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FINANCE & DEVELOPMENT is published quarterly in English, Arabic, Chinese, French, Russian, and Spanish by the International Monetary Fund.

Opinions expressed in articles and other materials are those of the authors; they do not necessarily reflect IMF policy.

Ian S. McDonald

EDITOR-IN-CHIEF

Asimina Caminis

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Finance & Development

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© 2000 by the International Monetary Fund. All rights reserved. Requests for permission to reproduce articles should he sent to the Editor-in-Chief. Finance & Development will normally give permission promptly, and without asking a fee, when the intended reproduction is for noncommercial purposes.

from the editor

LIKE some malignant disease, poverty saps the vitality of countries around the world, affects the health of large elements of their populations, and casts a cloud over their prospects for economic growth. Also, like a disease, poverty is caused by economic, social, and political processes that can be identified and tackled, given the means and the resources. Some recent research studies improve our ability to identify the root causes of poverty and the measures we might take to fight them. At the same time, there is a much greater awareness today of the impact of poverty on economic growth and a more cohesive international effort to tackle the scourge of poverty through improved education, infrastructure development, and more focused investment. This issue of Finance & Development takes a special look at the topic of “How We Can Help the Poor” and examines a number of fresh approaches to poverty and the coordinated international effort that is addressing the problem.

With our increased understanding of the causes of poverty and how to fight it, Nora Lustig and Nicholas Stern point out, real progress is now possible. Dani Rodrik of Harvard University addresses the active continuing debate on whether governments should pursue growth first or focus on poverty reduction. He concludes that this “hollow debate” only diverts attention from what should be the real question of what works and in what circumstances. Masood Ahmed and Hugh Bredenkamp discuss the new, broader approach being taken by international organizations, including the IMF. Other articles discuss the powerlessness and voicelessness of the poor and the mechanisms for giving them a voice in policy, ways to combat rural poverty, debt relief, and the distinct problems facing Africa.

New capital framework proposals developed by the Basel Committee on Banking Supervision will have implications for both developed and developing countries. In this issue’s Financial Focus, Cem Karacadag and Michael W. Taylor review the significant issues that these proposals raise for countries and bank supervisors.

Ian S. McDonald

Editor-in-Chief

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FINANCE & DEVELOPMENT

A QUARTERLY PUBLICATION OF THE INTERNATIONAL MONETARY FUND

December 2000

Volume 37

Number 4

Front Matter Page

• HOW WE CAN HELP THE POOR

• Introduction

• Broadening the Agenda for Poverty Reduction: Opportunity, Empowerment, Security

  • Nora Lustig and Nicholas Stern

• Growth Versus Poverty Reduction: A Hollow Debate

  • Dani Rodrik

• Supporting Poverty Reduction in Low-Income Developing Countries: The International Community’s Response

  • Masood Ahmed and Hugh Bredenkamp

• Progress Toward the International Development Goals

  • Sanjeev Gupta, Brian Hammond, Richard Leete, and Eric Swanson

• Poverty Is Powerlessness and Voicelessness

  • Deepa Narayan

• How the Poor Can Have a Voice in Government Policy

  • Caroline M. Robb

• Rural Poverty in Developing Countries

  • Mahmood Hasan Khan

• Raising Growth and Investment in Sub-Saharan Africa: What Can Be Done?

  • Ernesto Hernández-Catá

• Capacity Building in Africa: The Role of International Financial Institutions

  • Saleh M. Nsouli

• Food Production or Food Aid? An African Challenge

  • Willy H. Verheye

• Debt Relief for Poor Countries

  • Robert Powell

• How Oil, Gas, and Mining Projects Can Contribute to Development

  • Kathryn McPhail

• FINANCIAL FOCUS

• Toward a New Global Banking Standard: The Basel Committee’s Proposals

  • Cem Karacadag and Michael W. Taylor

• OTHER TOPICS

• The Role of Short-Term Debt in Recent Crises

  • Uri Dadush, Dipak Dasgupta, and Dilip Ratha

• BOOK REVIEWS

• Power and Prosperity: Outgrowing Communist and Capitalist Dictatorships

  • by Mancur Olson—William Easterly

• New Markets, New Opportunities? Economic and Social Mobility in a Changing World

  • by Nancy Birdsall and Carol Graham (editors)—Bruno S. Sergi

• Central Banking in Theory and Practice: A Small State Perspective

  • by Courtney N. Blackman—Simon Cueva and Samuel Itam

• L’économie palestinienne: De la dépendance à l’autonomie

  • by Jacques Bendelac—Oussama Kanaan

• BULLETIN

• INDEX 2000