Finally, while issues regarding the composition of growth also go beyond strict macroeconomics, several general policy observations can be made. In Africa, for instance, there is evidence that children from poor families drop out of school during crises. Although it is difficult to prove the direction of causation, these results confirm that macroeconomic instability has generally been associated with poor growth performance.
The same factors resulted in high poverty measures, although there was also a sizable unexplained shift in distribution.
In the long run, greater benefits to the poor are to be had as a result of the restoration of macroeconomic stability. Therefore, governments should seek to determine a distribution of tax burdens seen as broadly fair rather than use the tax system to achieve a drastic income redistribution.
Inappropriate exchange rate policies distort the composition of growth by influencing the price of tradable versus nontradable goods. The amount and type of available external resources to finance the budget will vary depending on the particular circumstances facing the country. Elements of Macroeconomic Stability Macroeconomic policies influence and contribute to the attainment of rapid, sustainable economic growth aimed at poverty reduction in a variety of ways.
Such scenarios could be usefully discussed with stakeholders and development partners with a view to assessing the impact of lower-than-projected economic growth on key macroeconomic targets and poverty outcomes and to developing appropriate contingencies.
Such saving instruments are typically composed of foreign assets, domestic financial assets, and domestic real assets. However, if the source of instability can be clearly identified as a temporary shock e. Such frameworks, however, are presently only at a nascent stage of development see Box 3.
No magic bullet can guarantee increased rates of private sector investment. In cases where macroeconomic imbalances are less severe, a range of possible targets may be consistent with the objective of stabilization. Distortions in these markets curtail the ability of the poor to follow consumption smoothing patterns.
For countries that enjoy stable macroeconomic conditions, there is somewhat greater flexibility in the choice of appropriate stance for macroeconomic policy. Access to credit markets is extremely limited for the poor to buffer the effects of shocks, in part as a consequence of inadequate borrower information available to credit institutions.
For example, countries that have targeted the real exchange rate have generally had worse inflation performance than other countries. As a result, monetary authorities are typically unable to exploit this impact systematically.
The same is true in the case of external debt, but policymakers also need to determine whether the terms on such borrowing are appropriate and whether the added debt burden is sustainable.
Monetary and Exchange Rate Policies Monetary and exchange rate policies can affect the poor primarily through three channels:MacroeconoMics of Poverty reduction: the case study of Bhutan The Asia-Pacific Regional Programme on Macroeconomics of Poverty Reduction UNDP Regional Centre in Colombo August 2 UNDP Bhutan UN House Post Box - A report prepared for UNDP under its regional project on the ‘Macroeconomics of Poverty Re.
Macroeconomic crises and poverty monitoring: a case study for India (English) Abstract. This case study for India finds an explanation for the drop in average household consumption in rural areas occurring in the year after the stabilization program instigated to deal with a macroeconomic crisis.
killarney10mile.com is a platform for academics to share research papers. Macroeconomics of Poverty Reduction: India Case Study Coordinators: R.
Radhakrishna and Manoj Panda A Study carried out for the Asia-Pacific Regional Programme on the Macroeconomics of Poverty Reduction, United Nations Development Programme Indira Gandhi Institute of Development Research, Mumbai Towards Pro-Poor Health Planning In the context of Macroeconomics and Health Country Case Study Senegal World Health Organisation.
2 October The Poverty Reduction Strategy Papers (PRSPs) put this approach into effect and describe a. The Links Between Macroeconomic Policy and Poverty Reduction: Growth Matters As these topics pertain more broadly to political economy, rather than exclusively to macroeconomics, they are beyond the scope of this pamphlet.
“Farm Productivity and Rural Poverty in India,” Journal of Development Studies, Vol. 34 (April).Download