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Poverty in a Wealthy Economy: The Case of Nigeria

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  • Sudharshan Canagarajah
  • Mr. Saji Thomas

Abstract

This paper describes the nature and evolution of poverty in Nigeria between 1985 and 1992. It highlights the potential wealth of the Nigerian economy and examines how the economic policies pursued in the 1980s and 1990s impacted economic growth and welfare. The headcount measure of poverty in Nigeria declined from 43 percent to 34 percent between 1985 and 1992. Decomposing the factors causing the reduction in poverty shows that the overall decline of 9 percentage point was the net result of a 14 percentage point decline owing to the growth factor and a 5 percentage point increase owing to the income distribution factor. The paper proposes that promoting broad-based growth and targeted interventions in health, education, and infrastructure need to be central strategies in the fight against poverty in Nigeria.

Suggested Citation

  • Sudharshan Canagarajah & Mr. Saji Thomas, 2002. "Poverty in a Wealthy Economy: The Case of Nigeria," IMF Working Papers 2002/114, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2002/114
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    References listed on IDEAS

    as
    1. Atkinson, A B, 1987. "On the Measurement of Poverty," Econometrica, Econometric Society, vol. 55(4), pages 749-764, July.
    2. International Monetary Fund, 1998. "Nigeria: Selected Issues and Statistical Appendix," IMF Staff Country Reports 1998/078, International Monetary Fund.
    3. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-766, May.
    4. Ravallion, M., 1992. "Poverty Comparisons - A Guide to Concepts and Methods," Papers 88, World Bank - Living Standards Measurement.
    5. Baker, Judy L. & Grosh, Margaret E., 1994. "Poverty reduction through geographic targeting: How well does it work?," World Development, Elsevier, vol. 22(7), pages 983-995, July.
    6. Datt, Gaurav & Ravallion, Martin, 1990. "Regional disparities, targeting, and poverty in India," Policy Research Working Paper Series 375, The World Bank.
    7. Besley, Timothy J & Kanbur, S M Ravi, 1988. "Food Subsidies and Poverty Alleviation," Economic Journal, Royal Economic Society, vol. 98(392), pages 701-719, September.
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    Cited by:

    1. Omilola, Babatunde, 2009. "Estimating the impact of agricultural technology on poverty reduction in rural Nigeria:," IFPRI discussion papers 901, International Food Policy Research Institute (IFPRI).
    2. Dr. ADEKOYA, Olusoji Adetayo, 2014. "Analysis of Farm Households Poverty Status in Ogun States, Nigeria," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 4(3), pages 325-340, March.

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