Poverty Reduction without Economic Growth? Explaining Brazil's Poverty Dynamics, 1985-2004
Brazil's slow pace of poverty reduction between the mid-1980s and the mid-2000s reflects both low growth and a low growth elasticity of poverty reduction. Using GDP data disaggregated by state and sector for a twenty-year period, this paper finds considerable variation in the poverty-reducing effectiveness of growth--across sectors, across space, and over time. Growth in the services sector was substantially more poverty-reducing than was growth in either agriculture or industry. Growth in industry had different effects on poverty across different states and its impact varied with initial conditions related to human development and worker empowerment. But because there was so little of it, economic growth actually played a relatively small role in accounting for Brazil's poverty reduction between 1985 and 2004. The taming of hyperinflation (in 1994) and a substantial expansion in social security and social assistance transfers, in large part mandated by the 1988 Constitution, accounted for the bulk of the overall reduction in poverty.
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Format: | Journal Article biblioteca |
Language: | EN |
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2010
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Subjects: | Measurement and Analysis of Poverty I320, Economic Development: Human Resources, Human Development, Income Distribution, Migration O150, |
Online Access: | http://hdl.handle.net/10986/5728 |
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dig-okr-1098657282021-04-23T14:02:23Z Poverty Reduction without Economic Growth? Explaining Brazil's Poverty Dynamics, 1985-2004 Ferreira, Francisco H.G. Leite, Phillippe G. Ravallion, Martin Measurement and Analysis of Poverty I320 Economic Development: Human Resources Human Development Income Distribution Migration O150 Brazil's slow pace of poverty reduction between the mid-1980s and the mid-2000s reflects both low growth and a low growth elasticity of poverty reduction. Using GDP data disaggregated by state and sector for a twenty-year period, this paper finds considerable variation in the poverty-reducing effectiveness of growth--across sectors, across space, and over time. Growth in the services sector was substantially more poverty-reducing than was growth in either agriculture or industry. Growth in industry had different effects on poverty across different states and its impact varied with initial conditions related to human development and worker empowerment. But because there was so little of it, economic growth actually played a relatively small role in accounting for Brazil's poverty reduction between 1985 and 2004. The taming of hyperinflation (in 1994) and a substantial expansion in social security and social assistance transfers, in large part mandated by the 1988 Constitution, accounted for the bulk of the overall reduction in poverty. 2012-03-30T07:34:15Z 2012-03-30T07:34:15Z 2010 Journal Article Journal of Development Economics 03043878 http://hdl.handle.net/10986/5728 EN CC BY-NC-ND 3.0 IGO http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Publications & Research :: Journal Article Publications & Research Brazil |
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Measurement and Analysis of Poverty I320 Economic Development: Human Resources Human Development Income Distribution Migration O150 Measurement and Analysis of Poverty I320 Economic Development: Human Resources Human Development Income Distribution Migration O150 |
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Measurement and Analysis of Poverty I320 Economic Development: Human Resources Human Development Income Distribution Migration O150 Measurement and Analysis of Poverty I320 Economic Development: Human Resources Human Development Income Distribution Migration O150 Ferreira, Francisco H.G. Leite, Phillippe G. Ravallion, Martin Poverty Reduction without Economic Growth? Explaining Brazil's Poverty Dynamics, 1985-2004 |
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Brazil's slow pace of poverty reduction between the mid-1980s and the mid-2000s reflects both low growth and a low growth elasticity of poverty reduction. Using GDP data disaggregated by state and sector for a twenty-year period, this paper finds considerable variation in the poverty-reducing effectiveness of growth--across sectors, across space, and over time. Growth in the services sector was substantially more poverty-reducing than was growth in either agriculture or industry. Growth in industry had different effects on poverty across different states and its impact varied with initial conditions related to human development and worker empowerment. But because there was so little of it, economic growth actually played a relatively small role in accounting for Brazil's poverty reduction between 1985 and 2004. The taming of hyperinflation (in 1994) and a substantial expansion in social security and social assistance transfers, in large part mandated by the 1988 Constitution, accounted for the bulk of the overall reduction in poverty. |
format |
Journal Article |
topic_facet |
Measurement and Analysis of Poverty I320 Economic Development: Human Resources Human Development Income Distribution Migration O150 |
author |
Ferreira, Francisco H.G. Leite, Phillippe G. Ravallion, Martin |
author_facet |
Ferreira, Francisco H.G. Leite, Phillippe G. Ravallion, Martin |
author_sort |
Ferreira, Francisco H.G. |
title |
Poverty Reduction without Economic Growth? Explaining Brazil's Poverty Dynamics, 1985-2004 |
title_short |
Poverty Reduction without Economic Growth? Explaining Brazil's Poverty Dynamics, 1985-2004 |
title_full |
Poverty Reduction without Economic Growth? Explaining Brazil's Poverty Dynamics, 1985-2004 |
title_fullStr |
Poverty Reduction without Economic Growth? Explaining Brazil's Poverty Dynamics, 1985-2004 |
title_full_unstemmed |
Poverty Reduction without Economic Growth? Explaining Brazil's Poverty Dynamics, 1985-2004 |
title_sort |
poverty reduction without economic growth? explaining brazil's poverty dynamics, 1985-2004 |
publishDate |
2010 |
url |
http://hdl.handle.net/10986/5728 |
work_keys_str_mv |
AT ferreirafranciscohg povertyreductionwithouteconomicgrowthexplainingbrazilspovertydynamics19852004 AT leitephillippeg povertyreductionwithouteconomicgrowthexplainingbrazilspovertydynamics19852004 AT ravallionmartin povertyreductionwithouteconomicgrowthexplainingbrazilspovertydynamics19852004 |
_version_ |
1756571653944377344 |