Pro-Poor Macroeconomics

JORGE SABA ARBACHE Senior Economist, Office of the Chief Economist, Africa Region, World Bank, USACHIARA BONASSI Research Fellow, Italian Institute for Foreign Trade (ICE), ItalySUNIL KUMAR BUNDOO Senior Lecturer, University of Mauritius, MauritiusSHEETAL K. CHAND Visiting Researcher, Department of Economics, University of Oslo, NorwayC. P. CHANDRASEKHAR Professor, Center for Economic Studies and Planning, Jawaharlal Nehru University, IndiaRADHA CHAURUSHIYA Economic Policy Analyst, Center for American Progress, USAWEE CHONG HUI Lecturer in Economics, Universiti Teknologi MARA (UiTM), MalaysiaGIORGIA GIOVANNETTI Professor of Economics, University of Florence, ItalyJAYATI GHOSH Professor and Chair, Center for Economic Studies and Planning, Jawaharlal Nehru University, IndiaRAGHBENDRA JHA Rajiv Gandhi Professor of South Asian Economics, Australia South Asia Research Centre, AustraliaSTEPHAN KLASEN Professor of Development Economics, University of Göttingen, GermanyJOMO K. S. Assistant Secretary-General for Economic Development, United Nations, USAMOLLY POLLACK Consultant, ChileSANJAY G. REDDY Assistant Professor of Economics, Columbia University, USAGIORGIO RICCHIUTI Researcher, University of Florence, ItalyANDRÉS SOLIMANO Regional Advisor, UN-ECLAC, ChileCHRISTIAN E. WELLER Senior Economist, Center for American Progress, USA

• List of Figures List of Tables Notes on the Contributors Foreword Acknowledgements PART 1: OVERVIEW AND POVERTY IMPACT OF MAIN MACROECONOMIC POLICIES Potential and Limitations of Pro-Poor Macroeconomics: An Overview; G.A.Cornia Pro-Poor Fiscal Policy in the Globalized Economy; R.Jha Can Monetary Approaches to Stabilization be Pro-Poor?; S.K.Chand Exchange Rate Regimes for Development and Poverty Alleviation; G.A.Cornia Portfolio Flows, Macroeconomic Policy and Global Poverty; C.E.Weller & R.Chaurushiya The Effects of FDI on Growth and Inequality; C.Bonassi, G.Giovannetti & G.Ricchiuti Safety Nets for the Poor: A Missing International Dimension?; S.G.Reddy PART 2: COUNTRY CASE STUDIES Financial and Trade Reforms and Impact on Poverty and Income Inequality: The Case of Mauritius; S.K.Bundoo Macroeconomic Policy, Growth, Redistribution and Poverty Reduction: The Case of Malaysia; W.C.Hui and J.K.S. The Search for Macroeconomic Stability and Growth under Persistent Inequality: The Case of Chile; A.Solimano & M.Pollack Macroeconomic Policy, Inequality and Poverty Reduction in Fast-Growing India and China; C.P.Chandrasekhar & J.Ghosh Heterodox Macroeconomic Policies, Inequality and Poverty in Uzbekistan; G.A.Cornia Macroeconomic Policy and Pro-Poor Growth in a Dualistic Economy: The Case of Bolivia; S.Klasen Has Macroeconomic Policy Been Pro-Poor in Brazil?; J.S.Arbache Index

'Macroeconomic management is of great importance for the poor, who tends to pay more in times of crisis and gain less in times of booms. This volume rightly avoids providing a recipe for all countries, stressing instead the importance of country context in choosing macro policies.' - François Bourguignon, Senior Vice President for Development Economics and Chief Economist, World Bank'At long last, a solid professional analysis of the interrelationships between macroeconomic policies and poverty, not only in theory but also in practice. UNRISD and Cornia merit the policy community's thanks and congratulations. One must pray that finance ministries and the IMF will now learn from it.' - Gerry Helleiner, Professor Emeritus in Economics, University of Toronto, Canada, and Chairman, International Lawyers and Economists Against Poverty (ILEAP)'Doing macroeconomics to help the poor is just about 180 degrees out of sync with current policy practice. This book will help turn the policy world in the right direction by describing how pro-poor macro policies should be designed. It merits careful study everywhere.' - Lance Taylor, Arnhold Professor of International Cooperation and Development, New School for Social Research, USA'This wide-ranging volume explores both the potential as well as the limitations of current thinking around 'pro-poor macroeconomics'. It also underscores the crucial importance of grounding development, employment and povertyreduction policies in sustainable macroeconomic policy.' - José Antonio Ocampo, Under-Secretary-General for Economic and Social Affairs, United Nations'The articles are firmly based in empirical evidence, which is refreshing...' - CAPSA Flash