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Towards Poverty Reducing Macroeconomic Policies - Strategy Paper


Bernhard G. Gunter


Bangladesh Development Research Center (BDRC); American University

March 4, 2002


Abstract:     
There are substantial disagreements on the impact of macroeconomic policies on poverty. While past criticism of stabilization and adjustment programs have led to considerable changes in program implementation and program content, heated debates on the impact of macroeconomic policies on poverty continue to be at the center of the development debate. The debate so far has not only shown how little agreement there is on the impact of macroeconomic policies on poverty, it has also shown that there are considerable disputes on how to assess the impact of macroeconomic policies on poverty. With more and more data available, the binding constraint for a thorough analysis is more and more related to the lack of agreed standards, methodologies, and tools to assess the impact of macroeconomic policies on poverty. There are a variety of promising initiatives ongoing that develop quantitative tools that can be used to assess the impact of macroeconomic policies on poverty, especially within (a) the Network analyzing the Micro Impact of Macroeconomic and Adjustment Policies (MIMAP); (b) the World Bank; and (c) the International Food Policy Research Institute (IFPRI). Yet, these initiatives would benefit from closer coordination and cross-fertilization. Furthermore, more efforts are needed to overcome the limitations of currently existing computable general equilibrium (CGE) models and to consider alternative as well as complementary methodologies to CGE models to assess the impact of macroeconomic policies on poverty. In any case, it would be desired if some structured collaboration on such issues could be initiated among researchers around the globe in NGOs, think tanks, and many national and international development organizations, like the Bretton Woods Institutions, the Organisation for Economic Co-operation and Development (OECD), and a variety of United Nations organizations.

Number of Pages in PDF File: 87

Keywords: Macroeconomic policies, poverty, impact assessment

JEL Classification: O11, O23, O24

working papers series


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Date posted: December 11, 2008  

Suggested Citation

Gunter, Bernhard G., Towards Poverty Reducing Macroeconomic Policies - Strategy Paper (March 4, 2002). Available at SSRN: http://ssrn.com/abstract=1313222 or http://dx.doi.org/10.2139/ssrn.1313222

Contact Information

Bernhard G. Gunter (Contact Author)
Bangladesh Development Research Center (BDRC) ( email )
2508 Fowler Street
Falls Church, VA 22046-2012
United States
American University ( email )
4400 Mass. Ave. NW
Economics Dept.
Washington, DC 20016
United States
HOME PAGE: http://www.american.edu/cas/faculty/gunter.cfm
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