Pathways Out of Poverty: Private Firms and Economic Mobility in Developing Countries PDF
Preview Pathways Out of Poverty: Private Firms and Economic Mobility in Developing Countries
Pathways Out of Poverty Private Firms and Economic Mobility in Developing Countries Pathways Out of Poverty Private Firms and Economic Mobility in Developing Countries Edited by Gary S. Fields and Guy Pfeffermann lllt... " fjlFC KLUWERACADEMIC PUBLISHERS INTERNATIONALFINANCECORPORATION Boston I Dordrecht I London WOOd&mkG<oop DistributorsforNorth,C~ntnl.ndSouthAmerica: KJuwerAcademicPublish... 101 Ph~ip Drive AssinippiPm NorweU.M.....,hu<etts02061 USA Telephone(781)871-6600 f»: (781)871-6528 E-M.il<kluwer@whp,con!> Dimibu,onfor>IIo,hercoun«i.., KJuwerAcademicPubli<hersGroup Pos'OfficeBox322 3300AHDord"",h,.THENETHERLANDS Tel~phon~31 786576000 *F»:3171\6576474 E-M.il<[email protected]> El.ctronicService><lmp:l/www.whp.nl> Forp.apcrt>>ekversiononly: CultOm~rsintheU.S. WorldH.nkPublicatio", P.O.Box%0.H~rndon.VA 20172--0960,USA Telephone 1-800-645-7247 1-703-661-l501 F»: 1-703-661-1501 ~-""'[email protected] www.worldb>.nk.orgipublic>tion. CU>tomersoutside,h.U.S. WorldH.nkpublications.re:IV>~.b1~.roundtheworldfron!•n'lW<l,kofdi.tributon. Pl•...,rekr'0,helistofdistribu,on.V>il.abl.at:http://publications.worldmnk.orglboobeUers orcontac,WorldHankPublic>tionsat,he.dd.....bove LibraryofCoogre..Cataloging_io_Publiution Pat:hw.ysoutofpovctty:priva'.ftrmsandeCOnCJlniemobilityindevelopingeountri..I ed;,edbyGuyS.Fields.ndGuypfeffermann. pocm. Includesbibliographicalrefetellc..andindex. ISBN 1-4020-7412_3(allt.p.aper}-ISBN0-8213-5404_3(pbk:allt.p.apcr) \.Developingcoun«i...-Economicconditions.2.BU>;n...enterpri>n-Developing eountri..,3,Occup.tiorulmobiliry--De\'tlopingcountries,I.Fi.lds.G.ryS. II,Pfeffer"",nn,GuyPi.rre. HCS9.7.P3572003 339.4'6'091724-<1c21 2003040133 C 2003Thelntern.tionalB>nItforReconstructionandDevelopm.ntITheWorldB.nk Allrighl$teS<'twd. Thefindings.interpretation" .ndconclu.ionsexpressedh.rein.rethoseofthe.uthor(.).nd donotnec.....i1yreflect,hevi"""oftheBoardofExecutiveDirectorsoftheWorldHankor the8"'~rnmentstheyttpre>etlt. TheWorldB.nkdoesnorgwnntee'heaccurllcyof,he<!auincludedinthi,worJr. Th.boundari..,colors.denominations..ndotherinfomutionmownonany""'pin,hiswork donotimplyanyjudgm.ntontheputoflb.WorldBankcone.rningthelegal,utusof.ny t~rritoryorIbe.ndonem.n,oracc~punceof,uchboundari... Photoonfron'caverC 2002Rich.rdLord. RighUand Pe,nti..ioDI The"""erialin,hisworkiscopyrigh'ed.Copyingand/ortnmrnittingportio",or:ollof,hi> ~wilbou,pcrmi><ionmayhe•violationof.pplic>blcl>w.ThcWotldBankencourages <fu<emjnarionofitswonandwillnornullygran'p<rmis!ionprompdy. Forpermi><ion'0photocopyor..print.nyp.rtofthiswon,pl•...,<end• rrqu..twi,h comple,,,infor"",riontoIh~C<rpyrightCle.ranceC.nter.Inc..222ROICWOOdDrive.D.nve.... MA01923.USA,telephonc97&-7SQ..8400.(»:978_7SQ..4470.www.copyrighl.com. Allo,h..queri..onrights.ndIiccn>C$.includingsubsi<furyrights,shouldheoddreued'0 thcOff",cofohcPubli,h"r.World8ank,1818HS'reetNW,Wl$hington,DC20433,USA, f»:202_522_2422,...ma~pubrights@w<>rklb.nk,org, Printtd""orid-Jrrepapn We wish to express ourgratitude to ourcolleagues,without whose generous support this book would not have seen the light ofday. Cary S. Fields and Guy Pfiffermann Contents List ofContributors IX Preface: PeterWoicke XV Foreword: Nicholas Stern XVll PART I. THE ROLE OFTHE PRIVATE SECTOR:STUDIESAND EVIDENCE 1. Reducing Poverty:The Overall Framework 3 GUY PFEFFERMANNAND GARY S.FIELDS 2. Escapingfrom Poverty: Household IncomeDynamics in Indonesia,SouthAfrica,Spain,andVenezuela 13 GARY S. FIELDS,PAUL L.ClCHELLO,SAMUEL FREIJE,MARTA MENENDEZ, AND DAVID NEWHOUSE 3. Long-term Economic Mobilityand the Private Sectorin DevelopingCountries: NewEvidence 35 GARY S. FIELDSANDWALTER S.BAGG 4. Informal Self-Employment:PovertyTrap orDecentAlternative? 65 WILLIAM F. MALONEY PART II. THE PRIVATE SECTORATWORK:CASES FROMAROUNDTHEWORLD 5. Generating Upward Mobility:The Case ofKorea and Private Sector Development 85 SE-IL PARK 6. The Central Role ofEntrepreneurs inTransition Economies 105 JOHN McMILLANAND CHRISTOPHERWOODRUFF 7. Opportunities offthe Farm as aSpringboard Out ofRural Poverty: Five Decades ofDevelopment in an IndianVillage 123 PETER LANJOUW AND NICHOLAS STERN 8. The Problem ofAfrican EntrepreneurialDevelopment 155 TYLER BIGGSAND MANJU SHAH viii Contents PART m. THEBUSINESSENVIRONMENT 9. The Firms Speak:What theWorldBusinessEnvironmentSurveyTells Us about Constraintson PrivateSectorDevelopment 193 GEETA BATRA,DANIEL KAUFMANN,ANDANDREW H.W.STONE 10. Obstacles FacingSmallerBusiness in DevelopingCountries 215 BEATRICEWEDER PART IV. PUBLIC POLICYAND PUBLICATTITUDES 11. BringingSMEs into Global Markets 229 KRIS HALLBERGANDYASUO KONISHI 12. The Role ofGovernmentinEnhancingOpportunityfor the Poor: Economic Mobility,PublicAttitudes,and Public Policy 247 CAROLGRAHAM Index 283 Contributors Walter S. Bagggraduated from Cornell University with honors in 2002 withaB.S. in Industrial and Labor Relations. He is now teaching English in Korea and learning about long-term economic mobility first-hand. Geeta Batra isseniorprivatesectordevelopmentspecialistin the Foreign Investment Advisory Service ofthe World Bank Private Sector Advisory Services Group. Her main areas ofwork include research, technical assistance,and policy analysis on proj ects related to private sector skills upgrading, competitiveness,and assessments ofthe businessenvironmentand investmentclimate in developingcountries.ShehasaPh.D. in economicsfrom PennsylvaniaState University,where herresearchfocused on inter national trade, development,and econometrics. TylerBiggscreatedand managedtheRegional ProgramforEnterpriseDevelopment, alarge firm-level research and technicalassistance programin theAfrica Region ofthe World Bank. He has held senior positions at the Rockefeller and Ford Foundations, the Harvard Institute for International Development at Harvard University, and the World Bank. He has taught economics at the University ofCalifornia, Berkeley, and Harvard Universityand has been avisiting professorat universities in Kenya, Nigeria, and Pakistan.He hasaPh.D.ineconomicsfrom the UniversityofCalifornia,Berkeley. Dr. Biggs is currently retired from theWorld Bank and is an independent consultant living in McLean,Virginia. Paul L. Cichello is an assistant professor in the Economics and Human Resources Department at Xavier University. His research interests include labor market dynam ics,educational investment,and their impacton household well-being,primarilyinan African context. He holds a Ph.D. in economics from Cornell University and aB.A. from Boston College. Gary S. Fields is professor in the Department ofLabor Economics and chair ofthe DepartmentofInternationaland ComparativeLaboratCornellUniversity.Hisresearch interests lie in the areas oflabor markets and income distribution in comparative per spectiveandlaboreconomicsformanagers.Hislatestbook,Distributionand Development:
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