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Brazil, China and India have seen falling poverty in their reform periods, but to varying degrees and for different reasons. History left China with favorable initial conditions for rapid poverty reduction through market-led economic growth; at the outset of the reform process there were ample distortions to remove and relatively low inequality in access to the opportunities so created, though inequality has risen markedly since. By concentrating such opportunities in the hands of the better off, prior inequalities in various dimensions handicapped poverty reduction in both Brazil and India. Brazil's recent success in complementing market-oriented reforms with progressive social policies has helped it achieve more rapid poverty reduction than India, although Brazil has been less successful in terms of economic growth. In the wake of its steep rise in inequality, China might learn from Brazil's success with such policies. India needs to do more to assure that poor people are able to participate in both the country's growth process and its social policies; here there are lessons from both China and Brazil. All three countries have learned how important macroeconomic stability is to poverty reduction.

Consumption expenditures --- Economic growth --- Household consumption --- Household surveys --- Impact on poverty --- Income --- Income distribution --- Inequality --- Macroeconomic stability --- National poverty --- National poverty line --- National poverty lines --- Poor --- Poor people --- Poverty line --- Poverty measures --- Poverty Reduction --- Pro-Poor Growth --- Regional Economic Development --- Rural --- Rural areas --- Rural Development --- Rural Poverty Reduction --- Social policies

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The results of new direct price level comparisons across 148 countries in 2005 have led to large revisions of purchasing power parity exchanges rates, particularly for China and India. The recalculation of international and global inequalities, using the new purchasing power parity rates, shows that inequalities are substantially higher than previously thought. Inequality between global citizens is estimated at 70 Gini points rather than 65 as before. The richest decile receives 57 percent of global income rather than 50 percent.

Average income --- Consumption expenditures --- Country dummies --- Country regressions --- Developed economies --- Developing countries --- Economic Theory and Research --- Emerging Markets --- Empirical studies --- Equity and Development --- Gini coefficient --- Growth rate --- Growth rates --- Household surveys --- Income --- Income levels --- Inequality --- Macroeconomics and Economic Growth --- Mean incomes --- Policy research --- Poverty headcount --- Poverty Impact Evaluation --- Poverty line --- Poverty Reduction --- Power parity --- Private Sector Development --- Real growth

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Brazil, China and India have seen falling poverty in their reform periods, but to varying degrees and for different reasons. History left China with favorable initial conditions for rapid poverty reduction through market-led economic growth; at the outset of the reform process there were ample distortions to remove and relatively low inequality in access to the opportunities so created, though inequality has risen markedly since. By concentrating such opportunities in the hands of the better off, prior inequalities in various dimensions handicapped poverty reduction in both Brazil and India. Brazil's recent success in complementing market-oriented reforms with progressive social policies has helped it achieve more rapid poverty reduction than India, although Brazil has been less successful in terms of economic growth. In the wake of its steep rise in inequality, China might learn from Brazil's success with such policies. India needs to do more to assure that poor people are able to participate in both the country's growth process and its social policies; here there are lessons from both China and Brazil. All three countries have learned how important macroeconomic stability is to poverty reduction.

Consumption expenditures --- Economic growth --- Household consumption --- Household surveys --- Impact on poverty --- Income --- Income distribution --- Inequality --- Macroeconomic stability --- National poverty --- National poverty line --- National poverty lines --- Poor --- Poor people --- Poverty line --- Poverty measures --- Poverty Reduction --- Pro-Poor Growth --- Regional Economic Development --- Rural --- Rural areas --- Rural Development --- Rural Poverty Reduction --- Social policies

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January 2000 - Vietnam's gains in poverty reduction between 1992 and 1998 were striking, and the country's impressive growth has been fairly broad-based. Households that have benefited most are well-educated, urban, white-collar households, while agricultural workers, ethnic minorities, and those residing in poorer regions have progressed least. Glewwe, Gragnolati, and Zaman assess the extent to which Vietnam's rapid economic growth in the 1990s was accompanied by reductions in poverty. They also investigate factors that contribute to certain households benefiting more than others. Using information from two household surveys, the Vietnam Living Standards Surveys (VNLSS) for 1992-93 and 1997-98, they show that Vietnam's gains in poverty reduction were striking during this period and that the country's impressive growth has been fairly broad-based. After discussing descriptive statistics for both years, the authors examine factors contributing to poverty reduction using both simple decomposition analysis and a multinomial logit model. The results show that: Returns to education increased significantly during this period, particularly for higher levels of education; Location significantly affected a household's probability of escaping poverty during this period. Urban households enjoyed a greater reduction in poverty than did rural households, and households residing in the Red River Delta and the southeast were also better able to take advantage of new opportunities; White-collar households benefited most, and agricultural laborers the least. However, Vietnam cannot afford to be complacent, as nearly half its rural population lives below the poverty line, poverty rates among ethnic minorities remain very high, and natural calamities are a serious impediment to poverty reduction. This paper - a product of Poverty and Human Resources, Development Research Group - is part of a larger effort in the group to understand the dynamics of poverty. The authors may be contacted at pglewwe@dept.agecon.umn.edu, mgragnolati@worldbank.org, or hzaman@worldbank.org.

Collective Farms --- Consumption Expenditures --- Economic Growth --- Farm Production --- Farm Self-Employment --- Finance and Financial Sector Development --- Financial Literacy --- Health, Nutrition and Population --- Household Consumption --- Household Income --- Household Surveys --- Household Welfare --- Income --- Inequality --- Insurance --- Poor --- Population Policies --- Poverty --- Poverty Line --- Poverty Reduction --- Rural --- Rural Areas --- Rural Development --- Rural Poverty Reduction --- Savings --- Services and Transfers to Poor --- Technical Assistance --- Welfare Indicators

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August 2000 - Between 1987 and 1998, the incidence of poverty fell in Asia and the Middle East and North Africa, changed little in Latin America and Sub-Saharan Africa, and rose in Eastern Europe and Central Asia. Too little economic growth in the poorest countries and persistent inequalities (in income and other measures) are the main reasons for the disappointing rate of poverty reduction. Drawing on data from 265 national sample surveys spanning 83 countries, Chen and Ravallion find that there was a net decrease in the total incidence of consumption poverty between 1987 and 1998. But it was not enough to reduce the total number of poor people, by various definitions. The incidence of poverty fell in Asia and the Middle East and North Africa, changed little in Latin America and Sub-Saharan Africa, and rose in Eastern Europe and Central Asia. The two main proximate causes of the disappointing rate of poverty reduction: too little economic growth in many of the poorest countries, and persistent inequalities (in both income and other essential measures) that kept the poor from participating in the growth that did occur. This paper-a product of Poverty and Human Resources, Development Research Group-is part of a larger effort in the group to monitor progress against poverty in the developing world. The authors may be contacted at schen@worldbank.org or mravallion@worldbank.org.

Absolute Poverty --- Aggregate Poverty --- Consumer Price Index --- Consumption --- Consumption Basket --- Consumption Expenditure --- Consumption Expenditures --- Consumption Per Capita --- Consumption Poverty --- Debt Markets --- Finance and Financial Sector Development --- Health Systems Development and Reform --- Health, Nutrition and Population --- Higher Inequality --- Household Living Standards --- Household Size --- Incidence Of Poverty --- Income Distribution --- Inequality --- Poor Countries --- Population Policies --- Poverty Diagnostics --- Poverty Line --- Poverty Lines --- Poverty Measures --- Poverty Monitoring and Analysis --- Poverty Rate --- Poverty Reduction --- Poverty Reduction Strategies --- Pro-Poor Growth --- Rural Development --- Rural Poverty Reduction --- Services and Transfers to Poor