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Poverty Alleviation in a Financial Programming Framework; An Integrated Approach

Author

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  • Sheetal K. Chand
  • Parthasarathi Shome

Abstract

Poverty alleviation is typically addressed in financial programming through additive programs that target vulnerable groups but without modifying the underlying stabilization and adjustment targets. Instead, this paper integrates the poverty alleviation objective into the financial programming framework using a well-known poverty index. In consequence, the assessment of trade-offs between competing objectives is facilitated. A simulation demonstrates how the integrated approach can reduce adverse effects on poverty and improve the balance of payments, although at the cost, temporarily, of a higher fiscal deficit and inflation.

Suggested Citation

  • Sheetal K. Chand & Parthasarathi Shome, 1995. "Poverty Alleviation in a Financial Programming Framework; An Integrated Approach," IMF Working Papers 95/29, International Monetary Fund.
  • Handle: RePEc:imf:imfwpa:95/29
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    Cited by:

    1. Yitzhaki, Shlomo, 2002. "Do we need a separate poverty measurement?," European Journal of Political Economy, Elsevier, vol. 18(1), pages 61-85, March.

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