Institutions and policies for growth and poverty reduction: the role of private sector development

This paper goes over some of the recent discussions on the effects on growth and poverty of institutions and policies, especially those that relate to the functioning of the private sector. It examines the empirical relationship between various measures of institutional quality and regulatory policies, and economic growth and poverty. The results suggest that good governance, as measured by a strong commitment to the rule of law, among other things, matters for poverty reduction largely through its effect on economic growth. In terms of business regulations, the paper finds that less restrictive regulations pertaining to starting a business are associated with higher economic growth as well as lower rates of $2-a-day poverty. Political freedom is not associated with either higher growth or lower poverty. Taken together, the evidence here seems to suggest that the delivery of good governance and policies that facilitate the creation of new enterprises are more relevant for growth and poverty reduction than the nature of the political system per se.

Does microfinance fight social exclusion and poverty? : Bangladesh evidence

This study focuses beyond the traditional role of microfinance in addressing poverty to examine also its effect on social exclusion and human development. It proposes and tests a model of the relationships between these three concepts using data from Bangladesh Association for Social Advancement (ASA)'s participants in Bangladesh compared to a control group.

Small-scale irrigation, pastoral livelihood diversification and poverty alleviation in Kenya

Pastoral traditional livelihood systems are under threat from drought and human predation. Those who diversified into irrigation farming are less vulnerable and able to re-invest in the pastoral economy and alternative livelihood activities. Small-scale irrigation has contributed towards economic growth and poverty alleviation in the target area. These changes may however not be sustainable.

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.

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.

NONFARM ACTIVITY AND POVERTY REDUCTION IN RURAL VIETNAM: 2002-2008

This paper uses the Vietnamese Households Living Standards Surveys of 2002, 2004, 2006and 2008 to examine the effects of nonfarm activity on poverty in rural Vietnam. We show that nonfarm activity helps the poor, but not the poorest, given that households need to own a minimum level of endowment to partake in nonfarm activity. We find an inverted-U shaped relationship between households’ endowment levels and the probability of participating in nonfarm activity. Also, in contrast to previous studies which largely by-passed the endogeneity of nonfarm activity, we instrument it with nonfarm networks, and find that nonfarm activity plays an important role in poverty reduction, however, this impact decreases over time.

Domestic violence and the exemption from seeking child support : providing safety or legitimizing ongoing poverty and fear

This article examines the experience of low-income women on welfare in Australia and the process of seeking child support from a violent ex-partner, contrasting this with research from the United States and the United Kingdom. Women in Australia who fear ongoing or renewed abuse as a result of seeking child support are eligible for an exemption. However, the exemption policy does not necessarily provide the intended protection of women and children from ongoing abuse and poverty. The exemption policy route also produces an unintended outcome whereby the perpetrators of violence are financially rewarded as they do not have to pay child support. These outcomes are shaped by a complex interaction of personal, cultural and structural forces that make the process of seeking child support for women who have experienced violence extremely problematic. The article demonstrates how in Australia, as in the US and UK policy contexts, the needs of women and their children are compromised by the details of policy specification and the way policies are implemented within the different systems.

Animals in international development, poverty reduction and sustainable livelihoods

This paper explores the role and percept¡ons of an¡mals in internat¡onal development efforts and the possible contradictions between differing priorities of agencies involved in internat¡onal charitable efforts. The description ofthe differing descriptions of purposes in the (England and Wales) Charities Act of 2006 prov¡des a good starting point. There are many available purposes for charities, and although having one purpose does not preclude a second, organizations concerned with animal welfare appear to be quite d¡stinct from those work¡ng for poverty alleviation in the developing world. A fun and novel gift of a donkey may equally be perceived as a cruel, environmentally unsustainable and misguided development effort, a valuable asset for a household, or a burden to a household struggling to feed existing mouths..... This paper questions the underlying tensions between human development, animal welfare, and poverty alleviation exploring cultural tensions, philosophical tens¡ons and where areas of common ground may be found.

Perceptions of poverty and the perpetuation of the capability-judgment cycle in outer southeast Melbourne

People living in poverty are subject to assumptions and stereotypes which, whether inaccurate, harmful, or misguided, can impact empowerment and capability building. This research explores perceptions relating specifically to people in poverty in outer southeast Melbourne suburbs. Perceptions of 218 non-poor respondents are compared with the perceptions of 52 poor respondents. Poor respondents describe themselves before discussing impacts of negative non-poor perceptions. Findings demonstrate that the nonpoor tend to view the poor negatively and that these judgments have adverse impacts on those in poverty. Non-poor perceptions in this study are shown to influence the perpetuation of poverty by contributing to a cause and effect capability-judgment cycle. This cycle illustrates how non-poor views impact emotional and material wellbeing of the poor and influence policy, programs, and poverty discourse in ways which further reduce the capabilities of the poor to achieve valued ends.

State sovereignty and migration control: the ultimate act of discrimination?

Nations zealously guard their borders and carefully vet migrants. This consigns many people to live in states not of their choice and often diminishes their opportunities and their level of flourishing. In some cases it is the difference between life and death. The practice of imposing migration controls is discriminatory. In fact it is the ultimate form of discrimination: 'super-discrimination.' There is no logical or moral reason why non-nationals of a state should not have the same opportunities and freedoms as nationals in that state. One of the most common forms of discrimination is race - treating a person differently simply because of their place of birth. This is one of the clearest and most repugnant forms of discrimination because the location where a person is born is of course merely a happy or unhappy circumstance over which the individual has no control. An accident of birth should not qualify a person for extra privileges or opportunities. The world is a fairer place if to the maximum extent possible luck is taken out of the process for allocating benefits and burdens - which ought to be distributed on the basis of merit and dessert. This paper examines whether there are sound reasons for restricting the flow of world-wide people movement. The main arguments in favour of this policy, relating to security and national building, are ultimately flawed. This exposes a tragic irony given the great efforts that many Western states - which typically have the strongest migration controls - make to stamp out discrimination at the domestic level, and the vast array of international law anti-discrimination instruments, loudly trumpeted by Western nations. This is hypocrisy nearing its finest. The substratum of sovereign states upon which available international law is built is inherently discriminatory and in fact is probably responsible for more harm as a result of the innately discriminatory immigration policies than results from the cumulative operation of all domestic discrimination. The world should move towards loosening migration controls. This would have an enormous number of humanistic benefits, not the least of which is largely eradicating world hunger and poverty.

Responsible entrepreneurship in developing countries : understanding the realities and complexities

Developing countries have recently experienced a burgeoning of small-scale individual entrepreneurs (SIEs) – who range from petty traders to personal service workers like small street vendors, barbers and owners of small shops – as a result of market-based reforms, rapid urbanisation, unemployment, landlessness and poverty. While SIEs form a major part of the informal workforce in developing countries and contribute significantly to economic growth, their potential is being undermined when they engage in irresponsible and deceptive business practices such as overpricing, sale of underweight or substandard products, or attempts to hoard goods, to name a few. Despite the growing interest in corporate social responsibility (CSR) initiatives of small businesses in developing countries, the SIEs have received almost no attention. To address this void in the literature, we explore the reasons for the less than optimal level of social responsibility demonstrated by some SIEs in developing countries. We do so by drawing upon the existing literature to develop a comprehensive framework of social responsibility of SIEs highlighting their unique characteristics and the different contextual factors that they encounter in developing countries. Based on this framework, we then present a set of propositions specifying the influence of these contextual factors such as business environment, cultural traditions, socio-economic conditions, and both international and domestic pressures on the business practices of SIEs. The framework offers an explanation for the lack of responsible entrepreneurship of SIEs and has important implications for promoting sustainable business practices in developing countries where businesses are striving hard to survive and compete.

Responsible aquaculture and trophic level implications to global fish supply

Hunger and malnutrition remain among the most devastating problems facing the world’s poor and needy, and continue to dominate the health and well-being of the world’s poorest nations. Moreover, there are growing doubts as to the long-term sustainability of many existing food production systems, including capture fisheries and aquaculture, to meet the future increasing global demands.Of the different agricultural food production systems, aquaculture (the farming of aquatic animals and plants) is widely viewed as an important weapon in the global fight against malnutrition and poverty, particularly within developing countries where over 93% of global production is currently produced, providing in most instances an affordable and a much needed source of high quality animal protein, lipids, and other essential nutrients. The current article compares for the first time the development and growth of the aquaculture sector and capture fisheries by analyzing production by mean trophic level. Whereas marine capture fisheries have been feeding the world on high trophic level carnivorous fish species since mankind has been fishing the oceans, aquaculture production within developing countries has focused, by and large, on the production of lower trophic level species. However, like capture fisheries, aquaculture focus within economically developed countries has been essentially on the culture of high value-, high trophic level-carnivorous species. The long term sustainability of these production systems is questionable unless the industry can reduce its dependence upon capture fisheries for sourcing raw materials for feed formulation and seed inputs. In line with above, the article calls for the urgent need for all countries to adopt and adhere to the principles and guidelines for responsible aquaculture of the FAO Code of Conduct for Responsible Fisheries.