The Effect of International Monetary Fund and World Bank Programs on Poverty
Structural adjustment - as measured by the number of adjustment loans from the IMF, and the World Bank - reduces the growth elasticity of poverty reduction. The author finds no evidence for structural adjustment having a direct effect on growth. Th...
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
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World Bank, Washington, DC
2014
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| Online Access: | http://documents.worldbank.org/curated/en/2001/01/888122/effect-international-monetary-fund-world-bank-programs-poverty http://hdl.handle.net/10986/19722 |
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okr-10986-197222021-04-23T14:03:44Z The Effect of International Monetary Fund and World Bank Programs on Poverty Easterly, William ABSOLUTE VALUE ADJUSTMENT LENDING ADJUSTMENT LOANS ADJUSTMENT PROGRAMMES AGGREGATE OUTPUT AVERAGE GROWTH BLACK MARKET BLACK MARKET PREMIUM BUDGET DEFICITS COUNTERFACTUAL CREDITS DEPENDENT VARIABLE DESCRIPTIVE STATISTICS DEVELOPING COUNTRIES DEVELOPMENT ECONOMICS DEVELOPMENT RESEARCH DISTORTION DOMESTIC CREDIT ECONOMIC CONTRACTION ECONOMIC CONTRACTIONS ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC PERFORMANCE GINI COEFFICIENT GROWTH ELASTICITY GROWTH RATE HIGH ELASTICITY HIGH INEQUALITY HIGH POVERTY HOUSEHOLD CONSUMPTION HOUSEHOLD SURVEYS HUMAN CAPITAL INCOME SMOOTHING INFLATION INSURANCE LABOR MARKET LOG CHANGE LOW INEQUALITY LOW SHARE LOW-INCOME COUNTRIES MACRO POLICY MACROECONOMIC CONDITIONS MACROECONOMIC FRAMEWORK MEAN GROWTH MEAN INCOME MEAN INCOME GROWTH NEGATIVE EFFECT NEGATIVE SIGN PER CAPITA INCOME POLICY CHANGES POLICY ISSUES POLICY MEASURES POLICY RESEARCH POLICY VARIABLES POLITICAL ECONOMY POVERTY CHANGE POVERTY LINE POVERTY RATE POVERTY RATES POVERTY REDUCING POVERTY REDUCTION POVERTY REDUCTION STRATEGIES POVERTY REDUCTION STRATEGY PRO- POOR PRO-POOR PUBLIC EXPENDITURE REAL EXCHANGE RATE REDUCING POVERTY RELATIVE PRICES SAFETY NETS SECTOR ACTIVITIES SOCIAL SAFETY NETS STATE ENTERPRISES STRUCTURAL ADJUSTMENT STRUCTURAL ADJUSTMENT LOANS STRUCTURAL ADJUSTMENT PACKAGES STRUCTURAL ADJUSTMENT PROGRAMS STRUCTURAL ADJUSTMENT REFORMS TAXATION WEALTH Structural adjustment - as measured by the number of adjustment loans from the IMF, and the World Bank - reduces the growth elasticity of poverty reduction. The author finds no evidence for structural adjustment having a direct effect on growth. The poor benefit less from output expansion in countries with many adjustment loans, than they do in countries with few such loans. By the same token, the poor suffer less from an output contraction in countries with many adjustment loans, than in countries with few. Why would this be? One hypothesis is that adjustment lending is counter-cyclical, in ways that smooth consumption for the poor. There is evidence that some policy variables under adjustment lending are counter-cyclical, but no evidence that the cyclical component of those policy variables affects poverty. The author speculates that the poor may be ill placed to take advantage of new opportunities, created by structural adjustment reforms, just as they may suffer less from the loss of old opportunities in sectors that were artificially protected before reform. Poverty's lower sensitivity to growth under adjustment lending, is bad news when an economy expands, and good news when it contracts. These results could be interpreted as giving support to either the critics, or the supporters of structural adjustment programs. 2014-08-26T20:24:03Z 2014-08-26T20:24:03Z 2001-01 http://documents.worldbank.org/curated/en/2001/01/888122/effect-international-monetary-fund-world-bank-programs-poverty http://hdl.handle.net/10986/19722 English en_US Policy Research Working Paper;No. 2517 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
ABSOLUTE VALUE ADJUSTMENT LENDING ADJUSTMENT LOANS ADJUSTMENT PROGRAMMES AGGREGATE OUTPUT AVERAGE GROWTH BLACK MARKET BLACK MARKET PREMIUM BUDGET DEFICITS COUNTERFACTUAL CREDITS DEPENDENT VARIABLE DESCRIPTIVE STATISTICS DEVELOPING COUNTRIES DEVELOPMENT ECONOMICS DEVELOPMENT RESEARCH DISTORTION DOMESTIC CREDIT ECONOMIC CONTRACTION ECONOMIC CONTRACTIONS ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC PERFORMANCE GINI COEFFICIENT GROWTH ELASTICITY GROWTH RATE HIGH ELASTICITY HIGH INEQUALITY HIGH POVERTY HOUSEHOLD CONSUMPTION HOUSEHOLD SURVEYS HUMAN CAPITAL INCOME SMOOTHING INFLATION INSURANCE LABOR MARKET LOG CHANGE LOW INEQUALITY LOW SHARE LOW-INCOME COUNTRIES MACRO POLICY MACROECONOMIC CONDITIONS MACROECONOMIC FRAMEWORK MEAN GROWTH MEAN INCOME MEAN INCOME GROWTH NEGATIVE EFFECT NEGATIVE SIGN PER CAPITA INCOME POLICY CHANGES POLICY ISSUES POLICY MEASURES POLICY RESEARCH POLICY VARIABLES POLITICAL ECONOMY POVERTY CHANGE POVERTY LINE POVERTY RATE POVERTY RATES POVERTY REDUCING POVERTY REDUCTION POVERTY REDUCTION STRATEGIES POVERTY REDUCTION STRATEGY PRO- POOR PRO-POOR PUBLIC EXPENDITURE REAL EXCHANGE RATE REDUCING POVERTY RELATIVE PRICES SAFETY NETS SECTOR ACTIVITIES SOCIAL SAFETY NETS STATE ENTERPRISES STRUCTURAL ADJUSTMENT STRUCTURAL ADJUSTMENT LOANS STRUCTURAL ADJUSTMENT PACKAGES STRUCTURAL ADJUSTMENT PROGRAMS STRUCTURAL ADJUSTMENT REFORMS TAXATION WEALTH |
| spellingShingle |
ABSOLUTE VALUE ADJUSTMENT LENDING ADJUSTMENT LOANS ADJUSTMENT PROGRAMMES AGGREGATE OUTPUT AVERAGE GROWTH BLACK MARKET BLACK MARKET PREMIUM BUDGET DEFICITS COUNTERFACTUAL CREDITS DEPENDENT VARIABLE DESCRIPTIVE STATISTICS DEVELOPING COUNTRIES DEVELOPMENT ECONOMICS DEVELOPMENT RESEARCH DISTORTION DOMESTIC CREDIT ECONOMIC CONTRACTION ECONOMIC CONTRACTIONS ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC PERFORMANCE GINI COEFFICIENT GROWTH ELASTICITY GROWTH RATE HIGH ELASTICITY HIGH INEQUALITY HIGH POVERTY HOUSEHOLD CONSUMPTION HOUSEHOLD SURVEYS HUMAN CAPITAL INCOME SMOOTHING INFLATION INSURANCE LABOR MARKET LOG CHANGE LOW INEQUALITY LOW SHARE LOW-INCOME COUNTRIES MACRO POLICY MACROECONOMIC CONDITIONS MACROECONOMIC FRAMEWORK MEAN GROWTH MEAN INCOME MEAN INCOME GROWTH NEGATIVE EFFECT NEGATIVE SIGN PER CAPITA INCOME POLICY CHANGES POLICY ISSUES POLICY MEASURES POLICY RESEARCH POLICY VARIABLES POLITICAL ECONOMY POVERTY CHANGE POVERTY LINE POVERTY RATE POVERTY RATES POVERTY REDUCING POVERTY REDUCTION POVERTY REDUCTION STRATEGIES POVERTY REDUCTION STRATEGY PRO- POOR PRO-POOR PUBLIC EXPENDITURE REAL EXCHANGE RATE REDUCING POVERTY RELATIVE PRICES SAFETY NETS SECTOR ACTIVITIES SOCIAL SAFETY NETS STATE ENTERPRISES STRUCTURAL ADJUSTMENT STRUCTURAL ADJUSTMENT LOANS STRUCTURAL ADJUSTMENT PACKAGES STRUCTURAL ADJUSTMENT PROGRAMS STRUCTURAL ADJUSTMENT REFORMS TAXATION WEALTH Easterly, William The Effect of International Monetary Fund and World Bank Programs on Poverty |
| relation |
Policy Research Working Paper;No. 2517 |
| description |
Structural adjustment - as measured by
the number of adjustment loans from the IMF, and the World
Bank - reduces the growth elasticity of poverty reduction.
The author finds no evidence for structural adjustment
having a direct effect on growth. The poor benefit less from
output expansion in countries with many adjustment loans,
than they do in countries with few such loans. By the same
token, the poor suffer less from an output contraction in
countries with many adjustment loans, than in countries with
few. Why would this be? One hypothesis is that adjustment
lending is counter-cyclical, in ways that smooth consumption
for the poor. There is evidence that some policy variables
under adjustment lending are counter-cyclical, but no
evidence that the cyclical component of those policy
variables affects poverty. The author speculates that the
poor may be ill placed to take advantage of new
opportunities, created by structural adjustment reforms,
just as they may suffer less from the loss of old
opportunities in sectors that were artificially protected
before reform. Poverty's lower sensitivity to growth
under adjustment lending, is bad news when an economy
expands, and good news when it contracts. These results
could be interpreted as giving support to either the
critics, or the supporters of structural adjustment programs. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Easterly, William |
| author_facet |
Easterly, William |
| author_sort |
Easterly, William |
| title |
The Effect of International Monetary Fund and World Bank Programs on Poverty |
| title_short |
The Effect of International Monetary Fund and World Bank Programs on Poverty |
| title_full |
The Effect of International Monetary Fund and World Bank Programs on Poverty |
| title_fullStr |
The Effect of International Monetary Fund and World Bank Programs on Poverty |
| title_full_unstemmed |
The Effect of International Monetary Fund and World Bank Programs on Poverty |
| title_sort |
effect of international monetary fund and world bank programs on poverty |
| publisher |
World Bank, Washington, DC |
| publishDate |
2014 |
| url |
http://documents.worldbank.org/curated/en/2001/01/888122/effect-international-monetary-fund-world-bank-programs-poverty http://hdl.handle.net/10986/19722 |
| _version_ |
1764440481195884544 |