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By Jeffrey R. Alwang, Bradford F. Mills, Nelson Taruvinga, World Bank

ISBN-10: 0821350331

ISBN-13: 9780821350331

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Sample text

Several explanations emerge for the observed increase in poverty during the 1990s. These include (a) inadequate investments in physical and human assets and (b) lower rates of return to existing assets. Poverty is closely related to the quantity and quality of household assets, including past investments in human capital and ownership of physical assets. In rural areas, poverty varies according to land use,3 with commercial farms having the lowest indexes of poverty and communal and resettlement farming areas having the highest.

This result is related to the fact that the ICES spanned two growing seasons. For the 1995 portion of the ICES, December 1994 rainfall, which was below normal, is relevant. For the 1996 portion, December 1995 rainfall, which was above average for almost the entire country, is relevant. Because the survey spanned two growing seasons, the 1994–95 drought and its subsequent impact appear modest. The impact shown here probably understates the true impact of weatherrelated losses on poverty. 3 percentage points, as a result of the drought.

The reweighting captures the change in frequency of sector of employment but explicitly Poverty in Zimbabwe-rev3/13 3/14/02 8:56 AM Page 24 24 • Why Has Poverty Increased in Zimbabwe? assumes that the distribution of well-being within each sector is held at its 1995 level. The reweighted 1995 density is presented in figure 7a. Surprisingly, the adjusted density is virtually identical to the unadjusted density, meaning that the change in the sectoral distribution of urban employment explains only a very small proportion of the overall observed leftward shift in well-being.

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Why has poverty increased in Zimbabwe? by Jeffrey R. Alwang, Bradford F. Mills, Nelson Taruvinga, World Bank


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