Tuesday, January 26, 2010

Poverty Reduction and Creation- A new approach

Shariff and Krishna have pointed a new approach to look at poverty reduction measures through a matrix. http://economictimes.indiatimes.com/opinion/comments-analysis/Poverty-reduction-and-creation/articleshow/5496832.cms






















The authors argue that poverty is a measure of escape rate (people moving out of poverty) and descent rate (people getting into poverty). At any time both factors play a role and a higher value of descent or escape determines the net rate. The authors then define a 3 by 3 matrix to display how various states rank per the study they conducted. 


The authors also argue that instead of a national level, uniformly applicable policy of poverty eradication, a more state specific policies with respect to escape and descent rate would be useful.  

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