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This paper contributes to the limited literature on the welfare impacts of market concentration by developing a simple model that shows how exogenous variations in market power affect poverty. Increased market power leads to economy-wide welfare losses, because it raises the prices of goods and services for all agents in an economy and thus reduces the relative incomes of households, particularly among the poor. Declines in poverty in this context are only possible in the case wherein the poor have access to a share of oligopolistic rents. Although this scenario seems highly unlikely, this result has important implications for public policy, particularly for economies with less-than-perfect markets and social objectives of poverty eradication. This result suggest the possibility of taxing extranormal rents extracted by firms with market power and redistributing them through targeted lump-sum social transfers, thereby contributing to poverty reduction by mitigating welfare losses from the negative price effect.

Access to markets --- Climate change economics --- Debt markets --- Economic theory & research --- Endogenous income --- Finance and financial sector development --- International economics & trade --- Macroeconomics and economic growth --- Markets & market access --- Oligopoly --- Poverty

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Conditional cash transfer programs, whereby transfers to households are conditional on school attendance or health checkups, have become a widespread policy tool. They are viewed as a means of immediate poverty alleviation through the cash payments, and as a foundation of long-term poverty reduction through the emphasis on human capital formation. Because targeted transfers are usually conditioned on the consumption of normal goods, richer eligible households are more likely to consume more educational and health care opportunities than poorer ones. Thus, the eligible poorest households may benefit least from conditional cash transfers even to the extent that they may not participate at all. If conditionality is conceptualized as a cost at the margin, it may be leading poor households to opt out. This paper proposes a framework to model household decision making on participation (or not) in cash transfer programs depending on whether a conditionality exists. The paper outlines the optimal size of the cash transfer such that a fixed government budget maximizes the poverty reduction. The paper also shows that unconditional cash transfers may be preferable over conditional cash transfers if a government has a sufficiently high degree of poverty aversion, that is, if, beyond the poverty headcount, the government cares about how poor the poor are or the distance of the poorest among the poor below the poverty line. This basic argument carries over from income poverty to education poverty. The framework can be useful in shaping the recent discussion on the merits of universal benefits over conditional transfers in reducing poverty.

Macroeconomics and Economic Growth --- Poverty Reduction --- Social Protections and Labor

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One of the primary motivations behind the establishment of noncontributory pension programs is to allow beneficiaries to retire from the labor force. Yet, as with other unconditional cash transfer schemes, their aggregate effects may be more complex. Using panel data and instrumental variable techniques, this paper shows that the effect of one such program, Colombia Mayor, has been to raise the labor force participation of relatively younger male beneficiaries. This increase occurred precisely in the occupations with characteristics that are likely to require some up-front investment. The paper concludes that the transfer effectively loosened the liquidity constraints to remaining in these occupations. However, no such effect is found among women or older beneficiaries.

Debt markets --- Finance and financial sector development --- Health, nutrition and population --- Labor force participation --- Labor markets --- Labor policies --- Pensions --- Population policies --- Poverty monitoring & analysis --- Poverty reduction --- Social protections and labor

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The Lake Chad region, which is an economically-and socially integrated area spanning across four countries of Chad, Cameroon, Niger, and Nigeria in north-west Africa, has been trapped in a vicious circle of suboptimal territorial development and fragility. This note shows that the Lake Chad region lags in multiple dimensions of development ranging from poverty, human capital, and access to services. A poverty rate in the Lake Chad region is found to be much higher than other parts of the countries surrounding the lake. The regional poverty rate in the Extreme North region of Cameroon (59 percent) is three times higher that of the rest of the country (19 percent). In Nigeria, the Lake Chad region203 has a poverty rate (72 percent) nearly twice as high as in the rest of the country (38 percent). Chad is the only exception, where the poverty rate in the country's Lake Chad region (31 percent) is lower than the rest of the country (40 percent).204 This is explained by the fact that the Chad region around the lake lies near the capital of the country, with a consequently higher urbanization rate and a relatively high population density. The note is organized as follows. Section 2.2 provides key statistics on poverty, sector of work, and human capital indicators in the Lake Chad region vis-a-vis other parts of the country and examine how the Lake Chad lags behind in different dimensions. Section 2.3 provides a diagnostic of economic geography with a focus on three dimensions of density, distance and division. Section 2.4 identifies a set of structural factors, aggregate shocks and selected policies that might be associated with the dynamics of economic activity and social inclusion across the region.

Access of Poor To Social Services --- Conflict and Development --- Economic Growth --- Inequality --- Macroeconomics and Economic Growth --- Poverty --- Poverty Reduction --- Social Development --- Social Inclusion --- Social Inclusion and Institutions

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Developing countries are implementing policies expanding the adoption and productive use of digital technologies to advance economic development and inclusion. Yet, systematic analyses of the welfare and distributional effects of digital technologies on households and individuals-especially broadband mobile internet-remain limited. To fill this knowledge gap, this paper proposes a simple analytical framework to offer insights on how more equitable access to digital technologies affects household welfare, which can be organized into four areas: (1) determinants of adoption of digital technologies; (2) distributional effects of increasing competition in the information and communication technology industry; (3) welfare and poverty effects of coverage and access to digital technologies; and (4) local economic effects of access to digital technologies. To illustrate the relevance and replicability of this framework across developing countries, the analysis is carried out for Senegal, a country that has recently experienced a rapid expansion in digital infrastructure.

Access to Technology --- Digital Divide --- Digital Economy --- Digital Technology --- Household Welfare --- Inclusive Growth --- Inequality --- Information and Communication Technologies --- Information And Communication Technology --- Information Technology --- Internet Adoption --- Mobile Broadband --- Poverty --- Poverty Reduction --- Technology Adoption