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Household welfare and poverty dynamics in Burkina Faso : empirical evidence from household surveys

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  • Fofack, Hippolyte
  • Monga, Celestin
  • Tuluy, Hasan
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    Abstract

    The authors investigate the dynamics of poverty and income inequality in a cross-section of socio-economic groups and geographical regions over the five-year growth period following the 1994 devaluation of the CFA franc in Burkina Faso. Results show rapidly increasing urban poverty accompanied by rising income inequality, declining poverty -growth elasticities, and significant changes in the poverty map. In rural areas, the incidence of poverty remained the same and income inequality did not increase. In contrast, the distribution of welfare across socio-economic groups was more stable. The rank ordering of socioeconomic groups on the welfare scale did not change during the post-devaluation growth period. Poverty remains largely a rural phenomenon, whose inelastic nature may justify a shift toward growth-oriented policies that at least maintain the rural poor's share of income to reduce poverty in the medium term. Among factors that feed into income inequality: disparities in wages and in educational attainment and unequal access to productive assets (especially human capital).

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    Bibliographic Info

    Paper provided by The World Bank in its series Policy Research Working Paper Series with number 2590.

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    Date of creation: 30 Apr 2001
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    Handle: RePEc:wbk:wbrwps:2590

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    Keywords: Economic Theory&Research; Environmental Economics&Policies; Services&Transfers to Poor; Economic Conditions and Volatility; Public Health Promotion; Achieving Shared Growth; Poverty Assessment; Environmental Economics&Policies; Rural Poverty Reduction; Safety Nets and Transfers;

    References

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    1. Leibbrandt, M.V. & Woolard, C.D. & Woolard, I.D., 1996. "The Contribution of Income Components to Income Inequality in South Africa: A Decomposable Gini Analysis," Papers, World Bank - Living Standards Measurement 125, World Bank - Living Standards Measurement.
    2. Fofack, Hippolyte, 2000. "Combining Light Monitoring Surveys with Integrated Surveys to Improve Targeting for Poverty Reduction: The Case of Ghana," World Bank Economic Review, World Bank Group, World Bank Group, vol. 14(1), pages 195-219, January.
    3. Birdsall, Nancy & Ross, David & Sabot, Richard, 1995. "Inequality and Growth Reconsidered: Lessons from East Asia," World Bank Economic Review, World Bank Group, World Bank Group, vol. 9(3), pages 477-508, September.
    4. Kakwani, N., 1990. "Poverty And Economic Growth: With Application To Cote D'Ivoire," Papers, World Bank - Living Standards Measurement 63, World Bank - Living Standards Measurement.
    5. Lars Osberg, 1998. "Economic Insecurity," Discussion Papers, University of New South Wales, Social Policy Research Centre 0088, University of New South Wales, Social Policy Research Centre.
    6. Kakwani, N., 1990. "Poverty And Economic Growth; With Application To Cote D'Ivoire," Papers, New South Wales - School of Economics 90-2, New South Wales - School of Economics.
    7. Ravallion, M., 1992. "Poverty Comparisons - A Guide to Concepts and Methods," Papers, World Bank - Living Standards Measurement 88, World Bank - Living Standards Measurement.
    8. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, Econometric Society, vol. 52(3), pages 761-66, May.
    9. Behrman, Jere R & Knowles, James C, 1999. "Household Income and Child Schooling in Vietnam," World Bank Economic Review, World Bank Group, World Bank Group, vol. 13(2), pages 211-56, May.
    10. Atkinson, A B, 1987. "On the Measurement of Poverty," Econometrica, Econometric Society, Econometric Society, vol. 55(4), pages 749-64, July.
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    Cited by:
    1. Jean-Pierre Lachaud, 2005. "A la recherche de l’insaisissable dynamique de pauvreté au Burkina Faso. Une nouvelle évidence empirique," Documents de travail, Groupe d'Economie du Développement de l'Université Montesquieu Bordeaux IV 117, Groupe d'Economie du Développement de l'Université Montesquieu Bordeaux IV.
    2. Christian A. Emini & Hippolyte Fofack, 2004. "A financial social accounting matrix for the integrated macroeconomic model for poverty analysis : application to Cameroon with a fixed-price multiplier analysis," Policy Research Working Paper Series 3219, The World Bank.
    3. Michael Grimm & Isabel Günther, 2007. "Growth and Poverty in Burkina Faso: A Reassessment of the Paradox," Journal of African Economies, Centre for the Study of African Economies (CSAE), Centre for the Study of African Economies (CSAE), vol. 16(1), pages 70-101, January.
    4. Thomas Hertel & Jeffrey Reimer, 2005. "Predicting the poverty impacts of trade reform," The Journal of International Trade & Economic Development, Taylor & Francis Journals, Taylor & Francis Journals, vol. 14(4), pages 377-405.
    5. Beauchemin, Cris & Schoumaker, Bruno, 2005. "Migration to cities in Burkina Faso: Does the level of development in sending areas matter?," World Development, Elsevier, Elsevier, vol. 33(7), pages 1129-1152, July.
    6. Calves, Anne-Emmanuele & Schoumaker, Bruno, 2004. "Deteriorating Economic Context and Changing Patterns of Youth Employment in Urban Burkina Faso: 1980-2000," World Development, Elsevier, Elsevier, vol. 32(8), pages 1341-1354, August.
    7. World Bank, 2005. "Shocks and Social Protection : Lessons from the Central American Coffee Crisis, Volume 1, Synthesis of Findings and Implications for Policy," World Bank Other Operational Studies 8435, The World Bank.
    8. Fofack, Hippolyte, 2002. "The nature and dynamics of poverty determinants in Burkina Faso in the 1990s," Policy Research Working Paper Series 2847, The World Bank.
    9. Jean-Pierre Lachaud, 2004. "La pauvreté a-t-elle diminué ou augmenté au Burkina Faso ? Evidence empirique fondée sur une approche non monétaire micro-multidimensionnelle," Documents de travail, Groupe d'Economie du Développement de l'Université Montesquieu Bordeaux IV 103, Groupe d'Economie du Développement de l'Université Montesquieu Bordeaux IV.

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