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Poor Countries or Poor People? Development Assistance and the New Geography of Global Poverty

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  • Kanbur, Ravi

Abstract

Two decades ago, 93% of the world?s poor lived in countries officially classified as Low Income (LICs). Now, 72% of the world?s poor live in Middle Income Countries (MICs). The dramatic shift has been brought about by fast growth in a number of countries with large populations. On present trends, the poor in the MICs are likely to make up a substantial proportion of global poor for many years to come. This ?new geography of global poverty??with the mass of the poor living in stable, non-poor countries--raises important questions for the current model of development assistance, where national per capita income is a key determinant of the volume and composition of aid flows. What precisely is the nature of global moral obligation towards the poor in non-poor countries? Should aid allocation be targeted equally to the poor in poor and non-poor countries, or should special weight be given to the poor in poor countries? How, if at all, should international agencies with a focus on poverty reduction re-calibrate their engagement in MICs? The objective of this paper is to begin addressing these questions to spark greater debate on the new geography of global poverty.

Suggested Citation

  • Kanbur, Ravi, 2011. "Poor Countries or Poor People? Development Assistance and the New Geography of Global Poverty," CEPR Discussion Papers 8489, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:8489
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    References listed on IDEAS

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    1. Ravi Kanbur, 2018. "The Role of the World Bank in Middle-Income Countries," India Studies in Business and Economics, in: Vinod B. Annigeri & R.S. Deshpande & Ravindra Dholakia (ed.), Issues in Indian Public Policies, pages 167-180, Springer.
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    4. Kanbur, Ravi, 2005. "Reforming the Formula: A Modest Proposal for Introducing Development Outcomes in IDA Allocation Procedures," CEPR Discussion Papers 4971, C.E.P.R. Discussion Papers.
    5. Benjamin Leo, 2010. "Inside the World Bank’s Black Box Allocation System: How Well Does IDA Allocate Resources to the Neediest and Most Vulnerable Countries?," Working Papers 216, Center for Global Development.
    6. François BOURGUIGNON & Gary S. FIELDS, 1990. "Poverty Measures and Anti-Poverty Policy," Discussion Papers (REL - Recherches Economiques de Louvain) 1990038, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    7. Andy Sumner, 2010. "Global Poverty and the New Bottom Billion: What if Three-quarters of the World’s Poor Live in Middle-income Countries?," Working Papers 74, International Policy Centre for Inclusive Growth.
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    More about this item

    Keywords

    Development assistance; Low income countries; Middle income countries; Poverty;
    All these keywords.

    JEL classification:

    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations

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