The author presents the view that informal economies arise when governments impose excessive taxes and regulations that they are unable to enforce. The author studies the determinants and effects of the informal sector using an endogenous growth model whose production technology depends...

The author examines the extent to which micro-credit reduces poverty and vulnerability through a case study of BRAC, one of the largest providers of micro-credit to the poor in Bangladesh. Household consumption data collected from 1,072 households is used to show that the largest effect on...

Because of politics, some economic policy reforms are adopted and pursued in the developing world, and others are delayed, and resisted. Economic reform is inherently a political act: It changes the distribution of benefits in society, benefiting some social groups, and hurting others. Social...

The author reviews the recent economic research on emerging issues for infrastructure policies affecting poor people in developing countries. His main purpose is to identify some of the challenges the international community, and donors in particular, are likely to have to address over the next...

Micro-finance supports mainly informal activities that often have low market demand. It may be thus hypothesized that the aggregate poverty impact of micro-finance in an economy with low economic growth is modest or nonexistent. The observed borrower-level poverty impact is then a result of...

The microfinance industry in Bangladesh currently provides access to credit to around 13 million poor households. The author describes the factors that led to the scaling-up of micro-credit in Bangladesh, the impact this has hadon the poor, future challenges in Bangladesh, and possible lessons...

Argentina was a pioneer of infrastructure reform in the early 1990s. The social dimension of infrastructure services was typically overlooked in the reform process. However, social sensitivities often resurfaced in the years that followed, leading to a series of ad hoc social policy measures...

Despite the surge in private capital flows in the 1990s, lending by the multilateral development banks continues to be a significant source of external finance for low-income and lower-middle-income countries. And for middle-income countries, which receive the lion's share of private flows,...

In 1970, Indonesia was a poor agricultural state, with a per capita GNP (Gross National Product) of only US$80 -- the lowest among Asian economies and substantially lower than such African countries as Kenya and Ghana. Agriculture -- with about 50 percent of GDP (Gross Domestic Product) and 66...

Developing countries became full-fledged participants in multilateral trade negotiations only with the Uruguay Round, during which they succeeded in bringing agriculture into the GATT/WTO, reaching agreement on phasing out the Multi-Fibre Arrangement within ten years, and beginning work on...