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Poverty and Inequality during the Adjustment Decade: Empirical Findings from Household Surveys

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  • Haroon Jamal

    (Social Policy and Development Centre (SPDC), Karachi.)

Abstract

This paper investigates the dynamics of poverty and inequality in Pakistan over the period 1988–1999. The year 1988 was the year of the first formal Structural Adjustment Lending (SAL) from the World Bank and the IMF. Thus, this analysis facilitates the debate regarding the impact of SAL on household welfare and poverty. This is done by analysing changes in poverty and inequality from two comparable household income and expenditure surveys conducted by the Federal Bureau of Statistics. Our findings show an increase both in the Gini coefficient from 0.34 to 0.38 and poverty incidence from 24 to 30. The dynamic decomposition of the poverty index indicates the relative importance of growth and redistribution effects in explaining the changes in poverty. The analysis reveals that increase in poverty can mainly be attributed to low economic growth during the decade especially in the rural areas.

Suggested Citation

  • Haroon Jamal, 2003. "Poverty and Inequality during the Adjustment Decade: Empirical Findings from Household Surveys," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 42(2), pages 125-135.
  • Handle: RePEc:pid:journl:v:42:y:2003:i:2:p:125-135
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    File URL: http://www.pide.org.pk/pdf/PDR/2003/Volume2/125-135.pdf
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    References listed on IDEAS

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    1. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-766, May.
    2. Ravallion, Martin & Huppi, Monika, 1991. "Measuring Changes in Poverty: A Methodological Case Study of Indonesia during an Adjustment Period," World Bank Economic Review, World Bank Group, vol. 5(1), pages 57-82, January.
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    Cited by:

    1. G. M. Arif, 2004. "Child Health and Poverty in Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 43(3), pages 211-238.
    2. Khan, Rana Ejaz Ali & Nawaz, Muhammad Atif & Hussain, Altaf, 2011. "Impact evaluation of structural adjustment program: a case of Pakistan," MPRA Paper 34835, University Library of Munich, Germany.
    3. Khalid Zaman & Bashir Khilji, 2014. "A note on pro-poor social expenditures," Quality & Quantity: International Journal of Methodology, Springer, vol. 48(4), pages 2121-2154, July.

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