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«©2007 The International Bank for Reconstruction and Development / The World Bank The International Bank for Reconstruction and Development / The ...»

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©2007 The International Bank for Reconstruction and Development / The World Bank

The International Bank for Reconstruction and Development / The World Bank

1818 H Street NW

Washington DC 20433

Telephone: 202-473-1000

Internet: www.worldbank.org

E-mail: feedback@worldbank.org

All rights reserved.

1 2 3 4 5 10 09 08 07

This volume is a product of the staff of the International Bank for Reconstruction and Development

/ The World Bank. The findings, interpretations, and conclusions expressed in this volume do not neces- sarily reflect the views of the Executive Directors of The World Bank or the governments they represent.

The World Bank does not guarantee the accuracy of the data included in this work. The bound- aries, colors, denominations, and other information shown on any map in this work do not imply any judgement on the part of The World Bank concerning the legal status of any territory or the endorse- ment or acceptance of such boundaries.

Rights and Permissions The material in this publication is copyrighted. Copying and/or transmitting portions or all of this work without permission may be a violation of applicable law. The International Bank for Reconstruc- tion and Development / The World Bank encourages dissemination of its work and will normally grant permission to reproduce portions of the work promptly.

For permission to photocopy or reprint any part of this work, please send a request with complete information to the Copyright Clearance Center Inc., 222 Rosewood Drive, Danvers, MA 01923, USA; telephone: 978-750-8400; fax: 978-750-4470; Internet: http://www.copyright.com.

All other queries on rights and licenses, including subsidiary rights, should be addressed to the

Office of the Publisher, The World Bank, 1818 H Street NW, Washington, DC 20433, USA; fax:

202-522-2422; e-mail: pubrights@worldbank.org.

ISBN-10: 0-8213-6931-8 ISBN-13: 978-0-8213-6931-9 eISBN: 0-8213-6932-6 DOI: 10.1596/978-0-8213-6931-9 Library of Congress Cataloging-in-Publication Data World Bank.

More than a pretty picture : using poverty maps to design better policies and interventions.

p. cm.

Includes bibliographical references and index.

ISBN-13: 978-0-8213-6931-9 ISBN-10: 0-8213-6931-8 ISBN-10: 0-8213-6932-6 (electronic)

1. Poverty—Maps—Case studies. 2. Poverty—Government policy—Case studies.

I. Title. II. Title: Using poverty maps to design better policies and interventions.

HC79.P6W65 2007 362.5'561—dc22 2006102151 All dollar amounts (US$) are U.S. dollars unless otherwise noted.

Cover design by Quantum Think.

All maps used with permission.

Contents Foreword xi Acknowledgments xii About the Contributors xiii One PART Applications and Lessons

–  –  –

Location is a powerful determinant of poverty. Spatial patterns of inequality between and within countries have become an important focus of the development community, and research on patterns of poverty and inequality across districts, municipalities, and communities has accelerated over the past decade. While the absence of data once impeded the examination of local information on poverty, a technique developed by the Development Research Group in the World Bank has enabled the estimation of poverty at a local level by combining census and household survey information. The result—the small area poverty map—has deepened our understanding of the determinants of poverty and led to improvements in the design of policies tailored to local conditions.

More Than a Pretty Picture: Using Poverty Maps to Design Better Policies and Interventions draws on the experiences of a dozen countries in Eastern Europe (Albania and Bulgaria), Latin America (Bolivia, Ecuador, and Mexico), East Asia (Cambodia, China, Indonesia, Thailand, and Vietnam), North Africa (Morocco), and South Asia (Sri Lanka). Insights from the diverse experiences of these 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.

This publication hopefully 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.

–  –  –

This volume draws on a work program developed and led by Aline Coudouel and undertaken by a team comprising Samia Amin, Tara Bedi, Ken Simler, and Cécile Wodon under the leadership of Danny Leipziger, Luca Barbone, and Louise Cord. The volume builds on experiences in 12 developing countries. The country case studies have been prepared by Gero Carletto, Andrew Dabalen, and Alia Moubayed (Albania), Omar Arias and Marcos Robles (Bolivia), Boryana Gotcheva (Bulgaria), Tomoki Fujii (Cambodia), Chor-ching Goh and Yusuf Ahmad (China and Indonesia), M. Caridad Araujo (Ecuador), Luis Felipe López-Calva, Lourdes Rodríguez-Chamussy, and Miguel Székely (Mexico), Jennie Litvack (Morocco), Tara Vishwanath and Nobuo Yoshida (Sri Lanka), Somchai Jitsuchon and Kaspar Richter (Thailand), and Rob Swinkels and Carrie Turk (Vietnam).

We would like to extend our profound appreciation to Samia Amin for her valuable involvement in organizing and managing the production of this volume. We wish to thank Markus Goldstein, Peter Lanjouw, Johan Mistiaen, and Berk Özler for their guidance and extensive comments throughout the process, which ensured the quality and relevance of the volume. We are also grateful to M. Caridad Araujo, Shaida Badiee, Julia Bucknall, Gero Carletto, Louise Cord, Andrew Dabalen, Olivier Dupriez, Tomoki Fujii, Björn-Sören Gigler, Michael Goldberg, Boryana Gotcheva, Margaret Grosh, Norbert Henninger, Kai Kaiser, Peter Lanjouw, Danny Leipziger, Mark A.

Levy, Jennie Litvack, Johan Mistiaen, Alia Moubayed, Maryvonne Plessis-Fraissard, Sudhir Shetty, Miguel Székely, Carmelle Terborgh, Roy van der Weide, and Tara Vishwanath for their inputs and assistance at the conference held on this topic at the World Bank in May 2006. Acknowledgment of contributions to specific country studies are noted in the relevant chapters. Finally, we are grateful to Susan Graham and Robert Zimmermann for excellent publication and editorial support.

In addition to funding from the World Bank, the work program has benefited from a grant by the Trust Fund for Environmentally and Socially Sustainable Development, supported by Finland and Norway, which is gratefully acknowledged.

For any questions, comments, or suggestions on this volume, please contact Aline Coudouel at the World Bank (acoudouel@worldbank.org). For more information on the small area estimation methodology and on poverty mapping application, please visit http://www.worldbank.org/povertymaps.

xii About the Contributors

Yusuf Ahmad is a consulting economist with Poverty Reduction and Economic Management, East Asia and Pacific Region, World Bank. Over the past three years, he has been working on poverty assessment in several countries. His research interests include public expenditure reviews, development economics, and income convergence. His ongoing work examines the development effectiveness of aid provided directly to government budgets in recipient countries, as well as income convergence using the nonlinear stationary test. His articles on economic development have been published in international journals. He holds a PhD in economic development from Howard University, Washington, DC, and a BA from the University of Findlay in Findlay, OH.

María Caridad Araujo, an Ecuadorian national, joined the World Bank as a young professional in September 2005. Her first rotation was with the East Asia Human Development Team, working on issues in education and social protection. Previously, she was a visiting assistant professor at the Public Policy Institute, Georgetown University, Washington, DC. She has worked with the Bank as a consultant for Poverty Reduction and Economic Management in the Latin America and the Caribbean Region, the Development Economics Research Group, and World Development Report 2006. She holds a PhD in agricultural and resource economics from the University of California at Berkeley. Her previous work has been on issues in poverty, inequality, social networks, impact evaluation, and political economy.

Omar Arias is a senior economist in the Poverty and Gender Group, Latin America and the Caribbean Region, World Bank, where he is conducting research and strategy and policy formulation on labor markets and public policies to reduce poverty and inequality. He also contributes to project design, targeting, and impact evaluation in antipoverty projects and the elaboration of national poverty reduction strategies and country assistance strategies. His research has focused on the application of semiparametric econometrics to explain the impact of growth on the poor, informal markets and sectors, income dynamics, returns to schooling, and the determinants of tax evasion. He has worked at the Centro de Investigación Económica para el Caribe, Santo Domingo, Dominican Republic, and the Inter-American Development Bank. Born in the Dominican Republic, he received a BA in economics from the Instituto Tecnológico de Santo Domingo and was a Fulbright Scholar at the University of Illinois, Urbana

–  –  –

Champaign, where he obtained his MS and PhD in economics, with a concentration in public finance, labor economics, and applied econometrics.

Tara Bedi worked on monitoring and evaluation as a junior professional associate with the Poverty Reduction Group at the World Bank in 2004–06. She received a master’s degree in Public Administration in International Development at the John F. Kennedy School of Government, Harvard University. She has previously worked on the sustainability of nongovernmental organizations, refugee settlement, and health policy. Tara grew up in India and was involved with the nongovernmental organization her parents founded to solicit the participation of the rural poor in addressing issues in social and economic development.

Calogero Carletto is a senior economist in the Development Research Group of the World Bank. His research interests include poverty, migration, and rural development.

A member of the Living Standards Measurement Study team, he has extensive experience in the design, implementation, and analysis of household surveys. He holds a PhD in agricultural and resource economics from the University of California at Berkeley.

Aline Coudouel is a senior economist with the Human Development Network, Latin America and the Caribbean Region, World Bank. Over the past two years, she led a team working on poverty analysis, monitoring, and impact evaluation at the Poverty Reduction Group, World Bank. She has focused on Africa and Latin America, particularly on poverty measurement, poverty monitoring, the poverty and social impact of reforms, development impact evaluation, labor markets, social protection, and poverty reduction strategies. Previously, she investigated the welfare situation of children and women in Europe and Central Asia for the United Nations Children’s Fund.

Andrew Dabalen is a senior economist in the Europe and Central Asia Region, World Bank. His research interests include poverty, labor markets, and human development.

He holds a PhD in agricultural and resource economics from the University of California at Berkeley.

Tomoki Fujii is an assistant professor at Singapore Management University and a Lee Foundation Fellow for 2006–07. He holds one PhD from the University of California at Berkeley and another from the University of Tokyo. He has written journal articles, book chapters, and policy reports and consulted for the World Bank, the World Food Programme, Macro International, and several private companies. His research interests include development, environment, and health.

–  –  –

Development cluster at the Bank’s Operations Evaluation Department. Her recent papers include “Trade Protection and Industry Wage Structure in Poland,” with Beata Smarzynska Javorcik, in Globalization and Poverty (ed., Ann Harrison, University of

Chicago Press 2007) and “Estimating Individual Vulnerability to Poverty with PseudoPanel Data,” with François Bourguignon and Dae-Il Kim, in Mobility and Inequality:

Frontiers of Research in Sociology and Economics (eds., Stephen L. Morgan, David B.

Grusky, and Gary S. Fields, Stanford University Press 2006). She graduated from Yale University summa cum laude, with simultaneous BA and MA degrees, and received her PhD in economics from Harvard University.

Boryana Gotcheva is a senior operations officer in the Human Development Sector, Europe and Central Asia Region, World Bank, working mostly in Azerbaijan, Bulgaria, and Georgia. She is involved in multisectoral development policy lending and is focused on growth, employment promotion, social service delivery, and education and training.

She manages investment projects and grants supporting reforms in general education, child welfare, and the decentralization of social services. She is also involved in research in social protection, child welfare, and poverty monitoring and evaluation. In 2001– 2005, she managed an institutional development grant aimed at capacity building for poverty assessment and impact analysis in Bulgaria. The project delivered two sets of regional and municipal level poverty maps that are now used in policy making and targeting in social infrastructure projects. She holds a PhD in international economics.

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