Toward pro-poor policies Aid, institutions, and globalization

Toward Pro-Poor Policies [...]... governance and institutions, and infrastructure The private sector should be understood not only to include large firms and multinationals, but also— indeed, first and foremost from the point of view of generating opportunities for poor people— farmers and small and medium enterprises Empowering and investing in poor people means not only overcoming poverty directly in terms of health, education, and the... nongovernmental organizations (NGOs), governments have accelerated growth and poverty reduction bv improving their policies, institutions, and governance and by undertaking well-designed projects and programs For example, programs like Bolsa Escola in Brazil and PRO G RESA (recently renamed Oportunidades) in Mexico have used financial incentives and parental involvement in school management to induce families... strategies and approaches appropriate for their particular circumstances and goals Nevertheless, the development community has learned much about the sources of growth and poverty reduction, and an exam ­ ination of the evidence reveals certain patterns The evidence on country policies, institutions, and governance can be summarized as follows: development depends on two pillars, the investment climate and. .. 2 3 1 - 9 4 Burnside, Craig, and David Dollar 2 0 0 0 Aid, Policies, and Grow th.” American E conom ic Review 90(4): 8 4 7 - 6 8 Sachs, Jeffrey, and Andrew Warner 1997 “ Fundamental Sources of Long-Run G row th.” American E con om ic Review 87(2): 1 8 4 - 8 8 Spilimbergo, Antonio, Juan Luis Londono, and Miguel Szekely 1999 “ Income Distribution, Factor Endowments, and Trade Openness.” Jou rn al... Development and Development Assistance Achieving the goal of globally shared development depends on understanding how policy, institutions, and governance promote development, as well as how develop­ ment assistance and the external environment can contribute We have various sources of understanding to guide us here First, we have in-depth studies of partic­ ular countries, those that have been both more and. .. took millennia This increase had a number of causes, including higher incomes and better education, particularly of women and girls; investments in infrastructure, particularly for water; and improvements in knowledge and understanding about the prevention and treatment of disease along with new programs to share this knowledge and put it into practice • Education Over the past 30 years, illiteracy in... good policies exists Policies are contingent responses to underlying states of the world, and as a result, what works in a given country at a given time may not work well elsewhere or at another time In addition, the relationship between policies and outcomes is extremely complex; hence Tommasi stresses that the development debate should move bevond a discussion based on the “titles” of policies and. .. to participate in growth, such as education and health and access to infrastructure and financial services, itself drives the growth process Direct actions by governments, international organizations, N GOs, and the private sector can and should be powerful forces for promoting empowerment Promoting the investment climate and empowerment implies an active and chal­ lenging role for governments From... ideas of stakeholding and community participation In addition, because the role of aid has changed with the rapid growth of trade and private capital markets, thev argue that donors should become more aware of the interactions between public and private investments in poor countries and the need for more communication between the public and private sectors on development priorities Pro-poor growth has... business This change is already under wav, and I sketch out some ways in which the World Bank has reoriented itself for scaling up Nevertheless, much remains to be done, and bet­ ter measurement and evaluation for both learning and management must lie at rhe heart of our actions S C A L I N G UP: T H E C H A L L E N G E O F M O N T E R R E Y 15 Understanding Development and Applying the Lessons Learned We . Toward Pro-Poor Policies