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Urban poverty in the context of structural adjustment : recent evidence and policy responses (Английский)

The purpose of this paper is threefold. First, it reviews the available evidence on urban poverty in developing countries in the context of structural adjustment and macroeconomic policy reform during the past decade. Second, it describes the relationship, under conditions of adjustment, between macroeconomic policy changes and urban microlevel outcomes at both household and intrahousehold levels. Third, it assesses the ability of compensatory measures to alleviate particular problems that urban populations in specific countries have experienced during periods of adjustment. The main conclusion of this review is that there is a clear association between macroeconomic distortions and the process of impoverishment taking place in urban areas today. It is legitimate to pay attention to short-term compensatory interventions. However, these cannot be sustained unless they shift their focus away from short-term objectives and seek solutions to the longer-term structural problems associated with poverty. The only way to accomplish this objective is to improve the human capital of the urban poor and to increase the productivity of their labor.

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