Figure 4.1Three decades against povertyIncomeGNP per person (1980 dollars)GNP per person'(7l980dollars, 1950 1960 1980 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000Industrialized countries 3,841 5,197 9,684 1950 IndustrializedcountriesMiddle-income countries 625 802 1,521 1980Low-income countries 164 174 2451950 Middl-i.corne Average annual growth, 1950-80 (percent)Average annual groth (percent) 1950-60 1960-80 T950 Ind-&i.1i.ed Middi-o- 419801980 sountr~~~~~~-mies -- utriesIndustrialized countries 3.1 3.2 3.1Middle-income countries 2.5 3.3 o Low-ioco,e 21950 owmoe,onriesc..Low-income countries 0.6 1.7 1 countriesa. Excludes all centrally planned economiesHealth1980Life expectancy at birth (years)Life expectanrat birth (years) Developed I lIncrease, cou.trieVs ii ii ii1950 1960 1978 1950- 78 15Industrializedcountries 66.0 69.4 73.5 7.5 1978Middle-incomeMiddle-incomecountries'countries 51.9 54.0 61.0 9.1 1950 TYTY ITYTTULow-incomecountries 35.2 41.9 49.9 14.7 1978 _Low-incomeCentrally plannedcountrieseconomies' 62.3 67.1 69.9 7.6 1950 11 11 JIl1j =so million peoplea. Includes Bulgaria, Czechoslovakia, German DR, Hungary,Poland, Romania, USSR 1978b. Includes Albania, Cuba, North Korea, Mongoliac. Excludes China 0 10 20 30 40 50 60 70 80EducationAdults in all developing countries (percent)'Adult literacy rate IperceniO1950 1960 1975 1950IndustrializedLiterate fll9countries 95 97 99 Illiterate9 =so million peopleMiddle-incomecountries 48 54 71 1975Low-income Literate 9ff99$9:9f Icountries 22 29 38IlliterateCentrally plannedeconomies 97 98 99a. Excludes centrally planned economies 0 20 40 60 80 100Population Total population (billions) = 100 million peopleAverage annual percentage growth 198 . . . .. Developed countries1950-60 1960-70 1970-80 1980Industrialized countries 1.2 1.0 0.7 2000 vMiddle-income countries 2.4 2.5 2.5 1980 . .jj; .... Middle-income countries'Low-income countries 1.9 2.5 2.3 01. ., . . . . .Centrally planned 2000 ll'' I Ieconomies 1.9 1.7 1.3 1980 *. . .. . i.. iiii i Low-income countries'o11198 f999999999 9991a. Includes Bulgaria, Czechoslovakia, German DR, Hungary, 2000 ENU EK MN#EE EK E ...Poland, Romania, USSR 2000 | j 1 111ii ifii ii TIb. Includes Albania, Cuba, North Korea, Mongoliac. Includes China 0 1 2 3 434
expectancy was less than 50 years, income countries the incomes of them has widened, even in pro-400 million in countries where the the poor have grown more slowly portional terms (though in the caseaverage annual death rate of chil- than the average. The proportion of the middle-income countriesdren aged one to four was more of people in absolute poverty in only slightly). But the gaps in eduthan20 per 1,000-20 times that developing countries as a group cation and health have narrowedin the industrialized countries. is estimated to have fallen during -by 15 percentage points in adultNor is there any serious dis- the past two decades (though literacy and five years in lifeagreementaboutwhothepoorare. probably not in Sub-Saharan expectancy.Half of the people in absolute Africa in the 1970s-see Chapterpoverty live in South Asia, mainly 2). But because population has Poverty and growthin India and Bangladesh. A sixth grown, the number of people inlive in East and Southeast Asia, absolute poverty has increased. Most poor people live in poormainly in Indonesia. Another sixth There has also been progress countries. Whether absolute povarein Sub-Saharan Africa. The in education. The proportion of erty is measured by low income,rest-about 100 million people- adults in developing countries who low life expectancy or illiteracy,are divided among Latin America, are literate is estimated to have there is a strong correlation betweenNorth Africa and the Middle East. increased over the past three the extent of poverty in a countryWith thie partial exception of Latin decades from about 30 percent to and its GNP per person (see Fig-America (where about 40 percent more than 50 percent; the propor- ure 4.2 overleaf). This suggestsare in the towns) the poor are tion of children of primary-school that the solution to poverty is ecoprimaiilyrural dwellers, over- age enrolled in school rose from 47 nomic growth. There is a great dealwhelm:ingly dependent on agri- percent in 1960 to 64 percent in of truth in this proposition, butculture-the majority of them 1977. These advances have been it needs to be carefully qualified.landless (or nearly landless) labor- shared by most countries and re- First, comparing countries, theers. Some minority groups-for gions, including those that initially relation beween the extent of theirexample, the Indians in Latin were furthest behind, such as absolute poverty and the level ofAmerica and the scheduled castes Sub-Saharan Africa. But the qual- GNP per person is (as the disperinIndia-are also overrepresented ity of schooling remains low in sion of points in Figure 4.2 shows)among the poor. And there is a many countries; and because of far from perfect. Because oftendency for absolute poverty in population growth, there has been differences in income distribution,particular places, families and an increase of about 100 million the proportion of the populationsocial groups to persist from gen- in the absolute number of illiterate below the poverty line in 1975 waseration to generation. adults since 1950. more than twice as high in Colom-The most striking advances bia as in South Korea, even thoughThree decades of poverty against poverty have been in the average incomes of the tworeduction health. Average life expectancy inmiddle-income developing councountrieswere close. Sri Lanka isa low-income country, yet the lifeIn aggregate, however, consider- tries has risen nine years over the expectancy of its people approachesable progress has been made in past three decades. In low-income that of the industrialized countries.reducing the incidence of poverty countries, the increase has been Some middle-income countries,over the past 30 years (see Figure even greater-15 years. But even such as Morocco and the Ivory4.1). Progress would have been though infant mortality rates Coast, have literacy rates belowgreater still but for the dramatic (which are a major determinant of those of the average low-incomegrowth of population, which has life expectancy) have fallen sub- country.doubled the number of people in stantially in developing countries Second, looking at changes overthe developing world since 1950 since 1950, there now are so many time within particular countries,and has begun to slow down- more children born that the abso- the connection between growththough as yet slightly-only since lute number of infant deaths and poverty reduction over periodsthe mid-1960s. probably has not declined. of a decade or two appears inexact.Since 1950 income per person Another way of viewing the There is general agreement thatin the developing world has doubled. progress of the past three decades growth, in the very long term,But in low-income countries, the is to compare the developing with eliminates most absolute poverty;average increase has been half the industrialized countries. The but also that some people maythat, and in both low- and middle- gap in income per person between (at least temporarily) be impover-35
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literacy and life expectancy); andF
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to establish the necessary admin-Fi
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Poverty Figure 7.5 South Asia: life
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and North Africa cover the spec- gr
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The high level of urbanization well
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Chaipter 8 Summary and conclusionsI
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is high, frequently well above that
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Stat.istical appendix to Part ITabl
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Table SA.6 Capital flows and debt o
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Montgomery survey administra- publi
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AnnexWorldDevelopmentIndicators
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Table 13. Balance of Payments and D
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IntroductionThe World Development I
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GNP per capitaAverage indexAverageo
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Average annual growth rate (percent
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Distribution of gross domestic prod
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Average annual growth rate (percent
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Distribution of gross domestic prod
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Distribution of value added (percen
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EnergyEnergyconsumptionAverage annu
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Merchandise tradeAverage annual gro
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Percentage share of merchandise exp
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Percentage share of merchandise imp
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Destination of merchandise exports
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Destination of manufactured exports
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Current accountbalance before Inter
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Public and publicly guaranteed medi
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External public debtoutstanding and
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Amount1981a 1982a 1983a 1984a 1985a
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Average annualHypotheticalgrowth of
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PercentageCrude Crude Percentage Pe
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Percentage ofpopulation ofworking a
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Percentage of urban population Numb
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Life Infant Childexpectancy mortali
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PercentageDaily calorie supplyPopul
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Number Numberenrolled in enrolled i
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Percentage share of household incom
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Average index Tables 4 and 5. Growt
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28 (minerals, crude fertilizers and
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continues to grow after replacement
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posttax income and conceptually tic
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