Why do people stay poor? - World Bank
[Pages:75]Why do people stay poor?
Oriana Bandiera with Clare Balboni, Robin Burgess, Maitreesh Ghatak and
Anton Heil LSE
Poverty has been decreasing but is still high in SSA and SA
397.6 mio 3.0 mio
335.6 mio 26.8 mio 3.3 mio 2.3 mio
These are the regions where population growth will be fastest
Eradicate extreme poverty by 2030 (SDG1)?
Need to address the "stubborn poverty" problem: a lot of poor people are left behind even as countries grow. We need to understand why people stay poor in order to design policies that lift the poorest out of poverty
Poverty: consumption below poverty line
Consumption
Transfers Earnings
Policy tools tackle one of the two components
Policy tools
Consumption
social assistance /protection
training, credit, transfers
Transfers Earnings
Most countries spend a large % of GDP in social protection
But expenditure per capita is lowest in the poorest regions
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