Making Growth Work For The Poor

"Using comprehensive interviews with government officials and sophisticated data from six states over a four-year period, Putting Poor People to Work shows how recent changes in public policy have reduced the quantity and quality of education and training available to adults to low incomes. The authors analyze how two policies encouraging work - the federal welfare reform law of 1996 and the Workforce Investment Act of 1998 - have made moving people off of public assistance as soon as possible a government priority, with little regard to their long-term career prospects. Putting Poor People to Work shows that since the passage of these "work-first" laws, not only are fewer low-income individuals pursuing postsecondary education, but when they do, they are increasingly directed toward the most ineffective, short-term forms of training, rather than higher-quality college-level education. Moreover, the schools most able and ready to serve poor adults - the community colleges - are deterred by these policies from doing so."--BOOK JACKET.

Inclusive." --Résumé de l'éditeur.

The report emphasizes the importance of breaking the cycle of inequitable investment in human capital and lack of well-paying job opportunities that trap the poor in poverty, generation after generation. Children from poor households start life at a disadvantage. Malnourished and stunted, with poor access to quality health care, they are less likely to learn the skills they need and fulfill their potential. As adults, therefore, they earn low incomes and cannot afford to invest in their own children. They have little to meet their basic needs and nothing to save against emergencies. Frequent natural disasters buffet the poor, whose limited means to cope and disproportionate suffering push them deeper into poverty. Poverty is a threat to peace. In the parts of the country affected by conflict, where physical assets have been destroyed, families displaced, and human capital eroded, people are trapped in a cycle of conflict and poverty. In addition to the challenges of addressing poverty, the Philippines is hindered by the limited expansion of its middle class. In the East Asia region over 2002-2015, the share of population that is economically secure and middle class increased from just over one fifth to nearly two-thirds, but the share in the Philippines increased from 37 percent to just 44 percent. The lack of well-paying jobs limited the gains for labor from structural transformation. Every year, 1 percent of the employment shifted out of agriculture, but most of those workers end up in low-end services jobs. Such limited gains for labor could negatively affect the country's long-term competitiveness. The report concludes that making the pattern of growth more inclusive and providing more well-paying jobs will be crucial to helping people achieve higher and more stable incomes. It claims that steps to accelerate poverty reduction include creating more well-paying jobs; improving productivity in all sectors, including agriculture; reducing income and wealth inequality through more investments in people and skills development, enhancing the ability of the poor to participate in growth; rebuilding conflict-affected areas; and better management of risks and protection of the vulnerable.

Jobs provide higher earnings and better benefits as countries grow, but they are also a driver of development. Poverty falls as people work their way out of hardship and as jobs empowering women lead to greater investments in children. Efficiency increases as workers get better at what they do, as more productive jobs appear, and less productive ones disappear. Societies flourish as jobs bring together people from different ethnic and social backgrounds and provide alternatives to conflict. Jobs are thus more than a byproduct of economic growth. They are transformational —they are what we earn, what we do, and even who we are. High unemployment and unmet job expectations among youth are the most immediate concerns. But in many developing countries, where farming and self-employment are prevalent and safety nets are modest are best, unemployment rates can be low. In these countries, growth is seldom jobless. Most of their poor work long hours but simply cannot make ends meet. And the violation of basic rights is not uncommon. Therefore, the number of jobs is not all that matters: jobs with high development payoffs are needed. Confronted with these challenges, policy makers ask difficult questions. Should countries build their development strategies around growth, or should they focus on jobs? Can entrepreneurship be fostered, especially among the many microenterprises in developing countries, or are entrepreneurs born? Are greater investments in education and training a prerequisite for employability, or can skills be built through jobs? In times of major crises and structural shifts, should jobs, not just workers, be protected? And is there a risk that policies supporting job creation in one country will come at the expense of jobs in other countries? The World Development Report 2013: Jobs offers answers to these and other difficult questions by looking at jobs as drivers of development—not as derived labor demand—and by considering all types of jobs—not just formal wage employment. The Report provides a framework that cuts across sectors and shows that the best policy responses vary across countries, depending on their levels of development, endowments, demography, and institutions. Policy fundamentals matter in all cases, as they enable a vibrant private sector, the source of most jobs in the world. Labor policies can help as well, even if they are less critical than is often assumed. Development policies, from making smallholder farming viable to fostering functional cities to engaging in global markets, hold the key to success.

The real-life Nickel and Dimed—the author of the wildly popular “Poverty Thoughts” essay tells what it’s like to be working poor in America. ONE OF THE FIVE MOST IMPORTANT BOOKS OF THE YEAR--Esquire “DEVASTATINGLY SMART AND FUNNY. I am the author of Nickel and Dimed, which tells the story of my own brief attempt, as a semi-undercover journalist, to survive on low-wage retail and service jobs. TIRADO IS THE REAL THING.”—Barbara Ehrenreich, from the Foreword As the haves and have-nots grow more separate and unequal in America, the working poor don’t get heard from much. Now they have a voice—and it’s forthright, funny, and just a little bit furious. Here, Linda Tirado tells what it’s like, day after day, to work, eat, shop, raise kids, and keep a roof over your head without enough money. She also answers questions often asked about those who live on or near minimum wage: Why don’t they get better jobs? Why don’t they make better choices? Why do they smoke cigarettes and have ugly lawns? Why don’t they borrow from their parents? Enlightening and entertaining, Hand to Mouth opens up a new and much-needed dialogue between the people who just don’t have it and the people who just don’t get it.

An encouraging account of the potential of foreign aid to reduce poverty and a challenge to all aid organizations to think harder about how they spend their money. With more than a billion people now living on less than a dollar a day, and with eight million dying each year because they are simply too poor to live, most would agree that the problem of global poverty is our greatest moral challenge. The large and pressing practical question is how best to address that challenge. Although millions of dollars flow to poor countries, the results are often disappointing. In Making Aid Work, Abhijit Banerjee—an "aid optimist"—argues that aid has much to contribute, but the lack of analysis about which programs really work causes considerable waste and inefficiency, which in turn fuels unwarranted pessimism about the role of aid in fostering economic development. Banerjee challenges aid donors to do better. Building on the model used to evaluate new drugs before they come on the market, he argues that donors should assess programs with field experiments using randomized trials. In fact, he writes, given the number of such experiments already undertaken, current levels of development assistance could focus entirely on programs with proven records of success in experimental conditions. Responding to his challenge, leaders in the field—including Nicholas Stern, Raymond Offenheiser, Alice Amsden, Ruth Levine, Angus Deaton, and others—question whether randomized trials are the most appropriate way to evaluate success for all programs. They raise broader questions as well, about the importance of aid for economic development and about the kinds of interventions (micro or macro, political or economic) that will lead to real improvements in the lives of poor people around the world. With one in every six people now living in extreme poverty, getting it right is crucial.

The report emphasizes the importance of breaking the cycle of inequitable investment in human capital and lack of well-paying job opportunities that trap the poor in poverty, generation after generation. Children from poor households start life at a disadvantage. Malnourished and stunted, with poor access to quality health care, they are less likely to learn the skills they need and fulfill their potential. As adults, therefore, they earn low incomes and cannot afford to invest in their own children. They have little to meet their basic needs and nothing to save against emergencies. Frequent natural disasters buffet the poor, whose limited means to cope and disproportionate suffering push them deeper into poverty. Poverty is a threat to peace. In the parts of the country affected by conflict, where physical assets have been destroyed, families displaced, and human capital eroded, people are trapped in a cycle of conflict and poverty. In addition to the challenges of addressing poverty, the Philippines is hindered by the limited expansion of its middle class. In the East Asia region over 2002-2015, the share of population that is economically secure and middle class increased from just over one fifth to nearly two-thirds, but the share in the Philippines increased from 37 percent to just 44 percent. The lack of well-paying jobs limited the gains for labor from structural transformation. Every year, 1 percent of the employment shifted out of agriculture, but most of those workers end up in low-end services jobs. Such limited gains for labor could negatively affect the country's long-term competitiveness. The report concludes that making the pattern of growth more inclusive and providing more well-paying jobs will be crucial to helping people achieve higher and more stable incomes. It claims that steps to accelerate poverty reduction include creating more well-paying jobs; improving productivity in all sectors, including agriculture; reducing income and wealth inequality through more investments in people and skills development, enhancing the ability of the poor to participate in growth; rebuilding conflict-affected areas; and better management of risks and protection of the vulnerable.

Over the past two decades, the percentage of the world’s population living on less than a dollar a day has been cut in half. How much of that improvement is because of—or in spite of—globalization? While anti-globalization activists mount loud critiques and the media report breathlessly on globalization’s perils and promises, economists have largely remained silent, in part because of an entrenched institutional divide between those who study poverty and those who study trade and finance. Globalization and Poverty bridges that gap, bringing together experts on both international trade and poverty to provide a detailed view of the effects of globalization on the poor in developing nations, answering such questions as: Do lower import tariffs improve the lives of the poor? Has increased financial integration led to more or less poverty? How have the poor fared during various currency crises? Does food aid hurt or help the poor? Poverty, the contributors show here, has been used as a popular and convenient catchphrase by parties on both sides of the globalization debate to further their respective arguments. Globalization and Poverty provides the more nuanced understanding necessary to move that debate beyond the slogans.