Can the World Cut Poverty in Half? How Policy Reform and Effective Aid Can Meet International Development Goals

More effective development aid could greatly improve poverty reduction in the areas where poverty reduction is expected to lag: Sub-Saharan Africa, Eastern Europe, and Central Asia. Even more potent would be significant policy reform in the countri...

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Main Authors:	Collier, Paul, Dollar, David
Format:	Policy Research Working Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2014
Subjects:	AVERAGE INCOME AVERAGE LEVEL BASELINE ANALYSIS BUSINESS CYCLE CAPITA GROWTH CASE STUDIES COUNTERFACTUAL DATA SET DEVELOPED WORLD DEVELOPING COUNTRIES DEVELOPING COUNTRY DEVELOPING WORLD DEVELOPMENT AID DEVELOPMENT GOALS DEVELOPMENT PROCESS DEVELOPMENT RESEARCH DIMINISHING RETURNS DISEQUILIBRIUM DONOR AGENCIES ECONOMIC POLICIES ECONOMIC POLICY EFFECTIVE USE ELASTICITIES ELASTICITY OF DEMAND EMPIRICAL STUDIES EXOGENOUS FACTORS GROWTH PROCESS GROWTH RATE GROWTH RATES HEADCOUNT INDEX HEADCOUNT POVERTY HIGH POVERTY INCIDENCE OF POVERTY INCOME COUNTRIES INCOME ELASTICITY INCOME GROWTH INCREASE POVERTY INDIVIDUAL COUNTRIES INEQUALITY INSTITUTIONAL ASSESSMENT INSTITUTIONAL ENVIRONMENT INSTITUTIONAL ENVIRONMENTS INTERNATIONAL AGENCIES INTERNATIONAL DEVELOPMENT GOALS LONG-TERM GROWTH LOW-INCOME COUNTRIES MARGINAL BENEFITS MARGINAL COST MARGINAL COSTS MARGINAL RETURNS MEAN INCOME PER CAPITA GROWTH PER CAPITA INCOME POLICY CHANGE POLICY ENVIRONMENT POLICY OBJECTIVE POLICY REFORMS POLICY RESEARCH POOR POOR COUNTRIES POOR PEOPLE POOR PERSON POOR POLICIES POPULATION GROWTH POPULOUS COUNTRIES POVERTY IMPACT POVERTY LEVEL POVERTY LINE POVERTY RATE POVERTY RATES POVERTY REDUCTION POVERTY REDUCTION OBJECTIVE PRODUCTIVITY PROGRAMS PUBLIC EXPENDITURE PUBLIC SECTOR PUBLIC SERVICES PURCHASING POWER PURCHASING POWER PARITY REDUCING POVERTY REFORM POLICIES RICH COUNTRIES SHORT TERM SIGNIFICANT CORRELATION SIGNIFICANT REDUCTION SOCIAL INCLUSION STRUCTURAL POLICIES TAXATION TRANSITION ECONOMIES
Online Access:	http://documents.worldbank.org/curated/en/2000/07/443637/can-world-cut-poverty-half-policy-reform-effective-aid-can-meet-international-development-goals http://hdl.handle.net/10986/19823

id	okr-10986-19823
recordtype	oai_dc
spelling	okr-10986-198232021-04-23T14:03:46Z Can the World Cut Poverty in Half? How Policy Reform and Effective Aid Can Meet International Development Goals Collier, Paul Dollar, David AVERAGE INCOME AVERAGE LEVEL BASELINE ANALYSIS BUSINESS CYCLE CAPITA GROWTH CASE STUDIES COUNTERFACTUAL DATA SET DEVELOPED WORLD DEVELOPING COUNTRIES DEVELOPING COUNTRY DEVELOPING WORLD DEVELOPMENT AID DEVELOPMENT GOALS DEVELOPMENT PROCESS DEVELOPMENT RESEARCH DIMINISHING RETURNS DISEQUILIBRIUM DONOR AGENCIES ECONOMIC POLICIES ECONOMIC POLICY EFFECTIVE USE ELASTICITIES ELASTICITY OF DEMAND EMPIRICAL STUDIES EXOGENOUS FACTORS GROWTH PROCESS GROWTH RATE GROWTH RATES HEADCOUNT INDEX HEADCOUNT POVERTY HIGH POVERTY INCIDENCE OF POVERTY INCOME COUNTRIES INCOME ELASTICITY INCOME GROWTH INCREASE POVERTY INDIVIDUAL COUNTRIES INEQUALITY INSTITUTIONAL ASSESSMENT INSTITUTIONAL ENVIRONMENT INSTITUTIONAL ENVIRONMENTS INTERNATIONAL AGENCIES INTERNATIONAL DEVELOPMENT GOALS LONG-TERM GROWTH LOW-INCOME COUNTRIES MARGINAL BENEFITS MARGINAL COST MARGINAL COSTS MARGINAL RETURNS MEAN INCOME PER CAPITA GROWTH PER CAPITA INCOME POLICY CHANGE POLICY ENVIRONMENT POLICY OBJECTIVE POLICY REFORMS POLICY RESEARCH POOR POOR COUNTRIES POOR PEOPLE POOR PERSON POOR POLICIES POPULATION GROWTH POPULOUS COUNTRIES POVERTY IMPACT POVERTY LEVEL POVERTY LINE POVERTY RATE POVERTY RATES POVERTY REDUCTION POVERTY REDUCTION OBJECTIVE PRODUCTIVITY PROGRAMS PUBLIC EXPENDITURE PUBLIC SECTOR PUBLIC SERVICES PURCHASING POWER PURCHASING POWER PARITY REDUCING POVERTY REFORM POLICIES RICH COUNTRIES SHORT TERM SIGNIFICANT CORRELATION SIGNIFICANT REDUCTION SOCIAL INCLUSION STRUCTURAL POLICIES TAXATION TRANSITION ECONOMIES More effective development aid could greatly improve poverty reduction in the areas where poverty reduction is expected to lag: Sub-Saharan Africa, Eastern Europe, and Central Asia. Even more potent would be significant policy reform in the countries themselves. The authors develop a model of efficient aid in which the total volume of aid is endogenous. In particular, aid flows respond to policy improvements that create a better environment for poverty reduction and effective use of aid. They use the model to investigate scenarios-of policy reform, of more efficient aid, and of greater volumes of aid-that point the way to how the world could cut poverty in half in every major region. The fact that aid increases the benefits of reform suggests that a high level of aid to strong reformers may increase the likelihood of sustained good policy (an idea ratified in several recent case studies of low-income reformers). The authors find that the world is not operating on the efficiency frontier. With the same level of concern, much more poverty reduction could be achieved by allocating aid on the basis of how poor countries are as well as on the basis of the quality of their policies. Global poverty reduction requires a partnership in which "third world" countries and governments improve economic policy while "first world" citizens and governments show concern about poverty and translate that concern into effective assistance. 2014-08-28T17:57:06Z 2014-08-28T17:57:06Z 2000-07 http://documents.worldbank.org/curated/en/2000/07/443637/can-world-cut-poverty-half-policy-reform-effective-aid-can-meet-international-development-goals http://hdl.handle.net/10986/19823 English en_US Policy Research Working Paper;No. 2403 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	AVERAGE INCOME AVERAGE LEVEL BASELINE ANALYSIS BUSINESS CYCLE CAPITA GROWTH CASE STUDIES COUNTERFACTUAL DATA SET DEVELOPED WORLD DEVELOPING COUNTRIES DEVELOPING COUNTRY DEVELOPING WORLD DEVELOPMENT AID DEVELOPMENT GOALS DEVELOPMENT PROCESS DEVELOPMENT RESEARCH DIMINISHING RETURNS DISEQUILIBRIUM DONOR AGENCIES ECONOMIC POLICIES ECONOMIC POLICY EFFECTIVE USE ELASTICITIES ELASTICITY OF DEMAND EMPIRICAL STUDIES EXOGENOUS FACTORS GROWTH PROCESS GROWTH RATE GROWTH RATES HEADCOUNT INDEX HEADCOUNT POVERTY HIGH POVERTY INCIDENCE OF POVERTY INCOME COUNTRIES INCOME ELASTICITY INCOME GROWTH INCREASE POVERTY INDIVIDUAL COUNTRIES INEQUALITY INSTITUTIONAL ASSESSMENT INSTITUTIONAL ENVIRONMENT INSTITUTIONAL ENVIRONMENTS INTERNATIONAL AGENCIES INTERNATIONAL DEVELOPMENT GOALS LONG-TERM GROWTH LOW-INCOME COUNTRIES MARGINAL BENEFITS MARGINAL COST MARGINAL COSTS MARGINAL RETURNS MEAN INCOME PER CAPITA GROWTH PER CAPITA INCOME POLICY CHANGE POLICY ENVIRONMENT POLICY OBJECTIVE POLICY REFORMS POLICY RESEARCH POOR POOR COUNTRIES POOR PEOPLE POOR PERSON POOR POLICIES POPULATION GROWTH POPULOUS COUNTRIES POVERTY IMPACT POVERTY LEVEL POVERTY LINE POVERTY RATE POVERTY RATES POVERTY REDUCTION POVERTY REDUCTION OBJECTIVE PRODUCTIVITY PROGRAMS PUBLIC EXPENDITURE PUBLIC SECTOR PUBLIC SERVICES PURCHASING POWER PURCHASING POWER PARITY REDUCING POVERTY REFORM POLICIES RICH COUNTRIES SHORT TERM SIGNIFICANT CORRELATION SIGNIFICANT REDUCTION SOCIAL INCLUSION STRUCTURAL POLICIES TAXATION TRANSITION ECONOMIES
spellingShingle	AVERAGE INCOME AVERAGE LEVEL BASELINE ANALYSIS BUSINESS CYCLE CAPITA GROWTH CASE STUDIES COUNTERFACTUAL DATA SET DEVELOPED WORLD DEVELOPING COUNTRIES DEVELOPING COUNTRY DEVELOPING WORLD DEVELOPMENT AID DEVELOPMENT GOALS DEVELOPMENT PROCESS DEVELOPMENT RESEARCH DIMINISHING RETURNS DISEQUILIBRIUM DONOR AGENCIES ECONOMIC POLICIES ECONOMIC POLICY EFFECTIVE USE ELASTICITIES ELASTICITY OF DEMAND EMPIRICAL STUDIES EXOGENOUS FACTORS GROWTH PROCESS GROWTH RATE GROWTH RATES HEADCOUNT INDEX HEADCOUNT POVERTY HIGH POVERTY INCIDENCE OF POVERTY INCOME COUNTRIES INCOME ELASTICITY INCOME GROWTH INCREASE POVERTY INDIVIDUAL COUNTRIES INEQUALITY INSTITUTIONAL ASSESSMENT INSTITUTIONAL ENVIRONMENT INSTITUTIONAL ENVIRONMENTS INTERNATIONAL AGENCIES INTERNATIONAL DEVELOPMENT GOALS LONG-TERM GROWTH LOW-INCOME COUNTRIES MARGINAL BENEFITS MARGINAL COST MARGINAL COSTS MARGINAL RETURNS MEAN INCOME PER CAPITA GROWTH PER CAPITA INCOME POLICY CHANGE POLICY ENVIRONMENT POLICY OBJECTIVE POLICY REFORMS POLICY RESEARCH POOR POOR COUNTRIES POOR PEOPLE POOR PERSON POOR POLICIES POPULATION GROWTH POPULOUS COUNTRIES POVERTY IMPACT POVERTY LEVEL POVERTY LINE POVERTY RATE POVERTY RATES POVERTY REDUCTION POVERTY REDUCTION OBJECTIVE PRODUCTIVITY PROGRAMS PUBLIC EXPENDITURE PUBLIC SECTOR PUBLIC SERVICES PURCHASING POWER PURCHASING POWER PARITY REDUCING POVERTY REFORM POLICIES RICH COUNTRIES SHORT TERM SIGNIFICANT CORRELATION SIGNIFICANT REDUCTION SOCIAL INCLUSION STRUCTURAL POLICIES TAXATION TRANSITION ECONOMIES Collier, Paul Dollar, David Can the World Cut Poverty in Half? How Policy Reform and Effective Aid Can Meet International Development Goals
relation	Policy Research Working Paper;No. 2403
description	More effective development aid could greatly improve poverty reduction in the areas where poverty reduction is expected to lag: Sub-Saharan Africa, Eastern Europe, and Central Asia. Even more potent would be significant policy reform in the countries themselves. The authors develop a model of efficient aid in which the total volume of aid is endogenous. In particular, aid flows respond to policy improvements that create a better environment for poverty reduction and effective use of aid. They use the model to investigate scenarios-of policy reform, of more efficient aid, and of greater volumes of aid-that point the way to how the world could cut poverty in half in every major region. The fact that aid increases the benefits of reform suggests that a high level of aid to strong reformers may increase the likelihood of sustained good policy (an idea ratified in several recent case studies of low-income reformers). The authors find that the world is not operating on the efficiency frontier. With the same level of concern, much more poverty reduction could be achieved by allocating aid on the basis of how poor countries are as well as on the basis of the quality of their policies. Global poverty reduction requires a partnership in which "third world" countries and governments improve economic policy while "first world" citizens and governments show concern about poverty and translate that concern into effective assistance.
format	Publications & Research :: Policy Research Working Paper
author	Collier, Paul Dollar, David
author_facet	Collier, Paul Dollar, David
author_sort	Collier, Paul
title	Can the World Cut Poverty in Half? How Policy Reform and Effective Aid Can Meet International Development Goals
title_short	Can the World Cut Poverty in Half? How Policy Reform and Effective Aid Can Meet International Development Goals
title_full	Can the World Cut Poverty in Half? How Policy Reform and Effective Aid Can Meet International Development Goals
title_fullStr	Can the World Cut Poverty in Half? How Policy Reform and Effective Aid Can Meet International Development Goals
title_full_unstemmed	Can the World Cut Poverty in Half? How Policy Reform and Effective Aid Can Meet International Development Goals
title_sort	can the world cut poverty in half? how policy reform and effective aid can meet international development goals
publisher	World Bank, Washington, DC
publishDate	2014
url	http://documents.worldbank.org/curated/en/2000/07/443637/can-world-cut-poverty-half-policy-reform-effective-aid-can-meet-international-development-goals http://hdl.handle.net/10986/19823
_version_	1764441493889613824

Can the World Cut Poverty in Half? How Policy Reform and Effective Aid Can Meet International Development Goals

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