Implications of Slowing Growth in Emerging Market Economies for Hunger and Poverty in Rural Areas of Developing Countries

Implications of Slowing Growth in Emerging Market Economies for Hunger and Poverty in Rural Areas of Developing Countries

Author: Laborde Debucquet, David

Publisher: Intl Food Policy Res Inst

Published: 2016-09-06

Total Pages: 58

ISBN-13:

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Over the past 25 years, economic growth rates in many developing countries have outpaced those in industrialized countries, and per capita incomes of these two groups of countries have started to converge. Growth in developing countries contributed to a dramatic drop—from 37 percent to 13 percent—in the global extreme poverty rate between 1990 and 201. However, the global economic outlook has deteriorated recently. This paper examines the impact of the actual and projected slowdown in the world economy since 2012 on the poor and on the potential for achievement of the Sustainable Development Goals (SDGs). It builds on the changes between 2012 and late 2015 in the International Monetary Fund’s World Economic Outlook projections to provide the basic slowdown scenario. It then uses a global model to assess the impacts of lower rates of productivity growth and consequent lower savings and investment on key price and income variables. The productivity shocks are passed directly to the production activities included in household microsimulation models for almost 300,000 households. These households are also affected by the modeled changes in prices and wages. Simulations allow us to assess the impacts of the slowdown on the real household incomes of the poor, and hence on the poverty rate. The results suggest that the poorest countries will see the greatest slowdown in poverty reduction, with over 5 percent of their population projected to remain below the poverty line. Overall 38 million fewer people will leave extreme poverty compared to earlier projections. Farm households are at particular risk in middle-income countries, with over 1.5 percent more of the farming population potentially not escaping extreme poverty in these countries. By 2030, average extreme poverty in rural areas is now projected to be about 7.5 percent, rather than 7.1 percent. While substantial poverty reduction is still expected between now and 2030, a strong focus on policies for poverty reduction will be vital to achieving the first SDG goal of eliminating poverty.


Globalization and Poverty

Globalization and Poverty

Author: Ann Harrison

Publisher: University of Chicago Press

Published: 2007-11-01

Total Pages: 674

ISBN-13: 0226318001

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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.


Global Economic Prospects, June 2021

Global Economic Prospects, June 2021

Author: World Bank

Publisher: World Bank Publications

Published: 2021-08-03

Total Pages: 339

ISBN-13: 1464816662

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The world economy is experiencing a very strong but uneven recovery, with many emerging market and developing economies facing obstacles to vaccination. The global outlook remains uncertain, with major risks around the path of the pandemic and the possibility of financial stress amid large debt loads. Policy makers face a difficult balancing act as they seek to nurture the recovery while safeguarding price stability and fiscal sustainability. A comprehensive set of policies will be required to promote a strong recovery that mitigates inequality and enhances environmental sustainability, ultimately putting economies on a path of green, resilient, and inclusive development. Prominent among the necessary policies are efforts to lower trade costs so that trade can once again become a robust engine of growth. This year marks the 30th anniversary of the Global Economic Prospects. The Global Economic Prospects is a World Bank Group Flagship Report that examines global economic developments and prospects, with a special focus on emerging market and developing economies, on a semiannual basis (in January and June). Each edition includes analytical pieces on topical policy challenges faced by these economies.


Shock Waves

Shock Waves

Author: Stephane Hallegatte

Publisher: World Bank Publications

Published: 2015-11-23

Total Pages: 227

ISBN-13: 1464806748

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Ending poverty and stabilizing climate change will be two unprecedented global achievements and two major steps toward sustainable development. But the two objectives cannot be considered in isolation: they need to be jointly tackled through an integrated strategy. This report brings together those two objectives and explores how they can more easily be achieved if considered together. It examines the potential impact of climate change and climate policies on poverty reduction. It also provides guidance on how to create a “win-win†? situation so that climate change policies contribute to poverty reduction and poverty-reduction policies contribute to climate change mitigation and resilience building. The key finding of the report is that climate change represents a significant obstacle to the sustained eradication of poverty, but future impacts on poverty are determined by policy choices: rapid, inclusive, and climate-informed development can prevent most short-term impacts whereas immediate pro-poor, emissions-reduction policies can drastically limit long-term ones.


The Role of Trade in Ending Poverty

The Role of Trade in Ending Poverty

Author:

Publisher:

Published: 2015

Total Pages: 0

ISBN-13: 9789287042323

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The Role of Trade in Ending Poverty looks at the complex relationships between economic growth, poverty reduction and trade, and examines the challenges that poor people face in benefiting from trade opportunities. Written jointly by the World Bank Group and the WTO, the publication examines how trade could make a greater contribution to ending poverty by increasing efforts to lower trade costs, improve the enabling environment, implement trade policy in conjunction with other areas of policy, better manage risks faced by the poor, and improve data used for policy-making.


New modalities for managing drought risk in rainfed agriculture

New modalities for managing drought risk in rainfed agriculture

Author: Ward, Patrick S.

Publisher: Intl Food Policy Res Inst

Published: 2016-10-05

Total Pages: 32

ISBN-13:

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In this paper we explore the potential for a new approach to managing drought risk among rainfed rice producers in Odisha, India. Droughts have historically been a serious constraint to agricultural production in rainfed agricultural systems, with droughts resulting in significant reductions in both yields and cultivated area, in turn leading to significant impacts on rural livelihoods and food security. Scientists and policy makers have proposed various strategies for managing risks, with limited success. In this study we consider two such strategies, specifically drought-tolerant rice and weather index insurance. While neither drought-tolerant cultivars nor weather index insurance products are perfect solutions for adequately managing drought risk in and of themselves, there is scope to exploit the benefits of each and bundle them into a complementary risk management product, specifically through proper index calibration and an optimized insurance design. In this study, we explore preferences for such a complementary risk management product using discrete choice experiments in Odisha, India. We are able to estimate the added value that farmers perceive in the bundled product above and beyond the value associated with each of the independent products. We also show that valuations are sensitive to the basis risk implied by the insurance product, with farmers less enthusiastic about risk management products that leave significant risks uninsured.


Adoption of food safety measures among Nepalese milk producers

Adoption of food safety measures among Nepalese milk producers

Author: Kumar, Anjani

Publisher: Intl Food Policy Res Inst

Published: 2016-09-15

Total Pages: 52

ISBN-13:

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Food safety is the most vital component of food security. One option to ensure food safety is through enhancing compliance at the farm level. This study investigates the status, estimates the cost, identifies the determinants, and assesses the impact of compliance with food safety measures in milk production in Nepal. The study is based on cross-section primary data collected at the farm level from six districts of Nepal. These districts are known for milk production and capture the geographical and institutional diversity of milk production in the country. The study shows that the status of compliance with food safety measures at the dairy farm level is not very encouraging. The intensity with which food safety practices are adopted shows wide inter- and intra-district variations. This intensity depicts a positive relationship to herd size. The additional cost of compliance with food milk safety measures reveals an inverse relationship with herd size. The factors associated with the adoption of food safety measures are caste, number of children and elderly people in a family, household labor size, herd size, access to information, inspection for conformity with the safety and quality standards in dairy farming, perception of households about food safety assistance provided by milk buyers, and market outlet types. We also provide evidence of the impact of food safety measures on farm-gate prices and farmers’ profitability.


Using cognitive interviewing to improve the Women’s Empowerment in Agriculture Index survey instruments

Using cognitive interviewing to improve the Women’s Empowerment in Agriculture Index survey instruments

Author: Malapit, Hazel J.

Publisher: Intl Food Policy Res Inst

Published: 2016-10-14

Total Pages: 44

ISBN-13:

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This paper describes the cognitive interviews undertaken in Bangladesh and Uganda in 2014 as part of the second round of pilots intended to refine the original version of the Women’s Empowerment in Agricultural Index (WEAI). The WEAI is a survey-based tool that assesses gendered empowerment in agriculture. Baseline data were collected in 19 countries following the WEAI’s launch in 2012, but implementers reported a number of problems, such as confusion among both respondents and enumerators regarding the meaning of abstract concepts in the autonomy sub-module and difficulties recalling the sequence and duration of activities in the time-use sub-module. In our cognitive interviews, we asked detailed follow-up questions such as, “Did you think this question was difficult, and if so, why?” and “Can you explain this term to me in your own words?” The results revealed potential problems with the survey questions and informed the revision of the WEAI, now called the Abbreviated WEAI (or A-WEAI), which has less potential for response errors.


Learning from China?

Learning from China?

Author: Chen, Yunnan

Publisher: Intl Food Policy Res Inst

Published: 2016-11-21

Total Pages: 32

ISBN-13:

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The question of how to promote structural transformation is central in fostering sustainable growth and poverty reduction in low-income countries in Africa. Following China’s domestic economic transformation and its growing outward investments in the developing world, we seek to understand how Chinese investment in Africa, particularly in manufacturing, may help to foster industrialization and in turn the structural transformation of African economies. We focus on Chinese investments and partnerships in Nigeria, a salient destination for Chinese manufacturing foreign direct investment in Africa, and examine the potential mechanisms of technology transfer that might catalyze such transformation. We find some small but significant cases of potential technology transfer, particularly through technical partnerships between firms. However, the future potential of such mechanisms will depend on the initiative of Nigerian actors to leverage Chinese investment to their interest.


Micronutrient policy process in Malawi

Micronutrient policy process in Malawi

Author: Babu, Suresh Chandra

Publisher: Intl Food Policy Res Inst

Published: 2016-11-14

Total Pages: 120

ISBN-13:

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Micronutrient deficiencies are common across the developing world and have major effects on the health outcomes of its population. Although this is well understood, many countries find it difficult to bring about policy change in this regard. This paper uses micronutrient policies designed and implemented in Malawi as a case study to shed light on the barriers and gaps faced by developing countries for similar programs and policies. To understand the drivers of policy change, this paper uses the kaleidoscope model to trace the policy processes of three major micronutrients—iodine, vitamin A, and iron. Using a select set of policy process tools, as well as field interviews with key informants who were part of Malawi’s micronutrient policy process, the authors test a set of hypotheses on 16 variables that drive policy change in the micronutrient policy sphere. Results indicate that much of the agenda setting for micronutrient policies and programs was triggered by external events that focused on the elimination of micronutrient deficiencies as part of the global development agenda. These events include the International Conference on Nutrition, the Millennium Development Goals, and, more recently, Scaling up Nutrition. The design of micronutrient policies and program interventions in Malawi was adopted by locally mandated ministries and institutions, in collaboration with development partners who provided both financial and technical support at the design stage. The adoption of micronutrient policies and intervention programs was driven primarily by external funding, particularly through supplementation programs related to vitamin A and iron. Adoption of fortification standards for vitamin A has been going on for more than a decade due to continuous resistance from the private sector, which faces additional costs and needs greater technical expertise. The biofortification method of micronutrient interventions for iron and vitamin A is externally driven and relatively new in Malawi. Although this method is widely accepted by policy makers, no concrete strategy has been developed for its design, adoption, and implementation. Further, supplementation and fortification programs continue to face implementation challenges due to poor physical infrastructure and monitoring systems. However, the national institutional architecture required for agenda setting, design, adoption, implementation, evaluation, and review to address micronutrient deficiencies is in place in Malawi. The system needs continued support from development partners for effective functioning at all levels. The use of various tools for the policy change part of the kaleidoscope model indicate that policy change is a dynamic process; over time, changes in the nature and composition of the members of policy and institutional architecture can result in different policy outcomes. The Malawi case study demonstrates two things. First, local leadership is crucial in keeping micronutrient deficiencies on the policy-making agenda, and second, it matters where coordinating power is placed in the policy hierarchy. This paper finds that, even with policy champions, adopted policies will face implementation challenges unless they are supported with adequate resources and are systematically followed through to final execution and delivery.