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Macroeconomic Crises and Poverty Monitoring: A Case Study for India

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  • Gaurav Datt
  • Martin Ravallion

Abstract

Survey‐based welfare indicators can fluctuate over time in ways which have little to do with macroeconomic changes in the economy. So basing policy decisions on short‐term movements in such welfare indicators can be hazardous. There was a sharp increase in India’s poverty measures in the aftermath of the mid‐1991 crisis and the ensuing stabilization program. However, only one‐tenth of the increase in measured poverty is explicable in terms of the variables one would expect to transmit the shock to poor people. Poverty measures soon returned to their pre‐reform levels, belying the notion of a structural break induced by reforms.

Suggested Citation

  • Gaurav Datt & Martin Ravallion, 1997. "Macroeconomic Crises and Poverty Monitoring: A Case Study for India," Review of Development Economics, Wiley Blackwell, vol. 1(2), pages 135-152, June.
    • Handle: RePEc:bla:rdevec:v:1:y:1997:i:2:p:135-152
    DOI: 10.1111/1467-9361.00010
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    References listed on IDEAS

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    1. Martin Ravallion & Gaurav Datt, 1995. "Is Targeting Through a Work Requirement Efficient? Some Evidence for Rural India," Monash Economics Working Papers archive-41, Monash University, Department of Economics.
    2. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-766, May.
    3. Lipton, Michael & Ravallion, Martin, 1995. "Poverty and policy," Handbook of Development Economics, in: Hollis Chenery & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 3, chapter 41, pages 2551-2657, Elsevier.
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    1. Sushanta K. Mallick, 2014. "Disentangling the Poverty Effects of Sectoral Output, Prices, and Policies in India," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 60(4), pages 773-801, December.
    2. Jha, Raghbendra, 2000. "Reducing Poverty and Inequality in India Has Liberalization Helped?," WIDER Working Papers 295536, United Nations University, World Institute for Development Economic Research (UNU-WIDER).
    3. Gaurav Datt & Martin Ravallion, 1998. "Farm productivity and rural poverty in India," Journal of Development Studies, Taylor & Francis Journals, vol. 34(4), pages 62-85.
    4. Raghbendra Jha, 2006. "Vulnerability of Consumption Growth in Rural India," ASARC Working Papers 2006-04, The Australian National University, Australia South Asia Research Centre.
    5. Sudip Ranjan Basu, 2004. "Economic Growth, Well-Being and Governance under Economic Reforms: Evidence from Indian States," IHEID Working Papers 05-2004, Economics Section, The Graduate Institute of International Studies.
    6. Richard Tiffin & P. J. Dawson, 2002. "The Demand for Calories: Some Further Estimates from Zimbabwe," Journal of Agricultural Economics, Wiley Blackwell, vol. 53(2), pages 221-232, July.
    7. Gutner, Tammi, 1999. "The political economy of Food subsidy reform in Egypt," FCND briefs 1, International Food Policy Research Institute (IFPRI).
    8. Ravallion, Martin & Datt, Gaurav, 2002. "Why has economic growth been more pro-poor in some states of India than others?," Journal of Development Economics, Elsevier, vol. 68(2), pages 381-400, August.
    9. Datt, Gaurav, 1998. "Poverty in India and Indian states," FCND discussion papers 47, International Food Policy Research Institute (IFPRI).
    10. Raghbendra Jha, 2002. "Rural Poverty in India: Structure, determinants and suggestions for policy reform," ASARC Working Papers 2002-07, The Australian National University, Australia South Asia Research Centre.
    11. Hazell, P. B. R. & Haddad, Lawrence James, 2001. "Agricultural research and poverty reduction:," 2020 vision discussion papers 34, International Food Policy Research Institute (IFPRI).
    12. Carlos Pestana Barros & Otavio Henrique dos Santos Figueiredo & Peter Fernades Wanke, 2016. "Peasants’ Poverty and Inequality in Angola," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 128(2), pages 751-761, September.
    13. Sumon Kumar Bhaumik & Manisha Chakrabarty, 2006. "Earnings Inequality in India: Has the Rise of Caste and Religion Based Politics in India had an Impact?," William Davidson Institute Working Papers Series 819, William Davidson Institute at the University of Michigan.
    14. T. Krishna Kumar & Sushanta Mallick & Jayarama Holla, 2009. "Estimating Consumption Deprivation in India Using Survey Data: A State-Level Rural-Urban Analysis Before and During Reform Period," Journal of Development Studies, Taylor & Francis Journals, vol. 45(4), pages 441-470.
    15. Surajit Deb, 2002. "The Debate on Agriculture-Industry Terms of Trade in India," Working papers 109, Centre for Development Economics, Delhi School of Economics.

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