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A fundamental premise of absolute poverty lines is that they represent the same level of utility through time and space. Disturbingly, a series of recent studies in middle- and low-income economies show that even carefully derived poverty lines rarely satisfy this premise. This article proposes an information-theoretic approach to estimating cost-of-basic-needs (CBN) poverty lines that are utility consistent. Applications to date illustrate that utility-consistent poverty measurements derived from the proposed approach and those derived from current CBN best practices often differ substantially, with the current approach tending to systematically overestimate (underestimate) poverty in urban (rural) zones.

This study employs a synthetic panel approach based on nationally-representative micro-level data to track poverty and income mobility in Malaysia in the period 2004–2016. On aggregate we observe large reductions in chronic poverty and increases in persistent economic security, but note that those who remain poor in 2016 are increasingly likely to be poor in a structural sense. Further, we find that poverty and income dynamics differ notably across geographic dimensions. Such disparities are most striking when we contrast affluent urban Peninsular Malaysia with poorer rural East Malaysia. Although there are important differences in welfare levels between the main ethnic groups in Malaysia, we observe that mobility trends generally point in the same direction. While our findings show that there is still scope for poverty reduction through the reduction of inter-ethnic inequalities, we underscore the importance of taking regional inequalities into greater account when it comes to ensuring a fairer distribution of socioeconomic opportunities for poor and vulnerable Malaysians. Hence, addressing chronic poverty is likely to require additional attention to less developed geographic areas, as a complement to the largely ethnicity-based policies that have historically played a dominant role.

Around the world, countries are becoming urbanized at an astonishing pace. As countries develop economically, their economies shift from mainly rural and agrarian to increasingly urban and nonagricultural. This rural-urban transformation presents both opportunities and challenges for development. When managed effectively, the transformation spurs growth and reduces poverty. When managed poorly, however, the process can result in stark welfare disparities, the marginalization of entire regions, and poorly functioning cities that fail to realize the potential gains from agglomeration economies. This book investigates the rural-urban transformation underway in Sub-Saharan Africa and South Asia, emphasizing the influence of country conditions as well as the potential of good policies to minimize disparities and ensure that everyone shares in the benefits of urbanization. The first part of this book investigates urbanization and rural-urban welfare inequalities on three geographic scales global, national, and local featuring countries and cities in Sub-Saharan Africa on the national and local levels. The second part of the book sheds light on the texture of transformation in five countries in South Asia, each at a different stage in the process: Bangladesh, India, Nepal, Pakistan, and Sri Lanka.

This publication offers crucial lessons for policy makers and development experts who may be considering using small area poverty maps as tools of economic development and helps add to our array of tools for dealing with the political economy issues of poverty. It represents a major contribution to a little understood aspect of the well-known adage \"location, location, location,\" demonstrating that the conceptualization of poverty at the local level represents an important step in our fight against poverty. Insights from the diverse experiences of 12 countries are drawn together in the first two chapters, on key elements in the successful implementation and utilization of poverty maps and on the political economy of poverty maps. The case studies in the volume highlight the wide range of policies and interventions that have been influenced by poverty maps, including, but not limited to, the location of investments and services, the creation of district and municipal development plans, and the allocation of grants and fiscal transfers. They show that successfully implemented and appropriately utilized poverty maps may lead to radical shifts in the perception of poverty and in strategies designed to address poverty.

Communities differ in important ways in their needs, capacities, and circumstances. Because central governments are not able to discern these differences fully, they seek to achieve their policy objectives by relying on decentralized mechanisms that use local information. Household and individual characteristics within communities can also vary substantially. A growing body of theoretical literature suggests that inequality within communities can influence policy outcomes in ways that are either harmful or helpful, depending on the circumstances. Until recently, empirical investigations into the impact of inequality have been held back by a lack of systematic evidence on community-level inequality. This study uses household survey and population census data to estimate per capita consumption inequality within communities in three developing economies. It finds that communities vary markedly in their degree of inequality. It also shows that there should be no presumption that inequality is less severe in poor communities. The kind of community-level inequality estimates generated here can be used in designing and evaluating decentralized antipoverty programs.

Compares two methods for setting absolute poverty lines for the measurement of consumption poverty, Food Energy Intake (FEI), & Cost of Basic Needs (CBN). Although past comparisons of the FEI & the CBN on consistency & specificity lines have found the CBN method the most consistent, it may be inappropriate to specify a single national food bundle when food consumption patterns are heterogeneous for the poor because of relative price differences for staple foods. Mozambique provides such an example because of its agroecological diversity & its poor market integration. The 1996/97 national household survey of living conditions provided household-level data to test the robustness the CBN & FEI for setting the poverty line. Six sets of poverty lines & estimates of poverty indexes were produced. Policymakers need to be aware that standard poverty measures are constructed differently so as to formulate poverty reduction policies best suited for the specific circumstances. The study found that poverty reduction in Mozambique should be accomplished through economic development & extended public services. 15 Tables. L. A. Hoffman

Malaysia has been grappling with understanding how many foreign workers reside in the country and thus faces challenges in formulating evidence-based foreign worker policies. This paper uses micro-level remittance transaction data collected from money transfer service providers to estimate the number of foreign workers. Most foreign workers remit a large portion of their earnings to support family members back home. They are low-income earners, sensitive to remittance costs, and opt for money transfer service providers to remit money rather than regular banks, where transfer services are more expensive. Therefore, the remittance data provide a useful source to conduct the investigation. Existing estimates range from two million to five million foreign workers; our results narrow that range to between 2.99 million and 3.16 million foreign workers in Malaysia as of 2017-18. The estimated state and nationality distributions of foreign workers are consistent with the Ministry of Home Affairs data, lending support to the validity of the estimates. Nevertheless, the Bank Negara Malaysia remittance data could potentially underestimate the number of workers in states with low access to money service providers and nationalities that have access to alternative money transfer mechanisms such as commercial banking and informal transfer channels. (This abstract was borrowed from another version of this item.)

This study employs a synthetic panel approach based on nationally representative micro-level data to track poverty and income mobility in Malaysia in 2004–16. On aggregate, there were large reductions in chronic poverty and increases in persistent economic security, but those who remained poor in 2016 were increasingly likely to be poor in a structural sense. Further, the poverty and income dynamics differ notably across geographic dimensions. Such disparities are most striking when comparing affluent urban Peninsular Malaysia with poorer rural East Malaysia. Although there are important differences in welfare levels between the main ethnic groups in Malaysia, the mobility trends generally point in the same direction. While the findings show that there is still scope for poverty reduction through the reduction of interethnic inequalities, the study underscores the importance of taking regional inequalities into account to ensure a fairer distribution of socioeconomic opportunities for poor and vulnerable Malaysians. Hence, addressing chronic poverty is likely to require additional attention to less developed geographic areas, as a complement to the current policies that are largely ethnicity-based.

Malaysia has been grappling with understanding how many foreign workers reside in the country and thus faces challenges in formulating evidence-based foreign worker policies. This paper uses micro-level remittance transaction data collected from money transfer service providers to estimate the number of foreign workers. Most foreign workers remit a large portion of their earnings to support family members back home. They are low-income earners, sensitive to remittance costs, and opt for money transfer service providers to remit money rather than regular banks, where transfer services are more expensive. Therefore, the remittance data provide a useful source to conduct the investigation. Existing estimates range from two million to five million foreign workers; our results narrow that range to between 2.99 million and 3.16 million foreign workers in Malaysia as of 2017-18. The estimated state and nationality distributions of foreign workers are consistent with the Ministry of Home Affairs data, lending support to the validity of the estimates. Nevertheless, the Bank Negara Malaysia remittance data could potentially underestimate the number of workers in states with low access to money service providers and nationalities that have access to alternative money transfer mechanisms such as commercial banking and informal transfer channels.