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The Effect of IMF and World Bank Programmes on Poverty

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  • William Easterly

Abstract

Structural adjustment, as measured by the number of adjustment loans from the IMF and World Bank, reduces the growth elasticity of poverty reduction. Growth does reduce poverty, but the author find no evidence for a direct effect of structural adjustment on growth. Instead, the poor benefit less from output expansion in countries with many adjustment loans than in countries with few adjustment loans. By the same token, the poor suffer less from an output contraction in countries with many adjustment loans than in countries with few adjustment loans. [Discussion Paper No. 2001/102]

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Bibliographic Info

Paper provided by eSocialSciences in its series Working Papers with number id:3193.

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Date of creation: Nov 2010
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Handle: RePEc:ess:wpaper:id:3193

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Keywords: poverty; structural adjustment; economic growth; income distribution;

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  1. van de Walle, Dominique, 2000. "Are returns to investment lower for the poor? Human and physical capital interactions in rural Viet Nam," Policy Research Working Paper Series 2425, The World Bank.
  2. Easterly, William & Fischer, Stanley, 2000. "Inflation and the poor," Policy Research Working Paper Series 2335, The World Bank.
  3. Ravallion, Martin, 1997. "Can high-inequality developing countries escape absolute poverty?," Economics Letters, Elsevier, vol. 56(1), pages 51-57, September.
  4. Rauch, James E., 1997. "Balanced and unbalanced growth," Journal of Development Economics, Elsevier, vol. 53(1), pages 41-66, June.
  5. Lipton, Michael & Ravallion, Martin, 1993. "Poverty and policy," Policy Research Working Paper Series 1130, The World Bank.
  6. Przeworski, Adam & Vreeland, James Raymond, 2000. "The effect of IMF programs on economic growth," Journal of Development Economics, Elsevier, vol. 62(2), pages 385-421, August.
  7. Rauch, James E., 1997. "Erratum to "Balanced and unbalanced growth" [Journal of Development Economics 53(1997) 41-66]," Journal of Development Economics, Elsevier, vol. 54(2), pages 493-518, December.
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Cited by:
  1. Malte Lübker & Graham Smith & John Weeks, 2002. "Growth and the poor: a comment on Dollar and Kraay," Journal of International Development, John Wiley & Sons, Ltd., vol. 14(5), pages 555-571.
  2. Mwangi S. Kimenyi, 2006. "Economic Reforms and Pro-Poor Growth: Lessons for Africa and other Developing Regions and Economies in Transition," Working papers, University of Connecticut, Department of Economics 2006-02, University of Connecticut, Department of Economics.
  3. Sedjo, Roger, 2005. "Macroeconomics and Forest Sustainability in the Developing World," Discussion Papers, Resources For the Future dp-05-47, Resources For the Future.

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