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Consumption Poverty and Pro-Poor Growth in Bolivia

  • Marta Moratti


    (Department of Economics, University of Sussex)

Using seven Bolivian household surveys conducted between 1999 and 2007, this paper provides a different picture of poverty dynamics in Bolivia. Consistent and accurate estimates of consumption are computed and used to create poverty profiles. Challenging the previous income-based poverty trend, it emerges that Bolivia experiences a very large poverty reduction from 2002 onwards, halving poverty headcount during the period of 2002- 2007. Growth incidence curves are also used to investigate the pro-poor component of the large welfare improvement. It shows that the poorest quintiles of the population, mostly represented by indigenous households, did benefit more than the rest of the population. The results suggest that Bolivian pro-poor growth significantly contributed to narrow the welfare inequality between indigenous and non-indigenous groups.

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Paper provided by Department of Economics, University of Sussex in its series Working Paper Series with number 1310.

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Date of creation: Nov 2010
Date of revision:
Handle: RePEc:sus:susewp:1310
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  1. Luis Carlos Jemio & Maria del Carmen Choque, 2006. "Towards a More Employment-Intensive and Pro-Poor Economic Growth in Bolivia," Development Research Working Paper Series 18/2006, Institute for Advanced Development Studies.
  2. Kevin Lang, 2007. "Introduction to Poverty and Discrimination
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  3. Hilary Hoynes & Marianne Page & Ann Stevens, 2005. "Poverty in America: Trends and Explanations," NBER Working Papers 11681, National Bureau of Economic Research, Inc.
  4. Rainer Thiele, 2003. "The social impact of structural adjustment in Bolivia," Journal of International Development, John Wiley & Sons, Ltd., vol. 15(3), pages 299-319.
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  8. Bruce Meyer & James X. Sullivan, 2010. "Five Decades of Consumption and Income Proverty," Working Papers 2010-003, Becker Friedman Institute for Research In Economics.
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  10. Barja Daza, Gover & Monterrey Arce, Javier & Villarroel Böhrt, Sergio, 2006. "Bolivia: Impact of shocks and poverty policy on household welfare," Revista Latinoamericana de Desarrollo Economico, Instituto de Investigaciones Socio-Económicas (IISEC), Universidad Católica Boliviana, issue 6, pages 63-123, Abril.
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  12. Tara Bedi & Aline Coudouel & Kenneth Simler, 2007. "More Than a Pretty Picture : Using Poverty Maps to Design Better Policies and Interventions," World Bank Publications, The World Bank, number 6800.
  13. Stephan Klasen & Melanie Grosse & Rainer Thiele & Jann Lay & Julius Spatz & Manfred Wiebelt, 2004. "Operationalizing Pro-Poor Growth - Country Case Study: Bolivia," Ibero America Institute for Econ. Research (IAI) Discussion Papers 101, Ibero-America Institute for Economic Research.
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  15. Medeiros, Marcelo & Costa, Joana, 2008. "Is There a Feminization of Poverty in Latin America?," World Development, Elsevier, vol. 36(1), pages 115-127, January.
  16. David E. Sahn & David Stifel, 2003. "Exploring Alternative Measures of Welfare in the Absence of Expenditure Data," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 49(4), pages 463-489, December.
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