Some Aspects of Poverty in Sri Lanka: 1985-90
Some Aspects of Poverty in Sri Lanka: 1985-90

Author: Dileni Gunewardena

Publisher:

Published: 1999

Total Pages:

ISBN-13:

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March 1997 Poverty in Sri Lanka is still largely a rural phenomenon. Between 1986 and 1991, national poverty rates declined modestly, almost entirely because of a decline in rural poverty. During the same period, urban poverty increased. Poorer households tend to have higher dependency ratios, fewer years of schooling, lower participation in the labor force, and significantly higher unemployment. Datt and Gunewardena characterize poverty in Sri Lanka, using data from two recent household surveys (for 1985-86 and 1990-91). Poverty rates in 1990-91 were highest in the rural sector and lowest in the estate sector, with the urban sector in between. Between 1985-86 and 1990-91, national poverty declined modestly, almost entirely because of a fall in rural poverty (although poverty in the estate sector also declined). Agriculture, forestry, and fishing accounted for about 80 percent of the decline in national poverty. Favorable redistribution and growth in rural mean consumption accounted about equally for the decline in rural poverty. During the same period, urban poverty increased. But poverty in Sri Lanka is still largely a rural phenomenon. Nearly half the poor depend on agriculture for livelihood. Another 30 percent depend on other rural nonagricultural activities. Regional variations in poverty are fairly limited. Female-headed households are associated with greater poverty only in the urban sector. Poorer households tend to have higher dependency ratios, fewer years of schooling, lower rates of participation in the labor force, and significantly higher rates of unemployment. Direct transfer benefits from the Food Stamp Program are progressive and have a greater impact on poverty than uniform allocations from the same budget. Economic growth could reduce poverty considerably. This paper - a product of the Poverty and Human Resources Division, Policy Research Department - is a revised version of a background paper for the Sri Lanka Poverty Assessment.

Some Aspects of Poverty in Sri Lanka
Some Aspects of Poverty in Sri Lanka

Author: Gaurav Datt

Publisher:

Published: 2016

Total Pages: 68

ISBN-13:

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Poverty in Sri Lanka is still largely a rural phenomenon. Between 1986 and 1991, national poverty rates declined modestly, almost entirely because of a decline in rural poverty. During the same period, urban poverty increased. Poorer households tend to have higher dependency ratios, fewer years of schooling, lower participation in the labor force, and significantly higher unemployment.Datt and Gunewardena characterize poverty in Sri Lanka, using data from two recent household surveys (for 1985-86 and 1990-91). Poverty rates in 1990-91 were highest in the rural sector and lowest in the estate sector, with the urban sector in between. Between 1985-86 and 1990-91, national poverty declined modestly, almost entirely because of a fall in rural poverty (although poverty in the estate sector also declined). Agriculture, forestry, and fishing accounted for about 80 percent of the decline in national poverty. Favorable redistribution and growth in rural mean consumption accounted about equally for the decline in rural poverty. During the same period, urban poverty increased.But poverty in Sri Lanka is still largely a rural phenomenon. Nearly half the poor depend on agriculture for livelihood. Another 30 percent depend on other rural nonagricultural activities. Regional variations in poverty are fairly limited. Female-headed households are associated with greater poverty only in the urban sector. Poorer households tend to have higher dependency ratios, fewer years of schooling, lower rates of participation in the labor force, and significantly higher rates of unemployment. Direct transfer benefits from the Food Stamp Program are progressive and have a greater impact on poverty than uniform allocations from the same budget. Economic growth could reduce poverty considerably.This paper - a product of the Poverty and Human Resources Division, Policy Research Department - is a revised version of a background paper for the Sri Lanka Poverty Assessment.

Has Agricultural Trade Liberalization Improved Welfare in the Least-developed Countries?
Has Agricultural Trade Liberalization Improved Welfare in the Least-developed Countries?

Author: Merlinda D. Ingco

Publisher: World Bank Publications

Published: 1997

Total Pages: 38

ISBN-13:

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Most of the gains from multilateral liberalization come from the countries' own liberalization efforts. Least-developed countries that failed to liberalize their trade policy lost the opportunity for gains that the Uruguay Round made possible. Ingco evaluates the progress in agricultural liberalization - and the welfare effects for least-developed and net food-importing countries - as a result of agricultural price shocks resulting from the Uruguay Round. She finds that: * The changes in welfare are significantly affected by the structure of trade and distortions in the domestic economy. * Although many economies are hurt by increases in world prices, losses in terms of trade are small relative to total GDP. Only in a few countries does the estimated welfare change constitute more than 1 percent of GDP. * In several countries, the distortion effects are significantly larger than the terms-of-trade effects. In some cases, the distortion effects work in opposition to the terms-of-trade effects and are large enough to reverse the sign of the net welfare change. In short, removing policy distortions could convert the small loss in terms of trade to potential gains. But many least-developed, net food-importing countries did not use the Round to support domestic efforts at trade reform. As most studies show, most gains from multilateral liberalization come from the countries' own liberalization efforts, so countries that failed to liberalize their trade policy lost the opportunity for gains. This paper - a product of the International Trade Division, International Economics Department - is part of a larger effort in the department to evaluate the effects of trade liberalization with special focus on least-developed and net-food importing developing countries.

Applying Economic Analysis to Technical Assistance Projects
Applying Economic Analysis to Technical Assistance Projects

Author: Gary McMahon

Publisher: World Bank Publications

Published: 1997

Total Pages: 46

ISBN-13:

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April 1997 Although there is rarely any quantitative economic analysis of technical assistance loans or loan components, the author estimates that roughly 60 percent of the technical assistance in a sample of 40 projects was suitable for quantitative analysis. He also estimates that 80 percent of the technical assistance in the investment loans in his sample was not necessary for project implementation. Moreover, technical assistance was excluded from calculations of the economic rate of return, raising questions about its justification. McMahon recommends using more quantitative economic analysis in appraising technical assistance loans and loan components. After giving a brief history of technical assistance and the problems commonly associated with it, he describes classifications of technical assistance, proposes a new typology to be used for project appraisal, suggests methods for screening projects, and discusses different levels of economic analysis. He shows how the typology and economic analysis could be applied to 40 projects in the Europe and Central Asia region. Although some of the suggested approaches are sophisticated and demanding, much of it relies on fairly simple techniques. McMahon estimates that roughly 60 percent of the technical assistance in his sample was suitable for quantitative analysis. Using four case studies, he demonstrates how quantitative economic analysis could be used more frequently in the appraisal process. McMahon recommends that all technical assistance be classified according to the methodology suitable for its appraisal and evaluation. In cases in which little or no quantitative analysis is used, the staff officer can and should provide a justification - in which case it should still be possible to conceptualize the problem in economic terms. Essential technical assistance should be included when calculating the economic rate of return on a project. When technical assistance is excluded from this calculation, a strong justification for such assistance should be given or it should be omitted from the project. In his sample McMahon estimates that about 80 percent of the technical assistance in investment projects was not essential for project implementation. In the 12 projects for which an economic rate of return was calculated in the appraisal, the technical assistance was not included in the estimate - even though 53 percent of this technical assistance was deemed necessary to the project. This paper - a product of the Public Economics Division, Policy Research Department - is part of a larger effort in the department to study the effectiveness of foreign aid.