Poverty and regional development in Eastern Europe and Central Asia

Regional economic development is an interest of policymakers throughout the Europe and Central Asia (ECA) region. One of its principal aims is to reduce poverty in lagging regions by stimulating local economic growth. However, problems exist with this approach. First, it may miss the target. Although geographical concentrations of poverty exist, poor people also live in regions that are-on average-rich. Second, the sources of the problem may be misdiagnosed. Poverty is not only related to where people are, but to who people are. In ECA, poverty is associated with low levels of education and pe