How Much Does Reducing Inequality Matter for Global Poverty?

Abstract

The Policy Research Working Paper Series disseminates the findings of work in progress to encourage the exchange of ideas about development issues. An objective of the series is to get the findings out quickly, even if the presentations are less than fully polished. The papers carry the names of the authors and should be cited accordingly. The findings, interpretations, and conclusions expressed in this paper are entirely those of the authors. They do not necessarily represent the views of the International Bank for Reconstruction and Development/World Bank and its affiliated organizations, or those of the Executive Directors of the World Bank or the governments they represent.

Multidimensional fragility in 2020

“…Such a perspective is especially important as policy makers and practitioners confront the impact of COVID-19 in fragile contexts. In 2020, 26 million additional people are expected to fall into extreme poverty due to COVID-19, according to author calculations of the World Bank's country-level projections (Lakner et al, 2020 [1]). Addressing COVID-19 will require practitioners to think broadly, using available evidence, and adapt to changing circumstances as the situation unfolds in fragile contexts.…”

“…At the same time, and with fragility "the new development frontier" (Kharas and Rogerson, 2017 [42]), delivering on Agenda 2030 calls for navigating complexity to help fragile contexts achieve sustainable development progress that leaves no one behind. Just because fragility is complex does not mean that efforts to address it need to be complicated.…”

“…The OECD has published reports since 2005 on the conditions of fragile contexts and resource flows going to them, following concerns expressed at the Senior Level Forum on Development Effectiveness in Fragile States in January 2005 that some fragile contexts received fewer resources relative to their need, with resulting implications for international stability, security and prosperity (OECD DAC, 2005 [51]). Now, 15 years later, these concerns are part of the rationale for developing measures of fragility and tracking financial flows to fragile contexts (Desai, 2020 [52]; Thompson, 2020 [27]), with the Sustainable Development Goals' (SDGs) promise to leave no one behind providing a guiding framework (Kharas and Rogerson, 2017 [42]; UN, 2020 [53]). From 2005 to 2014, the OECD's measure of fragility synthesised indices of development progress from the academic and policy communities to create a binary list of fragile and nonfragile contexts that allowed policy makers to draw attention to the challenges and needs in fragile contexts.…”

Fragility and Agenda 2030

“…The initial impact of the pandemic demonstrates the extent to which displaced communities, including refugees, are among the most vulnerable people in the world. Kluge et al (2020 [170])finds that refugees and migrants are at increased risk of contracting diseases, including COVID-19, because they typically live in overcrowded conditions without the means to follow basic public health measures and because they have limited access to healthcare services. Refugees and migrants also suffer socio-economic affects associated with loss of income and their difficulties accessing legal and other services (Kluge et al, 2020 [170]).…”

States of fragility and official development assistance

“…Governments are adopting a range of measures to respond to the COVID-19 pandemic, which is straining the capacity of governance structures worldwide (Hale et al, 2020 [55]). The pandemic could affect the ability of public sector institutions, in both donor and recipient contexts, to deliver goods and services (Bteddini and Wang, 2020 [56]; Khemani, 2020 [57]). Supporting these institutions can help them mobilise the resources needed to respond to the pandemic and build back better in the longer term (Van de Poel, 2020 [58]).…”