Reducing global poverty

CA ROLINE O.N MOSER, EDITOR REDUCING GLOBAL POVERTY t h e c a s e f o r a s s e t ac c u m u l at i o n 5857-0 ch00 frontmatter 3/9/07 4:02 PM Page i reducing global poverty 5857-0 ch00 frontmatter 3/9/07 4:02 PM Page ii 5857-0 ch00 frontmatter 3/9/07 4:02 PM Page iii reducing global poverty The Case for Asset Accumulation caroline moser Editor brookings institution press Washington, D.C 5857-0 ch00 frontmatter 3/9/07 4:02 PM Page iv Copyright © 2007 the brookings institution 1775 Massachusetts Avenue, N.W., Washington, D.C 20036 www.brookings.edu All rights reserved No part of this publication may be reproduced or transmitted in any form or by any means without permission in writing from the Brookings Institution Press Library of Congress Cataloging-in-Publication data Reducing global poverty : the case for asset accumulation / Caroline O N Moser, editor p cm This volume grew out of the Brookings Institution–Ford Foundation Workshop on Asset-Based Approaches to Poverty Reduction in a Globalized Context, held in Washington, D.C., on June 27–28, 2006, led by Caroline Moser and co-hosted by the Ford Foundation Summary: “Provides a set of case studies of asset-building projects around the globe aimed at designing and implementing public policies that will increase the capital assets of the poor Highlights the ways in which poor households and communities can move out of poverty through longer-term accumulation of capital assets”—Provided by publisher Includes bibliographical references and index ISBN-13: 978-0-8157-5857-0 (pbk : alk paper) ISBN-10: 0-8157-5857-X (pbk : alk paper) Poverty—Developing countries—Congresses Poverty—Government policy— Developing countries—Congresses Poor—Developing countries—Finance, Personal—Congresses Developing countries—Social policy—Congresses Microfinance—Developing countries—Congresses I Moser, Caroline O N II Title HC59.72.P6R427 2007 339.4'6091724—dc22 2007007720 987654321 The paper used in this publication meets minimum requirements of the American National Standard for Information Sciences—Permanence of Paper for Printed Library Materials: ANSI Z39.48-1992 Typeset in Adobe Garamond Composition by Peter Lindeman Arlington, Virginia Printed by R R Donnelley Harrisonburg, Virginia 5857-0 ch00 frontmatter 3/9/07 4:02 PM Page v Contents Foreword Lael Brainard and Pablo Farias vii Acknowledgments ix 1 Introduction Caroline Moser Part One: Lessons from Research Intergenerational Asset Accumulation and Poverty Reduction in Guayaquil, Ecuador, 1978–2004 Caroline Moser and Andrew Felton 15 Learning from Asset-Based Approaches to Poverty Michael R Carter 51 The Stages-of-Progress Methodology and Results from Five Countries Anirudh Krishna 62 Part Two: Asset Policy—Social Protection or Asset Accumulation Policy? Asset Accumulation Policy and Poverty Reduction Caroline Moser Addressing Vulnerability through Asset Building and Social Protection Sarah Cook 83 104 v 5857-0 ch00 frontmatter 3/9/07 4:02 PM Page vi vi Contents Social Protection and Asset Accumulation by the Middle Class and the Poor in Latin America Andrés Solimano 122 Part Three: Asset Accumulation and Consolidation in Practice Building Natural Resource–Based Assets in Southern Africa: Workable Scenarios Paula Nimpuno-Parente 137 Protecting Land Rights in Post-Tsunami and Postconflict Aceh, Indonesia Lilianne Fan 149 10 Hurricane Katrina: Impact on Assets and Asset-Building Approaches to Poverty Reduction Amy Liu 167 11 Gangs, Violence, and Asset Building Dennis Rodgers 179 12 Beyond Microfinance Vijay Mahajan 196 13 Using Microinsurance and Financial Education to Protect and Accumulate Assets Monique Cohen and Pamela Young 208 14 Migrant Foreign Savings and Asset Accumulation Manuel Orozco 225 15 Transnational Communities of the United States and Latin America Héctor Cordero-Guzmán and Victoria Quiroz-Becerra 239 16 Gender and Transnational Asset Accumulation in El Salvador Sarah Gammage 255 17 Claiming Rights: Citizenship and the Politics of Asset Distribution Clare Ferguson, Caroline Moser, and Andy Norton 273 Contributors 289 Index 291 5857-0 ch00 frontmatter 3/9/07 4:02 PM Page vii Foreword A sset-based approaches in development focus on how the poor use their resource base to develop strategies for acquiring, mobilizing, expanding, and preserving their assets The asset accumulation approach addresses important shortcomings in income- or consumption-focused poverty reduction strategies by emphasizing the way the poor themselves establish a base of resources under their control Over time they can mobilize this base to generate income, produce additional resources, and transfer resources across generations to broaden opportunities for their children Ownership and effective mobilization of assets help establish personal and family security and encourage risk taking and diversification of productive and social activities By focusing on the resources and capacities of those living in poverty, asset-based approaches address inequality in resource endowments and access to opportunity, providing a concrete way to measure empowerment and ultimately sustainable reduction of poverty This volume surveys emerging research projects, policies, and programs from around the world on the topic of asset-based approaches to poverty reduction, and explores efforts and impacts The volume grew out of a workshop held at the Brookings Institution in the summer of 2006, led by Visiting Fellow Caroline Moser, and includes papers from the key contributors to the field In preparation for the workshop at Brookings, Moser developed an updated conceptual review of asset-based approaches that led to participant reflections on the role of assets in a broad set of development strategies and socioeconomic settings The result is this volume, which goes beyond traditional analysis to explore an expanded agenda for the asset accumulation field, including identifyvii 5857-0 ch00 frontmatter viii 3/9/07 4:02 PM Page viii Foreword ing areas of collaboration with rights-based approaches; linkages with work in settings of entrenched poverty, such as postdisaster and fragile state contexts; and the relation of asset accumulation to key development processes of market expansion and migration The Ford Foundation cohosted the conference with Brookings, bringing its expertise from more than a decade of work with poverty reduction programs in the United States and internationally that focuses on asset building and community development For example, in the United States, the Ford Foundation has shown how building lifelong savings and expanding access to home ownership can reduce poverty Similarly, work in diverse countries such as India, Indonesia, China, South Africa, Kenya, Mexico, and Guatemala demonstrates how implementing new systems of community forest management can expand the asset base of natural resource–dependent communities and generate sustainable livelihoods Furthermore, Ford’s support of microfinance models in these types of settings and others underscores the importance of access to financial services as another key component of successful asset accumulation and poverty reduction strategies In sum, these efforts demonstrate the critical role social and economic asset building plays in advancing equity and sustainability as part of poverty reduction At Brookings the Global Economy and Development Program explores the asset-based approach to poverty reduction as part of a spectrum of globalization issues From international trade to global pandemics and environmental challenges, this program examines how the new inputs, outputs, and pressure points of globalization can affect the world’s poor and how policymakers should respond based on independent research results, like those detailed in this volume Overall, this volume fuses these perspectives and represents an opportunity to stimulate dialogue on poverty reduction and to highlight the importance of a dynamic focus on the participation, resource mobilization, and access to opportunity of those living in poverty Lael Brainard Vice President and Director Global Economy and Development Program Brookings Institution Pablo Farias Vice President Asset Building and Community Development Program Ford Foundation 5857-0 ch00 frontmatter 3/9/07 4:02 PM Page ix Acknowledgments T his book, and the associated research and workshop on which it is based, was undertaken with support from a grant from the Asset Building and Community Development Program of the Ford Foundation I would like to gratefully acknowledge vice president Pablo Farias for his sustained commitment to and support of the development of this work on asset-based approaches to poverty reduction Lael Brainard, Brookings vice president and director of the Global Economy and Development program, gave me the opportunity to undertake this work as a visiting fellow At the Ford Foundation, Carl Anthony, Frank de Giovanni, Miguel Garcia, and Suzanne Siskell provided invaluable assistance in identifying workshop participants In addition, I would like to thank Monique Cohen, Michael Carter, Anis Dani, Andrew Felton, Clare Ferguson, Estanislao GacituaMario, Andrew Norton, Alison Scott, Michael Sherraden, and Peter Sollis for their generous support at different stages of this endeavor Kathryn Lankester kindly offered essential assistance in organizing the workshop and a complementary one undertaken in Quito, Ecuador The editorial work of Yvonne Byron Smith, Diane Hammond, and Starr Belsky is gratefully recognized In the Brookings Institution Press, Janet Walker has been invaluable in negotiating this book through the production process The dedicated editorial and management assistance of James Pickett throughout the entire process made the completion of this book possible ix 5857-0 ch18 index 294 3/9/07 4:23 PM Page 294 Index 182; globalization and, 94; human rights and, 8; poverty and, 199 Capital assets—political, 8, 273, 275, 276, 285 Capital assets—social: asset index categories of, 23; definitions of, 30, 47n26, 84b, 198, 270n7; economic value of, 127; effects of, 96; financialization of, 198; gangs and crime and, 182–83, 184–85, 186–87, 188–91; globalization and, 93; increases and declines in, 3; individual assets and, 131; migration and, 228, 258–59, 264–66; in New Orleans, 172–73, 175–76; in Nicaragua, 184–85, 188–90, 191; poverty and, 199; rights and, 8; welfare associations and, 213 Cara Sucia (Ahuachapán, El Salvador), 268 CARE, 90 Carter, Michael R., 4, 9, 20, 22, 35, 51–61, 69, 70, 89 Census 2000, U.S., 255 Central America, 180–83, 255 See also individual countries Chambers, Robert, 64, 86 Chayanov, Alexander V., 54 Chikhali (India), 73 See also Gujarat; India Child Trust Fund (U.K.), 87 Chile, 124, 127, 129 China, 72, 105, 112, 113, 129 Cisne Dos (Guayaquil, Ecuador), 17–19, 30 See also Ecuador; Guayaquil; Indio Guayas Civil society, 127, 156, 228, 234, 248, 280, 284 Coady International Institute (Canada), 99 Cohen, Monique, 7, 208–24 Colombia, 236, 246 See also Latin America COLUMNA (insurance company; Guatemala), 220–21 Communities: approaches to economic development, 240–42; asset-based community development, 99; assetmapping techniques, 99–100; future of transnational community development, 251–52; migration-related businesses, 243, 247; transnationalized collective action, 245–50 Community Mortgage Program (Philippines), 112 Concern Worldwide (U.S.), Inc., 159 Consultative Group to Assist the Poor, 205 Contras (Nicaragua), 184, 188–89 Convention on Home Work (1996; ILO), 279 Cook, Sarah, 5, 6, 104–21 Cordero-Guzmán, Héctor, 8, 239–54 Crime: assets and, 7; benchmark measure of violence, 183; causes of, 26, 38, 95, 144; development and, 180, 191–92; gangs, violence, and asset building, 179–92; effects of, 4, Crime—specific locations: Aceh, 152; Central America, 180–83; China, 186–87; Guayaquil, 4; Indio Guayas, 38, 40–41; Nicaragua, 7, 180, 183–86, 188–90, 191; southern Africa, 144 Davis, H Craig, 241 Davis, Mike, 190 Deaths See Funerals and burials Definitions and concepts: asset issues, 2–3, 59n1, 83–84, 86–87, 98, 100n2, 226, 256–58, 270n6; capital issues, 5, 24–25, 26, 29, 30, 47n26, 84b, 198, 270n7; churning poverty, 97–98; citizenship, 274; community issues, 148n7, 240–41; development, 226; empowerment, 275; entitlements, 8, 116, 198, 274; financialization, 198; governance, 274–75; income, 98, 147n1; legal, 277; levels of education, 5857-0 ch18 index 3/9/07 4:23 PM Page 295 Index 295 47n23; microcredit, 206; middle class, 132n6; nuclear households, 48n27; political issues, 274; poverty issues, 4, 35, 97–98, 271n20; power, 274; rights, 8, 274, 275, 276; shocks, 209; social protection, 5, 91b; sustainable livelihood, 5, 91b; transnational families, 227, 237n2; vulnerability, 100n10, 209, 210 Deininger, Klaus, 70 Delta Life (Bangladesh), 219 Democracy, 6, 130, 138 Development: access to microfinance and banking institutions and, 235; approaches to community economic development, 240–50; asset accumulation and, 95, 226–27; asset-based approaches to development, 86–87, 88, 83–96, 99; development services, 205, 206; future of transnational community development, 251–52; gangs, crime, and violence and, 180, 191–92; human development index, 226; legal issues and, 279–80; migrant economic activity and remittances, 228, 232, 235, 236, 242–45; rights and, 276; social protection policies and, 104–05; strategies for, 114, 123, 139; tourism and, 141–43; transactions across borders, 242–50; transnational communities and, 239–40 See also United Nations Development—specific locations: Central America, 180–81; Latin America, 123–24, 236; New Orleans, 168–69, 175; southern Africa, 138, 139, 141–43 DFID See International Development, Department for Disasters: access to land and, 150–51; assets and, 150; effects of, 6–7; recovery efforts, 174–76; social protection policies and, 125 Disasters—specific: Indonesian earthquake and tsunami of 2004, 7, 149–64; New Orleans Hurricane Katrina of 2005, 7, 167–77 Dominican Republic, 236, 246, 250–51 See also Latin America East Africa, 212, 219 East Timor, 155–56 Economic issues: borrowing, lending, and debt, 199, 201, 203–05, 208, 210, 212, 213–14, 216, 220, 231, 234–35, 266–68; calculation of education capital, 29; capital, 29, 196–205, 227, 243; consumption, 87, 210; coping strategies, 210–23; economic growth, 129, 131–32, 138–39; economic mobility, 33, 35, 53, 56–58; economic shocks, 53, 70, 92, 105, 114–15, 125, 126, 127, 145, 208–10, 223; economic theory, assets, and poverty, 51–61; employment and labor, 27, 72, 114, 123, 260; financialization, 198, 200; financial resources, 139, 205–06, 220–22, 234; gangs and crime, 182; GDP (gross domestic product), 227; income, 27, 29, 32–41, 51, 73–74, 87, 98, 124, 128, 129–30, 147n1, 196, 200, 205, 211, 242–43; indicators of poverty and wealth, 26; inflation, 128; informal economies, 145–47; insurance and self-insurance, 7, 145, 146, 201, 203, 205, 211–12, 213–14; investment, 196, 202, 225, 230, 231, 232, 234–35, 244–45, 247, 257; land reform, 123, 128, 143–45; livelihood, 5, 16, 53–55, 56–58, 90, 91b, 92, 97, 114, 137–38, 197, 205–06, 256, 268–69; markets, 54, 105, 114, 122, 124, 131, 181–82; microcredit, 7, 197–98, 201, 203, 205–06; microfinance, 145–47, 203–05, 208–09, 213, 219; microinsurance, 7, 208–23; 5857-0 ch18 index 296 3/9/07 4:23 PM Page 296 Index natural resources, 137–38, 139–40; privatization, 92–94, 113, 124; productivity, 232; savings, 7, 98, 99, 130, 196, 200–201, 209, 212, 214, 223, 225–37, 261–62; standard of living, 51, 55, 56–58; technology, 122; trade, 124; transnationalization of economies, 243–45; tourism, 140–43; vulnerability, 105, 108, 138, 209–10, 222; wealth, 214; women’s issues, 215–16, 222 See also Capital assets; Development; Middle class; Poverty and the poor Economic issues—specific locations: Aceh, Indonesia, 161, 162; Ahmedabad, India, 197; Asia, 104–19; Bolivia, 212; Central America, 180–81; Indonesia, 212–13; Kenya, 215; Latin America, 123–24, 125–26, 128–31; southern Africa, 137–39, 145–47; New Orleans, 168–74; Tanzania, 212, 215; Uganda, 212, 215, 217 Ecuador: democratization in, 21; economic issues in, 21, 27–28, 37; Multilateral Investment Fund funding to, 236; migration from, 27, 47n20, 93t; poverty in, 19, 20–21 See also Cisne Dos; Guayaquil; Indio Guayas; Latin America Educational issues: financial education, 220–22, 223; remittances, 230, 234, 235; right to education, 278, 284 Educational issues—specific locations: Guatemala, 220–21; Latin America, 123, 126–27, 128; southern Africa, 145–46 See also Capital assets— human Egypt, 70 EHPM See Encuesta de Hogares de Propósito Múltiples El Barrio (East Harlem, N.Y.), 244 ELF See Elgin Learning Foundation Elgin Learning Foundation (ELF), 144–45 El Salvador: background and demographics of, 255–56, 257t; crime in, 181, 183; economic factors of, 236, 261; gender and transnational asset accumulation in, 255–69; migration from, 228, 229t, 246, 247, 250–51, 256, 258, 259, 263–64, 266–68; remittances to, 256, 259, 260–62 See also Latin America Emigration See Migration, international Employment See Economic issues Encuesta de Hogares de Propósitos Múltiples (EHPM; Multi-Purpose Household Survey; El Salvador), 255, 256, 259, 261 Entitlements See Rights Environmental issues, 137–38, 140, 141 Equitap See Equity in Asia-Pacific Health Systems Project Equity in Asia-Pacific Health Systems Project (Equitap), 109, 113 Escala-Rabadan, Luis, 247 Ethical and moral issues, Ethiopia, 72, 98 EU See European Union European Court of Human Rights, 277 European Union (EU), 160 Europe, Eastern, 129–30 Fan, Lilianne, 6, 149–66 FAO See Food and Agriculture Organization Febres Cordero See Indio Guayas Federación de Clubes de Jalisco (Mexico), 249 Felton, Andrew, 3, 15–50, 51 Feng Yu-hsiang, 186 Ferguson, Clare, 8, 273–88 Filmer, Deon, 22, 89 FONASA See Fondo Nacional de Salud Fondo Nacional de Salud (FONASA; Chile), 127 Food and Agriculture Organization (FAO; U.N.), 154 5857-0 ch18 index 3/9/07 4:23 PM Page 297 Index 297 Food for Education (Bangladesh), 116 Ford Foundation: in Asia, 5, 90, 104–19; Asset Building and Community Development Program, 87, 99; community asset building and, 1; in southern Africa, 138, 140–41, 142, 144, 146, 147n2 Fragile and failing states, See also Nicaragua Free Aceh Movement (GAM; Aceh, Indonesia), 150, 152, 153, 160, 161, 162, 163 Fundación de Fomento a la Productividad del Campo (Mexico), 249 Fundar (research organization; Mexico), 282 Funeral and Friends in Need societies (Tanzania), 216 Funerals and burials, 212, 213, 217 Galveston (Tex.), 167 GAM (Gerakan Aceh Merdeka) See Free Aceh Movement Gammage, Sarah, 8, 255–72 GAM Reintegration Needs Assessment (Aceh, Indonesia), 161 García Zamora, Rodolfo, 247 Gender issues: access and rights, 140; in Aceh, 162; domestic and other violence, 110–11, 146; economic coping strategies, 211; employment, 280; “gendered geographies of power,” 265; health, 145, 146, 215; home working, 110; legal disadvantages, 279; microfinance and microinsurance programs, 146–47, 219; migration, 259–60, 265–66; poverty, 74, 269; property and land ownership, 110–11, 147n3, 151, 157; remittances, 231, 260–62; rights, 281; savings, 200, 261–62; tourism, 141, 142, 143; transnational asset accumulation, 255–69; women’s vulnerabilities, 215, 275 General Department of Surveys and Census (El Salvador), 255 Gerakan Aceh Merdeka (GAM) See Free Aceh Movement Ghana, 228, 229t Gigante Express (El Salvador), 259 Glewwe, Paul, 53 Globalization and globalizing: asset accumulation and, 95; citizenship and, 276; in Guayaquil, Ecuador, 21; human rights and, 279; migration and, 227, 248; natural capital and, 92–94; vulnerabilities of, 105, 122 Goldring, Luin, 265 Government and governance: citizenship and, 275; dispute settlement and, 277, 286; focus of, 274–75; maintenance of order, 181; migrant associations and, 246–47, 249, 250; program implementation and, 110 Grameen Bank (Bangladesh), 204 Group-based associations See Welfare associations Grupo Union (Unity Group; Newburgh, N.Y.), 240 Guanajuato (Mexico), 244–45 Guarnizo, Luis, 249 Guatemala, 183, 220–21 Guayaquil (Ecuador), 2, 3–4, 6, 21, 27, 37, 46n10 See also Cisne Dos; Ecuador; Indio Guayas Guayaquil University, 40 Guhan, S., 106 Gujarat (India), 68, 72, 73, 74, 76 See also Balaiya; Chikhali; India Haddad, Lawrence, 70 Hage, Ghassan, 189 Haiti, 72, 250–51 Harvey, David, 187 Health issues: affordability, 217; health care, 76; health shocks, 7, 92, 105, 113, 116; HIV/AIDS, 139, 140, 143, 144, 145, 146, 215, 217; insurance or 5857-0 ch18 index 298 3/9/07 4:23 PM Page 298 Index protection, 211–12, 219–20, 282; poverty, 7, 53, 70, 72, 76, 92, 113, 116, 139, 217; universal provision, 109; women’s issues, 215 See also Funerals and burials Health issues—specific locations: Guatemala, 220–21; India, 213; Latin America, 127; Mexico, 282; Uganda, 214, 219–20, 221 HIV/AIDS See Health issues Hobbes, Thomas, 182 Home-based workers, 110–12, 113–14, 211, 279 Honduras, 183 Housing See Capital assets—housing and land; Rights Housing and Urban Development, Department of (HUD), 171 Human Development Report for El Salvador (2005; U.N.), 263 Human rights See Rights Hurricane Katrina (New Orleans; 2005): asset patterns before Katrina, 168–70; economic issues of, 168–74; effects of, 7, 167, 170–73; housing in New Orleans, 170–72, 174–75; policy implications of, 173–77; recovery from, 167; segregation in New Orleans, 168–69, 173; social capital issues of, 172–73, 175–76 Hurricane Rita (U.S Gulf Coast; 2005), 176 IDA See Individual Development Accounts IIMA See Indian Institute of Management, Ahmedabad Ikegami, Menubu, 56, 59 ILO See International Labor Organization Immigration See Migration, international India: coping strategies in, 211; government strategies in, 7, 108; health care in, 76; microfinance in, 203, 205; political participation in, 281; poverty in, 62, 72, 73–74, 200–03; rights in, 280; self-help groups in, 213; social protection programs in, 213; tsunami of 2004 and, 153, 155 See also Ahmedabad; Andhra Pradesh; Balaiya; Chikhali; Gujarat; Mumbai; Rajasthan Indian Institute of Management, Ahmedabad (IIMA), 196–98 Indian Supreme Court, 280 Indio Guayas (Guayaquil, Ecuador): analysis of, 17–19, 45n2, 85, 89; assets and capital in, 17, 22–42, 85, 89, 95–96; consumer goods in, 27, 33, 34, 36, 38, 42, 85, 86; crime in, 38, 40–41, 42, 86; data tables, 43–45; educational issues in, 22, 24, 26, 28, 29–30, 36, 37–38, 40, 42, 85, 86, 89; employment issues in, 22, 25, 26, 28, 37, 38, 42, 86; families in, 17, 31; financial-productive capital in, 24, 27–28, 33, 36, 89; first generation in, 18, 21, 25–26, 28, 29–30, 31, 36, 37, 38, 39, 41–42, 47n14, 85; geography and demographics of, 17–18; housing issues in, 23–24, 25, 32–33, 34, 38, 41, 85, 89; human capital in, 29–30, 33, 85; inequality in, 28; migration from, 17, 24, 26, 28, 36, 37, 38, 86; poverty in, 17, 19–22, 25–26, 32–41, 85; second generation in, 17, 18, 22, 24, 26, 28, 30, 31–32, 36–42, 85–86, 95–96; self-help committee in, 30, 85; social capital in, 24, 30–32, 40–41, 85, 86, 89 See also Guayaquil Individual Development Accounts (IDA; U.S.), 87, 99 Indonesia, 98, 109, 120n8, 151, 212–13 See also Aceh Indonesian National Army (Tentara Nasional Indonesia [TNI]), 160, 162 Indonesian National Police, 160 5857-0 ch18 index 3/9/07 4:23 PM Page 299 Index 299 Instituciones de Salud Previsional (ISAPRES; Chile), 127 Institutions, 98 Insurance See Economic issues Integrated Child Development Services (India), 213 Inter-American Development Bank, 236, 237 International Center for Research on Women, 110–11 International Development, Department for (DFID; Peru), 284, 286 International Development, Department of (U.K.), 90 International Labor Organization (ILO; U.N.), 154, 279 Intervention with Microfinance for AIDS and Gender Equity (South Africa), 146 ISAPRES See Instituciones de Salud Previsional Islam and Islamic issues, 157, 162, 215 Izquierdo Democrática (Ecuador; political party), 21 Jakarta See Aceh; Indonesia Jalisco (Mexico), 243, 249 Japan, 76 Jawaja Leather Workers’ Association (Ahmedabad, India), 197 Jawaja Rural University Project (Ahmedabad, India), 196–98 Jharkhand (India), 200 Kanbur, Ravi, Katrina See Hurricane Katrina Kenya, 62, 68, 69, 72, 74, 214, 215 Kerala (India), 111b Krishna, Anirudh, 4, 62–79 Krishna Bhima Samruddi Bank, 200–201 KwaZulu-Natal (South Africa), 69–70 See also Southern Africa Labor, Department of, 173 La Comunidad (investment program; Guanajuato, Mexico), 245 Land, 151 See also Economic issues Lapointe, Michelle, 246 Lasch, Christopher, 190 Latin America: asset accumulation and social protection in, 122–32; economic profiles of, 233t; housing and property rights in, 6; microfinance in, 208; Multilateral Investment Fund and, 236; migration from, 228, 237, 246; remittances to, 228, 230–31, 232–34, 242–43 See also individual countries Law on Governing Aceh (LOGA), 161–62 See also Aceh Legal issues, 130–31, 157, 162, 182, 276–81 Lewis, Oscar, 36 Lhokseumawe See Aceh; Indonesia Lipietz, Alain, 187 Little, Peter D., 59 Liu, Amy, 7, 167–78 LOGA See Law on Governing Aceh Louisiana, 176 See also Hurricane Katrina Louisiana Rebuilds (www.louisianarebuilds.info), 176 Luis Fanor Hernández (Managua, Nicaragua), 185, 187 See also Managua; Nicaragua Madikwe Game Reserve (South Africa), 142–43 Madikwe Initiative (South Africa), 142 Madrid (Spain), 40 Mahajan, Vijay, 7, 92, 196–207 Maharashtra Employment Guarantee Act (1977; India), 280 Maharashtra Employment Guarantee Scheme (MEGS), 280 Mahler, Sarah, 265 Malaysia, 153 5857-0 ch18 index 300 3/9/07 4:23 PM Page 300 Index Maldives, 153 Managua (Nicaragua), 183, 184, 190 See also Nicaragua Matthai, Ravi, 196–97 May, Julian, 20, 22, 35, 53–54, 55, 58, 69, 89 McIlwaine, Cathy, 180 Medan See Aceh; Indonesia MEGS See Maharashtra Employment Guarantee Scheme Memorandum of Understanding (MOU) See Aceh Methods: analysis of gender and transnational asset accumulation in El Salvador, 255; analysis of land rights issues in Aceh, Indonesia, 150; analysis of migrant economic activity, 232; analysis of migration as a livelihood strategy, 268–69; analysis of mobility, 53; analysis of poverty level changes, 51–59, 62–77; analysis of rights, 275; analysis of vulnerability and social protection, 105–07; analytical framework for applying a rights perspective to assets, 273–86; calculation of education capital, 29; calculation of poverty levels, 35; design of antipoverty policies, 52, 58–59; making the case for asset accumulation policy, 3–8; measurement of asset accumulation and poverty reduction, 15–19, 22, 35; measurement of human capital, 29; measurement of poverty and poverty thresholds, 4, 51, 52–58; measurement of social capital, 31; workshop methodology, See also Research and studies Methods—specific: asset-based analytical frameworks, 97–100; asset dynamics, 55, 56; asset index, 3, 16, 22–23, 26, 30, 41, 83–84, 87–89; asset pentagons, 51; asset poverty line, 35, 46n10, 53–55, 58; asset stocks, 52–55; asset thresholds, 58–59; econometrics, 4, 45n5; indicators of poverty and wealth, 26; livelihood mapping, 53–54; longitudinal analysis and studies, 16, 74–75; measurement error, 53; Micawber threshold, 57, 58, 59; narrative econometric method, 15–16, 17–19, 22, 41; natural experiments, 17, 46n6; participatory stages of poverty, 4; Stages-of-Progress methodology, 62–77; surveys, 52–53, 55–56, 58, 75 Mexico: financial services in, 243, 244–45, 249; Multilateral Investment Fund and, 236; migration from, 244–46, 250–51; rights in, 282; stadium in San Vicente de Boqueron, 239; women and hometown associations in, 265 See also Latin America MFIs (microfinance institutions) See Economic issues Micawber threshold (MT) See Methods—specific MicroCare Ltd (Uganda), 214 Microcredit Summit 2005, 204 Microfinance Information eXchange (MIX), 204 Microfinance institutions (MFIs) See Economic issues Middle class, 6, 122–32, 131, 169, 170–71, 284 MIF (Multilateral Investment Fund) See Inter-American Development bank Migration, international: bank accounts and, 231–32; assets and asset accumulation and, 7–8, 225–37, 255–69; collective action and associations and, 245–50, 251–52, 264–66; contact with home country and, 228, 231, 232–34, 241, 242, 245, 251–52, 259; costs and benefits of, 258–59, 266–67; coyotes, 258, 261, 266–68, 270n8; in Ecuador, 21; in El Salvador, 256, 259, 263–64, 266; future of transnational community develop- 5857-0 ch18 index 3/9/07 4:23 PM Page 301 Index 301 ment, 251–52; guest workers and migrant labor, 143, 235–36; housing and homeownership and, 263–64, 265f; legal immigration status of, 231–32, 235–36, 251, 256, 266; management of, 235–36, 237; motivations for, 258; negative aspects of, 8; savings and, 261–62; social capital and, 264; in southern Africa, 145; transactions across borders, 242–48; transnational communities, 239–40, 241–42; transnationalizing hometown economies, 243–45; as a two-way process, 8; vulnerabilities of, 114 See also Indio Guayas; Mexico; Remittances Millennium Development Goals See United Nations Mississippi, 175 MIX See Microfinance Information eXchange Mixteca Poblana (Puebla, Mexico), 244 Mixteca region (Puebla, Guerrero, and Oaxaca states, Mexico), 243, 244, 249 Morrad Associates, 99–100 Moser, Caroline, 3, 5, 8, 9, 15–50, 51, 83–103, 150, 186, 226, 234, 273–88 MOU (Memorandum of Understanding) See Aceh Mozambique, 140, 141 MT (Micawber threshold) See Methods—specific Multi-Donor Fund for Aceh and Nias, 157 Multilateral Investment Fund (MIF) See Inter-American Development bank Multi-Purpose Household Survey (El Salvador) See Encuesta de Hogares de Propósitos Múltiples Mumbai (Bombay, India), 210 Murphy Park (St Louis, Mo.), 174 Muslims See Islam and Islamic issues Mutual assistance funds (microinsurance) See Economic issues Myanmar See Burma NAD (Nanggroe Aceh Darussalam) See Aceh NAFTA See North American Free Trade Agreement Nanggroe Aceh Darussalam (NAD) See Aceh Namibia, 116, 140, 141 Narayan, Deepa, 64 National Land Agency (BPN; Banda Aceh, Indonesia), 155, 157 Natural resources, See also Capital assets—natural; individual countries New Orleans See Hurricane Katrina New York, 239, 244, 246 NGOs See Nongovernmental organizations Nias Island (Indonesia), 153, 154, 156, 160, 164 See also Aceh; Indonesia; Sumatra Nicaragua, 7, 180, 183–86, 187, 188–90, 191, 236 See also Latin America Nijera Kori (Bangladesh), 275 Nimpuno-Parente, Paula, 6, 137–48 Nongovernmental organizations (NGOs), 90, 139, 154–55, 156–57, 279 See also individual organizations North American Free Trade Agreement (NAFTA), 244 North Carolina (U.S.), 62, 72, 74 See also United States Northwest Parks and Tourism Board (South Africa), 142 Norton, Andy, 8, 273–88 O’Donnell, Guillermo, 181 OECD See Organization for Economic Cooperation and Development Okidi, John, 70 Oman, 100 Oliver, Melvin, 87 Olson, Mancur, 180, 186–87, 188, 191 5857-0 ch18 index 302 3/9/07 4:23 PM Page 302 Index Organization for Economic Cooperation and Development (OECD), 129, 130 Orozco, Manuel, 7–8, 225–38, 246 Overseas Development Institute, 141 Oxfam, 90, 151, 154–55, 159–60 Palmer, Robin, 151 Pambansang Tagapag-ugnay ng mga Manggagawa sa Bahay (PATAMABA), 112b PATAMABA See Pambansang Tagapagugnay ng mga Manggagawa s Bahay People’s Union for Civil Liberties (India), 280 Peru, 62, 70–71, 72, 246, 284 Pessar, Patricia R., 265 Philippines, 112b, 228 Pinochet, Augusto, 124 Plan International, 21, 29, 30–31, 84 Poblano communities (N.Y.), 239–40 Policies, 52, 58–59, 108–09 See also Assets—accumulation policies; Social protection Policies—specific: agriculture, 143–45; housing, 128; management of natural resources, 139–40; poverty, 52, 63–64, 68, 73–74, 75–77, 138–39; social protection, 5–6, 104–05, 123–27, 130; sustainable development, 5, 6; sustainable livelihoods, 5; technical assistance, 141–42; welfare, 98 See also individual countries and areas Political issues: citizenship and asset distribution, 273–86; economic effects of instability, 130; French regulation school of political economy, 187; interaction between legal systems, 278–79; in Latin America, 123; migrant associations, 247; participation and leverage, 281; pluralism, 277; power relations, 274–76; rights claims, 282–83 Poverty and the poor: ability/capability levels and, 56–59, 63, 86–87; analysis and diagnosis of, 16, 87–89; antipoverty programs, 4–5, 75–77, 90, 115–17, 122, 138, 141–43, 144–45, 146–47; assets and, 16, 32–42, 51–61, 63, 64–66, 67–68, 76, 84, 89, 97, 99, 105, 200–01, 209, 222–23, 273–86; bathtub metaphor of, 62–63, 68–71, 73, 75–77; capital assets and, 16, 56, 110–15; cargo nets and, 4, 59; “churning” versus structural changes in poverty, 52–55, 97–98; chronic poverty, 52, 53, 55–58, 59, 90, 97, 105; coping strategies of, 210–20, 222–23; dynamic asset poverty, 97; economic shocks and, 7, 53, 59, 90, 92, 209–20; gangs and violence and, 182, 190; human rights and, 279; intergenerational income poverty and asset accumulation, 36–41; microcredit, microfinance, and microinsurance and, 7, 197–98, 203–06, 212–13, 215, 217, 219–23; migration and, 7–8, 21; mobility in and out of, 20, 52–55, 56–58, 62–77, 84, 89, 208–09, 218, 235; policy approaches to, 90–94; poverty traps, 52, 56, 59, 70–71, 90, 98, 218; poverty versus vulnerability, 86; routes and strategies out of, 16, 52, 62–71, 72–77; safety nets and, 4, 21, 31, 59, 90, 106, 138, 147; slums and poor neighborhoods, 190; structural and stochastic poverty, 35–36, 97–98; tax effects of, 174; trends of, 20–21 See also Social protection Poverty and the poor—specific locations: Aceh, Indonesia, 151–52, 154; Ahmedabad, India, 197–98; Central America, 181; India, 200–202; Latin America, 122; Mumbai/Bombay, India, 210; New Orleans, 168–69, 173–74; Nicaragua, 183, 189–90 Poverty threshold, 4, 92 Power See Political issues 5857-0 ch18 index 3/9/07 4:23 PM Page 303 Index 303 Pritchett, Lant, 48, 89 Programa de Educación, Salud y Alimentación (PROGRESA; Mexico), 116 Programa Unidos por la Solidaridad (United for Solidarity program; El Salvador), 247 PROGRESA See Programa de Educación, Salud y Alimentación Property rights See Rights PT Arun (Indonesia), 152 Public Use Microdata Sample (PUMS), 255, 263 Puebla (state; Mexico), 239, 243, 244 PUMS See Public Use Microdata Sample Putnam, Robert, 99 Quiroz-Becerra, Victoria, 8, 239–54 Rajasthan (India), 62, 64, 66, 68, 69, 70, 71 See also India RALAS See Reconstruction of Aceh’s Land Administration System project Raza Express (financial services firm; Mexico), 243 Reconstruction of Aceh’s Land Administration System project (RALAS), 157–58 Regulation theory, 187–88 Rehabilitation and Reconstruction Agency for Aceh and Nias (BRR; Indonesia), 153, 156, 158–59 Remittances: absorption of, 232–34; asset accumulation and, 236–37; amounts of, 228; effects and function of, 225, 229–31, 232–33, 243, 247–48, 251, 258, 268–69; housing and, 263–64; as migrant economic activity, 228; migrant savings and, 227, 231–32, 261–62; social capital and, 264–66 See also Development; Migration, international; individual cities and countries Research and studies: emphasis of, 87; Ford Foundation Asia project, 104–19; of Latin American remittances, 242–43; legal pluralism, 277; rights-based approach to development, 276; summary of analytical frameworks, 88; themes for future work, 8–10, 115–17, 251, 268–69; U.N.-Oxfam report on Aceh, Indonesia, 155–56 See also Ford Foundation; Indio Guayas; International Center for Research on Women; Methods Rights: analysis of, 275; assets and, 8, 84, 273–76, 283–84; citizenship and the politics of asset distribution, 273–86; contesting claims, 280–84 ; entitlements and, 275, 279, 281–82, 285; global rights agreements, 279; health rights, 282; human rights, 8, 84, 273–74, 276, 285; information rights, 282; legal standards and, 277–80; legislation and, 280, 281, 282; property and land rights, 131, 150, 151, 283–84; reproductive rights, 281; resource rights, 139–40, 150; rights of access, 138, 140; rights regimes, 277–78; struggles over, 275; tenure rights, 141 See also individual countries Right to Food campaign (India), 280 Risk: asset accumulation and, 57, 87, 91, 97, 115; avoidance of, 115, 200; business risk, 181–82; credit-based activities and, 201; insecurity and vulnerability and, 86, 87, 97; microinsurance and, 219; opportunity and, 5, 91, 95; risk management strategies, 91, 92, 221, 222; self-insurance and, 211; sharing of, 212; of shocks, 209; social protection and, 5, 87, 92, 213 Rivera, Alex, 239 Robinson, William, 181 Rodgers, Dennis, 7, 179–95 5857-0 ch18 index 304 3/9/07 4:23 PM Page 304 Index ROSCAs See Rotating savings and credit associations Rotating savings and credit associations (ROSCAs), 212, 213 Rural AIDS and Development Action Research Programme (South Africa), 146 Russia, 54 Rwanda, 155–56 Sahn, David, 89 Salmen, Lawrence, 64 Salvadoran National Accounts, 255 Sánchez-Jankowski, Martín, 182 Sandanistas (Nicaragua), 184, 188–89 San Vicente de Boquerón (Puebla, Mexico), 239 Self-Employed Women’s Association (SEWA; India), 279, 285 Self-Employed Women’s Association Bank (SEWA Bank; Ahmedabad, India), 200, 219 Sen, Amartya, 8, 16, 69, 86, 99, 179, 274, 276 Senegal, 72 SEWA See Self-Employed Women’s Association Seychelles, 153 Shapiro, Thomas, 87 Shari’a See Islam and Islamic issues Shell, 100 Sherraden, Michael, 87, 98, 99 Siegel, Paul, 97 Sierra Leone, 72 Sinha, Sanjay, 204 Sixth Section, The: A Documentary about Immigrants Organizing across Borders (Rivera; film), 239 Small Enterprise Foundation, 146 Social protection (SP): asset accumulation and building, 90–92, 97, 106; asset types and, 110–15; challenges of, 106–10, 123; as a coping with shock mechanism, 213; definition of, 91b; mechanisms of, 106; policies of, 5, 90, 108; programs of, 5–6, 90, 107; risk and, 5, 87, 92, 97; targeting of, 124–25, 131, 142; vulnerability and, 104–19 See also individual areas and countries Social Order of the Slum, The (Suttles), 182 Social Protection in Asia See Ford Foundation Social Risk Management See World Bank Solimano, Andrés, 6, 122–33 Somalia, 153 Southeast Asia See Asia South Africa, 69–70, 140, 141, 279–80, 282 See also Africa South Africa Human Rights Commission, 282 South African Constitutional Court, 280 Southern Africa, 55, 100, 137–47 See also Africa; individual countries SP See Social protection Spain, 93t See also Barcelona; Madrid Sri Lanka, 111b, 153, 155 Steinmetz, George, 191 Stifel, David, 89 Stoker, Gary, 191 Street Corner Society (Whyte), 182 Suharto (General/president; Indonesia), 152, 153 Sumatra, 153 Suro, Robert, 243 Sustainable livelihoods programs, 5–6 Suttles, Gerald D., 182 Székely, Miguel, 51 Tanzania, 212, 215, 216 Targeting See Social protection Tau Yeu May (TYM; microfinance institution; Vietnam), 209 Technical assistance, 141–43 Tentara Nasional Indonesia (TNI) See Indonesian National Police 5857-0 ch18 index 3/9/07 4:23 PM Page 305 Index 305 Thailand, 109–10, 153 TNI (Tentara Nasional Indonesia) See Indonesian National Police Torre, Augusto de la, 235 Tourism, 6, 139, 140–43, 169 Tres por Uno (government program; Mexico), 247–48 Tsunami of Aceh, Indonesia (2004) See Aceh TYM See Tau Yeu May key economic indicators of, 257t; migration to, 256; poverty in, 74 See also individual cities and states University of the Witwatersrand (South Africa), 146 Urban Basic Services Program See UNICEF U.S See United States USAID See Agency for International Development, U.S Uganda: economic coping strategies in, 212, 214, 215, 217, 219–20, 221; health issues in, 72; poverty in, 62, 67–68, 70–71; women’s land rights in, 281 U.K See United Kingdom U.N See United Nations UNDP (United Nations Development Program) See United Nations UNICEF (United Nations Infants and Children Emergency Fund) See United Nations United Kingdom (U.K.), 98–99 United Nations (U.N.): Food and Agriculture Organization, 154; framework of human rights, 276; International Fund for Agricultural Development, 236; International Labor Organization, 154; Millennium Development Goals, 87, 95, 146; Office of the Special Envoy for Tsunami Recovery, 153; Office of the U.N Recovery Coordinator for Aceh and Nias, 159; United Nations Development Program, 155, 157, 226, 263; United Nations Infants and Children Emergency Fund (UNICEF), 21, 29, 30–31, 85, 159; World Food Program, 213 United States (U.S.): antipoverty strategies in, 1; asset building in, 1, 87, 98–99; asset inequality in, 98; asset mapping in, 100; bankruptcies in, 72; gangs in, 182; housing in, 263–64; Valle de Atlixco (Puebla, Mexico), 244, 249 Vietnam, 72, 105, 109, 112, 113 Vimo SEWA (Ahmedabad, India), 219 Wars and warfare, 180, 181 Washington Consensus, 131 Washington (D.C.), 261–62, 266 Washington Post, 268 Weber, Max, 181 Welfare associations, 212–13, 215, 217 West Bengal, 111b Western Union, 259 Whyte, William F., 182 Women’s issues See Gender issues Workshop on Asset-Based Approaches to Poverty Reduction in a Globalized Context (Brookings Institution-Ford Foundation, 2006), World Bank, 87, 90, 91b, 97, 157, 161 World Development Report (World Bank; 2000), World Food Program (U.N.), 213 World Savings Banks Institute, 235 Young, Pamela, 7, 208–24 Youth Self-Employment Foundation (Tanzania), 215 Yugoslavia, 155 Zabin, Carol, 247 Zamora, García, 247 Zimbabwe, 281 5857-0 ch18 index 3/9/07 4:23 PM Page 306 5857-0 ch18 index 3/9/07 4:23 PM Page 307 the brookings institution The Brookings Institution is a private nonprofit organization devoted to research, education, and publication on important issues of domestic and foreign policy Its principal purpose is to bring the highest quality independent research and analysis to bear on current and emerging policy problems The Institution was founded on December 8, 1927, to merge the activities of the Institute for Government Research, founded in 1916, the Institute of Economics, founded in 1922, and the Robert Brookings Graduate School of Economics and Government, founded in 1924 Interpretations or conclusions in Brookings publications should be understood to be solely those of the authors Board of Trustees John L Thornton Chair Strobe Talbott President Robert J Abernethy Zoë Baird Alan R Batkin Richard C Blum Geoffrey T Boisi Arthur B Culvahouse Jr Alan M Dachs Kenneth W Dam Vishakha N Desai Thomas E Donilon Mario Draghi Kenneth M Duberstein Lawrence K Fish Cyrus F Freidheim Jr David Friend Ann M Fudge Jeffrey W Greenberg Brian L Greenspun Teresa Heinz Samuel Hellman Glenn H Hutchins Joel Z Hyatt Shirley Ann Jackson Kenneth M Jacobs Suzanne Nora Johnson Harold Hongju Koh William A Owens Frank H Pearl John Edward Porter Steven Rattner Edgar Rios Haim Saban Leonard D Schaeffer Lawrence H Summers David F Swensen Larry D Thompson Andrew H Tisch Laura D’Andrea Tyson Antoine W van Agtmael Beatrice W Welters Daniel Yergin Honorary Trustees Leonard Abramson Elizabeth E Bailey Rex J Bates Louis W Cabot James W Cicconi A W Clausen William T Coleman Jr D Ronald Daniel Robert A Day Bruce B Dayton Charles W Duncan Jr Walter Y Elisha Robert F Erburu Bart Friedman Henry Louis Gates Jr Robert D Haas Lee H Hamilton William A Haseltine F Warren Hellman Robert A Helman Roy M Huffington James A Johnson Ann Dibble Jordan Michael H Jordan Vernon E Jordan Jr Breene M Kerr Marie L Knowles James T Lynn Jessica Tuchman Mathews David O Maxwell Donald F McHenry Robert S McNamara Mary Patterson McPherson Arjay Miller Mario M Morino Maconda Brown O’Connor Samuel Pisar J Woodward Redmond Charles W Robinson James D Robinson III Judith Rodin Warren B Rudman B Francis Saul II Ralph S Saul Henry B Schacht Michael P Schulhof Joan E Spero Vincent J Trosino John C Whitehead Stephen M Wolf James D Wolfensohn Ezra K Zilkha 5857-0 ch18 index 3/9/07 4:23 PM Page 308 ... frontmatter 3/9/07 4:02 PM Page i reducing global poverty 5857-0 ch00 frontmatter 3/9/07 4:02 PM Page ii 5857-0 ch00 frontmatter 3/9/07 4:02 PM Page iii reducing global poverty The Case for Asset Accumulation... Accumulation and Poverty Longitudinal analysis of changing household income poverty levels identifies who remains stuck in poverty, who gets out of poverty, and who falls back into poverty It can... increasing poverty Poverty-focused research focuses almost entirely on how people stay in poverty or on how they get out of it However, populations include people simultaneously moving into poverty