Bassiro Só, Eduardo Ferreira Franco, Hamilton Coimbra Carvalho, Joaquim Rocha dos Santos and Stefano Armenia
This paper aims to understand and explore the causal relationship of elements responsible for the macro vicious cycle of poverty in Guinea-Bissau, and discuss policies to break it.
Abstract
Purpose
This paper aims to understand and explore the causal relationship of elements responsible for the macro vicious cycle of poverty in Guinea-Bissau, and discuss policies to break it.
Design/methodology/approach
The methodology used in this study is based on the system dynamics simulation paradigm.
Findings
Breaking the Guinean poverty cycle requires a multifaceted approach involving more resources and the building of several national capabilities. Traditional approaches tend to fail.
Research limitations/implications
Limitations come from the level of abstraction used in the model, which does not detail the processes for building specific capabilities and their interrelationships, and the necessary exclusion of variables that may have an impact in the process. Considering implications, the study models the evolution of human development index (HDI) in Guinea-Bissau, linking it to the economy and political sectors and allowing the simulation of different scenarios.
Practical implications
The study presents a critical stance towards common recommendations from international agencies, and it provides a blueprint for development of more effective public policies.
Social implications
Overcoming the poverty trap in sub-Saharan countries remains a challenge for the international community. The study aims at helping in the process of integrating different frameworks into a compact and manageable model.
Originality/value
The study contributes to the system dynamics and economic development literatures by presenting an integrative model of human development in Guinea-Bissau. There is no study in the system dynamics literature modelling the relationship of HDI to economy and political sectors while different and contradictory points of view characterize the economics literature, leaving well-meaning public officials in Guinea-Bissau at a loss of mental models to tackle the poverty trap in the country.
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Chantel De Vos, Lawrence Ogechukwu Obokoh and Babatunde Abimbola Abiola
This paper examines the determinants of savings among low-income households, regarded as non-Ricardian households (NRHs), in South Africa. NRHs comprise low-income households…
Abstract
Purpose
This paper examines the determinants of savings among low-income households, regarded as non-Ricardian households (NRHs), in South Africa. NRHs comprise low-income households largely depending on government welfare benefits for sustenance. This research investigates socio-economic factors determining savings pattern of low-income households in South Africa.
Design/methodology/approach
The research makes use of the National Income Dynamics Study (NIDS) data set wave one to five. The longitudinal survey models are analysed in determining the socio-economic characteristics of NRH in South Africa. The estimators include Pooled ordinary least square (OLS), fixed and random effects methods.
Findings
The household grant contributes positively to the level of savings, but the savings level is still considerably low: majority of the low-income households have zero or negative savings. The average size of a NRH is about twice the size of the Ricardian, despite the NRHs’ debt burden impoverishing them.
Research limitations/implications
The self-perpetuated poverty problem makes every factor in the vicious cycle both cause and effect of another factor, warranting reverse causality and threatening the reliability of Pooled OLS estimates for the research.
Practical implications
The growing cost of government grant hinges on the increased level of inflation while largely depending on the number of households entering the low-income threshold.
Social implications
The study recommends that the government creates a more enabling environment for NRHs to engage in productive activities. Also they create more low-skilled jobs and encourage reduction of birth rate among low-income households; this will reduce their expenditure and increase their level of savings and will assist in pulling them out of the vicious circle of poverty. Government can boost NRHs’ savings through increase in various grants.
Originality/value
The study makes significant contribution towards addressing the unfortunate situation of household savings among low-income brackets in South Africa. The research corroborates other studies on the effectiveness of the fiscal stimulus package to boost the welfare and savings condition of NRHs in South Africa. The result explicitly confirmed the redistribution policy of the grant to the low-income household. The grant has a significant positive effect on the savings pattern of the household. An increase in it beyond the poverty threshold could indeed break the vicious circle of poverty since the effect does not only stop at expenditure but also pass through to savings, which may ultimately boost investment. Further studies should continue the investigation of grant transmission channels to investment and income.
Peer review
The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-11-2019-0692
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Magno Rogério Gomes, Marina Silva da Cunha, Solange de Cássia Inforzato de Souza and Paulo Jorge Reis Mourão
This article aims to analyze the workers' probabilities of following their parents’ occupational legacy and whether these individuals are paid differently compared to those who…
Abstract
Purpose
This article aims to analyze the workers' probabilities of following their parents’ occupational legacy and whether these individuals are paid differently compared to those who opted for occupations different from their parents, in Brazil.
Design/methodology/approach
To that end, the occupational legacy probability equation was estimated as the quantile wage equations with sample selection bias correction and the wage decomposition for Brazil from the microdata of the National Household Sample Survey (PNAD) of 2014. It was found that families have a strong influence on the process of choosing the careers of their children. The average probability of a young person following the occupational legacy of their parents was 41.63%. This percentage is different when analyzing different groups of individuals, such as being male or female, being in a traditional or single parent family, being in an income household lower or higher per capita.
Findings
The results also confirm the hypothesis that workers who tend to follow the occupational legacy have lower wages than individuals who choose other occupations and that this may cause a “poverty trap” since the lower the salary quantile, the stronger the “trap” as economically disadvantaged young people tend to follow in their parents' footsteps and to contribute to family income they face a tradeoff, opt between work or study, which ends up disrupting their education and forcing young people to entering the job market early, performing secondary occupations with lower income and arduous work, generating a “vicious cycle of poverty”.
Research limitations/implications
Given the database, we are comprised to its most recent version.
Practical implications
This is the first work on Latin American problem of occupational legacy.
Originality/value
This is the first work on Latin American problem of occupational legacy.
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Mohammad Selim and Mohammad Omar Farooq
The purpose of this paper examines how the challenge of poverty can be effectively addressed by broadly adopting Islamic value based cooperative model (IVCM) where the members…
Abstract
Purpose
The purpose of this paper examines how the challenge of poverty can be effectively addressed by broadly adopting Islamic value based cooperative model (IVCM) where the members come together to overcome and eventually eradicate the curse of poverty for themselves and for their future generations.
Design/methodology/approach
The elimination of poverty by adopting IVCM and its impact on the cooperative members, as well as its effects on major macroeconomic variables, are examined on the theoretical ground by using the general equilibrium model of demand and supply-side variables.
Findings
The IVCM for the elimination of poverty reveals that the poverty gap can be eliminated through resource mobilization, as well as by creating new and additional income, wealth and resources through collaborative efforts. Through cooperative organizations based on Islamic values and principles, eventually, the entire poverty pool can enjoy income-earning opportunities through employment or self-employment, as well as promoting skills and education, leading to breaking the vicious cycle of poverty.
Originality/value
Cooperatives in general and Islamic cooperatives, in particular, are not new in the discourse about poverty. Indeed, there are cooperatives throughout the Muslim world and beyond and there are many studies related to cooperatives and their role in development. However, this might be the first theoretical contribution that models the role and impact of cooperatives in a macroeconomic framework, and thus, advances the scientific repertoire of knowledge and understanding about the related discourse by developing a rigorous mathematical model.
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Andrea Óhidy and Katalin R. Forray
This introduction from Andrea Óhidy and Katalin R. Forray provides a brief overview of the social and educational situation of Roma in the Western Balkan region and the structure…
Abstract
This introduction from Andrea Óhidy and Katalin R. Forray provides a brief overview of the social and educational situation of Roma in the Western Balkan region and the structure of this book. Like in the books Lifelong Learning and the Roma Minority in Central and Eastern Europe (2019) and Lifelong Learning and the Roma Minority in Western and Southern Europe (2020), Roma are here described as a ‘hidden minority’ (Cavioni, 2020, p. 68), because despite the great number and the century-long history of Roma people on the European continent, there is still only limited information and knowledge about them, both in public awareness and scientific research. Although most members of the Roma minority have been living for centuries in their European home countries, their situation is still different from the non-Roma populations: They often suffer from socio-economic disadvantages and hate-motivated harassment and discrimination (EU-FRA, 2020a). This is not only the case in the member-states of the European Union but also in the Western Balkan region. All across Europe, there are Roma groups, which are considered to be the most disadvantaged minority, regarding their health, employment and housing and also in education. To increase their situation, European Union member states have developed common strategies, which play a part in negotiations for an EU-membership status. The so-called Western Balkan states – Albania, Bosnia and Herzegovina, Kosovo, Montenegro, North Macedonia and Serbia – might join the European Union in the coming years. The social inclusion of the Roma minority and the protection of their minority rights in these countries were formulated as a precondition for their application for EU membership. Therefore, several goals, policies and measures were implemented there to break the ‘vicious circle of poverty and discrimination’ (EU-FRA, 2020b). Participation in education and lifelong learning have become central elements of these political measures for Roma Inclusion. This book examines the education situation of Roma across the so-called Western Balkan region.
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Xiaobo Mou and Fang Xu
The purpose of this study is to explore the factors impacting information poverty in western China and investigate to what extent these determinants contribute to information…
Abstract
Purpose
The purpose of this study is to explore the factors impacting information poverty in western China and investigate to what extent these determinants contribute to information poverty in these areas.
Design/methodology/approach
Structural equation modeling (SEM) technique was used to analyze 232 valid responses collected from a survey to examine the research model and hypotheses in this study.
Findings
The results indicate that information literacy, information supply and information and communication technologies (ICTs) positively and significantly affect information poverty, while social prejudice and information orientation had no significant effects on information poverty.
Practical implications
Public libraries, government departments and other institutions should pay attention to the significant impact of information literacy, information supply and ICTs on information poverty and formulate corresponding systems and policies to alleviate or reduce information poverty.
Originality/values
In the past, few studies have focused on information poverty in western China and most of the existing research on information poverty adopts qualitative research methods, such as interview, systematic literature review and so on, while quantitative research is rare. In addition, the focus of these research studies was on one or two aspects, and a few of them can systematically study the influencing factors of information poverty. Inspired by the theories of information literacy, social prejudice and information poverty, this study comprehensively used a questionnaire survey and SEM to investigate the influences of information literacy, social prejudice, information supply, information orientation and ICTs on information poverty.
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Sumana Bandyopadhyay, Chinmoyee Mallik and Utpal Roy
The Sundarbans is a unique ecosystem, the most expansive mangrove system in the world covering the Ganga–Brahmaputra–Meghna delta system and spread over 10,000 sq.km across India…
Abstract
The Sundarbans is a unique ecosystem, the most expansive mangrove system in the world covering the Ganga–Brahmaputra–Meghna delta system and spread over 10,000 sq.km across India and Bangladesh. The Indian Sundarbans have been witnessed to large-scale conversion of mangroves to settled agriculture and steady growth of population over the decades. With time, while population growth has taken place, there has been no significant change in the development scenario, as the agriculture and fishing dependent communities have remained trapped in the vicious cycle of poverty. Its deltaic location and its position in the path of cyclones, tidal surges and seasonal floods have made the people and landscape of Sundarbans more vulnerable than ever before. Cyclones affecting this region have grown both in frequency and intensity over the years and have caused devastation to the land, homes, lives and livelihoods. The problem of salinity has also affected the region relentlessly. Given this scenario, scenario of progressing vulnerabilities, livelihood losses have led to a gradual increase in out-migration of the adult male population. This disaster-led outmigration from Sundarban region as a whole has affected the social fabric of displaced communities to a great extent. This chapter makes an attempt to discuss results of sample surveys across six villages in three CD Blocks of Sagar, Gosaba and Kultali to trace the nature and dimension of the migration patterns of the region.
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Households are exposed to a wide array of risks, characterized by a known or unknown probability distribution of events. Disasters are one of these risks at the extreme end…
Abstract
Households are exposed to a wide array of risks, characterized by a known or unknown probability distribution of events. Disasters are one of these risks at the extreme end. Understanding the nature of these risks is critical to recommending appropriate mitigation measures. A household’s resilience in resisting the negative outcomes of these risky events is indicative of its level of vulnerability. Vulnerability has emerged as the most critical concept in disaster studies, with several attempts at defining, measuring, indexing and modeling it. The paper presents the concept and meanings of risk and vulnerability as they have evolved in different disciplines. Building on these basic concepts, the paper suggests that assets are the key to reducing risk and vulnerability. Households resist and cope with adverse consequences of disasters and other risks through the assets that they can mobilize in face of shocks. Asustainable strategy for disaster reduction must therefore focus on asset‐building. There could be different types of assets, and their selection and application for disaster risk management is necessarily a contextual exercise. The mix of asset‐building strategies could vary from one community to another, depending upon households’ asset profile. The paper addresses the dynamics of assets‐risk interaction, thus focusing on the role of assets in risk management.
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Ishfaq Nazir Khanday, Md. Tarique, Inayat Ullah Wani and Muzffar Hussain Dar
The primary objective of the paper is to examine the asymmetric Cointegration and asymmetric causality between financial development and poverty alleviation on annual data in…
Abstract
Purpose
The primary objective of the paper is to examine the asymmetric Cointegration and asymmetric causality between financial development and poverty alleviation on annual data in Indian context over the period from 1980 to 2019.
Design/methodology/approach
First nonlinearity test by Brooks et al. (1999) is applied to ascertain the nonlinear behavior of the variables used. Once the nonlinear behavior of variables is confirmed, asymmetric and nonlinear unit root tests by Kapetanios and Shin (2008) are applied to check for the order of integration of selected variables. Next, nonlinear autoregressive distributed lag model (NARDL) is employed to analyze the asymmetric Cointegration. Finally, Hatemi-j- asymmetric causality tests is applied to work out the direction of asymmetric causality.
Findings
The empirical findings document the existence of asymmetries in the short-run as well as long-run between poverty and financial development. The asymmetry reveals that negative financial development shocks leave a more profound impact on poverty alleviation than their positive equivalents. The findings of Wald's test also confirm the presence of asymmetric Cointegration. The asymmetric cumulative dynamic multipliers used to examine the behavior of asymmetries and adjustments with respect to time lend credence to the results calculated using NARDL estimator. This result exhibits the robustness of the model. Furthermore, the result emanating from recently introduced asymmetric causality test reveals a unidirectional asymmetric causality between negative shocks in financial development and poverty. The findings of the present study necessitate the need for investigating asymmetric and nonlinear effects in finance–poverty nexus, which existent literature has completely neglected, in order to have relevant policy conclusions.
Research limitations/implications
The study used “Per capita consumption expenditure” as a measure for poverty due to lack of continuous time series data on headcount ratio. In future, researchers can extend this study by incorporating headcount ratio as a measure of poverty in their respective works. There is further scope of research on this issue by finding out the impact of formal and informal sources of credit on poverty separately. A panel data study for developing countries over a period of time could further confirm/negate the findings of the present study.
Originality/value
To the best of the authors’ knowledge none of the studies in Indian context has scrutinized asymmetric and nonlinear impact of financial development on poverty. To dredge up asymmetric structures at work, the authors have used the highly celebrated NARDL estimator. To enrich the existent body of knowledge along the lines of asymmetric (nonlinear) linkages, the authors have also used recently introduced asymmetric causality test by Hatemi-j-(2012) to find out the direction asymmetric causality.