Working Paper Series, FIEF - Trade Union Institute for Economic Research
Economic Reforms and the Poor
Abstract: This paper analyzes the effects of economic reforms for
different income groups. My interest is spurred by the international debate
on the social consequences of reforms and the potential adverse effects on
poverty in particular. I find that the poor are in general positively
affected by trade reforms, inflationary control, and structural reforms,
while government consumption reduction affects the poorest income quintile
negatively. In countries having undertaken World Bank financed reforms
actual income of the poor was higher than predicted. Moreover, as the
impact of reforms was strongest on the poor, World Bank support appears to
reduce income inequality.
Keywords: Economic reform; Poverty; Income distribution; the World Bank; (follow links to similar papers)
JEL-Codes: C23; E65; O11; O15; O19; (follow links to similar papers)
25 pages, December 22, 2000
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