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Symposium 2009

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 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.

Even with pro-poor growth, the poorest regions, in particular sub-Saharan Africa, are unlikely to cut poverty in half between 1990 and 2015 as required by the first MDG. The current crisis makes matters worse by reducing growth prospects all over the developing world.

The policy agenda for achieving pro-poor growth includes a number of fairly uncontroversial measures, such as universal primary education and the provision of social funds for the poor.

There is much less consensus about interventions to address inequality within developing countries, even though they might directly contribute to poverty reduction, especially in very unequal societies. For example, should a poverty strategy focus directly on growth or instead concentrate on empowering the poor to benefit from growth? How can inequality be reduced in ways that stimulate economic growth?

    Solutions

    Solution
    Symposium 2009

    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 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 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.

    Polity, Academia, Business, Civil Society
    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

    Proposals

    Proposal
    Symposium 2009

    Fighting against Poverty in the Crisis Aftermath

    In the context of Africa, I shall precede solutions to the fight against by dispelling two critical myths. MYTH 1 a) To get rid of poverty pump in more money (reduction of poverty to the absence of ec ...

    In the context of Africa, I shall precede solutions to the fight against by dispelling two critical myths. MYTH 1 a) To get rid of poverty pump in more money (reduction of poverty to the absence of economic or monetary injection). A look at Somalia or Darfur is suggestive. GES SOLUTIONS TO MYTH 1 i) Poverty cannot be overcome in the absence of peace, security and stability ii) It is in an atmosphere of the rule of law, respect for human rights, freedom and liberty that the fight against poverty can yield sustainable results MYTH2 b) The fight against poverty

    Polity, Academia, Business, Civil Society
    Proposal
    Symposium 2009

    Fighting against Poverty in the Crisis Aftermath

    Deputy Secretary-General, OECD, Paris Global context Poverty is one of the biggest problems in developing countries. Many have no work, no job. Many work in the informal labour market. Many have very ...

    Deputy Secretary-General, OECD, Paris Global context Poverty is one of the biggest problems in developing countries. Many have no work, no job. Many work in the informal labour market. Many have very low wages. Many are very, very poor. In OECD countries we see, and in this crisis very visibly, the problem of relative poverty - defined as having an income below half of the median income. This concerns on average 10% of the citizens in OECD countries, (5% in the Nordics, 18% in Mexico and Turkey). The recent OECD report Growing Unequal? (2008) finds that relative poverty has

    Polity, Academia, Business, Civil Society
    Proposal
    Symposium 2009

    Cash transfers and affordable food

    One of the most significant policy initiative in India in the recent times reforming food policy was the introduction of the targeted public distribution system (TPDS) in 1997. In the TPDS, subsidies ...

    One of the most significant policy initiative in India in the recent times reforming food policy was the introduction of the targeted public distribution system (TPDS) in 1997. In the TPDS, subsidies are restricted to below poverty line (BPL) households. Critics of TPDS, however, believe that identification is a difficult process and would lead to large exclusion errors. Moreover, by shrinking the public distribution system (PDS) to serve the poor, they fear that it would affect the economic viability of the PDS retail outlets. A feature of India’s food subsidy programme is the deep involvement of the government and its

    Polity, Business
    Proposal
    Symposium 2009

    Rural Health Insurance

    There exists a disparity in the cost and quality of health services in rural areas as compared to urban areas – the rural people have to spend a larger proportion of their incomes on health services ...

    There exists a disparity in the cost and quality of health services in rural areas as compared to urban areas – the rural people have to spend a larger proportion of their incomes on health services as compared to urban people. In India, as per the estimates of the National Commission on Macro-economics and Health (2005), the proportion of total outpatient expenditure in total household expenditure is 4.72 per cent in rural areas as compared to 3.62 per cent in urban areas. Also, the proportion of total inpatient and outpatient expenditure in total household expenditure is 6.09 per cent for

    Polity, Business
    Proposal
    Symposium 2009

    Fighting Against Poverty in the Crisis Aftermath - Solutions

    While the exact scope of inequality-reducing policies ultimately depends on country characteristics, such as the capacity of administrations to execute them and the initial level of inequality, at lea ...

    While the exact scope of inequality-reducing policies ultimately depends on country characteristics, such as the capacity of administrations to execute them and the initial level of inequality, at least some of these policies are likely to play a role in any poverty reduction strategy. As concerns asset inequality, public investment in basic education and primary health care is almost unanimously accepted as an instrument for attenuating disparities in human capital formation. Yet even here some unresolved issues remain, e.g. whether user fees should play a role in financing the services. In addition, there appears to be a widespread consensus

    Polity, Academia, Business, Civil Society
    Proposal
    Symposium 2009

    Alternatives to Crop Insurance

    Why does crop insurance not work? In a theoretical framework, insurance indeed is the best means to achieving full risk cover. However, despite high levels of insurance premiums, we have seen few take ...

    Why does crop insurance not work? In a theoretical framework, insurance indeed is the best means to achieving full risk cover. However, despite high levels of insurance premiums, we have seen few takers for crop or weather insurance in India. A major obstacle to the commercialization of the small farmer is the increased uncertainty of the market place, compared to subsistence farming. The problem is exacerbated by the fact that they have very little ability to absorb the risk of loss. Such risks are high as market volatility is an integral part of the world agricultural produce market. This is

    Polity, Business, Civil Society

    Implemen- tations

    Implementation
    Symposium 2009

    IOU option as an alternative to crop insurance

    Polity, Academia, Business, Civil Society