Comments and Reviews

Poverty reduction through redistribution efforts may be defined as the sum total of all activities that promote or undertake people’s wellbeing through giving and/or sharing of incomes, benefits, resources etc. In this case, redistribution of income/capital/wealth to reduce poverty in poor countries is a complex and dynamic process that involve multiple actors and institutions at different levels. Exogenous and endogenous institutions, activities and processes address issues of social wellbeing and social security through redistribution in poor countries. Exogenous activities include state or statutory programs mostly at macro-level (E.g. through tax), while endogenous/non-formal activities means the numerous day-to-day local/traditional activities of social welfare institutions and processes mediated/regulated by cultural and religious/spiritual values and norms conducted at micro-level and sometimes at meso-level. These Non-formal efforts are often institutionalized in the sense that they arise from culturally mandated obligations imposed on families, kin groups, neighbourhoods, community ties, etc. This fact indicates that there are multiple realities in poor countries due to these multiple factors. Nature and extent of redistribution in poor societies can only be understood if the contributions of non-state forms are recognized. While studying poor countries capacity for redistribution by Governments is not questionable, the need for more attention for the endogenous/non-formal practices should be recognized. These include religious organizations, philanthropic associations, kinship/friendship ties, community support networks etc. These forms of relationships enhance the people’s security and protect local interests as well as promote community solidarity. The form of redistribution, in this case, is not necessarily through financial redistribution or assistance but give non-material supports as well. For example, people share labour to engage in joint economic activities or to establish social and other communal activities. However, at this time, because international literature/theories on redistribution have focused largely on state and only the financial/material forms, mostly the attention lies with state provisions and information about non-state/non-formal actors is scanty. Therefore, concentrating only on formal redistribution process (and only financial income and rates of tax), would indicate only part of the phenomenon in a situation in poor countries context. Many poor countries do not only lack the capacity for redistribution, but they have also lack of proper understanding in the way how these non-formal organizations/ arrangements that promote redistribution operate. Hence, more research into the way these institutions operate at different levels needs to be done so as to properly incorporate them into the countries economic policy analyses. This kind of research needs to be holistic and continuous aiming to properly address promotion of sustainable and equitable redistribution considering both endogenous and exogenous livelihood/social security practices and the interaction between them, while seeking for their harmonious co-existence without replacing one by the other. Hence, qualitative and quantitative methods need to be employed. The non-formal system may not function effectively on its own and needs to be supplemented by other forms of provisions since it is a general fact that this forms of support are diminishing in the face of industrialization, globalization, population mobility, etc. Besides, in situations of widespread poverty the non-formal systems may be prevented to properly function. This is because if people are too poor to assist their needy relatives and friends, then the non-formal system may cease to be effective.

Posted by Eyob Ghezai on September 28, 2009 at 09:37 AM BRT #

Ideally what the author, Martin Ravallion, talks about is correct on the assumption that developing countries operate on an accountable and transparent manner. However, this is not the case. Accountability and transparency require sustainable institutional development both at micro and macro level. It is a synergetic effort of state, civil society and communities. Unless that is not taken into account strategy /capacity for redistribution is only eyewash. It is quite well known that developmental aid meant for the poor through various sectors in developing countries is siphoned to non-target areas or to say the least misappropriated. Capacity for redistribution is contingent on accountability, transparency and institutional networks. Asutosh Satpathy President Resource Development Centre 122, Katwaria Sarai Saheed Jit Singh Marg New delhi – 110016 (India) Tel: +91-11-26535108, +91-11-26525702, Fax: +91-11-26601460 E-mail: asutosh.satpathy@gmail.com Url: http://www.rdcindia.org

Posted by Asutosh Satpathy on October 08, 2009 at 06:06 AM BRT #

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Posted by Jordan retro 10 on June 30, 2010 at 12:04 AM BRT #