GriffithPoverty

GriffithPoverty - Poverty in Transition Bryan Griffith...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Poverty in Transition Bryan Griffith Economics 508 Dr. Belton Fleisher 2005.03.03 Copyright 2009 Bryan M. Griffith 5466140c97ed70d29cb1e423dc222958762e7cfb.doc Griffith, Bryan For the Worlds economy, June 4, 1989 was a tipping point. On this day, Imam Khomeini died in Tehran, Chinese students marched on Tiananmen Square in Beijing and Poland held the first freely contested election under a communist regime 1 . Branko Milanovic, of the World Bank, called this a tectonic change referring to the massive energy with which the two hemispheres of the economy, the sots and the capitalists collided, forever changing the landscape of the World. Despite all of the good fortune that has rained down on these countries since they abandoned som, some people have not benefited during this transition. Most transition countries experienced drastic increases in poverty. Regardless of whether you consider the poverty an inevitable cost of transition, a necessary catalyst for economic growth or the scourge of humanity it is a necessary focus of economic development in developing and transition countries 2 . The World Bank and the International Monetary Fund devote large portions of their budget to poverty reduction. Poverty is a difficult concept to define. Although try telling that to someone who cannot afford to feed and clothe his family. The initial challenge to defining poverty among many countries and regions is to establish a currency value that can measure poverty. The World Bank measures absolute poverty using the Purchasing Power Parity of food and consumption goods at $1.08 PPP (1993 dollars) and $2.15 PPP (1993 dollars). However, each country also establishes national and regional poverty levels to qualify families for welfare programs. Everyone agrees that poverty is a problem among the transition economies. In many of the countries of the Commonwealth of Independent States, more than 40% of the population lives on less than $2.15 PPP per day 3 . However, absolute poverty is a gross measure of poverty and does not adequately address the inequality of poverty. The World Bank and other organizations studying poverty would like to identify the factors contributing to poverty and the most efficient and cost effective method of reducing poverty around the world. Max Spoor with the Centre for the Study of Transition and Development 1 Milanovic, 1 2 Spoor, 5 3 Spoor, 15 Copyright 2009 Bryan M. Griffith 2 5466140c97ed70d29cb1e423dc222958762e7cfb.doc Last printed Griffith, Bryan (CESTRAD), identified three factors that contribute significantly to the success of any transition country in combating poverty 4 . One drastic condition that many economists have focused on is the armed conflict in the region....
View Full Document

This note was uploaded on 07/17/2008 for the course ECON 508 taught by Professor Fleisher during the Winter '06 term at Ohio State.

Page1 / 9

GriffithPoverty - Poverty in Transition Bryan Griffith...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online