A new paper from three authors from the University of California, San Diego investigates what has driven the reduction in poverty in China, India, Indonesia, Mexico and South Africa since 1990 (these countries account for 70% of the decline in global poverty over that period). Here are a couple of noteworthy findings:
- No one factor considered by the authors explains most of the poverty reduction observed
- Urbanisation contributed to poverty declines in countries such as Mexico, Indonesia and South Africa
- Transfers (things such as grants or unemployment benefits) did not play an important role in any of the countries considered
- Employment is an important contributor to reduction in poverty, particularly in Mexico and South Africa, while self-employment contributed more in countries such as China, India and Indonesia.
