The combination of relatively high American barriers to trade in textiles and apparel and the importance of the sector to the Pakistani economy make increased market access a potentially powerful tool of U.S. policy. Unfortunately, recent proposals to extend duty-free market access for Pakistani...

After a decade of rapid growth in average incomes, many countries have reached middle-income status. At the same time, however, poverty has not fallen so dramatically; as a result, most of the world's poor now live in middle-income countries (MICs). In fact, up to a billion poor people — or a...

The poor can and do save, but often use formal or informal instruments that have high risk, high cost, and limited functionality. This could lead to undersaving compared to a world without market or behavioral frictions. Undersaving can have important welfare consequences: variable consumption,...

I review the literature on the effects of inequality on growth and development in the developing world. Two stylized facts emerge from empirical studies: inequality is more likely to harm growth in countries at low levels of income (below about $3200 per capita in 2000 dollars); and it is at...

Current policy discussion focuses primarily on the power of fiscal policy to reduce inequality. Yet, comparable fiscal incidence analysis for 28 low and middle income countries reveals that, although fiscal systems are always equalizing, that is not always true for poverty. In Ethiopia,...

This paper makes new estimates of global poverty and inequality in 2012 using both ‘old', 2005 and ‘new', 2011 purchasing power parity (PPP) price data in order to assess systematically what difference PPP data makes to the estimates. The methodology for the 2011 PPP data is thought to be...