Crises and the Poor: Socially Responsible Macroeconomics

By Nora Lustig. 2000

243 citations recorded by the source corpus.

This paper presents evidence on the impact of economic crisis on poverty and inequality in Latin America. Crises not only result in higher poverty rates but also may cause irreversible damage to the human capital of the poor. In light of this evidence, the author concludes that crisis avoidance and a pro-poor response to crisis should be a major component of a poverty reduction strategy. As a result, the paper analyses the role of exchange rate policy, capital controls and countercyclical fiscal policy in generating or avoiding crisis. Responses to macroeconomic crisis are assessed by considering the effects of different policy combinations, the use of safety nets and the composition of fiscal adjustment to protect the income of the poor in the face of macroeconomic adjustment. The main lesson is that socially responsible macroeconomic policy can protect the poor during times of crisis and simultaneously contribute to lower chronic poverty.

Subfields: Safety Research, Sociology and Political Science, Soil Science

View Paper: https://www.semanticscholar.org/paper/5c62d27f82872eec62048e0ad931bde5b282b87c

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Safety Research

In Sociology and Political Science

In Soil Science

Citations in the corpus

The effect of IMF and World Bank programmes on poverty (2000, background): “Table 1 gives the descriptive statistics for all the data:”
The Strugglers: The New Poor in Latin America? (2014, unknown): “Similarly, Kanbur et al. (2000), Lustig (1995), and Lustig (2000) record substantial increases in “poverty” conventionally defined during crises, in part because a high proportion of the non-poor live so close to the poverty line – where they are vulnerable during a downturn, presumably because…”
Economic Crises and Natural Disasters: Coping Strategies and Policy Implications (2003, background): “…responses at times of crises is how programs can play effectively the dual role of providing immediate and effective relief to the households affected by the crisis while at the same time contributing to poverty alleviation in the long run (e.g., Lustig, 2000; Holzmann & Jorgensen, 2001).”
Enterprise Recovery Following Natural Disasters (2010, unknown): “[ 1 ] group are affected (Morduch, 1999; Lustig, 2000).”
Climate change and natural disasters: macroeconomic performance and distributional impacts (2009, background): “However, these plans may also fail after shocks because providers are often hit by the disaster as well (Lustig 2000) and financial resources may be diverted to rebuild infrastructures rather than compensate for the loss of livelihoods.”
The Politics of Hard Choices: IMF Programs and Government Spending (2006, background): “…the distribution process is zero sum and some groups can be excluded from the pie+43 In the present context, we suggest that, because the poorest of society—who need these 42+ Lustig 2000, 12, emphasis added+ Further, studies of the determinants of social spending indicate that spending on the…”