Economic Alternatives For Growth Employment And Poverty Reduction

This book is a collection of working papers, policy briefs and training modules, published by the International Poverty Centre in Brazil, which provides a comprehensives set of recommendations for alternative economic policies that can generate growth, employment and poverty reduction in developing countries.

This book is a collection of working papers, policy briefs and training modules, published by the International Poverty Centre in Brazil, which provides a comprehensives set of recommendations for alternative economic policies that can generate growth, employment and poverty reduction in developing countries.

Over the past two decades, the percentage of the world’s population living on less than a dollar a day has been cut in half. How much of that improvement is because of—or in spite of—globalization? While anti-globalization activists mount loud critiques and the media report breathlessly on globalization’s perils and promises, economists have largely remained silent, in part because of an entrenched institutional divide between those who study poverty and those who study trade and finance. Globalization and Poverty bridges that gap, bringing together experts on both international trade and poverty to provide a detailed view of the effects of globalization on the poor in developing nations, answering such questions as: Do lower import tariffs improve the lives of the poor? Has increased financial integration led to more or less poverty? How have the poor fared during various currency crises? Does food aid hurt or help the poor? Poverty, the contributors show here, has been used as a popular and convenient catchphrase by parties on both sides of the globalization debate to further their respective arguments. Globalization and Poverty provides the more nuanced understanding necessary to move that debate beyond the slogans.

Abstract: This paper analyzes how the employment/productivity profile of growth and its sectoral pattern are correlated with poverty reduction. The authors use a sample of 104 short-run growth spells in developing countries, between 1980 and 2001. They also identify some conditions of the labor market and the economic environment that are associated with employment-intensive growth or specific sectoral growth. The results show that, in the short run, although the aggregate employment-rate intensity of growth does not matter for poverty reduction any more than the aggregate productivity intensity of growth, the sectoral pattern of employment growth and productivity growth is important. Employment-intensive growth in the secondary sector is associated with decreases in poverty, while employment-intensive growth in agriculture is correlated with poverty increases. Similarly, productivity-intensive growth in agriculture is associated with decreases in poverty. Although the study does not address causality, coincidence of these phenomena in this large sample of heterogeneous countries and periods suggests that, in the short run, the sectoral productivity and employment pattern of growth may have important implications for poverty alleviation. Therefore, policies for reducing poverty should not overlook the sectoral productivity and employment implications of different growth policies.

Trade will have an important role at the global level in generating the growth necessary for reducing extreme poverty to 3 percent and boosting prosperity for the poorest 40 percent by 2030. To identify the most important challenges that exist in maximizing the positive impact of trade on poverty, we need to understand who the poor are, where they are, and what economic activities they undertake. To this end, the study highlights particularly relevant dimensions of poverty: rural poverty in remote areas, informality, fragile and conflict situations, and women. For each of these issues, this study considers the main traderelated barriers and challenges, along with policy responses to address them. It shows the importance of the multilateral trading system and of the Doha Round, as well as the important role of the WBG and WTO in promoting coherence and implementing trade policies in a way that delivers the greatest possible benefits for the poor.

The Arab Spring and recent popular uprisings that have taken place in many Arab countries since the end of 2010 highlight the urgent need for economic policy reorientation in these countries. This book addresses key issues relevant to the contemporary economic realities of the Arab economies; including policy space, generation of more productive and decent employment, social justice and poverty alleviation, regional integration and the common destiny of the Arab people, and the failure of the structural adjustment programs recommended by the Bretton Woods institutions and implemented in these countries in the last three decades. The volume explores, and makes recommendations, for deep pan Arab regional integration and alternative pro-poor, growth-oriented economic and trade policies capable of promoting social justice by reducing the incidence of poverty. It highlights the ways in which various types of economic and trade policies have affected the levels of employment and poverty in five Arab countries: Egypt, Jordan, Morocco, the occupied Palestinian territory and Sudan. Using a mixture of qualitative and quantitative methodologies, the book focuses on Arab trade integration, exploring the obstacles to its implementation in the past, as well as its potentials as a source of employment generation and enhancement of living conditions. The book also addresses the construction, interpretation and use of quantitative trade indicators for optimal policy choice at both the domestic and regional levels.

While it has become abundantly clear that neither overall economic growth nor targeted microlevel interventions inevitably reduce poverty in developing countries, much of the development literature continues to focus on these two approaches. Exploring a third, and more promising, avenue, Fighting Poverty offers a systematic analysis of the link between employment and pro-poor economic growth.The authors provide both conceptual frameworks and rich empirical evidence to demonstrate precisely how employment can serve to link growth with poverty reduction. They include in-depth case studies of Bangladesh, Bolivia, Ethiopia, India, Indonesia, Uganda, and Vietnam.Rizwanul Islam is director of the Employment Strategy Department of the International Labour Organization.Contents: Introduction?R. Islam. Exploring the Employment Nexus: The Analytics of Pro-Poor Growth?S.R. Osmani. The Nexus of Economic Growth, Employment, and Poverty Reduction: An Empirical Analysis?R. Islam. Employment Policies for Poverty Reduction?A. Rahman. Bangladesh: Linkages Between Economic Growth, Employment, and Poverty?R.I. Rahman and M.N. Islam. Bolivia: Employment-Poverty Linkages and Policies?L.C. Jemio and M. del Carmen Choque. Ethiopia: Growth, Employment, Poverty, and Policies?M. Demeke, F. Guta, and T. Ferede. India: Employment-Poverty Linkages and Policy Options?K. Sundaram and S.D. Tendulkar. Indonesia: Poverty, Employment, and Wages?I. Islam. Uganda: Economic Growth, Employment, Poverty, and Pro-Poor Policies?K.I.B. Kabananukye, A.E.K. Kabananukye, J. Krishnamurty, and D. Owomugasho. Vietnam: Employment Poverty Linkages and Policies for Pro-Poor Growth?Pham Lan Huong, Bui Quang Tuan, and Dinh Hien Minh. Conclusion?R. Islam.

Focusing on pro-poor growth and income poverty, Promoting Pro-Poor Growth: Policy Guidance for Donors identifies binding constraints and offers policies and strategies to address them.