The Politics of Poverty Reduction

Abstract

Abstract The aim is to understand the political processes which determine why poverty has been on a falling trend in some countries and not in others. The focus is on the developing world and on the period since 1980, although some country case studies cover a longer historical period going back to the beginning of the twentieth century. The analysis is based partly on comparisons across all developing countries and partly on case studies of nine of them. Often, it is found, pro-poor policies have been brought in not with progressive intentions, but out of fear that the state will fall apart unless pro-poor elements are incorporated into government, and the most effective regimes in reducing poverty have seldom been the kindest and most benevolent. Ability to provide the poor with access to key markets, in particular for labour and capital, is crucial, and this in turn requires fiscal strength. In the poorest countries, two crucial additional elements in the story are the ability to frame labour-intensive policies (given that labour is often the only thing which poor people are able to sell) and the design of pro-poor tax and expenditure policies. In these countries, aid donors can make a key contribution, partly through reinforcing recipients’ fiscal capacity, but much more through providing technical support of the right kind.

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