While many studies of welfare dynamics have been conducted using panel data sets with two or three waves, much richer insights can be obtained where more waves are available. This paper analyses this ...issue for the case of the Viet Nam Access to Resources Household Survey, a carefully collected and high-quality data set collected over a period of eight years from 2008 to 2016. The survey was conducted over a period of impressive overall welfare improvement, but the data set highlights significant heterogeneity in this with significant numbers of households in fact becoming worse off. A panel-based econometric analysis of the evolution of different measures of welfare identifies that there are strong dynamics in welfare for all three measures considered here, but that shocks and changes in household composition are very important drivers of changing welfare levels at the household level.
Rwanda has had an impressive record of consistent and sustained economic growth from the late 1990s to the present. This chapter draws on three different sources of data to consider how different ...dimensions of living conditions evolved over this period, seeking to compare them with the situation before 1994. Evidence from demographic and health surveys and living conditions surveys shows impressive progress in outcomes of living conditions, accelerating in recent years. Many factors are likely to have contributed to this, but the insufficient availability of impact assessments makes it difficult to know to what extent these improved outcomes can be attributed to the many important policy changes this period has seen. The results are largely confirmed by a small panel dataset, which also provides information on mobility. The same dataset though also shows that respondents’ sense of happiness is more determined by relative rather than absolute progress.
Recovering and accelerating economic growth in sub-Saharan Africa is widely recognized. However, less is known about improvements in welfare and poverty reduction. Despite high reported growth rates, ...grassroots poverty remains little changed, contrasting with a number of optimistic (and disputed) assessments published based on internationally available datasets. Concerns have been raised about the quality of available statistics for Africa, prompting questions about the actual extent of the growth revival. Serious concerns on the comparability and reliability of bellwether consumption poverty statistics pre-date the more recent broader-based doubts concerning the African statistical base, particularly at country level. Tangible poverty reduction remains a challenge for the region’s governments and the international development community. Simply downloading statistics from international databases and subjecting those to analytical scrutiny could give excessive scope for error and misinterpretation, but the often harsh criticism of the region’s statistics is undeserved.
Ghana McKay, Andy; Pirttilä, Jukka; Tarp, Finn
Growth and Poverty in Sub-Saharan Africa,
04/2016
Book Chapter
In the late 1980s and early 1990s when much of sub-Saharan Africa saw economic decline, Ghana stood out as one of a small number of exceptions with positive growth. It undertook major economic ...reforms from 1984 onwards, and is regularly held up as an example of successful implementation of adjustment policies. It has achieved sustained positive economic growth every year since then. This chapter analyses the nature of the growth, then presents an analysis of the evolution of both consumption poverty and non-monetary poverty outcomes over this period, showing improvements in almost all indicators. At the same time inequality has risen over the past twenty years and remains an important concern. This increase is one reason why growth has not led to faster poverty reduction.
While the economic growth renaissance in sub-Saharan Africa is widely recognized, much less is known about progress in living conditions. This book comprehensively evaluates trends in living ...conditions in 16 major sub-Saharan African countries, corresponding to nearly 75% of the total population. A striking diversity of experience emerges. While monetary indicators improved in many countries, others are yet to succeed in channeling the benefits of economic growth into the pockets of the poor. Some countries experienced little economic growth, and saw little material progress for the poor. At the same time, the large majority of countries have made impressive progress in key non-monetary indicators of wellbeing. Overall, the African growth renaissance earns two cheers, but not three. While gains in macroeconomic and political stability are real, they are also fragile. Growth on a per capita basis is much better than in the 1980s and 1990s, yet not rapid compared with other developing regions. Importantly from a pan-African perspective, key economies-particularly Kenya, Nigeria, and South Africa-are not among the better performers. Looking forward, realistic expectations are required. The development process is, almost always, a long hard slog. Nevertheless, real and durable factors appear to be at play on the sub-continent with positive implications for growth and poverty reduction in future.
While the economic growth renaissance in sub-Saharan Africa is widely recognized, much less is known about progress in living conditions. This book comprehensively evaluates trends in living ...conditions in 16 major sub-Saharan African countries, corresponding to nearly 75% of the total population. A striking diversity of experience emerges. While monetary indicators improved in many countries, others are yet to succeed in channeling the benefits of economic growth into the pockets of the poor. Some countries experienced little economic growth, and saw little material progress for the poor. At the same time, the large majority of countries have made impressive progress in key non-monetary indicators of wellbeing. Overall, the African growth renaissance earns two cheers, but not three. While gains in macroeconomic and political stability are real, they are also fragile. Growth on a per capita basis is much better than in the 1980s and 1990s, yet not rapid compared with other developing regions. Importantly from a pan-African perspective, key economies-particularly Kenya, Nigeria, and South Africa-are not among the better performers. Looking forward, realistic expectations are required. The development process is, almost always, a long hard slog. Nevertheless, real and durable factors appear to be at play on the sub-continent with positive implications for growth and poverty reduction in future.
In this paper, we focus on the role of assets in relation to chronic poverty. In particular, we consider the issue of whether it is not just low levels of assets which identify and explain chronic ...poverty, but also whether the asset accumulation process displays non-linearities and non-convexities that could explain why some households experience persistent poverty. We use parametric and nonparametric methods to test for evidence of the existence of an asset-based poverty trap mechanism across seven panel data sets, in five countries from Africa, Asia and Latin America, and in so doing add substantially to the existing evidence base on this issue.
After many years of relatively slow growth, Tanzania’s national accounts data report accelerated aggregate growth since around 2000. The chapter shows that there has been slower growth in private ...consumption and in sectors such as agriculture, where most of the poor work and live. The household survey data documents a limited reduction in consumption poverty over the period, and what poverty reduction there has been has mostly occurred in Dar es Salaam. Indicators of non-monetary poverty have gradually improved over the past twenty years but significant differences across the country remain. The economic growth story is presented over a longer period of time and then in more detail over the period covered by four Household Budget Surveys. A discussion of the macroeconomic composition of growth considers the likely implications for progress in poverty reduction.
This paper addresses the important aspect of democracy at the local community level and the need for e-democracy tools. Communities require easy to use ways of accessing and sharing information and ...ideas, responding to consultations and participating in policy formulation. In this paper we focus on Community Councils which are the smallest local tier of the statutory framework of democracy in Scotland. The councillors live in the community they serve, know personally many of the issues and can readily judge the impact of new or changed policies and suggestions from government. Currently they represent their communities as best they can, relying on word-of-mouth and may therefore not be as inclusive as they otherwise might be.
The rapidly expanding public access to the internet and the increasing popularity of weblogs offer an opportunity for both the councillors and the communities to discuss issues together and lobby government for policy changes.
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