Working Paper: CEPR ID: DP8489
Authors: Ravi Kanbur; Andy Sumner
Abstract: Two decades ago, 93% of the world?s poor lived in countries officially classified as Low Income (LICs). Now, 72% of the world?s poor live in Middle Income Countries (MICs). The dramatic shift has been brought about by fast growth in a number of countries with large populations. On present trends, the poor in the MICs are likely to make up a substantial proportion of global poor for many years to come. This ?new geography of global poverty??with the mass of the poor living in stable, non-poor countries--raises important questions for the current model of development assistance, where national per capita income is a key determinant of the volume and composition of aid flows. What precisely is the nature of global moral obligation towards the poor in non-poor countries? Should aid allocation be targeted equally to the poor in poor and non-poor countries, or should special weight be given to the poor in poor countries? How, if at all, should international agencies with a focus on poverty reduction re-calibrate their engagement in MICs? The objective of this paper is to begin addressing these questions to spark greater debate on the new geography of global poverty.
Keywords: development assistance; low income countries; middle income countries; poverty
JEL Codes: O15; O19
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| economic growth (O49) | poverty levels (I32) |
| inequality (D63) | poverty persistence (I32) |
| national per capita income (D31) | aid allocation (F35) |
| poverty persistence (I32) | effectiveness of aid (F35) |
| MICs (D02) | implications for development assistance (F35) |
| income inequality (D31) | aid strategies (F35) |
| continued assistance (F35) | moral obligations (A13) |