How Best to Link Poverty Reduction and Debt Sustainability in IMF-World Bank Models?

Posted: 25 Oct 2013

See all articles by Brigitte Granville

Brigitte Granville

Queen Mary, University of London

Sushanta Mallick

Queen Mary - University of London; Queen Mary University of London

Abstract

This paper attempts to provide an economic model in the context of developing countries to address the policy strategies related to poverty reduction. With a view to deal with the shortcomings of the existing approaches as regards poverty reduction, this paper develops a model on the basis of the policy framework of the IMF and the World Bank to show how demand growth can be a crucial mechanism in determining the potential rate of growth, and then to suggest ways in which poverty — conceptualized officially in absolute terms with a subjective cut‐off point (e.g. US $1/$2 a day), and a new objective measure in terms of consumption deprivation — can be linked with the key policy variables contained in the adjustment programmes. A strategy of investment in infrastructure and in human development, and improving access to credit markets, particularly in rural areas to encourage or "crowd in" private investment is a precondition for growth and poverty alleviation. Debt relief can only provide a temporary, not a sustainable, solution to the problem of reducing poverty.

Keywords: Stabilisation, growth, poverty reduction, debt sustainability

Suggested Citation

Granville, Brigitte Evelyne and Mallick, Sushanta and Mallick, Sushanta, How Best to Link Poverty Reduction and Debt Sustainability in IMF-World Bank Models?. International Review of Applied Economics, Vol. 19, No. 1, 2005, Available at SSRN: https://ssrn.com/abstract=2344418

Brigitte Evelyne Granville

Queen Mary, University of London ( email )

Mile End Road
London, London E1 4NS
United Kingdom

Sushanta Mallick (Contact Author)

Queen Mary - University of London ( email )

School of Business and Management
Mile End Road
London, England E1 4NS
United Kingdom
+44 20 7882 7447 (Phone)

HOME PAGE: http://skmallick.busman.qmul.ac.uk/

Queen Mary University of London ( email )

Mile End Rd
London, E1 4NS
United Kingdom
+44 20 7882 7447 (Phone)

HOME PAGE: http://skmallick.busman.qmul.ac.uk/

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