Thirty years ago, 1 in 7 of the world’s extreme poor – those living on less than $1.90 a day – were in Sub-Saharan Africa. Over the years, as other regions successfully reduced their poverty levels, this number has increased and by 2015, 4 in 7 of the global poor were living in Sub-Saharan Africa. The newly published Poverty and Shared Prosperity Report warns that as many as 9 in 10 of the world’s poor may live in this region by 2030 if current trends continue.
Running a local government is not sexy. It’s making sure that roads are maintained, there is water to drink, health clinics are stocked and staffed, and schools are equipped to teach. Often, it means doing these things with limited resources, infrastructure, and manpower. With few exceptions, there is little fanfare and glamour. It’s a bit like being a soccer referee: you’re doing a good job when no one notices you’re there.
Along with the Center for Experimental Social Science at Nuffield College at Oxford, eMBeD co-organized a conference called “Measuring the Tricky Things.” The lineup included Susan Fiske presenting a magisterial overview of her decades-long work on the stereotype content model, Armin Falk on his groundbreaking study of time, risk, and social preferences among 80,000 individuals in 65 countries, Karla Hoff on using lab in field experiments to identify the honor ethic among higher caste villagers in North India, Ryan Enos on measuring racial attitudes, Rachel Glennerster on measuring women’s empowerment, Julian Jamison on how and why to use item count techniques to mitigate social desirability bias, Henry Travers on debiasing estimates of wildlife survival, Amandi Mani on assessing the effect of financial worry on cognitive performance with cell phones, and Sheheryar Banuri on using videos to probe the effect of pro-poor bonuses on doctor’s decisions on which patients to see. My eMBeD co-head Renos Vakis assessed the strengths and weaknesses of World Bank surveys on socio-emotional skills. I discussed the reliability and validity of measurements of social norms with respect to women’s labor force participation in Jordan.
The 2018 Poverty and Shared Prosperity Report shows how poverty is changing and introduces improved ways to monitor our progress toward ending it.
The landscape of extreme poverty is now split in two. While most of the world has seen extreme poverty fall to below 3 percent of the population, Sub-Saharan Africa is experiencing extreme poverty rates affecting more than 40 percent of people. The lamentable distinction of being home to the most people living in extreme poverty has shifted, or will soon shift, from India to Nigeria, symbolizing the increased concentration of poverty in Africa.
Sir Anthony Atkinson, who was Centennial Professor at the London School of Economics and Fellow of Nuffield College at Oxford, passed away on New Year’s Day, at the age of 72. Tony was a highly distinguished economist: He was a Fellow of the British Academy and a past president of the Econometric Society, the European Economic Association, the International Economic Association and the Royal Economic Society. He was also an exceedingly decent, kind and generous man.
Although his contributions to economics are wide-ranging, his main field was Public Economics. He was an editor of the Journal of Public Economics for 25 years, and his textbook “Lectures on Public Economics”, co-authored with Joe Stiglitz in 1980, remains a key reference for graduate students to this day. Within the broad field of public economics, Tony published path-breaking work on the measurement, causes and consequences of poverty and inequality – from his early work on Lorenz dominance in 1970, all the way to his more recent joint work with Piketty, Saez and others on the study of top incomes. Over his 50-year academic career, he taught, supervised and examined a large number of PhD students, some of whom came to work at the World Bank at some point in their careers.
This is the third of three blog posts on recent trends in national inequality.
In earlier blogposts on recent trends in inequality, we had referred to measurement issues that make this exercise challenging. In this blogpost we discuss two such issues: the underlying welfare measure (income or consumption) used to quantify the extent of inequality within a country, and the fact that estimates of inequality based on data from household surveys are likely to underreport incomes of the richest households. There are a number of other measurement challenges, such as those related to survey comparability, which are discussed in Poverty and Shared Prosperity 2016 – for a focus on Africa, also see Poverty in a Rising Africa, published earlier in 2016.
Growing up in a tropical country, one of us (Alfredo) was acutely aware of mosquito-borne diseases such as dengue and malaria. For many years now, vector-control strategies were—and still are—promoted by government- and school-led campaigns to limit the spread of these diseases. Consequently, it is somewhat alarming to know that diseases spread by mosquitoes remain an enormous challenge facing large parts of the developing and even developed world, particularly sub-Saharan Africa. It is perhaps less surprising that our shared interest in the health sector has resulted in a joint paper on assessing the overall quality of the health care system via compliance with established treatment guidelines.