Income Poverty Reduction Research Articles

Los programas sociales y la pobreza en Bolivia. Un ejercicio evaluativo

La presente investigación realiza una evaluación de los programas sociales de lucha contra la pobreza. En concreto, se estudia el programa de transferencia monetaria condicionada Bono Juana Azurduy en Bolivia. La muestra está conformada por dos grupos, uno de tratamiento y otro de control; y se realiza la estimación propensity score matching de evaluación, a partir de la Encuesta de Hogares del Instituto Nacional de Estadística. Las variables dependientes analizadas son la pobreza por ingreso y la pobreza extrema; a su vez, la percepción del bono se considera como la variable de tratamiento. Asimismo, las variables independientes del modelo estuvieron representadas por características demográficas, sociales y económicas del hogar. Los resultados permiten observar que la política social operativizada a través de transferencias monetarias, permitieron reducir en un 2,6% la pobreza por ingreso y 3,6% la pobreza extrema.

Adoption and impacts of improved beehive technologies in the miombo woodland of Tanzania

This paper analyzes the adoption and impacts of improved beehives on households’ income using cross-sectional data sourced from a sample of 198 beekeepers in western Tanzania who adopted improved beehives. Propensity score matching and the endogenous switching regression model are used to assess the adoption and impacts. Results show that the adoption of improved beehives resulted in significant increase in beekeepers’ income. An analysis of the determinants of adoption revealed age of the household head, years of formal schooling, access to credit, access to extension services, training and experience in beekeeping as key factors influencing the adoption. There is a need to promote the use of improved beehives so as to enhance productivity and boost income among small-scale beekeepers. Efforts to improve access to and use of improved beehives technologies should be part and parcel of income poverty reduction strategies in the study areas where beekeeping is a key livelihood activity but adoption is low. Policies that enhance the diffusion and adoption of improved beehives should be central to income poverty reduction strategies in Tanzania.

Eliminating global learning poverty: The importance of equalities and equity

This paper explores the quantitative relationships between average levels of learning achievement across countries, changes in average levels of learning achievement, the inequality of distribution of achievement (akin to income or wealth inequality in general development analysis), and the proportion of students learning at or below an absolute minimum (akin to poverty in general development analysis). The paper uses a variety of data from cross-national and national assessments: aggregate data, micro (student-level) data, school-level data, and time-series data. The paper shows how various factors such as gender or wealth impact learning levels, but also shows that ‘systems-related’ inequality, not directly related to such factors, is typically much larger than inequality associated with any of those factors. The paper shows that countries progress from very low average levels of achievement to middle levels more by reducing the percentage of students with very low scores (that is, by paying attention to the ‘bulging’ left-hand tail of the distribution) than by increasing the percentage of high performing students. The availability of micro data from a particular case allows exploration of the relationship between inequality measures and measures of the percentage of students below a low level of achievement and shows that, at least in that case, the reduction in inequality that accompanies improvements in the average levels takes place mostly through a reduction in the percentage below a low level. Unlike in the case of income, where vast reductions in income poverty seem possible without reducing income inequality, the evidence presented here suggests that this typically does not happen with learning levels: inequality reduction, reductions in percentages below a low level, and improvements in the averages are all empirically connected. More work is needed to show whether that connection is also causal.

Supermarket contracts and smallholder farmers: Implications for income and multidimensional poverty

Food systems in developing countries are changing rapidly with a growing role of modern supermarkets. Supermarkets influence supply chains and the way agricultural products are sourced from farmers. Especially for the procurement of fresh fruits and vegetables, supermarkets often contract farmers directly to ensure consistent and high-quality supply. One important question, which is addressed here, is whether smallholder farmers benefit from supermarket contracts. Previous studies address this question, but mostly focus on income effects without exploring implications for other dimensions of household welfare, such as nutrition, health, or housing conditions. Moreover, most existing studies rely on cross-section data. We add to the literature by analyzing effects of supermarket contracts on income and multidimensional poverty using three rounds of panel data collected from smallholder vegetable farmers in Kenya and econometric models with household fixed effects. On average, supermarket contracts increase household income by over 40%. We also find significant reductions in income poverty and multidimensional poverty. Quantile regressions show that farmers in all income groups benefit, but richer households benefit more than poorer ones in absolute terms. However, supermarket contracts cause the strongest reductions in multidimensional deprivations among the poorest households.

Multiple Dimensions of Impoverishment in Iran

Concerning the demands of Sen’s (1984) Capability Approach to the assessment of human well-being, we estimate multidimensional poverty and compare the results with traditional measures of income poverty in Iran. We detect poverty in urban and rural Iran over 1999-2007, a period with relatively high GDP growth. The results reveal that the pace of income poverty reduction is much faster than the pace of multidimensional poverty alleviation. The pace of poverty reduction is much slower in rural areas than in urban areas and the capital city, Tehran. Hence, inequality between rural and urban areas increased over the time. We also show how policymakers may benefit from applying the multidimensional approach in targeting the subgroups by the most deprived aspects.

POVERTY REDUCTION AND ECONOMIC LIVELIHOOD MOBILITY IN RURAL SUB‐SAHARAN AFRICA

AbstractThis article uses household panel data for six countries in rural sub‐Saharan Africa to study the dynamics of off‐farm diversification rather than the ‘static’ analyses common in the related literature. It identifies drivers of economic livelihood mobility and implications for poverty reduction. The results show that on‐farm specialization imposes considerable welfare costs on rural households. In most of the countries, income poverty reduction was highest for households that became diversified and lowest for those that became specialized. Yet, off‐farm diversification entry is hampered by living in a female‐headed household, old age, low farm productivity and poor rural infrastructure. © 2020 John Wiley & Sons, Ltd.

Determining Dimensions of Poverty Applicable in China: A Qualitative Study in Guizhou

While China has succeeded in dramatically reducing income poverty, it is increasingly recognized that poverty is multidimensional. Moreover, all countries are expected under the UN’s Sustainable Development Goals to halve poverty in all its dimension by 2030 “according to national definitions”. However, there is little agreement, either in China or elsewhere, as to what the dimensions should be. Therefore, qualitative research was undertaken in Guizhou in 2019 to identify the dimensions of poverty through discussion with people with direct experience of poverty. Forty-two people participated in one of five extended creativity groups that met for up to 12 hours over two days. One group comprised people on middle incomes, the others, people in poverty, a substantial minority of whom were functionally illiterate. Eight dimensions of poverty were identified in addition to low income and poverty duration: lacking decent work; material deprivation; physical suffering; emotional suffering; social abuse and exclusion; institutional injustice; powerlessness; and struggle and resistance. If replication confirms these dimensions, indicators should be developed to enable multidimensional poverty to be adequately measured and anti-poverty policies better evaluated.

Assessment of livelihood opportunities among farmers in the Shai Osudoku district of the Greater Accra Region, Ghana

The objective of this study was to assess livelihood opportunities among smallholder farmers in five communities namely Dodowa, Ayikuma, Agomeda, Asutsuare and Doryum in the Shai Osudoku district of the Greater Accra Region, Ghana. One hundred and fifty (150) farmers were selected from the Shai Osudoku district using multi-stage sampling procedure. Purposive sampling was used to select these communities due to their intensive involvement in farming. Furthermore, simple random sampling technique was adopted to pick 150 farmers for the survey. The study showed that farm households were able to 'pair' their farming activities with alternative livelihoods without abandoning their primary livelihoods, which is farming. The income levels of farmers from their primary livelihood activities were comparatively low with majority, 82.7%, earning GH₵ 100 or less every month compared with fewer farmers, 13.3%, earning above GH₵ 150. However, more than half of farmers (58%) earned above GH₵ 150 every month from their alternative livelihoods. Again, farmers who decided to undertake their primary and alternative livelihoods concurrently have seen a rise in the level of their income and accordingly contributing to the reduction of income poverty among rural farm households.

An empirical analysis of credit-financed agribusiness investments and income poverty dynamics of rural women in Cameroon

ABSTRACTThe link between microcredit and income poverty reduction for the poor is well established. However, contemporary empirical evidence remains mixed, especially among women beneficiaries. We use a purposive sample of 160 women from 80 microcredit groups of the Program for the Improvement of the Competitiveness of Family Agro Pastoral Farms (ACEFA) in Cameroon to assess the relationships between rural women’s microcredit access and their income poverty dynamics. ACEFA’s credit-plus group-lending approach offers extension services and trainings plus credit to women. Binary logistic regression results reveal that this model up-scales agribusinesses, increases incomes, and prevents “credit capture” by men. The model supports risk-taking behavior, enhances credit efficiency, and promotes successful agribusiness development better than standalone microcredit models.

The Impact of Zakah¯ Transfer on Multidimensional Poverty: The Case of Pakistan

While Zak¯ah has a significant effect on reducing income poverty, its impact on multidimensional poverty (deprivation in health, education, and living standard) has not been studied much. Since the size of impact depends on accuracy of Zak¯ah targeting and its coverage, this paper assesses the accuracy of Zak¯ah targeting and coverage by computing Multidimensional Poverty Index (MPI) for Last Year’s Zak¯ah (LYZ) recipients and LYZ non-recipients using Pakistan Social and Living Standard Measurement (PSLM) survey (2014). The impact of LYZ transfer on multidimensional poverty is estimated using Propensity Score Matching (PSM) method to control for confounding factors by comparing treatment (LYZ recipients) and control (LYZ non-recipients) groups. The higher MPI of treated group shows accuracy of targeting. The average-treatment effect (ATE), average-treatment effect on the treated (ATET), and potentialoutcome mean (POM) estimates show small impact of LYZ payment on total weighted and individual deprivations in the short-run. However, the statistical insignificance of ATE and ATET shows insufficient coverage as well as the possibility of reaching out to income-poor, but not to multidimensional-poor. This implies that public Zak¯ah committees should disburse the Zak¯ah based on multidimensional poverty status for efficient use of Zak¯ah funds for the alleviation of multidimensional poverty.

Energy poverty in Ghana: Any progress so far?

This paper investigates the dynamics of energy poverty in Ghana using two nationwide cross-sectional datasets (Ghana Living Standards Surveys Round 5 and Round 6). Employing the Multidimensional Energy Poverty Index (MEPI) as a measure of energy poverty, this paper estimates that the share of energy poor people decreased from 88.4% in 2005/2006 to 82.5% in 2012/2013. The results indicate that although there has been a significant decline in the overall energy poverty in Ghana during the study periods, the incidence of energy poverty remains high. Moreover, the study findings show a large gap between urban and rural energy poverty over the two periods; rural people are almost twice as energy poor as urban people. These findings suggest the need for the incorporation of energy poverty reduction strategies into income poverty reduction strategies to help improve not only access to modern energy but also in terms of affordability.

Assessing Socio-Economic Impacts of Agricultural Subsidies: A Case Study from Bhutan

As an agrarian nation, Bhutan’s agricultural policies prioritize agricultural subsidies to boost agricultural production, rural incomes, improve food security, and reduce income poverty, especially among the rural poor. However, the effectiveness and efficiency of such policy interventions remains unknown. Based on semi-structured interviews with heads of households from six blocks representing two districts, expert consultation with agricultural policymakers and extension agents, we attempted to evaluate the socio-economic impacts of agricultural subsidy programs including co-payments. The study found that while over 90% of the households received at least one form of subsidy, except for agricultural machineries and piglets, the non-poor population has greater access to the subsidies compared to the poor. For instance, only 35% of the poor received seed and sapling subsidies compared to 52% seeds and 39% sapling subsidies received by the non-poor population. Furthermore, none of the poor received Jersey cow or biogas subsidies due to their inability to co-pay. Additionally, the agriculture machinery subsidy was found to be counterproductive to the lower income groups (<US$153.85) and beneficial to the higher income groups. However, 14.5% of the households who received a poultry subsidy experienced 3 times more income (at a mean income change of 634.31 US$) compared to those who did not, indicating that this subsidy has larger potential to improve income for the poor. To efficiently achieve the objectives of increasing rural income and reducing poverty, we recommend agricultural subsidy programs and projects be provided as a package to poor small holders, where inputs are given based on existing capacity, availability of technical support, and market accessibility.

Youths in Community Development, Poor Market Linkage: A Disastrous Lag for Local Business Flourish in Coast Region, Tanzania

Youths are the pillars of community development; their skills and knowledge can be applied in tangible issues of great stake to individuals and community at large. Youths participation in local business is due to various motives ranging from wealth desire and reduction of income poverty. The current trend of entrepreneurship and business development have attracted youths to engage in local business especially in urban areas where challenges are recordable. Yet, the current study being intrigued by the forgotten drawbacks for business development, revealed that, given the nature of business, capital was always not a problem for business start-up. It was found that youths can still mobilize their own seed capital through means like saving from subsistence funds, fundraising through selling ideas and household contribution. However, the motives for business start-up does define the end results as whether business could be sustainable or otherwise. More importantly, it was revealed that, Youths concern in local business operation are that, market availability and linkages define the level of business flourishment. Lack of information about market availability, undisclosed market operation terms in outer boundaries hinder a linkage search which in turn poses unpleasant effect of business growth and community development at large. The local government in administrative areas should always take the responsibility of ensuring that the market operation terms are predictable and supportive for business growth.

Global Development, Converging Divergence and Development Studies: A Rejoinder

Global Development, Converging Divergence and Development Studies: A Rejoinder

Regional Differentials in Multidimensional Poverty in Nepal: Rethinking Dimensions and Method of Computation

This article examines the extent of regional inequality in multidimensional poverty in Nepal using the nationally representative Nepal Demographic Health Survey (2011) data. The authors present a more robust method of multidimensional poverty index (MPI), particularly in terms of the procedure of estimation and aggregation of the indicators as compared with previous studies. The findings suggest that despite the relatively better economic progress and a considerable reduction in education and health poverty, there is a wide inequality across the regions. Far less has been achieved in the case of reducing the standard of living poverty, that is, wealth poverty and inequalities across the regions. The article finds that global MPI tends to inflate poverty estimates in the case of Nepal. It also suggests that development policies and poverty reduction programs in Nepal must aim to reduce multidimensional poverty, of which deprivation in education, health and basic amenities must be an integral component, along with their efforts to improve economic growth and reduce income poverty.

Effects of Urban Farming Practices on Income Poverty Reduction in Dodoma Municipality, Tanzania

Urban farming is very extensive in urban areas in developing countries. Urban farming includes activities such as crop farming, vegetables, gardening

Poverty reduction during 1990–2013: Did millennium development goals adoption and state capacity matter?

While poverty reduction remains central in the Post-2015 Agenda, its determinants remain debated in the literature, especially the role of structural conditions related to governance. This paper provides an assessment of two key dimensions: the global adoption of MDGs and state capacity. We do so by studying whether they facilitated convergence in income poverty measures, using cross-section and panel methods, with data on 89 developing economies for the period 1990–2013. We find that poverty headcount and gap measures tended to decrease faster in countries with initially higher income poverty. Such convergence accelerated after 2000, suggesting that MDGs adoption was instrumental to poverty reduction. However, this still leaves unexplained substantial variation in poverty reduction performance across countries. Such variation is explained by state capacity: countries with greater ability to administer their territories in 1990 experienced faster income poverty reduction and were more likely to have achieved the MDG target. This result is insensitive to robust regression methods and to a large set of controls (initial level of income, dependence on natural resources, education and health inputs, dependence on foreign aid, ethnic fractionalization, regional effects and a set of governance variables). As good governance and effective institutions are included in the Sustainable Development Goals, this result provides empirical justification for this move, suggesting that more effective states could be crucial to sustain the development progress achieved so far.

Barriers to Labor Migration for the Rural Poor: Experimental Evidence from a Vocational Training Program in Bangladesh

Vocational training programs aimed at rapidly growing sectors have the potential to reduce skill gaps as well as improve income and employment possibilities. Such programs have often been unsuccessful because they are not driven by industry demand and market linkages. Also, they do not tackle other barriers faced by trainees, such as savings and credit constraints and the uncertainty of migration. We introduced a training plus'' program for the apparel sector jobs offered to the poor, rural households in northern Bangladesh, where we relaxed some of these constraints in a rigorous Randomized Control Trial (RCT) setting. Analyzing the program uptake demonstrated an interesting heterogeneity, where gender-specific social barriers, as well as risk and time preferences, play influential roles. Data from the follow-up surveys--six and eighteen months after the intervention -- showed a statistically significant, persistent, and a large effect of the training program on employment when combined with an apprenticeship [on-the-job training (OJT)] or stipend component. We also found substantial income and remittance impacts, especially during the time of a seasonal shock, as well as a reduction in income poverty, both for the stipend and OJT groups. However, the rural household estimates -- twelve months after the intervention--showed no impact on consumption poverty in the origin households.

Mechanics of replacing benefit systems with a basic income: comparative results from a microsimulation approach

Recent debates of basic income (BI) proposals shine a useful spotlight on the challenges that traditional forms of income support are increasingly facing, and highlight gaps in social provisions that largely depend on income or employment status. A universal “no questions asked” public transfer would be simple and have the advantage that no-one would be left without support. But an unconditional payment to everyone at meaningful but fiscally realistic levels would likely require tax rises as well as reductions in existing benefits. We develop a comprehensive BI scenario that facilitates an assessment of the resulting fiscal and distributional effects in a comparative context, undertake a microsimulation study to quantify them, and propose a simple decomposition to identify the mechanisms that drive effects in different country contexts. Results illustrate the challenges, but also the strengths, of existing social protection systems. A BI would fix benefit coverage gaps that exist in many countries, but would require very substantial tax rises if it were to be set at a meaningful level. As support would not be targeted on those most in need, it would not be a cost-effective way of directly reducing income poverty.

Poverty Reduction During 1990-2013: Did Millennium Development Goals Adoption and State Capacity Matter?

While poverty reduction remains central in the Post-2015 Agenda, its determinants remain debated in the literature, especially the role of structural conditions related to governance. This paper provides an assessment of two key dimensions: the global adoption of MDGs and state capacity. We do so by studying whether they facilitated convergence in income poverty measures, using cross-section and panel methods, with data on 89 developing economies for the period 1990-2013. We find that poverty headcount and gap measures tended to decrease faster in countries with initially higher income poverty. Such convergence accelerated after 2000, suggesting that MDGs adoption was instrumental to poverty reduction. However, this still leaves unexplained substantial variation in poverty reduction performance across countries. Such variation is explained by state capacity: countries with greater ability to administer their territories in 1990 experienced faster income poverty reduction and were more likely to have achieved the MDG target. This result is insensitive to robust regression methods and to a large set of controls (initial level of income, dependence on natural resources, education and health inputs, dependence on foreign aid, ethnic fractionalisation, regional effects and a set of governance variables). As good governance and effective institutions are included in the Sustainable Development Goals, this result provides empirical justification for this move, suggesting that more effective states could be crucial to sustain the development progress achieved so far.