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The Fiscal System, Adjustment and the Poor

In: Fiscal Issues in Adjustment in Developing Countries

Author

Listed:
  • Giovanni Andrea Cornia

    (International Child Development Center)

  • Frances Stewart

    (Oxford University)

Abstract

It is now widely accepted that in many countries the poor suffered additional deprivation during the stabilization and adjustment that took place in the 1980s (Cornia et al. 1987, passim; Helleiner 1985, Addison and Demery 1985, World Bank 1989a). Downward pressure on the conditions of living of poor groups arose from three sources: reductions in real incomes from employment, as employment levels fell and real wages declined; rapid rises in the prices of the goods the poor consume, especially food, following devaluation, increased producer prices for food and the reduction or removal of subsidies; and cuts in government provided services — health, education and economic services — to which the poor had access.

Suggested Citation

  • Giovanni Andrea Cornia & Frances Stewart, 1993. "The Fiscal System, Adjustment and the Poor," Palgrave Macmillan Books, in: Riccardo Faini & Jaime Melo (ed.), Fiscal Issues in Adjustment in Developing Countries, pages 197-226, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-349-22790-7_10
    DOI: 10.1007/978-1-349-22790-7_10
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    Cited by:

    1. Tony Killick, 1995. "Structural Adjustment and Poverty Alleviation: An Interpretative Survey," Development and Change, International Institute of Social Studies, vol. 26(2), pages 305-330, April.

    More about this item

    Keywords

    Fiscal Policy; Government Expenditure; Budget Deficit; Interest Payment; Indirect Taxis;
    All these keywords.

    JEL classification:

    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • O54 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa

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