverty, provides estimates of the levels of poverty in rural and urban areas in Bangladesh. It investigates in the context of Bangladesh, the most powerful effect of poverty in terms of a shortfall in food for daily calorie intake by the poor. It provides intertemporal comparison of poverty and its decomposition among subgroups. It also makes comparisons between the results obtained in this study with those currently available. The results of the study show a significant improvement in poverty situations in rural areas from 1982 to 1986. The article also discusses the policy implications of its findings.     

DISCUSSION - Agricultural Policy Reform and Rural Livelihoods in Central Mexico

This contribution examines the impact of profound changes to agricultural policy implemented since 1988 on the livelihoods of Mexico's rural population. Detailed studies in four villages show that rural incomes are very unevenly distributed within communities leaving half of households in poverty. During the last decade key factors affecting village economies have been international and national, rather than specific changes to farm policy. Most changes have been to the detriment of the communities studied, but peasant households have adapted and survived, at a price. If the worst fears about the consequences of economic liberalisation have not been realised, neither have the hopes. Depressed markets for basic goods and services have limited the growth of the rural economy. Private investment and provision of services have not been stimulated.     

Rural poverty and agricultural performance in India

This paper examines time series evidence on rural poverty over the past two decades. The time series shows that the incidence of poverty fluctuates in response to variations in real agricultural output per head, but there is no significant time trend. There is a statistically significant inverse relationship between rural poverty and agricultural performance for India as a whole, suggesting that agricultural growth by itself tends to reduce the incidence of poverty. The analysis for individual states presents a somewhat different picture. The inverse relationship between output per head and rural poverty is observed in several states but there is also evidence that there are processes at work which tend to increase the incidence of poverty, independently of variations in agricultural output per head.     

Price policy,poverty, and power within rural West African households

This paper explores the impact of agricultural price policy on poverty in West Africa, a region in which prices are an important tool for raising rural household incomes. A game-theoretic, collective model of household income generation and resource allocation is developed that incorporates three features typical of West African rural households: preference heterogeneity among women and men, individual resource control, and power-mediated bargaining over resource control in the face of changes in households' economic environments. To explore price effects, the model is used to simulate the income impacts of large increases in cotton prices accompanying fast-paced agricultural liberalisation in Burkina Faso in the 1980s. The paper shows that where resources are controlled individually by household members, rather than pooled, Pareto efficiency in income generation does not hold. The impact of agricultural price policy on poverty is mediated by bargaining over resource control within households. Both the relative bargaining power of women and men and the degree of preference heterogeneity between them play fundamental roles in the outcome of such bargaining. The results point to a lower ability of households to take advantage of price incentives and thereby raise their incomes than a unitary household model, in which preferences do not differ and resources are pooled, predicts. They suggest that the effectiveness of price policy in reducing poverty in the region would be enhanced by taking into account the incentive structure within households as well as individual household members' ability to bargain over the benefit and cost streams flowing from price changes.     

Food energy intake and cost of basic needs: Measuring poverty in Bangladesh

Past estimates of poverty in Bangladesh based on the food energy intake method found decreasing poverty over time and similar poverty in urban and rural areas. Using the cost of basic needs method, we find increasing poverty for 1984–92 and higher poverty in rural than urban areas. Examples of lack of consistency in past estimates are highlighted. A method is introduced to assess the gap narrowing and re‐ranking impacts on poverty measures of changes in poverty lines. The article also estimates the marginal impact of household characteristics such as household size, education, occupation and land ownership on the probability of being poor.     

Cash Transfers Enable Households to Cope with Agricultural Production and Price Shocks: Evidence from Zambia

Climate change is projected to dramatically disrupt rainfall patterns and agricultural yields in sub-Saharan Africa. These shocks to food production can mire farming households in poverty traps. This study investigates whether unconditional cash transfers can help households cope with agricultural production and price shocks. We find that cash empowers poor, rural households facing these negative shocks to employ coping strategies typically used by the non-poor and enables them to substantially increase their food consumption and overall food security. Extending relatively small cash payments unconditionally to the rural poor is a powerful policy option for fostering climate-resilient development.     

Microeconomic Determinants of Income Inequality in Rural Pakistan

Inequality matters for poverty reduction. However, it is often unclear what policy could do to change the distribution of income as to date there is little quantitative evidence about the household characteristics that determine the level of income inequality and its changes over time. This paper sets out to identify these determinants by adapting a regression-based inequality decomposition technique and applying it to panel data from rural Pakistan. Land ownership is key to explaining the level of inequality, but not its changes. In contrast, higher education drives changes, but not the level of inequality. Household location affects both, reflecting growing differences in market access across regions.     

Networked poverty in rural Russia

This article attempts to apply major ideas developed in Anglo-American ‘network analysis’ to enlarge geographical constructions of the rural ‘problematic’ in Russia. It interrogates complex understandings of ‘poor people’ via a study of social networks in two villages in Central European Russia, focusing on connections between different actors embedded in social contexts in the countryside, different forms of associations between rural people, and the ways in which specific forms of their interrelations affect poverty. In so doing, the article attempts to reconnect different positions of rural people in Russia and different transitory aspects of ‘poor’ identities (i.e. of people in poverty), as well as to broaden understanding of differentiated experiences of rural poverty.     

Economic growth,income inequality and poverty in china under economic reforms

China's gross domestic product (GDP) more than quadrupled between 1978 and 1996 under economic reforms. Per capita disposable incomes more than tripled in the cities and almost quadrupled in the rural areas. However, rapid economic growth brought about large income inequality which slowed down poverty reduction. In 1995, there were still 70–170 million people living in poverty. This article aims to assess the relationship between economic growth, income inequality and poverty using both secondary and household survey data. The main findings are (1) urban/rural divide and spatial inequality are two major factors accounting for overall income inequality; (2) non‐wage and non‐farm incomes are more unequally distributed than wage and farm incomes; and (3) the incidence of poverty is very sensitive to the changes in per capita income and inequality.     

Production,prices and poverty in rural India

This paper challenges the view that increases in agricultural production have reduced poverty in rural India. Rural poverty is related directly to the consumer price index number for agricultural labourers, and inversely to agricultural production. The underlying time trend term indicates a residual rising trend in rural poverty after accounting for the influence of these two factors. There are plausible, though conjectural, reasons for believing that to a significant extent, the price factor as well as the variables implicit in the time trend term both derive their strength, if not their existence, from the nature of the growth processes which have generated the observed growth in agricultural production. These results contradict Ahluwalia's earlier conclusions, even though they are themselves based on essentially the same data set.     

Welfare Dynamics in Pakistan and Ethiopia – Does the Estimation Method Matter?

Identifying household-level welfare dynamics and associated dynamic poverty trap thresholds can have important implications for the targeting of poverty reduction policies. The small existing empirical microeconomic literature has found evidence both for and against poverty traps. Using household panel data from rural Pakistan and Ethiopia, this article examines whether these different results are likely driven by differences in estimation methods or whether they reflect actual differences across settings. It applies the estimation methods from the existing literature to the same two datasets and also proposes a novel semiparametric panel data estimator that combines the advantages of the previous fully parametric and nonparametric approaches. The results suggest that absent any dynamic poverty trap thresholds the effect of using different estimation methods is secondary, having a small influence on the estimated long-term level of household well-being but not the identification of multiple dynamic welfare equilibria and associated dynamic poverty thresholds. Households in rural Pakistan and Ethiopia seem to be stuck in a static, structural-type poverty trap facing an expected level of long-term well-being that places them squarely in poverty.     

Alleviating rural poverty through agricultural growth

The article examines the role of agricultural GDP growth in alleviating rural poverty in LDCs. Cross‐sectional regression analysis indicates that GDP growth by itself takes a very long time to reduce poverty significantly. It suggests that decreases in land concentration could have a more immediate impact on reducing rural poverty; the budgetary and other costs of implementing such changes are not, however, considered. The preferred approach is a combination of equitable growth and redistributive measures.     

Poverty and productivity in female-headed households in Zimbabwe

A household survey conducted in rural Zimbabwe in 2001 is used to compare the position of de facto and de jure female-headed households to those with a male head. These households are characterised by different forms of poverty that impinge on their ability to improve agricultural productivity. However, once inputs are accounted for, it is only for growing cotton that female-headed households' productivity is lower than that found for male-headed households. General poverty alleviation policies will benefit the female-headed household but specific interventions via extension services and access to marketing consortia are also indicated.     

Livestock Production,Rural Poverty,and Perceived Shocks: Evidence from Panel Data for Vietnam

This paper assesses the contribution of livestock to reducing rural poverty and examines the determinants of livestock assets with panel data from Vietnam. The findings show that livestock production contributes to reducing poverty and livestock assets are influenced by the number of shocks that households faced during the last three years, access to credits, farmland size, education of household head, irrigation system, and access to the national electricity. We suggest that empowering rural households to better cope with shocks contributes to developing livestock and consequently to reducing rural poverty.     

Trends in poverty and destitution in Wollo,Ethiopia 1

According to several studies, poverty in rural Ethiopia has fallen significantly since the early 1990s, thanks to improved governance and economic liberalisation policies. This paper presents several arguments that challenge this view. The first questions the methodological foundations of the data from which these positive trends are derived: we argue that the original sampling frame was too small and unrepresentative to provide a basis for extrapolating national poverty levels or trends. The second argument questions the conceptual underpinnings of these studies: poverty estimates based on levels of current consumption fail to allow for non-income dimensions of wellbeing, nor for confounding factors such as seasonality, annual rainfall and food aid receipts. The third strand considers alternative sources of data on changes in wellbeing in Ethiopia: recent qualitative studies report that the poor perceive themselves as poorer and more vulnerable than poverty headcount figures suggest.

Finally, we report findings from our own survey in chronically poor and historically famine-prone Wollo. First, a significant proportion of households in the study area are destitute – destitution being defined as inability to meet basic needs, lack of key productive assets, and dependence on transfers. Secondly, the numbers of destitute people, and of people vulnerable to becoming destitute, have increased over the past ten years. Thirdly, the crisis of livelihoods underlying this trend is affecting entire communities – the dominant pattern is an aggregate downward shift, rather than stratification – and the decline of wealthier households is exacerbating the vulnerability of the poorest. These findings cast serious doubts on generalisations about poverty trends in Ethiopia. At the very least, national-level data need to be disaggregated: improving national trends may conceal pockets of entrenched poverty and a deepening livelihoods crisis in parts of rural Ethiopia.     

Robustness of subjective welfare analysis in a poor developing country: Madagascar 2001

We analyse the subjective perceptions of poverty in Madagascar in 2001 and their relationship to objective poverty indicators. We base our analysis on survey responses to a series of subjective perception questions. We extend the existing empirical methodology for estimating subjective poverty lines on the basis of categorical consumption adequacy questions. Based on this methodology, we calculate the household-specific, subjective poverty lines. We are able to compare between the results of subjective poverty analysis using several types of subjective welfare questions. Our results show that the aggregate poverty measures derived from consumption adequacy questions accord quite well with the poverty measures based on objective poverty lines. We demonstrate that the subjective welfare analysis can be used in poor developing countries for evaluating socio-economic and distributional impacts of various policy interventions.     

How Accurate is Food-for-Work Self-Targeting in the Presence of Imperfect Factor Markets? Evidence from Ethiopia

Effective targeting of transfers is a key issue in public policy to combat poverty. Much faith is presently placed in self-targeting mechanisms such as public employment schemes supported by food-for-work transfers. Where targeting errors have been observed, these are usually attributed to mismanagement of key operational details, such as the project's wage rate. Using a unique data set from rural Ethiopia, we demonstrate that targeting errors may also have structural causes in some low-income countries. We hypothesise that imperfect factor markets generate a predictable dispersion across households in reservation wage rates that breaks down the unconditionally positive relation between income and shadow wages on which the theory of self-targeting public employment programmes rests. Our results confirm that the inaccuracy of FFW targeting stems from the fact that, in rural Ethiopia, higher income households are endowed with more labour per unit of land or animal. Due to poor factor markets in land and livestock these labour-abundant households have lower marginal labour productivity on farm, thereby depressing the reservation wage rates they find acceptable for FFW participation.     

Psy-expertise,therapeutic culture and the politics of the personal in development

Expertise stemming from the psy disciplines is increasingly and explicitly shaping international development policy and practice. Whilst some policy makers see the use of psy expertise as a new way to reduce poverty, increase economic efficiency, and promote wellbeing, others raise concerns that psychocentric development promotes individual over structural change, pathologises poverty, and depoliticises development. This paper specifically analyses four aspects of psy knowledge used in contemporary development policy: child development/developmental psychology, behavioural economics, positive psychology, and global mental health. This analysis illuminates the co-constitutive intellectual and colonial histories of development and psy-expertise: a connection that complicates claims that development has been psychologized; the uses and coloniality of both within a neoliberal project; and the potential for psychopolitics to inform development.     

Modernisation and Time Preferences in Tanzania: Evidence from a Large-Scale Elicitation Exercise

Assumptions about individual time preferences are important for explanations of poverty and development. Data from a large-scale elicitation exercise in Tanzania show significantly higher levels of impatience in urban areas than in rural areas. This result remains robust to adding controls for socio-economic differences between rural and urban areas, which possibly correlate with time preferences. We attribute this to differences in ‘modernisation’ between urban and rural areas, with modernisation leading to increased impatience. This is corroborated by the observed positive correlation between impatience and education; the latter being an important vehicle of modernisation for traditional societies in Tanzania.     

Neoclassical and structural analysis of poverty: winning the ‘Economic Kingdom’ for the poor in Southern Africa

In situations characterised by historical injustice in the distribution of economic resources, such as in many southern African ‘settler’ countries, there is a powerful intuitive case that ameliorative and palliative public policy is insufficient to significantly affect poverty reduction. This is because of the dulling effects on growth caused by significant structural inequality in the distribution of resources. However, the proposition that inequality is a problem for poverty reduction is contentious. This article reviews the neoclassical and structuralist literatures on the relationship between growth, inequality and poverty. It argues that the first is inconclusive and, furthermore, can only be so, while the second requires to be made more relevant to the discussions of how redistribution and inequality relate in legitimate policy and practice. The concept of property regimes can help here, within a more contextual understanding of development in practice as not necessarily involving growth and economic progress, but as being subject to periodic phases of ‘de‐development’, or well‐being retrogression. The paper concludes that state‐sponsored redistribution policy has an important role to play in changing underlying property regimes for the benefit of the poor in southern Africa. Inequality does matter, and a consideration of radical, redistributive social change is worth rehabilitating as an efficient means of reducing poverty, particularly in situations of low or fluctuating growth. This consideration, in turn, requires a political acceptance of the legitimacy of a broader role for economic public policy and state action.