Friday, January 1, 2010

Economic growth and poverty reduction - the poor growth of the work,

1. Introduction

As to whether it will lead to economic growth, poverty reduction is a very controversial issue. Neo-liberal view, this issue is the poor growth is good, and through economic growth to alleviate poverty. In this article, I believe that if the poor to the importance of participation in the economic and constraints, thus hindering their labor force participation, growth will not only help to reduce poverty. NationalShould also play a pro-poor growth, through pro-poor policies has an important role. In the following paragraphs, I will determine what is pro-poor growth, to clarify the restrictions, pro-poor growth, what can be done to ensure that growth is pro-poor.

2. Definition: pro-poor growth

After Ravillion and Sadat (1991:19), pro-poor economic growth can be defined as "growth, and includes pro-poor." In other words, the need for pro-poor growth in theMaximum participation in all areas of marginalized groups. Ravallion and Dutt that further pro-poor growth, characterized by, among other things, what they call "extreme poverty, who is in an invincible position is not a deliberate move out of poverty. Essentially, it has made progress parameter is The poor need help or intervention, so this means that to benefit from growth. This is pro-poor economic growth is a deliberate measure, pro-poor economic growth, not toTo give up when the poor, the "invisible hand of the market's fate. This is a favorable environment for the definition of things, where the poor have the opportunity to participate in economic significance.

Took place in Kydd et al (2001:10) pro-growth, in the following conditions:

 price or trading products to enhance productivity high, and the poor, the average share of consumption.

 trading price and increase productivityProducts and poor, high labor input.

 changes in technology or reduce barriers to market entry, it will not lead to the poor in the production of non-traded goods that they previously did not participate in or

 or in a large number of non-poor, the production of goods or services, the request to extend the poor as a connection, and then disposing of or the result.

It is important to note that not all of the growth pro-poor. Here are someCharacteristics and aspects of growth tilt to the poor is not:

 Differences in the distribution of wealth

 an increase in poverty in the rural areas

 growth, agricultural development, even though his role in the fight against poverty ignored

 lack of health care and education, in their fight against poverty to play a key role in the investment

 do not reduce inequality and lack of procedures on the needs of the poor(Www.seurities.com).

As Acocella (1998:162) pointed out, it is important to remember that growth does not necessarily produce such a fact: human development. Growth may occur in a significant impact on human development, especially the poor view. Acocella also claims that the real development or growth occurred in improving the welfare of the people. Growth will not lead to improvement of the people who can not say that the development of the nature of benefits. Real growth, such as iron --Et al (2002:4) note, the people, meaning "to contribute to poverty alleviation and development leader in the benefits from this growth. Obviously, there is pro-poor growth is not automatic, failed to implement appropriate measures to help promote their the embodiment of experience. The current policies and practices may impede pro-poor growth, rather than through. I investigated some of the next section.

3. Restrictions on pro-poor growth

ForPro-poor growth has taken place in any society, it is important to ensure that all of the obstacles impeding the achievement of its objectives the poor. Failure or reluctance to go with these obstacles can prevent the poor progress and obstacles, the ultimate strategy to combat poverty and poverty success. The following are constraints may have a negative impact of pro-poor growth in part:

3.1 inequality and lack of access to markets

It is difficult toThe inequality in the pursuit of the characteristics of the poor by the state preferential policies in favor. Stewart that (1995:209), which is difficult to develop a conducive pro-poor policies in the unequal society. He gives an unequal society, such as Ghana, Mexico and the Philippines example, in his view, economic growth has not made any impact on the poor. These companies started with Indonesia, "there is an equal structure, and pro-, rather than pro-poor growth pattern. Other examples are purely the EastAsian companies, this is due to dramatically reduce transaction with the inequality of poverty level of effective strategies. This means that exists between the relationship between poverty and inequality. May (2002:2) also shows that the policy pursued by the apartheid government in South Africa to reduce poverty and inequality is not good, because they are out of the country's economy to participate in some groups. The spread of inequality has led to the loss of these assetsFrom land and livestock, and deprived of an opportunity to capitalize on these advantages in market access, infrastructure and education restrictions.

And the inequality problem is that it leads to social exclusion, in which certain groups have no chance or services. From the importance of participation in the economy, thus affecting their welfare exclusion of the poor. In the economic situation of high inequality, the poor usually receive a higher benefit from the share,Comparison of growth, which is characterized by a highly unequal economy. , As Ravallion and Dutt (1997:7), "inequality of material wealth and human resources are likely to affect the poor the opportunity to participate in economic growth." This policy pro-poor is to ensure that the poor access to markets and infrastructure. Obviously, in cases, there is no equality between the different social economic class,Market forces and Adam Smith's invisible hand of the dependence in order to meet their basic needs only wishful thinking.

3.2 Financial constraints

Governments of developing countries in particular, it is difficult to achieve pro-poor growth strategies and poverty reduction approach to financial constraints. Structural adjustment programs in most cases, make things worse. The reality is that usually associated with challenges in order to reduce government spending, are faced withSocial services, which is supposed to benefit the poor. This means that it took basic services, such as health, education and other basic services with less money. Reduction in public expenditure, while in (Howard) a direct impact on poor 2001:57. However, it is important to point out that countries are trying to solve their attempt to adopt such an anti-poverty struggle in the face of the global challenges of the measures and restrictions, the pursuit of good. This is one on a less "command state global pressures," the role of the acquisitionEconomy.

3.3 reduce the role of the state

Market liberalization and globalization go, is a rollback, among other things, lobbying for the country, for the price and quantity restrictions, the lifting of being moved and stored. As Howard (2001:57) rightly pointed out that "financial liberalization increases poverty and inequality." In the context of globalization, the government was forced to open their markets. However, the crucial question whether theMarket liberalization to benefit the poor. They have different reactions. Some people think that, especially in the opportunities of globalization whose benefit the poor, which has trade and new markets. On the other hand, there are some who think it is harmful.

Shown Vincent (2001:11), globalization 'poverty in some countries, damage to other countries. Although the general requirements of a country to roll back "to theMarket work (if they work it), the state play a role not to do so, especially in the matter, the people themselves. This is especially the poor, who were in employment there is no age, disability, chronic illness or for other reasons can not be based on social exclusion or discrimination can participate. By Frost (1995:253), these people's poverty, can not be deleted, or through the promotion of the market, but deliberately"The pressure of social services and transfer payments and eliminate discrimination. On reducing the role of government in the economy can be pro-poor growth of the negative impact of focus.

Should be pro-poor growth, the state re-allocation of resources and opportunities, through the key role of the transfer of assets, poor public expenditure priorities and management have played a market liberalization, in order to protect the livelihoods of vulnerable人们. The steel reinforcing bars, etc. (2002:19) points out, is "a tool for the government in the development process in person. Therefore, the Government can play the right strategy for handling to play a key role in pro-poor growth in poverty.

4. What can be done to enable the poor to benefit from it?

The following are these things must be done to benefit the poor a few:

 there is a need to focus on human capital development, especially the poor to enable them to prepareMeaningful participation in the economy.

 The poor need better access to markets, credit, mainly --

 there is a opposed to public spending, taxation, trade and regulatory environment, poor bias to be corrected.

5. Conclusion

Pro-poor growth policy is to be effective in reducing poverty. In 2015, income poverty target of halving the population can be achieved, if the State can adopt pro-poor growth strategies. This will be theThe difficulty is not a "pro-goal by 2015, the changes in the distribution pattern to achieve pro-poor" (Mutum 2000). Something needs to be done to improve the situation of the poor, how to make improvements in market access for them easier. It is noteworthy that, even in some cases, the operation of the market, they can not always pro-poor work, given the limitations discussed above.

If these restrictions are not processed or removed, growth will not have a significant impact on lifeThe poor. It is necessary to learn from the mistakes of the past on the relationship between growth and poverty reduction. Sen (1986, cited in Goldman Sachs shows 1991:292) that: "The State in another difficult to say that the so-called trickle-down" is the wrong theoretical study, growth can be poverty of the famine boom also occurred when people claim is not purchase and / or food needs, in order to survive, "production

GivenThe extent of poverty in the world today, when the need for strategies or in poverty reduction has changed the practice of pro-poor growth. This means, among other things, understanding, growth itself is not to eradicate poverty. Ian Goldin, World Bank director, said the importance of the future pro-poor growth: "We want to understand economic growth, if necessary, not sufficient to deal with poverty" (Sunday Times, September 1, 2002:15).

6. References

Acocella, note 1998th economic value basis. Cambridge: Cambridge University Press.

Iron, man, Rosenbatt, D, and Stern, note 2002nd conditions are conducive to India's poor growth. http://www.arts.cornell.edu/eco/India

Howard, J.2001. To make globalization work for the people. Basic rights of work: overview and perspectives ,122:55-60

Kydd ĵ, Ward, Azerbaijan, Marrison, J and Cadisch Bay, 2001. In the role of pro-poor growth in agriculture.[http://www.wye.ac.uk/Ag]

Levinson. J. 2000. Globalization and poverty. University of Michigan. Ford School of Public Policy, the National Bureau of Economic Research.

May, J. 2000. Growth, development and Philip inequality, D (next) version. Poverty and inequality in South Africa: The challenge. Cape Town and London: Czech Civic Press.

Mu Tong Bay, 2001. Finance: the International Monetary Fund and the World Bank's policy in favor to the poor? http://www.oneword.org/ips2/angoo.

Pieterse, if the 2000thDevelopment theory: deconstruction and reconstruction. London: SAGE Publication.

Rui Wolin, M, and Dart Bay, 1999. If there is pro-poor growth: from India, the country's various experiences of the evidence? [http://netec.mcc.ac.ukl/wopec/data/papers]

Stewart, Lou 1995th adjustment and poverty. London: Routledge

Streeten, PP 1995th thinking development. Cambridge: Cambridge University Press Group.

Sachs, a 1991st of poverty, progress and development. London:Keegan Paul International and UNESCO.

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