Annual World Bank Conference on Development Economics, Part by World Bank

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Manufactured in the United States of America First printing February 1996 Second printing May 1996 ISSN 1020-4407 ISBN 0-8213-3280-5 Annual World Bank Conference on Development Economics 1995 is the first in a new series that replaces Proceedings of the World Bank Annual Conference on Development Economics. The material in this publication is copyrighted. Requests for permission to reproduce portions of it should be sent to the Office of the Publisher at the address in the copyright notice above.

Advances include the development of better ways to measure and identify poverty and closer attention to the problems of particular groups, such as women, who face formidable cultural and economic barriers to advancement. The interrelationships between women's economic and social autonomy and fertility, poverty, and environmental degradation are also better understood. Bardhan argues that these advances in knowledge call for specific policies aimed at poverty. In addition, growth-promoting policies, particularly those that favor labor-intensive industries and allocate resources more efficiently, may substantially reduce mass poverty.

A. Level of output per worker in 1960 and 1973. b. Average for 1960-73 and 1973-87. c. The unforecastable component of output growth. d. Changes in real exchange rates. Source: Authors' calculations based on data from Summers and Heston 1991; IMF; and World Bank. Page 16 unforecastable inflation is positively related to growth (though the level of inflation is very detrimental to growth). Next, we simulated the effect of macroeconomic stabilization by plugging in the realized values of the variables for Argentina in 1991-94.

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