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<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><B
style="mso-bidi-font-weight: normal"><SPAN style="FONT-SIZE: 14pt"><FONT
face="Times New Roman">WORLD BANK PROPOSES ACTIVE POVERTY REDUCTION…OR MORE
DOUBLE TALK? (*) <?xml:namespace prefix = o ns =
"urn:schemas-microsoft-com:office:office" /><o:p></o:p></FONT></SPAN></B></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><B
style="mso-bidi-font-weight: normal"><SPAN style="FONT-SIZE: 14pt"><o:p><FONT
face="Times New Roman"> </FONT></o:p></SPAN></B></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><SPAN
style="FONT-SIZE: 14pt"><FONT face="Times New Roman">According to a recent WB
report (**), in the past 20 years, <?xml:namespace prefix = st1 ns =
"urn:schemas-microsoft-com:office:smarttags" /><st1:place w:st="on">Latin
America</st1:place> has made very little progress in the fight against poverty.
In that part of the world, the share of poor people who live on less than two
dollars a day fell from almost 60% in the 1950s to 20% by 1980. It has stagnated
since at this level. In contrast, in <st1:place w:st="on"><st1:country-region
w:st="on">China</st1:country-region></st1:place>, the WB maintains, the per
capita income rose by 8.5% a year from 1981 to the year 2000 --and poverty
declined by 42%. <o:p></o:p></FONT></SPAN></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><SPAN
style="FONT-SIZE: 14pt"><o:p><FONT
face="Times New Roman"> </FONT></o:p></SPAN></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><SPAN
style="FONT-SIZE: 14pt"><FONT face="Times New Roman">So much for the facts. So
what does this WB report, among other, conclude?<o:p></o:p></FONT></SPAN></P>
<P class=MsoNormal
style="MARGIN: 0in 0in 0pt 0.5in; TEXT-INDENT: -0.25in; mso-list: l0 level1 lfo1; tab-stops: list .5in"><FONT
face="Times New Roman"><SPAN style="FONT-SIZE: 14pt"><SPAN
style="mso-list: Ignore">a)<SPAN
style="FONT: 7pt 'Times New Roman'">
</SPAN></SPAN></SPAN><SPAN style="FONT-SIZE: 14pt">That economic growth was too
low to reduce poverty…<o:p></o:p></SPAN></FONT></P>
<P class=MsoNormal
style="MARGIN: 0in 0in 0pt 0.5in; TEXT-INDENT: -0.25in; mso-list: l0 level1 lfo1; tab-stops: list .5in"><FONT
face="Times New Roman"><SPAN style="FONT-SIZE: 14pt"><SPAN
style="mso-list: Ignore">b)<SPAN
style="FONT: 7pt 'Times New Roman'">
</SPAN></SPAN></SPAN><SPAN style="FONT-SIZE: 14pt">That the gulf between the
rich and the poor has hindered stronger economic
growth…<o:p></o:p></SPAN></FONT></P>
<P class=MsoNormal
style="MARGIN: 0in 0in 0pt 0.5in; TEXT-INDENT: -0.25in; mso-list: l0 level1 lfo1; tab-stops: list .5in"><FONT
face="Times New Roman"><SPAN style="FONT-SIZE: 14pt"><SPAN
style="mso-list: Ignore">c)<SPAN
style="FONT: 7pt 'Times New Roman'">
</SPAN></SPAN></SPAN><SPAN style="FONT-SIZE: 14pt">That improving macro-economic
conditions and hoping for more growth is not
enough…<o:p></o:p></SPAN></FONT></P>
<P class=MsoNormal
style="MARGIN: 0in 0in 0pt 0.5in; TEXT-INDENT: -0.25in; mso-list: l0 level1 lfo1; tab-stops: list .5in"><FONT
face="Times New Roman"><SPAN style="FONT-SIZE: 14pt"><SPAN
style="mso-list: Ignore">d)<SPAN
style="FONT: 7pt 'Times New Roman'">
</SPAN></SPAN></SPAN><SPAN style="FONT-SIZE: 14pt">That governments should
rather directly support the poor for them to both improve their personal
situation and contribute to economic development (whatever this
means)…<o:p></o:p></SPAN></FONT></P>
<P class=MsoNormal
style="MARGIN: 0in 0in 0pt 0.5in; TEXT-INDENT: -0.25in; mso-list: l0 level1 lfo1; tab-stops: list .5in"><FONT
face="Times New Roman"><SPAN style="FONT-SIZE: 14pt"><SPAN
style="mso-list: Ignore">e)<SPAN
style="FONT: 7pt 'Times New Roman'">
</SPAN></SPAN></SPAN><SPAN style="FONT-SIZE: 14pt">That we should promote
‘pro-growth poverty reduction rather than ‘pro-poor growth” (whatever this
means)…<o:p></o:p></SPAN></FONT></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><SPAN
style="FONT-SIZE: 14pt"><o:p><FONT
face="Times New Roman"> </FONT></o:p></SPAN></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><SPAN
style="FONT-SIZE: 14pt"><FONT face="Times New Roman">The report goes on to
confirm some other truths, namely, that Latin America provides no evidence that
the gap between poor and rich countries is closed in the long-term by the
invisible hand of the market; that someone who is born into a poor family is
likely to remain poor for the rest of her/his life; and that it is the well-off
who benefit most from government subsidies such as those on pensions, higher
education and fuel.<o:p></o:p></FONT></SPAN></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><SPAN
style="FONT-SIZE: 14pt"><o:p><FONT
face="Times New Roman"> </FONT></o:p></SPAN></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><SPAN
style="FONT-SIZE: 14pt"><FONT face="Times New Roman">The report also recommends
making payments to the poor (whatever this means), on condition of them taking
advantage of educational programs or health services. (!?) Furthermore, it says
that the poor should be enabled to insure themselves better (!!??) against risks
such as unemployment or illness (this beats me)…<o:p></o:p></FONT></SPAN></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><SPAN
style="FONT-SIZE: 14pt"><o:p><FONT
face="Times New Roman"> </FONT></o:p></SPAN></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><SPAN
style="FONT-SIZE: 14pt"><FONT face="Times New Roman">…And as a golden broche, it
says: “Converting the state into an agent that promotes equality of
opportunities and practices efficient redistribution is, perhaps (…only
perhaps), the most critical challenge Latin America faces in implementing better
policies that simultaneously stimulate growth and reduce inequality and
poverty”. (emphasis added).<o:p></o:p></FONT></SPAN></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><SPAN
style="FONT-SIZE: 14pt"><FONT face="Times New Roman">Now, if this all is not
double talk, I would not know what is.<o:p></o:p></FONT></SPAN></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><SPAN
style="FONT-SIZE: 14pt"><o:p><FONT
face="Times New Roman"> </FONT></o:p></SPAN></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><SPAN
style="FONT-SIZE: 11pt"><FONT face="Times New Roman">Claudio Schuftan,
<st1:place w:st="on"><st1:City w:st="on">Ho Chi Minh
City</st1:City></st1:place><o:p></o:p></FONT></SPAN></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><SPAN style="FONT-SIZE: 11pt"><A
href="mailto:claudio@hcmc.netnam.vn"><FONT
face="Times New Roman">claudio@hcmc.netnam.vn</FONT></A><FONT
face="Times New Roman"> <o:p></o:p></FONT></SPAN></P>
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<P class=MsoNormal
style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0in; BORDER-TOP: medium none; PADDING-LEFT: 0in; PADDING-BOTTOM: 0in; MARGIN: 0in 0in 0pt; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none; mso-border-bottom-alt: solid windowtext 1.5pt; mso-padding-alt: 0in 0in 1.0pt 0in"><SPAN
style="FONT-SIZE: 14pt"><o:p><FONT
face="Times New Roman"> </FONT></o:p></SPAN></P></DIV>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><SPAN
style="FONT-SIZE: 11pt"><FONT face="Times New Roman">(*):<SPAN
style="mso-spacerun: yes"> </SPAN>D+C, Vol.33, No.4, April
2006.<o:p></o:p></FONT></SPAN></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><SPAN
style="FONT-SIZE: 11pt"><FONT face="Times New Roman">(**): Perry, G.E. et al,
Poverty Reduction and Growth: Virtuous and Vicious Circles. World Bank Latin
American and <st1:place w:st="on">Caribbean</st1:place> Studies,
2006<o:p></o:p></FONT></SPAN></P></FONT></DIV></BODY></HTML>