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Views from the Center

CGD experts offer ideas and analysis to improve international development policy. Also check out our Global Health blog and US Development Policy blog.

 

Chart of the Week #4: Angus Deaton and the Location of Poverty

On Wednesday, Angus Deaton published an op-ed in the New York Times that paints a compelling picture of the depth of poverty in America, and the need for more money and more policy attention to fix it. It's a sobering read, and we strongly agree that America’s most destitute deserve far more support. But in comparing US poverty to poverty in developing countries, we think he’s got his numbers wrong.

The (Sometime) Tyranny of (Somewhat) Arbitrary Income Lines

As Lant Pritchett reports, the World Bank has introduced two new poverty lines: $3.20 for lower middle income countries, and $5.50 for upper middle income countries. I’m with Lant that this is broadly a good thing. But the process by which the World Bank came up with its new poverty lines suggests it might be worth revisiting some of the pitfalls of income thresholds at the individual or national level. 

The IMF on Protecting the Poor during Fiscal “Consolidations”: Better Late Than Never

Inequality and inclusive growth were high on the agenda of the Annual Meetings of the International Monetary Fund and World Bank earlier this month. We are glad about that, but the under-reported story here is that this prominence marks a dramatic shift in the IMF over the last two decades in the IMF’s approach to the relevant challenges for the poorest countries, including on the issue of social safety nets and social expenditures.

Forests and Poverty: Barking Up the Wrong Tree?

Most discussions of the linkage between forests and poverty—including one last week at the United Nations Forum on Forests (UNFF)—focus on how to increase income to poor households from the harvest and sale of forest products. But at least as much attention should be paid to forest destruction as a pathway to the further immiseration of poor people.

Reducing Poverty in India with the Power of Digital Payments and UBI

Demonetization is yesterday’s news. The India of today is going full steam ahead towards a digital economy powered by financial inclusion, the mobile revolution, and Aadhaar—the biometric ID system that now covers 90 percent of its 1.3 billion population. And the social compact of the future will restructure subsidies and provide a basic income for the poor.

Two Views on Fighting World Poverty

Yesterday, Lant Pritchett expressed his bewilderment at my open letter to Bill Gates advocating cash for the poor rather than chickens. I think Lant’s right and he’s wrong. We have to focus on the big picture and economic growth as a society, but I think there’s a strong argument for directly tackling the worst poverty now.

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