Perspectives on Growth and Poverty
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The United Nations University is an organ of the United Nations estab- lished by the General Assembly in 1972 to be an international community of scholars engaged in research, advancedtraining,andthedissemination of knowledge related to the pressing global problems of human survi- val, development, and welfare. Its activities focus mainly on the areas of peace and governance, environment and sustainable development, and science and technology in relation to human welfare. The University oper- ates through a worldwide network of research and postgraduate training centres, with its planning and coordinating headquarters in Tokyo. The United Nations University Press, the publishing division of the UNU, publishes scholarly and policy-oriented books and periodicals in areas related to the University’s research. Perspectives on growth and poverty UNU World Institute for Development Economics Research (UNU/WIDER) was established by the United Nations University as its first research and training centre and started work in Helsinki, Finland, in 1985. The purpose of the institute is to undertake applied research and policy analysis on structural changes affect- ing developing and transitional economies, to provide a forum for the advocacy of policies leading to robust, equitable, and environmentally sustainable growth, and to promote capacity strengthening and training in the field of economic and social policy-making. Its work is carried out by staff researchers and visiting scholars in Helsinki and via networks of collaborating scholars and institutions around the world. United Nations University World Institute for Development Economics Research (UNU/WIDER) Katajanokanlaituri 6 B, FIN-00160 Helsinki, Finland www.wider.unu.edu Perspectives on growth and poverty Edited by Rolph van der Hoeven and Anthony Shorrocks United Nations a University Press TOKYO u NEW YORK u PARIS ( The United Nations University, 2003 The views expressed in this publication are those of the authors and do not necessarily reflect the views of the United Nations University. United Nations University Press The United Nations University, 53-70, Jingumae 5-chome, Shibuya-ku, Tokyo, 150-8925, Japan Tel: þ81-3-3499-2811 Fax: þ81-3-3406-7345 E-mail: [email protected] (general enquiries): [email protected] http://www.unu.edu United Nations University Office in North America 2 United Nations Plaza, Room DC2-2062, New York, NY 10017, USA Tel: þ1-212-963-6387 Fax: þ1-212-371-9454 E-mail: [email protected] United Nations University Press is the publishing division of the United Nations University. Cover design by Joyce C. Weston Printed in the United States of America UNUP-1091 ISBN 92-808-1091-X Library of Congress Cataloging-in-Publication Data Perspectives on growth and poverty / edited by Rolph van der Hoeven and Anthony Shorrocks. p. cm. Includes bibliographical references and index. ISBN 92-808-1091-X 1. Economic development—Congresses. 2. Poverty—Developing countries— Congresses. 3. Education and state—Developing countries—Congresses. 4. Developing countries—Economic policy—Congresses. 5. Developing countries—Social policy—Congresses. I. Hoeven, Rolph van der. II. Shorrocks, Anthony F. HD75.P483 2003 339.406—dc22 2003017514 Contents Acknowledgements. ................................................. vii Listofcontributors.................................................... viii Listoffigures.......................................................... xi Listoftables........................................................... xiii Listofabbreviations................................................... xvii Preface................................................................. xix 1 Collective values, behavioural norms and rules: Building institutions for economic growth and poverty reduction . 1 Ke-young Chu 2 Institutional capital and poverty: A transition perspective . 41 Syed Ahsan 3 Whyissolittlespentoneducatingthepoor?.................... 93 Tony Addison and Aminur Rahman v vi CONTENTS 4 The fragility of empirical links between inequality, trade liberalization,growthandpoverty................................ 113 Jennifer Mbabazi, Oliver Morrissey and Chris Milner 5 Convergence clubs in cross-country life expectancy dynamics ........................................................... 144 David Mayer-Foulkes 6 Reaching the poor: Fine-tuning poverty targeting using a povertymapofMozambique...................................... 172 Orlando San Martin 7 Poverty, growth and redistribution: A case-study of Iran . 193 Ahmad Assadzadeh and Satya Paul 8 How economic growth reduces poverty: A general equilibrium analysis for Indonesia. ....................................... 217 George Fane and Peter Warr 9 Poverty, inequality and growth in Zambia during the 1990s . 235 Neil McCulloch, Bob Baulch and Milasoa Cherel-Robson 10 Gender and education as determinants of household poverty inNigeria........................................................... 268 Christiana Okojie Index................................................................... 296 Acknowledgements This volume has its origins in an international conference on Growth and Poverty which took place in Helsinki in May 2001 and was attended by 150 persons from all corners of the globe. We would like to thank the presenters of papers and other conference participants for their valuable contributions to the scholarly discussions, as well as the staff of UNU/ WIDER in Helsinki for their smooth running of the backstage arrange- ments. All helped to make the conference a great success. We are grateful to the many people who were involved in the prepa- ration of this volume. Tony Addison and Cecilia Ugaz assisted in the selection of papers. Numerous peer reviewers wrote anonymous reports on the draft chapters, offering incisive and useful comments on the sub- stance and quality of each of the studies. We also thank the chapter au- thors whose careful attention to the points raised by the reviewers and editors significantly improved the quality of the published material. Adam Swallow liaised with UNU Press and ensured the efficient pro- cessing of the manuscript. Special thanks are due to Lorraine Telfer-Taivainen, who not only had primary administrative responsibility for the original WIDER conference but also handled the formatting and revisions of the volume chapters with her customary speed and efficiency. Rolph van der Hoeven Anthony Shorrocks vii Contributors Tony Addison is Deputy Director and human capital models, the of the World Institute for economics of institutions, corruption Development Economics Research and governance, and poverty, health (WIDER) in Helsinki. He was andgrowthintransitionand previously on the economics faculty developing countries. of the University of Warwick, UK, Ahmad Assadzadeh is an assistant where he directed the programme professor at the University of in quantitative development Tabriz, Iran. His main areas of economics. His main research research are income distribution, interests are conflict and poverty and youth employment. post-conflict reconstruction as well as macroeconomic policy for Bob Baulch is a fellow of the Institute developing countries. of Development Studies at the University of Sussex, UK. His Syed Ahsan is a professor of research interests include the economics at Concordia University analysis of rural poverty and in Montreal, Canada. He has held poverty dynamics, agricultural numerous visiting professorships, marketingandpriceanalysis. including those at the universities of Bonn and Munich, Seikei University, Milasoa Cherel-Robson is a Ph.D. the Catholic University of Louvain, studentattheInstituteof and the Copenhagen Business Development Studies at the School. He has published extensively University of Sussex, UK, studying in academic journals on topics such poverty and vulnerability in as risks and tax policy in physical Madagascar. viii CONTRIBUTORS ix Ke-young Chu, who was a deputy both theoretical and empirical work director at the Fiscal Affairs on economic growth, and he has Department of IMF, Washington also published on the specific impact DC, when he authored this paper, of health on economic growth. is now a visiting professor of Jennifer Mbabazi is a student at the economics at the Wesleyan School of Economics, University of University, Connecticut. His Nottingham, UK. Her research research interests are in the effects interests are in trade liberalization of cultural values on the evolution and in poverty and income of institutions in economic distribution. development. He continues to be interested in public expenditure Neil McCulloch is a fellow at the policy, social protection, income Institute of Development Studies, distribution, and the economic and University of Sussex, UK. His social implications of globalization. main research interests are in understanding the impact of George Fane is a professor of economic reforms, in particular economics in the Research School of trade reforms, and in poverty and Pacific and Asian Studies at the the dynamics of poverty in Australian National University. His developing countries. main research interests are development and international Chris Milner is a professor of economics, with an emphasis on international economics in the East Asia in general and on School of Economics, University of Indonesia in particular. Nottingham, UK. He has published many books and articles in Rolph van der Hoeven is Manager international journals on the of the Technical Secretariat of measurementofprotectionand the World Commission