Global Poverty: National Accounts Based versus Survey Based Estimates

This article examines the dollar‐a‐day poverty estimates produced by the World Bank. It highlights the lack of consistency between average consumption and income in household surveys and national accounts data. After examining the likely sources of divergence between the two series, the author proposes a new method of estimation of poverty, based on calibrating the survey means by conditioning on national accounts aggregates. The new poverty estimates, which are consistent with national accounts data, are contrasted with the World Bank estimates. The implications of the findings for the debate on the relationship between poverty and economic growth are also briefly discussed.     

Environment,Technology and Employment: Towards a New Definition of Sustainable Development

This article analyses the interrelations between environment, employment and technology in the process of development. A new concept of sustainable development is introduced which makes a distinction between environmental problems associated with high income levels and technological progress and those related to underdevelopment and technological stagnation. The latter category accounts for a major proportion of environmental problems facing poor agrarian economies which are undergoing a process of forced environmental degradation. It is argued that in these types of economies there is a complementarity between economic development and employment generation and the preservation of the environment. It is further shown that in such economies, where the ultimate causes of environmental degradation may be far removed from the immediate environmental issues, conventional environmental policies may be counterproductive.