Why are Some Countries Poor? Poverty, Macroeconomic Policy and Poverty Reduction

Poverty means little money, little or little asset. The World Bank has a minimum life such as low income, loss of basic needs, low levels of health and education, lack of access to inadequate water and sanitation, insufficient physical safety and lack of voice We define poverty as being unable to meet the standard. According to the United Nations, poverty "can not gain choices, opportunities, or infringe human dignity." Poverty has a long tradition and many economists are studying poverty and development.

What is the impact of these empirical findings on macroeconomic policy? First, given the importance of growth for macroeconomic stabilization of poverty reduction and growth, the broad objective of macroeconomic policy should be to establish or enhance macroeconomic stability. Therefore, policy makers must maintain a macroeconomic stability and achieve a range of achievable macroeconomic goals (ie, growth (ie, growth), economic growth, and economic growth) to achieve macroeconomic policies (financial, currency, and international balance of payments) , Inflation, external debt and net international reserves) should be identified. Exchange rate). . In the case of less severe macroeconomic imbalances, the scope of possible targets may be consistent with stable goals. Based on the national poverty reduction strategy goals and priorities, you can set accurate targets within this range (see the Fiscal Policy section later in this booklet).

As the focus of this booklet is on the role of macroeconomic policy in supporting national poverty reduction strategies, the discussion of macroeconomic policy in this section will focus on countries that have achieved broad macroeconomic stability. Recent data shows that many developing countries are currently stable macroeconomically (see Table 1-3 at the end of this brochure). In formulating a national poverty reduction strategy, policy makers need to evaluate and determine the most appropriate combination of key macroeconomic objectives in order to maintain macroeconomic stability in a particular environment. In this section, (1) a method of providing expenditure for poverty reduction in a way that does not compromise macroeconomic stability, (2) concrete policy that can be adopted to improve macroeconomic performance, (3) external Shock policy

To ensure macroeconomic stability, government budgets, including national poverty reduction strategies, must be funded in a sustainable and inflation-free way. Formulating and integrating national macroeconomic policy and poverty reduction strategy is an iterative process. First of all, it is necessary to clarify the poverty reduction strategy (ie, the specified goals and policies), then calculate the expenses and finally fund the total budget in a non-inflationary way. However, in this process, the amount of funds (most of which are done on preferential terms) is not necessarily fixed. If a reliable poverty reduction strategy can not raise funds from existing resources, the workforce of the World Bank and the International Monetary Fund will actively assist countries in their efforts to gain more economic support from donor countries You should. In addition to serious macroeconomic imbalances, there is usually room for flexibility in setting short-term macroeconomic goals.