Economic network structures, growth and poverty

While investors are advised to diversify in order to manage risk, developing countries are advised instead to liberalise their trade regimes and specialise according to their current comparative advantage. This study uses 67 regions of the GTAP database to investigate the effects of unilateral liberalisation and its impacts on countries’ economic structures and the extent to which this affects countries’ vulnerability to an economic shock. While liberalisation resulted in improvements in GDP and welfare on average, there were significant variations. A number of countries experienced contractions in their GPDs and declines in welfare. While there was no evidence of a relationship between the percentage change in GDP and the initial export or output concentration, there was a positive relationship between the percentage change in GDP and the percentage change in export and output concentrations. On average, increases in GDP following liberalisation were associated with increases in concentration in both the export sector and in overall industrial output and also reductions in the fraction of unskilled labour employed by the main export sector. Initial GDP per capita has no significant effect, implying that once concentration measures and the fraction of costs in the main export are accounted for, the per capita income levels of a country show no systematic effects on the percentage change in GDP induced by the liberalisation. For developing countries undergoing unilateral liberalisation, the results imply that they are likely to experience an increase in GDP, but an increase accompanied by more highly concentrated industrial output and exports, and also a lower fraction of main export costs due to unskilled labour. Following liberalisation, the responses of liberalised and non-liberalised versions of the region’s economies to a shock were compared. The rest of the world’s productivity in the country’s main export was increased by 10%, with the liberalised economies faring marginally worse on average in welfare and terms of trade effects, but slightly better on GDP effects. When the net effects of the initial liberalisation and subsequent technology shock were compared, countries were better off on average if they had liberalised. But this average masked important sectoral differences. Countries specialising in sectors with high proportions of own-commodity inputs in their main export’s total cost, such as manufacturing, did best, while those specialising in food tended to suffer welfare declines. Higher levels of export and output concentration also tended to reduce welfare. This suggests that increased concentration does indeed make countries more vulnerable to certain economic shocks. Finally, the economic network structures of the two extreme cases, Tanzania and Vietnam are compared visually as an aid to interpretation.

Assessing impact of micro finance on poverty alleviation - Bangladesh perspective

“Micro finance” or its major part “micro credit”, both used interchangeably, is an important institutional device for alleviating poverty of the poor people. Micro finance concept was first developed and initiated in Bangladesh in the late seventies with a view to help the people living below the poverty line. Since its inception to till date, there has been tremendous growth of organizations, known as MFIs (Micro Finance Institutions), in this field to deal with the micro finance/credit activities. Despite this, the poverty situation of the poor people who have already used the micro finance programs was not improved substantially. The few MFIs have their own programs to conduct survey on impact assessment of their individual micro credit activities. The present study will focus on the impact assessment of micro finance activities on some variables of poverty alleviation, the extent to which these programs helped loanees to become micro finance graduates and the relevant suggestions as to the success of the micro finance activities.

Dynamics of poverty in Vietnam 2002-2008

The thesis examines various aspects of poverty reduction in Vientam over the period 2002-2008. The thesis finds that trade liberalization, nonfarm activities and good institutions have positive impacts on rural poverty reduction.

From cholera outbreaks to pandemics : the role of poverty and inequality

Cholera and other diarrheal diseases are the second leading cause of death among the poor globally. The tragedy of this statistic is that it need not be the case. Unlike many afflictions, the impact of cholera can be greatly reduced, if not eliminated, through the provision of clean water services. This begs the question of why such provision is absent in much of the world. It is our contention that the provision of clean water services is an increasing function of both a country's level of income and income equality. We test these hypotheses by analyzing 1,032 annual observations arising from 55 relatively poor countries between the years 1980 and 2002. In the primary part of the analysis, we find that providing clean water is, as predicted, an increasing function of income and equality. Following this, and consistent with the existing epidemiological research on cholera, we find that both the numbers of cases and deaths resulting from a given cholera outbreak are strongly and negatively related to the provision of clean water.

Winds of change in Myanmar? Implications for international cooperation In poverty alleviation

We are witnessing the beginnings of what could well be significant change in Myanmar. Elections in November 2010 were quickly followed by the release of opposition leader Aung San Suu Kyi, then by the resignation of Senior-General Than Shwe, dissolution of the State Peace and Development Council (SPDC), the opening of parliament, and the inauguration of Thein Sein as President on 30th March 2011. Thein Sein's inauguration speech called for national reconciliation and an end to corruption, promised a more market-oriented economy, and vowed to create employment opportunities. He also pledged to develop the health and education sectors in cooperation with international organisations, and to alleviate poverty. While some fear this may only be rhetoric, a growing number of indications suggest that major political and economic reform may indeed be getting underway. This paper traces these recent developments and the possibility of significantly improved international development cooperation in Myanmar, particularly as it affects the prospects of poverty alleviation efforts and cooperation with Western INGO and multilateral agencies. It analyses the implications of this reform on international development assistance and cooperation from the perspectives of humanitarian needs, international relations theory, development theory, and political philosophy.

Essays on social capital and poverty in Bangladesh

The thesis examines the role of social capital in determining a number of socio-economic factors in Bangladesh. It uses cross-sectional data of 5600 extreme poor households and finds that social capital plays an important role in improving health and hygienic behaviour, and labour market outcomes during lean season.

The views of parents who experience intergenerational poverty on parenting and play: a qualitative analysis

BACKGROUND: There is minimal literature on how parents experiencing intergenerational poverty view their role as parents and the value they place on children's play. The objective of this study was to examine how these parents view their parenting role and their beliefs about children's play. METHODS: Thirteen mothers of preschool-aged children who experienced intergenerational poverty were recruited to the study. Semi-structured interviews were conducted and were analysed using interpretive phenomenological analysis. RESULTS: Parents described their role as guiding their children to become 'good' people, to teach them skills and provide a routine within the home. There were two disconnections in the data including the view that whilst parenting was hard and lonely, it was also a private matter and participants preferred not to seek support. A second disconnection was in terms of their beliefs about play. Parents believed that whilst play was valuable to their child's development, it was not their role to play with children. However, if parents did play with their child, they noticed positive changes in their child's behaviour. CONCLUSION: The views of parents who experienced intergenerational poverty were similar to other reported findings in parenting studies. However, the current sample differed on not seeking help for support as well as not seeing their role as playing with their children, even though occasions of joining their child in play were associated with a positive change in their relationship with their child. This has implications for communicating about parenting issues with parents who have experienced intergenerational poverty.

The role of rice in poverty dynamics in rural Vietnam: 2002–2008

Using the Vietnamese Household Living Standards Surveys of 2002, 2004, 2006, and 2008, this paper investigates the role of rice in poverty dynamics in the recent context of Vietnam. We find that sizeable changes in rice prices in the 2000s, which were driven largely by the country's integration into the world markets, have not helped rural households escape poverty, even for households with large-scale rice production. Our results also document that changes in rice output and productivity did not help mitigate poverty either. The paper provides evidence to explain why a substantial exogenous increase in the rice prices between 2006 and 2008 did not help rural households to move out of poverty, while similar changes did help in the 1990s.