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Innovative and important, yes, but also instrumental and incomplete: the treatment of redistribution in the new 'New Poverty Agenda'

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  • Simon Maxwell

    (Overseas Development Institute, London, UK)

Abstract

The current narrative on poverty reduction, summarized in WDR 2000|1, rehabilitates distribution as a central topic on the development agenda. WDR argues (i) that redistribution matters for instrumental reasons, as a route to faster growth and faster poverty reduction; (ii) that changes to income distribution result from complex changes in sectoral, geographical and individual performance; and (iii) that better distribution can be achieved in a win-win fashion, without undermining incentives or forcing a choice between equity and efficiency. The argument can be extended: (i) the case for redistribution is not simply instrumental, but can be rooted in a discourse about social inclusion and rights; (ii) observed changes are strongly associated with liberalization policies, and with changes to social norms; and (iii) governments can do more than the Bank suggests to achieve greater equality. A commitment to redistribution should be enshrined in a new international development target: a ceiling on Gini coefficients of 0.45. Copyright © 2001 John Wiley & Sons, Ltd.

Suggested Citation

  • Simon Maxwell, 2001. "Innovative and important, yes, but also instrumental and incomplete: the treatment of redistribution in the new 'New Poverty Agenda'," Journal of International Development, John Wiley & Sons, Ltd., vol. 13(3), pages 331-341.
    • Handle: RePEc:wly:jintdv:v:13:y:2001:i:3:p:331-341
    DOI: 10.1002/jid.788
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    References listed on IDEAS

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    1. Lucia Hanmer & Felix Naschold, 2000. "Attaining the International Development Targets: Will Growth Be Enough?," Development Policy Review, Overseas Development Institute, vol. 18(1), pages 11-36, March.
    2. Mattias Lundberg & Lyn Squire, 2003. "The simultaneous evolution of growth and inequality," Economic Journal, Royal Economic Society, vol. 113(487), pages 326-344, April.
    3. Taylor, Lance & Arida, Persio, 1988. "Long-run income distribution and growth," Handbook of Development Economics, in: Hollis Chenery & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 1, chapter 6, pages 161-194, Elsevier.
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    Cited by:

    1. Howard White, 2001. "National and international redistribution as tools for poverty reduction," Journal of International Development, John Wiley & Sons, Ltd., vol. 13(3), pages 343-351.
    2. Clarke, Matthew & Islam, Sardar M.N., 2005. "Diminishing and negative welfare returns of economic growth: an index of sustainable economic welfare (ISEW) for Thailand," Ecological Economics, Elsevier, vol. 54(1), pages 81-93, July.
    3. Michael Hubbard, 2001. "Attacking Poverty-a strategic dilemma for the World Bank," Journal of International Development, John Wiley & Sons, Ltd., vol. 13(3), pages 293-298.
    4. repec:dau:papers:123456789/4390 is not listed on IDEAS
    5. Emma Mawdsley & Jonathan Rigg, 2003. "The World Development Report II: continuity and change in development orthodoxies," Progress in Development Studies, , vol. 3(4), pages 271-286, October.
    6. Donovan Storey & Hannah Bulloch & John Overton, 2005. "The poverty consensus: some limitations of the ‘popular agenda’," Progress in Development Studies, , vol. 5(1), pages 30-44, January.

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