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Extra resources for Poverty reduction and the World Bank: progress and challenges in the 1990s
Sub-Saharan Africa is an exception, however, with expected levels of growth well below what is needed. Significant efforts will be required in this region to make adequate strides in reducing poverty. While it is clear that the higher the rate of growth, the more poverty is reduced in a given country, there Page xii is considerable variation across countries in the impact of a given rate of growth on poverty. Income distribution is an important determinant of how growth affects poverty reduction.
Providing the necessary framework for broad-based growth. In recent years, the performance of low-income countries in South Asiaespecially India, Pakistan, and Sri Lankahas reaffirmed evidence that rapid labor-intensive growth can lead to sustained increases in productive employment and real earnings. Over the last five years, as its contribution to broad-based, sustainable growth, the World Bank has taken an integrated approach, providing US$14 billion to support economic reform measures; US$17 billion to help raise agricultural productivity; almost US$13 billion to improve transportation; over US$10 billion to support education; more than US$7 billion to improve population, health, and nutrition; over US$6 billion to support urban development; and about US$5 billion to improve water supply and sanitation systems.
Using the assumption that the sample of countries covered by surveys is representative of the region as a whole, the numbers of poor are then estimated by region. This assumption is obviously less robust in the Middle East and African regions. The headcount index is the percentage of the population below the poverty line. The poverty gap index is the mean distance below the poverty line (zero to the nonpoor) expressed as a percentage of the poverty line. Further details on data and methodology can be found in Ravallion and Chen 1996 and in endnote 11.
Poverty reduction and the World Bank: progress and challenges in the 1990s by World Bank