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.     

Self-employment earnings and returns to education in rural Peru

This article estimates the returns to education for households who derive part of their income from household based non-farm self-employment ventures in rural Peru. While education is an individual level variable, earnings are observed at the household level. This asymmetry complicates both the estimation and the interpretation of the returns to education. This article is the first jointly to incorporate three channels through which education affects household earnings. Education affects earnings through the marginal productivity of labour (worker effect), labour allocation across activities (between-activity allocative effect) and its production externality effect (spillover effect). The results suggest that the between-activity allocative effects of education dominate the returns. This article also makes novel use of economic geography to proxy for the role that access to markets plays in determining these returns. In particular, altitude is a strong predictor of activity choice and the returns to education in this mountainous country.     

Farm productivity and rural poverty in India

Armed with new data, we return to an old question from the pages of this journal: to what extent do India's rural poor share in agricultural growth? Combining data from 24 household sample surveys spanning 35 years with other sources, we estimate a model of the joint determination of consumption‐poverty measures, agricultural wages, and food prices. We find that higher farm productivity brought both absolute and relative gains to poor rural households. A large share of the gains was via wages and prices, though these effects took time. The benefits to the poor were not confined to those near the poverty line.     

Inequality and Political Clientelism: Evidence from South India

Political parties can be vehicles for economic and social development in poor countries. They can also serve as rent seeking instruments. Uncovering how parties function is therefore key to establishing the preconditions for good governance. The article discusses when and why clientelism on the basis of party affiliation may arise. Operationally, party-based clientelism is defined as a bias of public policy in favour of members of the governing political party. In a sample of local governments in India, party-based clientelism is shown to exist in two out of four states and to be strongly affected by economic inequality.     

Trust,mental models and community participation in transition: Evidence from rural Ukraine

As participatory governance approaches find their way into the development agendas in transition countries, a key question is how to increase citizens’ participation rates. This study examines how social trust and mental models inherited from the communist past shape individual decisions to participate in rural collective action. Using unique data from rural Ukraine, I approach these questions empirically distinguishing different types of participation. I find that social trust and mental models about the roles of communities and the state stemming from the Soviet past affect participation with some reservations. Results suggest that community-driven initiatives should invest more in educational and awareness-raising activities.     

Education and Household Inequality Change: A Decomposition Analysis for India

Rising returns to education have increased wage inequality in many developing countries, but their impact on inequality between households is less clear. This study asks how education contributed to household inequality in India during the period 1993–2004, using a regression based decomposition method. We find that rising returns to education of employees did not increase household inequality, because many household heads are self-employed. Instead, rising inequality in education contributed to higher inequality, partly because fertility declined more slowly among illiterates. These new insights into the education-inequality relationship in India underline the importance of household-level analysis to complement earnings inequality research.     

Vidya,Veda, and Varna: The influence of religion and caste on education in rural India

This paper argues that Vidya (education), Veda (religion) and Varna (caste) are inter-linked in India. It examines whether, and to what extent, the enrolment of children at school in India is influenced by community norms such as those of religion (Hindu or Muslim) or caste (Scheduled or non-Scheduled). The econometric estimates are based on unit record data from a survey of 33,000 rural households, in 1,765 villages, from 16 states of India. The equation for the likelihood of being enrolled at school is estimated separately for boys and for girls and, in each of the equations, all of the slope coefficients are allowed to differ according to whether the children are Hindu, Muslim or Scheduled Caste. The main findings are that the size of the religion or caste effect depends on the non-community circumstances in which the children are placed. Under favourable circumstances (for example, when parents are literate), the size of the community effect is negligible. Under less favourable circumstances, the size of the community effect is considerable.     

Fertility and childbearing practices among poor Gypsy women in Hungary: the intersections of class, race and gender

This article explores changes in childbearing practices among Gypsy (Roma) women in a small village in Northern Hungary. The author benefited from several years of ethnographic field research and data collected in this village, where the proportion of the out-of-wedlock births and births to teenage—mostly Gypsy—mothers have increased by a factor of three in the past 10 years as the population of the village has become more and more impoverished and the opportunities for geographic or social mobility declined sharply for the ethnic minority. The author argues that bearing children early is a sign of passage to adulthood in this group of women, a function which had been assigned to other social institutions before 1989. Early childbearing at the same time exacerbates the problem of Gypsy women: this is the first study which documents the consequences of poverty on women’s and children’s health by showing an increase in low birth weight babies in the community since 1989.     

Intergenerational Occupational Mobility among Men in India

We examine the intergenerational occupational mobility among men born during 1945–1985 in India. We distinguish between prevalence and association, and use the Altham Statistic as a measure of distance between son-father occupation associations across birth cohorts/social groups. We also attempt to isolate the specific odds ratios that account for the largest part of the distance. We find that the mobility in the 1975–1984 birth cohort is higher than the mobility in the 1945–1954 birth cohort. Scheduled Castes/Tribes born during 1965–1984 experienced a higher mobility compared with the entire 1965–1984 birth cohort or higher castes born during 1965–1984.     

The impact of formal finance on the rural economy of India

This paper explores the use of informal credit as a strategy for managing risks by market women in northern Ghana. A broad concept of the costs of risk management strategies is introduced and encompasses both a time and monetary dimension. Based on qualitative data, the analysis reveals that market women invest a considerable amount of time in maintaining complex networks of informal credit providers to ensure their access to credit once a shock occurs. Informal credit involves high transaction costs and prevents market women from growing out of poverty in the long term.     

Incomes policy,productivity and manual worker earnings in the local government sector

This paper considers how the three main political parties — and the two nationalist parties ‐ use model standing orders to bring cohesion and discipline to their council party groups. The paper explores how these models indicate the national party's expectations of the organisation and activities of the group and the relationship between the group and its members. It compares the key similarities and differences in the parties’ approaches to regulating group activity. It examines the role of group standing orders in maintaining councillor loyalty to the group and ensuring councillors act as unified blocs in public.     

Inequality,Economic Development,and Democratization

Although multiple theories suggest that economic development and inequality somehow affect democratization, these claims have received only limited empirical support. I contend that much of the confusion stems from the implicit assumption held by the literature that development and inequality affect democratization independently of one another. In this paper, I argue that the effect of income distribution on democratization is in fact contingent on the income level: in middle-income countries inequality fosters democratization; in rich countries, however, it harms democratization. Using a data set covering almost all autocracies between 1960 and 2007, I find evidence consistent with my hypothesis.     

Decentralisation,Economic Inequality and Insurgency

This paper investigates if devolution of political power in conflict-affected areas can reduce violence. Political decentralisation has been widely recognised to improve access to local public services. By providing institutional means to address local grievances, its role in diffusing social tensions has also been suggested. However, there is lack of systematic evidence on the role of local self-government in mitigating social-unrest arising due to local socio-economic issues. Our paper addresses this gap in the literature by assessing the impact of a local government institution, introduced in the Adivasi districts in 1996, on Maoist insurgency in India. The local councils aimed at addressing Adivasi grievances by recognising their traditional lifestyle and land, forests, and water rights, thereby reducing their incentive to participate in insurgency. However, empirical analysis performed using difference-in-difference methodology suggests that Maoist insurgency, as reported in Global Terrorism Database, increased post-decentralisation. We make sure this result is robust to various alternative explanations including state-level policy changes and political environment. Drawing on extensive empirical tests as well as existing qualitative studies, we show that an unequal local power structure and weak state-capacity in implementing the decentralisation programme resulted in local elites appropriating its benefits. This increased Adivasis grievances and consequently insurgency.     

Preferences,Spatial Prices and Inequality

This study examines the effect of prices on inequality in rural India during the period of economic reforms and beyond (1999/2000–2009/2010). It proposes a framework for calculating ‘exact’ price indices, based on the ‘Exact Affine Stone Index’ (EASI) demand system, and shows its usefulness by calculating spatial prices and regionally varying temporal prices that allow for both differences in preferences between states and over time. The study finds that the nature of inflation has been regressive during (1999/2000–2004/2005) and progressive during (2004/2005–2009/2010) and that the effects of temporal price inflation and spatial prices on inequality are qualitatively different.     

Trade Policy,Inequality and Performance in Indian Manufacturing

Many Congolese seem to have withstood their country’s protracted economic crisis relatively well, despite its length and severity. This study analyses whether and to what extent this livelihood paradox can be explained by a strategy of asset depletion. In general, this strategy seems not to have played an important role. Marked reductions in household asset stock were limited to some secondary urban centres. Explanations for this strategy’s limited reach point to a much richer set of asset coping mechanisms which households may have developed regarding assets in times of hardship, and to a concomitant shortage of research strategies to take due account of these.     

Globalisation,extremism and violence in poor countries

Globalisation—understood as external and internal market liberalisation—generates conditions in poor countries that are conducive to the emergence of extremist movements, instability and conflict. Liberalisation and the accompanying requirement of macroeconomic stabilisation subject people to rapid and sometimes devastating changes in fortune. Yet globalisation has had vastly different effects in different countries. Many have succumbed to sporadic growth or stagnation, inequality and turmoil, whereas others have achieved a broadly based prosperity, peace and democracy. A comparison of two liberalising African cases—Egypt and Mauritius—is employed to explain this divergence in paths. Mauritius has so far deftly navigated the maelstrom of globalisation by achieving growth with considerable equity and genuine democracy, while Egypt has followed a path of belated and partial liberalisation, irregular growth, the rise of new inequalities and insecurities, repression and violent Islamist movements. The major reason for this divergence lies in certain contingent institutional and class processes.