Download e-book for kindle: Adjustment and Poverty: Options and Choices (Priorities for by Frances Stewart

By Frances Stewart

ISBN-10: 0203976401

ISBN-13: 9780203976401

ISBN-10: 0415091349

ISBN-13: 9780415091343

ISBN-10: 0415124360

ISBN-13: 9780415124362

The decade has introduced sharp adjustment and emerging poverty for many of the constructing international. Adjustment and Poverty: ideas and offerings examines the foremost motives and result of this example, together with: *the courting among structural adjustment and poverty; *the quantity to which the placement used to be led to via inner and/or exterior guidelines; *the impression of the IMF and global financial institution on adjusting international locations; *government tax and spending guidelines - with a specific specialize in social area spending; *the possiblity of higher rules sooner or later.

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Additional info for Adjustment and Poverty: Options and Choices (Priorities for Development Economics)

Example text

For the urban/modern sector, especially the IS sector, this is unrealist ic. 25 Then a devaluation redistributes income from wages to profits and rent in two ways. 30 ADJUSTMENT AND POVERTY First, assuming wages are fixed in nominal terms, real wages decline as IS goods’ prices rise in line with the increased cost of imported intermediate inputs plus proportionate mark-up. Real profits are sustained by the mark-up pricing adopted. Hence both the level and share of wages falls. Secondly, the domestic currency realised from exports rises (while the foreign currency price remains constant), increasing the share of profits and reducing the share of wages in the export sector.

A rise in poverty— accompanied adjustment. g. a worsening in the external situation)? The only way this question can be answered is by an appeal to the counterfactual or what would have happened in the absence of an adjustment programme. Yet, by definition, the counterfactual is not observable and any estimate of it is bound to be partly speculative. The next chapter will discuss various methods that have been used to estimate the counterfactual. All have some defects. Consequently, it is not possible to make conclusive arguments about causality on that basis.

11 Structural Adjustment Facility and Extended Structural Adjustment Facility Loans, which are given to low income African countries by the IMF and World Bank jointly. 20 ADJUSTMENT AND POVERTY 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 IMF, Annual Report 1991; quoted in Killick, 1994. , 1987; Williamson, 1983. Polak, 1991. , 1991; World Bank, 1992c. World Bank, 1990a. The above expresses social policy conditions as a proportion of total conditions. Loans containing social policy conditions accounted for 11 per cent of total loans over the decade 1979–89.

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Adjustment and Poverty: Options and Choices (Priorities for Development Economics) by Frances Stewart

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