Ways Out of Poverty : Diffusing Best Practices and Creating Capabilities--Perspectives on Policies for Poverty Reduction

Fundamentally, poverty reduction is about bringing growth processes to poor areas. Because poor areas can benefit from technical and organizational innovations made elsewhere in the world, it is possible today to create productive jobs faster and i...

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Bibliographic Details
Main Author:	Klein, Michael
Format:	Policy Research Working Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2014
Subjects:	AVERAGE INCOME CAPITAL FLIGHT CAPITAL GOODS CAPITAL INVESTMENT CITIZENS CIVIL WAR CLIMATE COMMUNICATION TECHNOLOGY COMMUNICATIONS TECHNOLOGY COMPETITIVE MARKETS CONSUMERS DEBT DEVELOPING COUNTRIES DEVELOPING WORLD DIRECT INVESTMENT DIVISION OF LABOR ECONOMIC GROWTH ECONOMIC STAGNATION ECONOMIC SYSTEMS ECONOMIES OF SCALE EMIGRATION EMPLOYMENT EXPORTS FARMS FOREIGN INVESTORS FUELS GDP GDP PER CAPITA GROWTH EPISODE GROWTH RATES HIGH GROWTH HOUSEHOLD SURVEYS HUMAN CAPITAL HUMAN DEVELOPMENT INCOME INCOME GROWTH INDUSTRIAL POLICY INDUSTRIALIZATION INEQUALITY INFLATION INNOVATION INSTITUTIONAL ENVIRONMENT INSURANCE INTERVENTION INVESTMENT RATES LABOR MARKETS LABOR PRODUCTIVITY LIVING STANDARDS MANAGERS MARKET ECONOMIES MARKETING MERGERS NATURAL RESOURCES OIL OPEC PER CAPITA INCOME PER CAPITA INCOMES POLICY REFORMS POLICY RESEARCH POOR AREAS POOR COUNTRIES POOR PEOPLE POOR POLICIES POPULATION GROWTH POVERTY LINE POVERTY RATES POVERTY REDUCTION PRIVATE PROPERTY PRIVATE SECTOR PRIVATE SECTOR DEVELOPMENT PRO-POOR PRO-POOR GROWTH PRODUCERS PRODUCT DIFFERENTIATION PRODUCTION PROCESSES PRODUCTIVITY PRODUCTIVITY GROWTH PROPERTY RIGHTS RICH COUNTRIES RURAL AREAS SAFETY SAFETY NET SMALL BUSINESS SOCIAL OUTCOMES SOCIAL PROTECTION SOCIAL SECURITY TOTAL FACTOR PRODUCTIVITY TOTAL FACTOR PRODUCTIVITY GROWTH TRADE BARRIERS TRADE LIBERALIZATION VALUE ADDED VESTED INTERESTS WEALTH WEALTH CREATION WORKERS POVERTY REDUCTION CAPABILITIES CAPACITY BUILDING POLICY FRAMEWORK GROWTH PROMOTION TECHNICAL KNOWLEDGE ORGANIZATIONAL CAPACITY JOB CREATION SAVINGS BEHAVIOR INVESTMENT BEHAVIOR ALLOCATION OF RESOURCES TECHNOLOGY ACCUMULATION INSTITUTIONAL CAPACITY MARKET ACCESS COMPETITION POLICY COMPETITION UNFAIR COMPETITIVE EQUILIBRIUM WORKERS
Online Access:	http://documents.worldbank.org/curated/en/2003/03/2176365/ways-out-poverty-diffusing-best-practices-creating-capabilities-perspectives-policies-poverty-reduction http://hdl.handle.net/10986/18312

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Summary:	Fundamentally, poverty reduction is about bringing growth processes to poor areas. Because poor areas can benefit from technical and organizational innovations made elsewhere in the world, it is possible today to create productive jobs faster and in greater quantity than ever before. The puzzle is what helps spread such "best practices." Saving, investment, education, resources, and new technology are all needed-and fairly easy to obtain. What is hard to obtain are the institutions that allow these factors of production to be combined and translated into productive job creation. Firms are the key vehicles that spread best practices and productive jobs to areas where poor people live. Because we can never be sure which firm will be successful, it is necessary that new firms can enter markets, that substandard firms are allowed to fail, and that good firms face few barriers to growth. This is the definition of competition, and competition is what selects good firms and thus drives the spread of best practice and productive jobs. Governments need to provide the framework in which capable firms can emerge. Yet, the right mix of state activity and how it best interacts with firms are not fully understood. Some selection mechanism, which allows for policy experiments and selects successful ones, is valuable for national, provincial, and local governments. Thus competition among jurisdictions and firms is an integral part of dynamic social systems that hold promise for creating wealth and ending poverty.

Ways Out of Poverty : Diffusing Best Practices and Creating Capabilities--Perspectives on Policies for Poverty Reduction

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