Poverty spending and the poverty gap

This paper examines two questions basic to welfare policy: (1) whether the amount of poverty-related transfers is sufficient to fill the poverty gap, and (2) which families actually get benefits and how much of their income deficit is filled by those benefits. Transfers are sufficient: the post-Social Security poverty gap is $74 billion while poverty-related programs total $198 billion. Further, 86% of current income-conditioned benefits go to the pretransfer poor and 89% of those are used to alleviate poverty (fill the poverty gap). Thus, if a substantial fraction of total Federal and State expenditures on poverty-related programs could be targeted more toward the poor, the poverty gap can be eliminated. The current programs, however, would have to be changed substantially to achieve the necessary retargeting.     

Income growth and future poverty rates of the aged

This article estimates the effects of 50 years of steady growth in incomes on poverty rates among the elderly. It assumes that the poverty threshold continues to be adjusted for inflation but not for increases in real incomes. Simulations with the March 1998 Current Population Survey indicate that if the benefit rules for Social Security and Supplemental Security Income (SSI) are not changed and if earnings and other sources of income in an otherwise unchanging population grow by 1 percent per year (the intermediate assumption about earnings growth used in the Social Security Trustees' Report), poverty among the elderly will decrease from 10.5 percent in 1997 to about 7.2 percent in 2020 and to 4.1 percent in 2047. These projected poverty rates are quite sensitive to both the assumption about earnings growth and the assumption that benefits are not further reduced to maintain solvency. This article quantifies the sensitivity of the results to these assumptions and discusses several other aspects that might affect future poverty rates--changes in other income components like SSI, earnings, and pensions; changes in longevity and marital patterns; and changes in the distribution of earnings.     

The development and history of the poverty thresholds.

In recent years there has been renewed interest in the United States in the definition and measurement of poverty. In early 1992, the Committee on National Statistics of the National Academy of Sciences began a 30-month study requested by Congress that includes an examination of statistical issues involved in measuring and understanding poverty. Some 2 years earlier, in January 1990, the Administration had approved an initiative on improving the quality of economic statistics. The current poverty measure was one of several dozen statistical series examined as part of that initiative. In April 1990, Urban Institute economist Patricia Ruggles published a book that urged the revision of the poverty line to reflect changes in consumption patterns and changing concepts of what constitutes a minimally adequate standard of living. In July 1990, two private organizations concerned with the poor and the elderly issued a report reviewing current poverty measurement procedures and describing a Gallup poll in which a nationally representative sample of Americans set an average dollar figure for the poverty line that was higher than the current official poverty line. In view of these and other examples, it may be useful to reexamine the development and subsequent history of the current official poverty thresholds.     

A genealogy of the government of poverty

This paper contributes to a genealogy of the discourses and government of poverty. It offers a statement of what might be understood bya genealogical perspective and method, and then focuses on the emergence of a ‘liberal mode of government’ of poverty in the early nineteenth century, of which the reformed poor law in England is emblematic but not exhaustive. The emergence of this mode of government is followed through a series of related transformations of the older systems of the relief and administration of ‘the Poor’, best understood as a dimension of ‘police’ in its archaic sense. The conditions of the problematization of this older system of government in matters of population, economy, police, and so on. This emergence has implications for the formation of a national labour market, notions of self-governance and responsibility, forms of patriarchy and household, and issues of morality, philanthropy, admkinistration, and the state. Above all, it is within this liberal mode of government that we can witness both the constitution of poverty as a field of knowledge and invention, perhaps for the first time, and also the various surfaces of emergence for what will become ‘the social’. The implications of this liberal mode of government for our present are far from exhausted.     

Escaping poverty: behind the numbers

Head counts of poverty are the most commonly used indicator of poverty level. While not ideal, the analysis of poverty head counts informs conclusions about whether households move in or out of poverty over time. Longitudinal data from repeated surveys show that, at the country level, some countries have lifted their populations out of poverty, while the populations of other countries have either remained poor or become poorer. How these scenarios come to be is the key question that challenges the development community. What mix of country characteristics, policies, structural features and external influences conspire to either improve or deteriorate well-being and to affect overall poverty levels? Unfortunately, changes in poverty levels might sometimes be the result of changes in poverty measurement methodology, with no real change in the well-being of the population. For this reason, poverty assessment should begin with an analysis of the measurement methodology – particularly given the increased global enthusiasm for poverty reduction. This article examines panel data from Mongolia and the Philippines to show how seemingly slight variations in survey methodology can have a rather significant impact on poverty results. In order to make a robust comparison of poverty head counts from different surveys, the basic building blocks of the poverty measures must be identical. This is not always the case. Given the difficulties identified with money-metric head counts, this study concludes by arguing for a move beyond economic statistics, toward multidisciplinary approaches to poverty assessment. Copyright © 2001 John Wiley & Sons, Ltd.     

The production of poverty

The idea of cultural resistance has been taken up in combative analysis of metropolitan racist situations. It is a legacy from analyses by combatants in anti-colonial struggles. Fanon's were among the most searching of such analyses. His writings indicate an unusual concept of culture and of a people. The concept is at the same time of a political subject and of a the formation and direction of psychic energies. What he wrote on violence and counter-violence should not be abstracted from his concepts of culture and its colonial situation. That situation as it is described in Fanon's writings and then the concept of culture and people are elaborated and then extended so that their application to metropolitan racism can be tried.     

A poverty of distinction

Homogenizing the poor, treating them as a shapeless blob, is not only dehumanizing but also makes them candidates for a single set of public policies. We propose to show, instead, using cultural theory, that there are different types of poor people, who follow different strategies in coping with or overcoming their condition.     

Application of experimental poverty measures to the aged

The U.S. Census Bureau recently released new, experimental measures of poverty based on a National Academy of Sciences (NAS) panel's recommendations. This article examines the effects of the experimental measures on poverty rates among persons aged 65 or older in order to help inform policy debate. Policymakers and analysts use poverty rates to measure the successes and failures of existing programs and to create and defend new policy initiatives. The Census Bureau computes the official rates of poverty using poverty thresholds and definitions of countable income that have changed little since the official poverty measure was adopted in 1965. Amid growing concerns about the adequacy of the official poverty measure, a NAS panel undertook a study of the concepts, methodology, and data needed to measure poverty. The panel concluded in its 1995 report that the current measure no longer provides an accurate picture of relative rates of poverty for different groups in the population or of changes in poverty over time. The panel recommended changes in establishing the poverty thresholds, defining family resources, and obtaining the required data. The Census Bureau report shows how estimated levels of poverty would differ from the official level as specific recommendations of the NAS panel are implemented individually and how estimated trends would differ when many recommendations are implemented simultaneously. It computes nonstandardized and standardized poverty rates. (The latter constrains the overall poverty rate under the experimental measures to match the official rate.) This article reports poverty rates that have not been standardized and provides considerably more detail than the Census report about the effects of the experimental measures on poverty among the aged. It examines the effects of changing the poverty thresholds and the items included or excluded from the definition of available resources. It also explores the effects of the experimental measures on persons aged 65 or older by age group, gender, race and ethnicity, and marital status. Results indicate that: Poverty rates in 1997 for persons aged 65 or older under the experimental NAS poverty measure are 17.3 percent, compared with 10.5 percent under the official poverty measure. This 65-percent increase is largely driven by the NAS-based measure's subtraction of medical out-of-pocket (MOOP) expenses from resources. Under the NAS-based measures, poverty rates increase for all major groups of older persons, and increase the most for groups for whom the incidence of official poverty is the lowest. The experimental NAS poverty measure shows narrower differences between genders, racial and ethnic groups, and among persons of different marital statuses than the official poverty measure. For example, white Hispanic women aged 65 or older have poverty rates that are 450 percent higher than those for white non-Hispanic men under the official poverty measure and 181 percent higher under the NAS measure. The NAS-based measure's subtraction of MOOP expenses from resources has a disproportionate effect on poverty rates among non-Hispanic whites and men as compared with other groups. However, changes in relative poverty between groups appear to be most influenced by the NAS midpoint equivalence scale. Because this scale decreases poverty rates for persons who live alone or with unrelated individuals and increases them for persons who live with others, poverty rates differ meaningfully under the NAS and official measures among demographic groups. This article highlights issues concerning the elements of the experimental NAS poverty measure that are particularly important to the measurement of poverty among the aged population. Results suggest that the research community's future efforts to refine, enhance, and build upon the NAS panel's recommendations will yield important insights about poverty among the older population.     

Decentralization and poverty alleviation. International experience and the case of the Philippines

In recent years, decentralization has become quite common in developing countries. The essence of decentralization is that it does not occur in general but rather in a particular context, so that decentralization takes many different forms in different countries at different times. Comparative analysis is often illuminating and the article uses it to cast some light on the current moves towards decentralization in the Philippines. Section 2 provides a quantitative overview of the relationship between decentralization and poverty across a number of Asian and Latin American countries. Section 3 discusses key aspects of the relationship between decentralization and poverty alleviation in the Philippines, drawing on a number of decentralization experiences in countries such as Argentina, Chile, Colombia, Indonesia and Vietnam. Section 3.1 focuses on local capacity and Section 3.2 on local financial resources, in particular the role of fiscal transfers. Section 3.3 examines the effects of different approaches to decentralization on the targeting and delivery of poverty‐related services—health, primary education, housing and infrastructure. Section 4 concludes by noting the importance of migration in any treatment of decentralization and poverty. Copyright © 1999 John Wiley & Sons, Ltd.     

An analysis of the relationship between various redistributive programs and poverty

This paper utilizes multivariate exogeneity (causality) tests to analyze the relationship between various income policy programs and the poverty rate. The framework we develop allows us to make a distinction between intended poverty reduction objectives and automatic stabilizing behavior. Since we find that the poverty in a given year affects the funding of social programs in later years, we conclude that these programs are primarily acting as automatic stabilizers (i.e., the poverty reduction instruments do not appear to have been implemented with a relentless intent to reduce poverty, a result consistent with Tullock's [1983, 1986] theorem).     

Global poverty and responsibility: Identifying the duty-bearers of human rights

Many rights theorists argue that global poverty violates certain human rights, so that responsibility to address poverty involves carrying out the duties that correspond with relevant rights-claims. Liberatirians argue that the rights and duties associated with global poverty, especially what are sometimes thought of as “positive” rights, or rights of assistance, are inappropriately agent-neutral, giving them less justificatory force than agent-relative rights and duties. To counter libertarian concerns, Thomas Pogge tries to reframe the responsibilities corresponding to human rights as institutional rather than as belonging to agents. While admirable, his approach inadequately expalains the relationships between institutional responsibility and individual and collective action. A better way to respond to libertarian concerns—that is also compatible with Pogge’s emphasis on institutional responsibility—is to show that the duties regarding global poverty are indeed agent-relative, but by virtue of individual and collective action within institutions.