You are here: Home Knowledge Base Economy Fighting Against Poverty in the Crisis Aftermath Solutions To enable the poor in developing countries to cope with global recession, aid should promote employment, supported by workfare programs, and social protection through conditional cash transfers.
Symposium 2009

Solution for Fighting Against Poverty in the Crisis Aftermath

The Challenge

Poverty reduction has become the central objective of development policy, as reflected in the United Nations’ Millennium Development Goals (MDGs). While economic growth is seen as an important ing ...

Poverty reduction has become the central objective of development policy, as reflected in the United Nations’ Millennium Development Goals (MDGs). While economic growth is seen as an important ingredient in achieving sustainable poverty reduction, the emerging consensus is that growth has to be pro-poor to reach such ambitious targets as the MDGs.

To enable the poor in developing countries to cope with global recession, aid should promote employment, supported by workfare programs, and social protection through conditional cash transfers.

To respond to the challenges raised by the financial crisis, it is urgent that donors deliver on their official development assistance (ODA) commitments, and adopt and implement aid effectiveness principles.

Given its countercyclical nature, ODA can help poor people cope with the recession and contribute to aggregate demand (via spending on consumption and infrastructure) by supporting a combination of employment policies and social protection. The effectiveness of employment policies can be augmented through workfare programs and the efficiency of social protection can be enhanced through conditional cash transfers.

Donors should make productive employment and decent work a key objective of development cooperation and provide adequate, long-term and predictable financial assistance to underpin developing countries’ efforts to build social protection systems. In addition, donors and recipients should jointly monitor and account for performance.

    Related Solutions

    Solution
    Symposium 2009

    Formalize employment relationships in developing countries, thereby enabling workers to gain access to social security.

    Formalize employment relationships in developing countries, thereby enabling workers to gain access to social security.

    Formalize employment relationships in developing countries, thereby enabling workers to gain access to social security.

    Polity
    Solution
    Symposium 2009

    Provide well-tailored and certificated vocational training, especially for workers in the informal economies of poor countries. Include entrepreneurship training and provide startup capital for new businesses.

    Provide well-tailored and certificated vocational training, especially for workers in the informal economies of poor countries. Include entrepreneurship training and provide startup capital for new bu ...

    Provide well-tailored and certificated vocational training, especially for workers in the informal economies of poor countries. Include entrepreneurship training and provide startup capital for new businesses.

    Polity, Academia, Business, Civil Society
    Solution
    Symposium 2009

    Promote “circular migration” by providing re-entry visas for migrants on renewable short-term contracts, reducing transactions costs for remittances, providing policy incentives for migrants to use their contacts to set up ...

    Promote “circular migration” by providing re-entry visas for migrants on renewable short-term contracts, reducing transactions costs for remittances, providing policy incentives for migrants to us ...

    Promote “circular migration” by providing re-entry visas for migrants on renewable short-term contracts, reducing transactions costs for remittances, providing policy incentives for migrants to use their contacts to set up companies in their home countries, and policies to enable developed countries to pay for the training invested in migrants for poor countries.

    Polity, Business
    Solution
    Symposium 2009

    Provide inducements for pharmaceutical companies to invest in the health of poor countries.

    Provide inducements for pharmaceutical companies to invest in the health of poor countries.

    Provide inducements for pharmaceutical companies to invest in the health of poor countries.

    Academia, Business
    Solution
    Symposium 2009

    Replace crop insurance with IOUs that require farmers to pay only when the harvest is good.

    Replace crop insurance with IOUs that require farmers to pay only when the harvest is good.

    Replace crop insurance with IOUs that require farmers to pay only when the harvest is good.

    Polity, Business, Civil Society
    Solution
    Symposium 2009

    Reform food policy by replacing the public distribution system with a system of food stamps for the poor, combined with private sector activity to purchase, store, move, and distribute affordable ...

    Reform food policy by replacing the public distribution system with a system of food stamps for the poor, combined with private sector activity to purchase, store, move, and distribute affordable food.

    Reform food policy by replacing the public distribution system with a system of food stamps for the poor, combined with private sector activity to purchase, store, move, and distribute affordable food.

    Polity, Business
    Solution
    Symposium 2009

    Fight poverty in developed countries through an expansion of welfare-to-work policies, supported by education and training measures aimed at enabling the poor to adapt to the skills required in changing ...

    Fight poverty in developed countries through an expansion of welfare-to-work policies, supported by education and training measures aimed at enabling the poor to adapt to the skills required in changi ...

    Fight poverty in developed countries through an expansion of welfare-to-work policies, supported by education and training measures aimed at enabling the poor to adapt to the skills required in changing labor markets.

    Polity, Business, Civil Society