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Efficiency, Equity and Poverty Alleviation: Policy Issues in Less Developed Countries

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  • Pranab Bardhan.

Abstract

In this paper we start by noting that policies that help growth by improving allocational efficiency may also help the poor. We then go on to consider cases where in view of serious agency costs and coordination problems (particularly involving processes in credit and insurance markets) there may be a great deal of scope for trying redistributive projects which at the same time enhance productive efficiency, contrary to the message of efficiency-equity trade-off central to mainstream policy economics. In this context we discuss the efficiency effects of asset distribution programs like land reform. We then examine the merits and costs of targeting transfers aimed at improving their cost-effectiveness, including issues of self-selection by the poor and of targeting disadvantaged groups and backward areas. Finally, we discuss governance structures and focus on the role of self-governing institutions at the local level in improving efficiency and equity in poverty alleviation.

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Bibliographic Info

Paper provided by University of California at Berkeley in its series Center for International and Development Economics Research (CIDER) Working Papers with number C96-065.

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Date of creation: 01 Mar 1996
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Handle: RePEc:ucb:calbcd:c96-065

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Cited by:
  1. Muller, Christophe, 2002. "Prices and living standards: evidence for Rwanda," Journal of Development Economics, Elsevier, vol. 68(1), pages 187-203, June.
  2. Christopher Cramer, 2000. "Inequality, Development and Economic Correctness," Working Papers 105, Department of Economics, SOAS, University of London, UK.
  3. Christophe Muller, 2006. "Poverty Simulation And Price Changes," Working Papers. Serie AD 2006-13, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
  4. World Bank, 2007. "Arab Republic of Egypt : Poverty Assessment Update, Volume 1. Main Report," World Bank Other Operational Studies 7642, The World Bank.
  5. Balisacan, Arsenio M. & Fuwa, Nobuhiko, 2004. "Changes in Spatial Income Inequality in the Philippines: An Exploratory Analysis," Working Papers UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  6. Carlos Scartascini & Ernesto Stein & Mariano Tommasi, 2008. "Political Institutions, State Capabilities and Public Policy - International Evidence," Research Department Publications 4608, Inter-American Development Bank, Research Department.
  7. Anne O. Krueger, 1997. "Trade Policy and Economic Development: How We Learn," NBER Working Papers 5896, National Bureau of Economic Research, Inc.

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