Education and Earnings for Poverty Reduction : Short-Term Evidence of Pro-Poor Growth from the Mexican Oportunidades Program

Education, as an indispensable component of human capital, has been acknowledged to play a critical role in economic growth, which is theoretically elaborated by human capital theory and empirically confirmed by evidence from different parts of the world. The educational impact on growth is especially valuable and meaningful when it is for the sake of poverty reduction and pro-poorness of growth. The paper re-explores the precious link between human capital development and poverty reduction by investigating the causal effect of education accumulation on earnings enhancement for anti-poverty and pro-poor growth. The analysis takes the evidence from a well-known conditional cash transfer (CCT) program — Oportunidades in Mexico. Aiming at alleviating poverty and promoting a better future by investing in human capital for children and youth in poverty, this CCT program has been recognized producing significant outcomes. The study investigates a short-term impact of education on earnings of the economically disadvantaged youth, taking the data of both the program’s treated and untreated youth from urban areas in Mexico from 2002 to 2004. Two econometric techniques, i.e. difference-in-differences and difference-in-differences propensity score matching approach are applied for estimation. The empirical analysis first identifies that youth who under the program’s schooling intervention possess an advantage in educational attainment over their non-intervention peers; with this identification of education discrepancy as a prerequisite, further results then present that earnings of the education advantaged youth increase at a higher rate about 20 percent than earnings of their education disadvantaged peers over the two years. This result indicates a confirmation that education accumulation for the economically disadvantaged young has a positive impact on their earnings enhancement and thus inferring a contribution to poverty reduction and pro-poorness of growth.

Pro-poor growth and social programmes in Brazil

From a methodological point of view, this paper makes two contributions to the literature. One contribution is the proposal of a new measure of pro-poor growth. This new measure provides the linkage between growth rates in mean income and in income inequality. In this context, growth is defined as propoor (or anti-poor) if there is a gain (or loss) in the growth rate due to a decrease (or increase) in inequality. The other contribution is a decomposition methodology that explores linkages between growth patterns and social policies. Through the decomposition analysis, we assess the contribution of different income sources to growth patterns. The proposed methodologies are then applied to the Brazilian National Household Survey (PNAD) covering the period 1995-2004. The paper analyzes the evolution of Brazilian social indicators based on per capita income exploring links with adverse labour market performance and social policy change, with particular emphasis on the expansion of targeted cash transfers and devising more pro-poor social security benefits.

Linkages between pro-poor growth, social programmes and labour market : the recent Brazilian experience

From a methodological point of view, this paper makes two contlibutions to the literature. One contribution is the proposal of a new measure of pro-poor growth. This new measure provides the linkage between growth rates in mean income and in income inequality. In this context, growth is defined as pro-poor (or anti-poor) if there is a gain (or loss) in the growth rate due to a decrease (or increase) in inequality. The other contribution is a decomposition methodology that explores linkages between three dimensions: growth pattems, labour market performances. and social policies. Through the decomposition analysis, growth in per capita income is explained in terms of four labour market components: the employment rate. hours of work, the labour force participation rate. and productivity. We also assess the contribution of different nonlabour income sources to growth patterns. The proposed methodologies are then applied to the Brazilian National Household Survey (PNAD) covering the period 1995-2004. The paper analyzes the evolution of Brazilian social indicators based on per capita income exploring links with adverse labour market performance and social policy change, with particular emphasis on the expansion of targeted cash transfers and devising more propoor social security benefits.

Economic Reforms and Pro-Poor Growth: Lessons for Africa and other Developing Regions and Economies in Transition

The paper discusses the meaning and measurement of pro-poor growth and also reviews evidence of pro-poor growth (or the lack of it) in a large cross-section of countries and time periods. The emerging story is that many episodes of growth are not pro-poor and also that although economic reforms have had positive effects in those countries that have been steadfast in implementing market reforms, the overall impact on growth has been small for many countries and in most cases not pro-poor. I present a general theory of pro-poor growth that includes ten principles that should be incorporated in all economic reforms that seek to generate pro-poor growth. These principles highlight the importance of understanding the poor, their economic activities, capabilities, constraints that impede their participation in markets and also an appreciation of linkages within sectors and regions. It is argued that pro-poor reforms cannot have the intended impact unless there are significant changes in the institutions of governance. Finally, the principles presented underscore the fact that pro-poor growth policies cannot be sustained without workable partnerships between markets and states in the ever changing and complex processes of social and economic development.

経済成長と貧困・雇用：Pro-Poor Growth論の系譜

開発途上国が長期的に貧困削減を実現していくためには、貧困削減に貢献する形で経済成長をすることが必要であり、貧困削減に親和的な経済成長がPro-Poor Growthと呼ばれている。現在までのところ、Pro-Poor Growth研究は、どの国のどの時期の経済成長が貧困削減に大きく貢献したかを問うものが多数を占めており、何がpro-poor growthをもたらすか、に着目した研究は少ない。その少ない研究の多くは農業や農村経済の役割に期待するものであるが、本稿では、既にある程度の貧困削減を遂げた東・東南アジアの経験に鑑み、低賃金の国において労働集約的製造業品を輸出することで貧困層の賃金や雇用機会を飛躍的に伸張させる可能性について考察した。バングラデシュ、カンボジアといった国々は既に縫製業がその役割を果たしており、これまでの東・東南アジアの貧困削減パターンが現在の東南アジアや南アジアの最貧国でも踏襲される可能性が十分にある。

開発戦略としてのPro-Poor Growth －貧困層への雇用創出－

本稿は、後発開発途上国においてpro-poor growthを達成する開発戦略を、産業政策との関連から研究したものである。アジアとアフリカの経済発展プロセスにおいて、貧困層にどの産業が雇用機会を提供するか、を研究した。その結果明らかになったのは、1970-90年代の典型的な東アジア高成長経済であるタイと台湾において、貧困層に最も大きな雇用機会を与えたのが農業部門であったのに対して、貧困層の雇用機会増に最も貢献したのが製造業部門であったということである。同様の傾向は、アフリカの輸出指向成長国であるモーリシャスについても観察された。一方、グローバリゼーションの活力が十分に生かされなかったマラウィ、南アフリカ、インドにおいては、製造業が同様の雇用機会を貧困層に提供できなかった。結論として導かれるのは、典型的な後発発展途上国においては、雇用に関して農業のシェアが製造業のシェアを上回るのが一般的であるものの、もし比較優位がグローバリゼーションの中で顕在化できるのであれば、貧困層の雇用機会増に関して、農業よりも製造業の貢献度が大きくなりうる、ということである。一国全体の経済発展という観点のみならず、貧困層に利益をもたらすpro-poor growthという文脈においても、製造業の果たす役割が無視し得ないことが明らかになった。

Pro-poor growth or poverty trap? : estimating intergenerational income mobility in rural Philippines

Using an intergenerational database covering nearly a quarter of a century, we explored the degree of intergenerational income mobility among individuals who had grown up in rural Central Luzon, the Philippines. We found that the intergenerational income elasticity is significantly lower than unity, at roughly 0.23, indicating that the average income growth rate is higher for children born to poorer families. The detailed analysis, however, revealed that its magnitude significantly varies across percentiles in a U-shape. The results provide supporting evidence of multiple equilibria or poverty trap.

Voices of the Poor: Poverty and Growth in Albania

This paper uses three waves of panel surveys at the household level to study growth and poverty in Albania over the period 2002-2004. It attempts to answer two main questions. The first question is directed at finding the micro determinants of growth and aims to expose the obstacles households face to improve their economic situation. The main focus of the analysis is to investigate the importance of health, education, and infrastructure indicators for income growth. The second question asks whether growth in Albania during the period 2002-2004 has been pro-poor. I find that there is some evidence for a convergence of incomes and a pro-poor growth, which has led to a substantial decrease in the number of people living under the poverty line. I also find that infrastructure has not been an important determinant for income mobility, and neither has health. Only the higher education of poor urban households seems to have affected prospects for growing out of poverty, and unexpectedly, the relationship is negative.

Pro-inflammatory growth factors reduce secondary degeneration after traumatic spinal cord injury

The role of inflammatory response after spinal cord injury remains unclear. This thesis was a step forward in studying how promoting the inflammation, by delivery pro-inflammatory growth factors, affects the outcomes of spinal cord injury. A significant functional improvement was observed after treatment and these results suggest an interesting avenue for future clinical treatments and may provide a platform to improve the efficacy of other treatments.

Synthesis report with pro-poor trade research findings and policy recommandations

The purpose of the project was to investigate international trade in fisheries products and its relationship to poverty alleviation and livelihoods of poor aquatic resource users in developing countries in Asia, and to identify options to improve the effectiveness of poverty reduction through international seafood trade. The project directly addressed the EC-PREP priority area of trade and development, and indirectly provided valuable insight to two other priority areas: food security and sustainable rural development; and institutional capacity building. [PDF contains 60 pages.]

Framework for a pro-poor regional strategy on sustainable aquatic resources management in Asia-Pacific: a statement of understanding and recommendations

This statement was prepared by the participants of the FAO/NACA-STREAM Workshop on Aquatic Resources and Livelihoods: Connecting Policy and People, 17-19 March 2005, in Los Baños, Laguna, Philippines. This was the concluding event of the FAO Technical Cooperation Program (TCP) project entitled “Assistance in Poverty Alleviation through Improved Aquatic Resources Management in Asia-Pacific.” The purpose of the workshop was to review and share experiences of the NACA-STREAM Initiative, build consensus on the value of livelihoods approaches in aquatic resources management and poverty alleviation, and identify ways of promoting livelihoods approaches throughout the region. (Pdf contains 2 pages).