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How best to link poverty reduction and debt sustainability in IMF-World Bank models?

journal contribution
posted on 30.05.2006, 11:51 authored by Brigitte Granville, Sushanta K. Mallick
This paper attempts to provide an economic model in the context of developing countries to address the policy strategies related to poverty reduction. With a view to deal with the shortcomings of the existing approaches as regards poverty reduction, this paper develops a model on the basis of the policy framework of the IMF and the World Bank to show how demand growth can be a crucial mechanism in determining the potential rate of growth, and then to suggest ways in which poverty—conceptualised officially in absolute terms with a subjective cut-off point (e.g. US $1/$2 a day), and a new objective measure in terms of consumption deprivation—can be linked with the key policy variables contained in the adjustment programmes. A strategy of investment in infrastructure and in human development, and improving access to credit markets, particularly in rural areas to encourage or ‘crowd in’ private investment is a precondition for growth and poverty alleviation. Debt relief can only provide a temporary, not a sustainable, solution to the problem of reducing poverty.

History

School

  • Business and Economics

Department

  • Economics

Pages

98207 bytes

Citation

GRANVILLE, B. and MALLICK, S., 2005. How best to link poverty reduction and debt sustainability in IMF-World Bank models? International Review of Applied Economics, 19(1), pp. 67-85.

Publisher

© Taylor and Francis

Publication date

2005

Notes

This is Restricted Access. The article was published in the journal, International Review of Applied Economics [© Taylor and Francis] and is available at: http://www.journalsonline.tandf.co.uk/openurl.asp?genre=journal&issn=0269-2171.

ISSN

0269-2171

Language

en

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