Contents
PART A: Global chronic poverty in 2004–05 1
Chapter 1 What is chronic poverty and why does it matter? 3
What is different about chronic poverty . . . 3
. . . and why does it matter? 3
A window of opportunity to put chronic poverty on the agenda 4
Defining chronic poverty 4
Poverty dynamics – becoming poor, staying poor, and escaping poverty 5
Disaggregating chronic and severe poverty 6
Multi-dimensional deprivation and low levels of assets 6
Who are the chronically poor? 7
Counting the chronically poor 8
Non-monetary indicators of chronic poverty 8
How many people are chronically poor? 9
Where do chronically poor people live? 9
Chronically poor places 12
Chronic poverty matters 12
Chapter 2 Who is chronically poor? 14
Discrimination reinforcing disadvantage 14
Minorities and indigenous people 15
Discrimination through oppressive labour relations 16
Displacement, powerlessness and chronic poverty 18
Disability and stigmatised illness 19
Women and girls in chronic poverty 21
Chronic poverty, age and the life-cycle 22
Multiple deprivation, discrimination and disadvantage 25
Chapter 3 Where do chronically poor people live? 26
Global dimensions of chronic poverty 26
Spatial poverty traps 26
Ecological characteristics of spatial poverty traps 31
Poor infrastructure 31
Weak institutions and organisations 32
Politics, rights and conflict in spatial poverty traps 33
Conclusion 34
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Chapter 4 Why are people chronically poor? 36
Staying poor: the maintainers of poverty 36
Economic growth, growth quality and inequality 36
Social exclusion and adverse incorporation 37
Geography and agro-ecology 39
Cultures of poverty 39
Capability deprivation 40
Weak, ‘failing’ and ‘failed’ states 41
Weak and failed international co-operation 41
Falling into poverty: the drivers of chronic poverty 42
Access to assets 42
The nature of shocks 42
Institutional context 43
Understanding chronic poverty and taking action 46
Conclusion 49
Chapter 5 What should be done about chronic poverty? 50
Security first 50
Prioritising livelihood security for chronically poor people 50
Tackling childhood poverty 52
Preventing and interrupting chronic poverty through health services 52
Opportunity is not enough: growth, inequality and redistribution 54
Empowerment: making rights real 55
The national agenda: reaching chronically poor people 56
Delivering basic services 56
Delivering social assistance 56
Using PRSs to prioritise the chronically poor 57
Putting chronic poverty on the international action agenda 58
Using the Millennium Development Goals to address chronic poverty 58
The coherence of MDGs and international policy 58
Financing chronic poverty reduction 58
Persistent poverty requires sustained assistance 60
Financing targeted transfers 60
Obligations on aid must be met 61
Chronic poverty – an agenda for action 61
PART B: Regional perspectives on the experience of chronic poverty 63
Chapter 6 Understanding chronic poverty in sub-Saharan Africa 65
Poverty trends in sub-Saharan Africa 65
How many people are chronically poor in sub-Saharan Africa? 67
Who are the chronically poor in sub-Saharan Africa? 67
Women-headed households and AIDS widowhood 68
People with low and declining access to income, land and other assets 69
Where are the chronically poor in sub-Saharan Africa? 69
Chronic poverty in remote rural sub-Saharan Africa 69
Urban chronic poverty in sub-Saharan Africa 70
Chapter 7 Understanding chronic poverty in South Asia 71
Poverty trends in South Asia 71
How many people are chronically poor in South Asia? 71
Who are the chronically poor in South Asia? 72
The working poor 72
Excluded minorities 72
Poor women, older women, disabled women and widows 73
The hungry, weak and ill 74
Where are the chronically poor in South Asia? 74
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viii . The Chronic Poverty Report 2004–05
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Chapter 8 Understanding chronic poverty in Latin America and the Caribbean 79
Poverty trends in Latin America and the Caribbean 79
How many people are chronically poor in Latin America and the Caribbean? 80
Who are the chronically poor in Latin America and the Caribbean? 80
Those with less education 80
Race and ethnicity 80
The working poor 81
Women and women-headed households 81
Where are the chronically poor in Latin America and the Caribbean 81
Rural chronic poverty 81
Chronic poverty in megacities and smaller towns 82
Chapter 9 Understanding chronic poverty in transitional countries 83
Poverty trends in transitional countries 83
How many people are chronically poor in transitional countries? 84
Who are the chronically poor in transitional countries? 84
Ethnic minorities 84
Women 84
Single older people 85
Children 85
Where are the chronically poor in transitional countries? 85
Chapter 10 Understanding chronic poverty in China 87
Poverty trends in China 87
How many people are chronically poor in China? 87
Who are the chronically poor in China? 87
Where are the chronically poor in China? 88
PART C: Measuring global trends on chronic poverty: statistical appendix 89
Chapter 11 Measuring chronic poverty
How many chronically poor people are there in the world? 91
APPENDIX A Glossary of terms 131
APPENDIX B References 134
APPENDIX C CPRC working papers and Chronic Poverty Report 2004–05 background papers 139
APPENDIX D The Chronic Poverty Report 2006–07 140