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Chronic Poverty Report 
2008-2009 
Escaping poverty traps 
Offers solutions to five 
chronic poverty traps
Why is tackling chronic 
poverty important? 
Poor people are 
heterogeneous – poor and 
poorest for policy 
Increasing incidence of 
chronic poverty: more than 
440 million people 
It demands a focus on multi-dimensional 
Giacomo Pirozzi/Panos deprivation
Why tackle chronic 
poverty now? 
Long term effects of poverty 
traps - intergenerational 
Climate change 
Demographic window of 
opportunity 
Dermot Tatlow/Panos Fairness and justice
What are the five chronic 
poverty traps? 
Social 
discrimination 
Insecurity 
and 
poor health 
Spatial 
disadvantage 
Limited 
citizenship 
Poor work 
opportunities
Chronic poverty traps 
1. Insecurity and poor health – 
chronically poor people live in insecure 
environments, have few assets or 
entitlements, and limited capacity to 
cope with shocks and stresses 
2. Limited citizenship – chronically poor 
people have no meaningful political 
voice. Their basic needs and rights go 
unrecognised by their societies and 
governments 
3. Spatial disadvantage – chronically 
poor people live in areas (both rural 
and urban) characterised by 
remoteness, difficult types of natural 
resource base, political exclusion, weak 
economic integration 
Sven Torfin/Panos
Chronic poverty traps (cont.) 
4. Social discrimination – chronically 
poor people experience social relations 
(based on class and caste systems, 
gender, religious and ethnic identity, 
age and other factors) that trap them in 
exploitative relationships or deny them 
access to public and private goods and 
services. 
5. Poor work opportunities – where 
there is limited economic growth, or 
where growth is concentrated in 
enclaves, work opportunities are very 
limited and people can be exploited. 
Such work permits day-to-day survival 
but does not permit asset 
accumulation and children’s education. Paul Smith/Panos
What are the solutions?
What are the policy and 
political challenges? 
Country specific policies and 
actions 
Need to get the politics right 
Vital role for social movements 
How to mobilise pro-poor elites 
and middle classes? 
Introducing social protection 
policies can be part of 
engineering pro-poor political 
constituencies 
Ami Vitale/Panos
Addressing insecurity 
through social protection 
Social protection, and particularly social assistance, 
has a crucial role to play in reducing chronic poverty 
• Can protect poor and chronically poor 
people from shocks, and allow them to 
reduce their extreme vulnerability. 
• Can help them conserve and accumulate 
assets, promoting their livelihoods, and 
protect the human capital status (health, 
nutrition and education) of their children. 
• Can transform their socioeconomic 
relationships and help construct a social 
compact to further improve their longer-term 
livelihood prospects. 
Sean Sutton/MAG/Panos 
• May also play a role in stimulating pro-poorest growth, through a range 
of pathways.
More details 
• www.manchester.ac.uk/bwpi 
• www.chronicpoverty.org

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David Hulme: Chronic Poverty Report 2008-09

  • 1. Chronic Poverty Report 2008-2009 Escaping poverty traps Offers solutions to five chronic poverty traps
  • 2. Why is tackling chronic poverty important? Poor people are heterogeneous – poor and poorest for policy Increasing incidence of chronic poverty: more than 440 million people It demands a focus on multi-dimensional Giacomo Pirozzi/Panos deprivation
  • 3. Why tackle chronic poverty now? Long term effects of poverty traps - intergenerational Climate change Demographic window of opportunity Dermot Tatlow/Panos Fairness and justice
  • 4. What are the five chronic poverty traps? Social discrimination Insecurity and poor health Spatial disadvantage Limited citizenship Poor work opportunities
  • 5. Chronic poverty traps 1. Insecurity and poor health – chronically poor people live in insecure environments, have few assets or entitlements, and limited capacity to cope with shocks and stresses 2. Limited citizenship – chronically poor people have no meaningful political voice. Their basic needs and rights go unrecognised by their societies and governments 3. Spatial disadvantage – chronically poor people live in areas (both rural and urban) characterised by remoteness, difficult types of natural resource base, political exclusion, weak economic integration Sven Torfin/Panos
  • 6. Chronic poverty traps (cont.) 4. Social discrimination – chronically poor people experience social relations (based on class and caste systems, gender, religious and ethnic identity, age and other factors) that trap them in exploitative relationships or deny them access to public and private goods and services. 5. Poor work opportunities – where there is limited economic growth, or where growth is concentrated in enclaves, work opportunities are very limited and people can be exploited. Such work permits day-to-day survival but does not permit asset accumulation and children’s education. Paul Smith/Panos
  • 7. What are the solutions?
  • 8.
  • 9. What are the policy and political challenges? Country specific policies and actions Need to get the politics right Vital role for social movements How to mobilise pro-poor elites and middle classes? Introducing social protection policies can be part of engineering pro-poor political constituencies Ami Vitale/Panos
  • 10. Addressing insecurity through social protection Social protection, and particularly social assistance, has a crucial role to play in reducing chronic poverty • Can protect poor and chronically poor people from shocks, and allow them to reduce their extreme vulnerability. • Can help them conserve and accumulate assets, promoting their livelihoods, and protect the human capital status (health, nutrition and education) of their children. • Can transform their socioeconomic relationships and help construct a social compact to further improve their longer-term livelihood prospects. Sean Sutton/MAG/Panos • May also play a role in stimulating pro-poorest growth, through a range of pathways.
  • 11. More details • www.manchester.ac.uk/bwpi • www.chronicpoverty.org