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Post reform India has generated high economic growth, yet progress in income poverty and many other key development outcomes has been modest. This chapter primarily examines how inclusive economic growth has been in India between 2005–2006 and 2015–2016 in reducing multidimensional poverty captured by the global multidimensional poverty index (MPI). The authors employ a constellation of elasticity and semi-elasticity measures to examine vertical, horizontal as well as dimensional inclusiveness of economic growth. Nationally, the authors estimate that a 1% annual economic growth in India during their study period is associated with an annual reduction in MPI of 1.34%. The association of the national growth to state poverty reduction (horizontal inclusiveness) is, however, not uniform. Some states have been successful in reducing poverty faster than the national average despite slower economic growth between 2005–2005 and 2015–2016; whereas, other states have been less successful to do so despite faster economic growth during the same period. The authors’ analyses and findings show how these tools may be used in practical applications to measure inclusive growth and inform policy.

A number of multidimensional poverty measures that respect the ordinal nature of dimensions have recently been proposed within the counting approach framework. Besides ensuring a reduction in poverty, however, it is important to monitor distributional changes to ensure that poverty reduction has been inclusive in reaching the poorest. Distributional issues are typically captured by adjusting a poverty measure to be sensitive to inequality among the poor. This approach, however, has certain practical and conceptual limitations. It conflicts, for example, with some policy-relevant measurement features, such as the ability to decompose a measure into dimensions post-identification and does not create an appropriate framework for assessing disparity in poverty across population subgroups. In this chapter, we propose and justify the use of a separate decomposable inequality measure – a positive multiple of “variance” – to capture the distribution of deprivations among the poor and to assess disparity in poverty across population subgroups. We demonstrate the applicability of our approach through two contrasting inter-temporal illustrations using Demographic Health Survey data sets for Haiti and India.

Latin America experienced a long period of sustained growth since 2003 that positively impacted social and labor market indicators, including poverty. This paper contributes to the understanding of this process as it carries out a comparative study of poverty and indigence dynamics in five Latin American countries during 2003–2012. Specifically, it extends the analysis of a previously published study by broadening the time coverage and examining indigence mobility. It analyzes the extent to which countries with different levels of poverty (extreme poverty) incidence diverge in terms of exit and entry rates, and identifies the relative importance of the frequency and impact of events associated with poverty transitions. For this, a dynamic analysis of panel data is carried out using regular household surveys. Sizeable rates of poverty and indigence movements were observed in all five countries and it was found that a large proportion of poor or indigent households experienced positive events, mainly related to the labor market; however, only a small fraction of them actually exited poverty and indigence. It appeared, therefore, that even when the economy behaved reasonably well, high levels of labor turnover and income mobility (even of a negative nature) still prevail, mainly associated with the high level of precariousness and the undeveloped system of social protection that characterize the studied countries.

Microfinance plays a crucial role to reduce the poverty in developing countries. For that reason, the effectiveness of microfinance institutions (MFIs) is widely investigated in the literature. This study examines the levels of efficiency of MFIs in Vietnam and their determinants. The research, then, evaluates the relationship between MFIs’ efficiency and poverty reduction. Data are mainly taken from the MIX market website and other empirical researches. Regarding the methodology, two-stage data envelopment analysis (DEA) is used to estimate MFIs’ efficiency scores in Vietnam and their determinants, while meta-analysis and statistic descriptions are employed to examine the relationship between MFIs’ efficiency and poverty reduction. The findings show that technical efficiency (TE) of MFIs in Vietnam is considerably high with the average TE score and efficiency of scale being 85.5% and 94.7%, respectively. Size, age, outreach, and market target of MFIs are found not to be determinants of efficiency, while capital structure is. Also, many researches confirm the impact of MFIs’ efficiency to poverty reduction. However, the relationship is different between countries because of particular characteristics and operational mechanisms.

This chapter uses a global trade model, supplemented with household survey data, to explore the potential impact of ASEAN trade liberalization on poverty in Cambodia, Lao PDR, Thailand, and Vietnam. Our tentative results suggest that ASEAN liberalization is likely to bring substantial gains to the region and lead to significant reductions in poverty. In a simulation of full removal of intra-ASEAN tariffs, we find 320,000 people are moved out of extreme poverty, with a further 1.4 million lifted above the $2 per day poverty line. Poverty reductions are particularly significant in the case of agricultural and rural diversified households and for Cambodia. Under broader ASEAN+3 and ASEAN+6 liberalizations, we find a similar pattern of poverty reduction and the overall reduction in poverty is much higher.

Development policies should boost the potency of human and natural resources. Reducing poverty and disparities and economic growth between regions still require hard work from stakeholders in North Maluku. Our study presents that poverty reduction and unemployment reduction in North Maluku have not been optimal. The poverty rate in North Maluku Province in 2011 was 9.17%, while the unemployment rate in the same period was 5.4%.

Building social capital between groups of people and developing social enterprises that integrate social goals into commercial business models are rapidly adopted as innovative poverty relief mechanisms across countries. Together, the translation of social relationships into increased accessibility to resources, and the entrepreneurial dynamics resulting in additional services and goods, are thought to meet the survival and developmental needs of poor families and communities. However, the socio-economic contexts, in which new public policies and initiatives have been taken, vary from country to country. In China, its strong Confucian culture, state-led development strategy, weak civil society, and hierarchical social relationships have contributed to a value structure of social capital, but decreased the efficiency of business practice in social enterprise. This chapter presents a case study of Rural Cooperative Program, a poverty relief initiative in China’s southwest Guizhou Province. With the introduction of China’s new policies in welfare and rural development, this chapter presents evaluation results of whether social enterprises and entrepreneurship can improve poor villagers’ socio-economic wellbeing and promote sustainable development of poor rural villages in China, and to what extent social capital has been mobilized to facilitate the Rural Cooperative Program.

This chapter examines the long-run behavior of real food prices and the impact of food prices on poor and vulnerable households. It also examines the price policy responses of governments to high and volatile food prices, and the impact of food prices and policies on the poorest in the society.

We focus on the impacts of food price changes on individual households, particularly on those living near the poverty line using the standard World Bank measure of poverty at US$1.25 per day in purchasing power.

We found that the effect of an exogenous increase in food prices typically raises poverty in the short run when many poor households are net buyers of grain and wage rates do not have time to fully adjust. In the long run, higher food prices increase food output and raise the wage rates of poor households from unskilled off-farm labor. The end result is that higher food prices can contribute to long-run poverty reduction.

Combining the impact of the price changes and government policy responses allows an assessment of the overall impact of higher world food prices on poverty.

This paper argues that the assumption of a homogeneous workforce, which is implicitly invoked in the decomposition analysis of changes in welfare indicators, hides the role that schooling and its returns may have on the understanding of these changes. Using Peruvian cross-sectional data for a period of 10 years (2004–2013) and counterfactual simulations, this paper finds that the main factor contributing to poverty reduction has been individuals’ changes in labor earnings, and the role of these changes has been less important in reducing income inequality. The main driving force of reduced income inequality has been the fall in returns to education, which at the same time has been one of the important factors to constraining the period’s remarkable progress in poverty reduction and expansion of the middle class.