Two decades ago, 93% of the world’s poor lived in countries officially classified as Low Income (LICs). Now, 72% of the world’s poor live in Middle Income Countries (MICs). The dramatic shift has been brought about by fast growth in a number of countries with large populations. On present...

This is an overview of poverty and well-being in the first decade of post-apartheid South Africa. It is an introduction to a volume that brings together some of the most prominent academic research done on this topic for the 10-year review process in South Africa. This overview highlights three...

How does concern for consumption relative to others (”relativity”) affect the progressivity of the optimal income tax structure? In this paper we revisit this literature and present a more detailed analysis of the solution to the non-linear income tax problem with consumption interdependence...

In this note we approach the question of relative poverty from a different angle. Fixing the poverty line, we ask: What is the extent of poverty relative to the resources available in the society to eradicate it? We argue that the same level of poverty is “worse” if the resources available...

Crises are likely to be new normal for developing and transition economies. In designing programs to protect the poor against crises, governments face two uncertainties— uncertainty of crisis type and uncertainty of crisis timing. In the face of these uncertainties, I propose three lines of...

This paper analyses the impact of aid, and its optimal allocation, when conditionality is ineffective. It is assumed that the recipient government will implement its own preferences no matter what. In this set up, aid can still affect the behavior of a recipient, not through conditionality but...

This compendium of entries on the economics of Africa provides thematic and country perspectives by more than 100 leading economic analysts of Africa. The contributors include: the best of young African researchers based in Africa; renowned academics from the top universities in Africa, Europe and...