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International
Poverty Centre
Strengthening the employment nexus between growth and poverty reduction
Comments
By N. Kakwani Director
International Poverty CentreBrasilia BrazilEmail: [email protected]
International Poverty Centre
Comments on
• S. R. Osmani
• Azizur Rahman Khan
• Iyanatul Islam
• K. Sundram and S. Tendulkar
International Poverty Centre
Poverty growth curve: Thailand
10 20 30 40 50 60 70 80 90 1005
6
7
8
9
10
Fig1:Poverty growth curve: 1988-1990
10 20 30 40 50 60 70 80 90 1002
3
4
5
6
7
8
Fig2:Poverty growth curve:1990-1992
International Poverty Centre
Poverty growth curve: Thailand
10 20 30 40 50 60 70 80 90 1007.5
8
8.5
9
9.5
10
Fig3:Poverty growth curve:1992-1994
10 20 30 40 50 60 70 80 90 1005.5
6
6.5
7
7.5
Fig4:Poverty growth curve:1994-1996
International Poverty Centre
Poverty growth curve: Thailand
10 20 30 40 50 60 70 80 90 100-3
-2.5
-2
-1.5
-1
-0.5
Fig5: Poverty growth curve:1996-1998
10 20 30 40 50 60 70 80 90 100-5
-4
-3
-2
-1
0
Fig6:Poverty growth curve:1998-2000
International Poverty Centre
Osmani’s framework
1. Growth factor: expansion of production potential
2. The elasticity factor: enhancing employment potential
a. Quantity of employment generated by growth b. Quality of employment : adequate returns from employment
3. The integration factor: expansion of employment potential of the poor.
International Poverty Centre
Growth factor
Y = Total Income or Output in the CountryN = Population
Growth Potential = )/log( NY Elasticity factor
Quantity of employment potential = )/
/log(
NY
Ne
Integration factor
Employment potential of the poor = )/
/log(
Ne
Ne PP
e = employment in the population
Pe
PN
= employment among the poor
= number of poor
International Poverty Centre
Productivity of employment among the poor= )/
log(/ PNP
PP
e
NY
PY = income of the poor.
)/log( PP NYGrowth potential of income of the poor=
)/log( PP NY = )/log( NY + )/
/log(
NY
Ne +
)/
/log(
Ne
Ne PP+ )/
log(/ PNP
PP
e
NY+
If the last three terms are positive for all values of p, then we can say that the growth is pro-poor, which will achieve a maximum reduction in poverty with a given growth rate.
International Poverty Centre
International Poverty Centre
SBS – Ed. BNDES, 10º andar
70076-900 Brasilia DF Brazil
www.undp.org/povertycentre
Telephone +55 61 2105 5000
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