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Growth, Poverty Reduction and Governance in Developing Countries: a Survey

  • Cagé, Julia

According to the World Bank (World Bank, 2007), the aim of the Country Policy and Institutional Assessment (CPIA) is to assess “how conducive [a country’s policy and institutional] framework is to fostering poverty reduction, sustainable growth and the effective use of development assistance.” We review the most recent (since 2001) empirical and theoretical literature on the determinants of sustained growth, poverty reduction and the effective use of development assistance, distinguishing between policies/institutions versus outcomes, underlying the areas of agreement and discussing the current controversies. Drawing from this literature, we underline what are the current weaknesses of the CPIA. We emphasize especially the controversies on the association between the CPIA criteria and some determinants of sustained growth, poverty reduction and the effective use of development assistance. We then list the key determinants identified in the literature that have been left out by the CPIA. Finally, after reviewing the literature, we conclude that, concerning the determinants of sustainable growth as well as poverty reduction and the effective use of development assistance, one of the most important points made in the literature is that “there is not universal recipe” (Barder and Birdsall, 2006). As a consequence, one of the main criticisms against the CPIA is that it “relies too heavily on a uniform model of what works in development policy” (Kanbur, 2005b).

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Paper provided by CEPREMAP in its series CEPREMAP Working Papers (Docweb) with number 0904.

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Length: 85 pages
Date of creation: Jan 2009
Date of revision:
Handle: RePEc:cpm:docweb:0904
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  1. Shang-Jin Wei, 2000. "Natural Openness and Good Government," NBER Working Papers 7765, National Bureau of Economic Research, Inc.
  2. Dani Rodrick, 2003. "Growth Strategies," Economics working papers 2003-17, Department of Economics, Johannes Kepler University Linz, Austria.
  3. David de la Croix & Clara Delavallade, 2007. "Growth, Public Investment and Corruption with Failing Institutions," Working Papers 61, ECINEQ, Society for the Study of Economic Inequality.
  4. Petia Topalova, 2005. "Trade Liberalization, Poverty And Inequality: Evidence From Indian Districts," Working Papers id:222, eSocialSciences.
  5. William Easterly, 2008. "Can the West Save Africa?," NBER Working Papers 14363, National Bureau of Economic Research, Inc.
  6. Jorge Martinez-Vasquez & Jameson Boex, 2001. "Russia's Transition to a New Federalism," World Bank Publications, The World Bank, number 15248.
  7. Kruger, Diana I., 2007. "Coffee production effects on child labor and schooling in rural Brazil," Journal of Development Economics, Elsevier, vol. 82(2), pages 448-463, March.
  8. Pinelopi Koujianou Goldberg & Nina Pavcnik, 2007. "The Effects of the Colombian Trade Liberalization on Urban Poverty," NBER Chapters, in: Globalization and Poverty, pages 241-290 National Bureau of Economic Research, Inc.
  9. Sebastian Edwards, 2001. "Capital Mobility and Economic Performance: Are Emerging Economies Different?," NBER Working Papers 8076, National Bureau of Economic Research, Inc.
  10. Benjamin A. Olken, 2008. "Direct Democracy and Local Public Goods: Evidence from a Field Experiment in Indonesia," NBER Working Papers 14123, National Bureau of Economic Research, Inc.
  11. Imani Duncan-Waite & Michael Woolcock, 2008. "Arrested Development: The Political Origins and Socio-Economic Foundations of Common Violence in Jamaica," Brooks World Poverty Institute Working Paper Series 4608, BWPI, The University of Manchester.
  12. Kalemli-Ozcan, Sebnem & Ryder, Harl E. & Weil, David N., 2000. "Mortality decline, human capital investment, and economic growth," Journal of Development Economics, Elsevier, vol. 62(1), pages 1-23, June.
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