IDEAS home Printed from https://ideas.repec.org/a/bpj/globdv/v7y2016i1p117-157n3.html
   My bibliography  Save this article

Global Poverty and Inequality: Is There New Capacity for Redistribution in Developing Countries?

Author

Listed:
  • Hoy Chris

    (University of Sydney)

  • Sumner Andy

    (King’s College London)

Abstract

Amartya Sen’s famous study of famines found that people died not because of a lack of food availability in a country but because some people lacked entitlements to that food. Is a similar situation now the case for global poverty, meaning that national resources are available but not being used to end poverty? This paper argues that approximately three-quarters of global poverty, at least at the lower poverty lines, could now be eliminated – in principle – via redistribution of nationally available resources in terms of cash transfers funded by new taxation and the reallocation of public spending. We argue that the findings provide a rationale for a stronger consideration of some national redistribution for purely instrumental reasons: to reduce or end global poverty quicker than waiting for economic growth. We find that at lower poverty lines ending global poverty may now be within the financial capacities of most national governments of developing countries either in the form of potential new taxation or reallocation of existing public finances though this is not the case at higher poverty lines. In summary, reducing global poverty at lower poverty lines is increasingly a matter of national inequality.

Suggested Citation

  • Hoy Chris & Sumner Andy, 2016. "Global Poverty and Inequality: Is There New Capacity for Redistribution in Developing Countries?," Journal of Globalization and Development, De Gruyter, vol. 7(1), pages 117-157, June.
  • Handle: RePEc:bpj:globdv:v:7:y:2016:i:1:p:117-157:n:3
    DOI: 10.1515/jgd-2016-0021
    as

    Download full text from publisher

    File URL: https://doi.org/10.1515/jgd-2016-0021
    Download Restriction: For access to full text, subscription to the journal or payment for the individual article is required.

    File URL: https://libkey.io/10.1515/jgd-2016-0021?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Alkire, Sabina & Roche, José Manuel & Vaz, Ana, 2017. "Changes Over Time in Multidimensional Poverty: Methodology and Results for 34 Countries," World Development, Elsevier, vol. 94(C), pages 232-249.
    2. Jose Antonio Alonso & Ana Luiza Cortez & Stephan Klasen, 2014. "LDC and other country groupings: How useful are current approaches to classify countries in a more hetergeneous developing world?," CDP Background Papers 021, United Nations, Department of Economics and Social Affairs.
    3. Frank-Oliver Aldenhoff, 2007. "Are economic forecasts of the International Monetary Fund politically biased? A public choice analysis," The Review of International Organizations, Springer, vol. 2(3), pages 239-260, September.
    4. Meera Tiwari & Sabina Alkire & Jose Manuel Roche & Suman Seth & Andrew Sumner, 2015. "Identifying the Poorest People and Groups: Strategies Using the Global Multidimensional Poverty Index," Journal of International Development, John Wiley & Sons, Ltd., vol. 27(3), pages 362-387, April.
    5. Arze del Granado, Francisco Javier & Coady, David & Gillingham, Robert, 2012. "The Unequal Benefits of Fuel Subsidies: A Review of Evidence for Developing Countries," World Development, Elsevier, vol. 40(11), pages 2234-2248.
    6. Mr. David Coady & Mr. Javier Arze del Granado, 2010. "The Unequal Benefits of Fuel Subsidies: A Review of Evidence for Developing Countries," IMF Working Papers 2010/202, International Monetary Fund.
    7. Sabina Alkire, James E. Foster, Suman Seth, Maria Emma Santos, José M. Roche and Paola Ballon, 2014. "Multidimensional Poverty Measurement and Analysis: Chapter 1 - Introduction," OPHI Working Papers ophiwp082_ch1.pdf, Queen Elizabeth House, University of Oxford.
    8. Alkire, Sabina & Foster, James & Seth, Suman & Santos, Maria Emma & Roche, Jose Manuel & Ballon, Paola, 2015. "Multidimensional Poverty Measurement and Analysis," OUP Catalogue, Oxford University Press, number 9780199689491.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Roberto Iacono & Marco Ranaldi, 2021. "The nexus between perceptions of inequality and preferences for redistribution," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 19(1), pages 97-114, March.
    2. Kanbur, Ravi, 2018. "On The Volume of Redistribution: Across Income Levels and Across Groups," CEPR Discussion Papers 12816, C.E.P.R. Discussion Papers.
    3. Alf Gunvald Nilsen, 2021. "Give James Ferguson a Fish," Development and Change, International Institute of Social Studies, vol. 52(1), pages 3-25, January.
    4. Jose Cuesta & Mario Negre & Ana Revenga & Maika Schmidt, 2018. "Tackling Income Inequality: What Works and Why?," Journal of Income Distribution, Ad libros publications inc., vol. 26(1), pages 1-48, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jon Sampedro & Iñaki Arto & Mikel González-Eguino, 2017. "Implications of Switching Fossil Fuel Subsidies to Solar: A Case Study for the European Union," Sustainability, MDPI, vol. 10(1), pages 1-12, December.
    2. Pierce O’Reilly, 2018. "Tax policies for inclusive growth in a changing world," OECD Taxation Working Papers 40, OECD Publishing.
    3. James Davies & Xiaojun Shi & John Whalley, 2014. "The possibilities for global inequality and poverty reduction using revenues from global carbon pricing," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 12(3), pages 363-391, September.
    4. Lucas W. Davis, 2017. "The Environmental Cost of Global Fuel Subsidies," The Energy Journal, International Association for Energy Economics, vol. 0(KAPSARC S).
    5. Dalila de Rosa, 2020. "Are Italians getting multidimensionally poorer? Evidence on the lack of Equitable and Sustainable Well-being," CERBE Working Papers wpC34, CERBE Center for Relationship Banking and Economics.
    6. Arzaghi, Mohammad & Squalli, Jay, 2015. "How price inelastic is demand for gasoline in fuel-subsidizing economies?," Energy Economics, Elsevier, vol. 50(C), pages 117-124.
    7. Malla, Sunil & Timilsina, Govinda R, 2014. "Household cooking fuel choice and adoption of improved cookstoves in developing countries : a review," Policy Research Working Paper Series 6903, The World Bank.
    8. Mundaca, Gabriela, 2017. "Energy subsidies, public investment and endogenous growth," Energy Policy, Elsevier, vol. 110(C), pages 693-709.
    9. Neil McCulloch, 2017. "Energy subsidies, international aid, and the politics of reform," WIDER Working Paper Series 174, World Institute for Development Economic Research (UNU-WIDER).
    10. Patrice Ollivaud, 2017. "Improving the allocation and efficiency of public spending in Indonesia," OECD Economics Department Working Papers 1381, OECD Publishing.
    11. Mr. David Coady & Valentina Flamini & Louis Sears, 2015. "The Unequal Benefits of Fuel Subsidies Revisited: Evidence for Developing Countries," IMF Working Papers 2015/250, International Monetary Fund.
    12. Sabina Alkire and Suman Seth, 2016. "Identifying Destitution through Linked Subsets of Multidimensionally Poor: An Ordinal Approach," OPHI Working Papers ophiwp099.pdf, Queen Elizabeth House, University of Oxford.
    13. Plante, Michael, 2011. "The long-run macroeconomic impacts of fuel subsidies in an oil-importing developing country," MPRA Paper 33823, University Library of Munich, Germany.
    14. Matthys, Marie-Luise & Acharya, Sushant & Khatri, Sanjaya, 2021. "“Before cardamom, we used to face hardship”: Analyzing agricultural commercialization effects in Nepal through a local concept of the Good Life," World Development, Elsevier, vol. 141(C).
    15. Olabisi, Michael & Tschirley, David L. & Nyange, David & Awokuse, Titus, 2019. "Energy demand substitution from biomass to imported kerosene: Evidence from Tanzania," Energy Policy, Elsevier, vol. 130(C), pages 243-252.
    16. Espinoza-Delgado, José & Klasen, Stephan, 2018. "Gender and multidimensional poverty in Nicaragua: An individual based approach," World Development, Elsevier, vol. 110(C), pages 466-491.
    17. Nathan S. Balke, Michael Plante, and Mine Yücel, 2015. "Fuel Subsidies, the Oil Market and the World Economy," The Energy Journal, International Association for Energy Economics, vol. 0(Adelman S).
    18. Schleicher, Michael & Souares, Aurélia & Pacere, Athanase Narangoro & Sauerborn, Rainer & Klonner, Stefan, 2016. "Decentralized versus Statistical Targeting of Anti-Poverty Programs: Evidence from Burkina Faso," Working Papers 0623, University of Heidelberg, Department of Economics.
    19. Suman Seth & Antonio Villar, 2014. "Human Development, Inequality and Poverty: empirical findings," Working Papers 14.11, Universidad Pablo de Olavide, Department of Economics.
    20. Cevik, Serhan & Saadi Sedik, Tahsin, 2014. "A Barrel of Oil or a Bottle of Wine: How Do Global Growth Dynamics Affect Commodity Prices?," Journal of Wine Economics, Cambridge University Press, vol. 9(1), pages 34-50, May.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bpj:globdv:v:7:y:2016:i:1:p:117-157:n:3. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: https://www.degruyter.com .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peter Golla (email available below). General contact details of provider: https://www.degruyter.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.