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By Ernesto M. Pernia, Anil B. Deolalikar

The topic of this publication is that fiscal progress is vital, yet associations and different nationwide and subnational attributes topic to boot. they're serious to explaining modifications in social improvement and poverty relief throughout nations and subnational parts that can not be accounted for via progress on my own. The booklet concludes extra entire process must think of numerous institutional components on the nationwide and subnational degrees to accomplish quick and sustained poverty aid. certainly, being attentive to those components will gain either development and poverty aid.

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Extra info for Poverty, Growth, and Institutions in Developing Asia (Asian Development Bank Books)

Sample text

In addition, the ADB approach emphasizes the importance of understanding the nexus between poverty and the environment. Two of the major environmental issues are (i) air and water pollution in mega-cities that affects the poor disproportionately (Pernia 1994); and (ii) deforestation, natural resource depletion, and land degradation that can deepen poverty (Quibria 1993). In its WDR 2000, the World Bank put forward a new analytical framework—built on three pillars, namely empowerment, security, and opportunity—to attack poverty.

But while the problems have been identified, there is still no clarity over where a government should draw the line. Timing of Program Capture Where the nonpoor manage to capture the benefits of pro-poor programs, it frequently happens in the initial stages of program implementation. This may be due to imperfect targeting, lack of information, or incentive incompatibility. As the antipoverty program expands over time, however, the incremental benefits derived by the poor from the program typically increase.

In India, literacy, higher rural-to-urban income levels, and other state-specific attributes contribute importantly to poverty reduction (Datt and Ravallion 1998). In Thailand, income inequality and dependency burden raise poverty incidence, while education and economic growth reduce it (Chapter 8). Subnational analysis seems superior to cross-country regressions: first, because the concepts and measurements of poverty, inequality, and income vary widely across countries; and, second, because the relationship between growth and poverty is highly country-specific, and so must be poverty reduction strategies and policies.

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