The composition of growth matters for poverty alleviation

This paper contributes to explain the cross-country heterogeneity of the poverty response to changes in economic growth. It does so by focusing on the structure of output growth itself. The paper presents a two-sector theoretical model that clarifies the mechanism through which the sectoral composition of growth and associated labor intensity can affect workers’ wages and, thus, poverty alleviation. Then, it presents cross-country empirical evidence that analyzes, first, the differential poverty-reducing impact of sectoral growth at various levels of disaggregation, and, second, the role of unskilled labor intensity in such differential impact. The paper finds evidence that not only the size of economic growth but also its composition matters for poverty alleviation, with the largest contributions from unskilled labor-intensive sectors (agriculture, construction, and manufacturing). The results are robust to the influence of outliers, endogeneity concerns, alternative explanations, and various poverty measures.[1]


Rural finance and poverty alleviation

This report presents information on the credit constraints that poor rural households face … in nine countries of Asia and Africa (Bangladesh, Cameroon, China, Egypt, Ghana, Madagascar, Malawi, Nepal, and Pakistan). It uses this information to make the case for appropriate public intervention in strengthening rural financial markets and draws conclusions about areas where public resources may best be spent” Preface.[2]



What ever happened to poverty alleviation?

The failure of many programs directed toward alleviating poverty is better understood than the successes. This paper identifies the traits that characterize several better-performing programs funded by the Ford Foundation — traits that are not commonly found in such programs. All focused narrowly on a particular trade or activity in the beginning; used credit as an entry point; started by brokering loans rather than lending directly; and had leadership linked to powerful institutions. Participants were already engaged in the economic activities supported by the programs; marketing channels existed; and powerful consumer groups were often in favor of production by beneficiary groups. Though these findings seem obvious, few programs funded by donors display these characteristics, suggesting that donors choose programs and organizations more carefully and not limit their funding to the nongovernmental sector.[3]

The Role of Education and Health in Poverty Alleviation A Cross Country Analysis

This research is an attempt to explore; does the overall education and health situation of a country have a considerable impact on poverty magnitude? It also tries to find out the level of efficiency of selected countries to utilise education and health expenditures. This study uses data of 40 developing countries for the period of 1999-2007 and Data Envelopment Analysis (DEA) for empirical estimation. The study concludes three key findings. First, in contrast to trickle-down theory, achieving decent or high income growth rates do not ensure poverty reduction at similar pace. Second, improvements in educational and health outcomes are strongly and negatively associated with poverty incidence. However, educational improvements appear to be more strongly correlated with decline in poverty headcounts as compared to health improvements. Third, efficient use of public expenditures on education and health not only results in improved educational and health outcomes but it also permits a reduction in poverty. Thus, the study provides evidence in support of poverty reduction through improved education and health status.[4]

Poverty Alleviation Programmes in Ondo and Osun States of Nigeria: New Skills and Knowledge Acquired as a Result of Participation

Aim: The aim of this study is to evaluate the effect of new skills and knowledge acquired by the beneficiaries as a result of their participation in the poverty alleviation programmes of the National Fadama Development Project III and the Justice Development and Peace Commission (JDPC) Programmes.

Study Design: This study adopted a descriptive research design.

Place of Study: A total of 150 beneficiaries comprising 70 FADAMA III and 80 JDPC beneficiaries selected purposively from Ondo and Osun were picked for the study.

Methodology: A self-designed questionnaire was used for data collection. This was “Questionnaire for the beneficiaries of Fadama III and JDPC programmes (QBFJ)”. The QBFJ was designed to gather information on the skills and knowledge acquired by the beneficiaries. Data were analyzed using percentage and chi-square statistics.

Results: The study indicated that seven new skills were acquired by the beneficiaries. The beneficiaries also acquired knowledge on ten different types of management programmes. The result further revealed that skills acquired by the beneficiaries of poverty alleviation programmes were significantly influenced by their gender (x2 = 39.93, p <0.05), Bees keeping was the major skill acquired with 60% of the beneficiaries while 66.7% acquired knowledge on tree crops management.

Conclusion: This study has established that good implementation of poverty alleviation programmes will improve the standard of living of the beneficiaries. Poverty incidence can thus become reduced with increased investment in people, improving their quality and enhancing their employment prospects. It is recommended that priorities for reform should include emphasizing investment in basic education, working to improve social equity in educational provision and encouraging vocational education and training.[5]

Reference

[1] Loayza, N.V. and Raddatz, C., 2010. The composition of growth matters for poverty alleviation.Journal of development economics, 93(1), pp.137-151.

[2] Zeller, M. and Sharma, M., 1998. Rural finance and poverty alleviation (No. 8). International Food Policy Research Institute (IFPRI).

[3] Tendler, J., 1989. What ever happened to poverty alleviation?. World development, 17(7), pp.1033-1044. [4] Janjua, P.Z. and Kamal, U.A., 2014. The Role of Education and Health in Poverty Alleviation a Cross Country Analysis. Journal of Economics, Management and Trade, pp.896-924.

[5] Akinyemi, E.O., 2014. Poverty Alleviation Programmes in Ondo and Osun States of Nigeria: New Skills and Knowledge Acquired as a Result of Participation. Journal of Education, Society and Behavioural Science, pp.1342-1351.