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This report is an important step in the efforts of the Asian Development Bank (ADB) to support its developing member countries (DMCs) more effectively in achieving prosperity and freedom from poverty. Greater scrutiny of the results of ADB's development efforts began in 2004 with a review of the Poverty Reduction Strategy (PRS) and the adoption of a reform agenda anchored in managing for development results (MfDR). A periodic assessment of ADB's progress in improving its development effectiveness and its implementation of the PRS is a crucial part of these efforts. It involves examining systematically the results of ADB's own contributions to the development outcomes of its DMCs, the quality and effectiveness of its operations, and the efficiency with which it deploys its resources to meet its objectives.

ABSTRACTPolicy reforms often pit the poor against the poor by triggering a fall in poverty for some but an increase in poverty for others. Aggregated national measures gloss over these fine patterns and pronounce 'a reduction in poverty'– is such aggregation across poor individuals ethically permissible? Addressing this type of aggregation is a hard issue. This paper has made an attempt in that direction by outlining an axiomatically grounded aggregate measure of such gains or losses, duly giving more importance to the losses to a poor compared to the gains of another poor.

European countries vary in the extent to which they succeed in reducing poverty using social transfers. However, we do not have good ways of understanding how these different outcomes are achieved. It is therefore very difficult to learn lessons from abroad. This paper uses micro data from the EU Statistics on Income and Living Condition (SILC), and attempts to decompose reductions in child poverty rates and gaps into the contribution made by children, old age, social exclusion, housing and work-related benefits. The analysis is undertaken for all families with children under 16, lone parent families, couple families, and then for families with varying levels of work intensity. Transfers make a substantial contribution to reducing child poverty rates and closing poverty gaps. The contribution varies between countries in the European Union. There is no single model, no most successful exemplar. Some countries do better for their children in lone parent households and others do better for their children in couple households. The analysis has enabled some opening up of the how question, though what is going on is still something of a mystery in some countries. It is probable that analysis at the national level with greater knowledge of national benefits systems is necessary to further open the 'black box'.

Intro -- Editors' Note -- Contents -- 1 Inequality in Middle-Income Countries: Analysis and Suggestions -- 1.1 Main Issues -- 1.1.1 Issue 1: Most of the World's Poor Come from Middle-Income Countries -- 1.1.2 Issue 2: Inequality Is Increasing in Many Middle-Income Countries -- 1.1.3 Issue 3: Inequality May Hinder Development -- 1.2 Why Inequality Persists in Middle-Income Countries -- 1.3 Addressing Inequality in Middle-Income Countries: Policy, Practice and Case Studies -- 1.4 The Need for a Diversity of Policies to Reduce Inequality -- 1.4.1 Addressing Regional Inequalities -- 1.4.2 Addressing Inequalities in Health and Education -- 1.4.3 Changes in Fiscal Policy -- 1.4.4 Improving Social Protection -- 1.5 Summary -- References -- 2 Inclusive Growth and Poverty Reduction of China: Progress and Main Policies -- 2.1 Inclusive Growth in China: Experience and Key Features -- 2.1.1 Reform of the Economic System Promotes Rapid Economic Growth and Drives Large-Scale Poverty Reduction Across the Country (1978-2001) -- 2.1.2 Policy Adjustment Promotes Overall Planning of Urban and Rural Areas and Drives Balanced Development (2002-2010) -- 2.1.3 Building an Institutional System Promotes Inclusive Growth and Boosts Comprehensive, Coordinated and Sustainable Economic and Social Development (Since 2011) -- 2.2 Main Policies Promoting Inclusive Growth in China -- 2.2.1 Adjusting and Optimizing the Industrial Structure, and Emphatically Promoting the Transformation of the Economic Development Model -- 2.2.2 Improving the Quality and Ability of Workers, and Creating More Employment and Development Opportunities -- 2.3 Employment and Social Security Policies for Migrant Population -- 2.4 Labor Transfer and Training -- 2.4.1 Adjusting Income Distribution to Narrow the Income Gap -- 2.5 Policy Concerning Individual Income Tax.

The book emphasizes the importance of studying the local context, and then considering the macroeconomic factors which may be operating upon the economy of a particular country. Five extended case studies, in the Gambia, Ecuador, Mexico, Pakistan, and the UK are examined with reference to further aspects of sustainability and impact assessment.

The Japan Fund for Poverty Reduction (JFPR) was established in May 2000 and provides direct grant assistance to the poorest and most vulnerable groups in developing member countries (DMCs) of the Asian Development Bank (ADB) while fostering long-term social and economic development. The grants target poverty reduction initiatives with the direct participation of nongovernment organizations, community groups, and civil society. In 2009, the Government of Japan and ADB expanded the scope of JFPR to include provision of support to DMCs through capacity development, policy and advisory, research and development, and project preparatory technical assistance.

The Japan Fund for Poverty Reduction (JFPR) was established in May 2000 and provides direct grant assistance to the poorest and most vulnerable groups in developing member countries (DMCs) of the Asian Development Bank (ADB) while fostering long-term social and economic development. The grants target poverty reduction initiatives with the direct participation of nongovernment organizations, community groups, and civil society. In 2009, the Government of Japan and ADB expanded the scope of JFPR to include provision of support to DMCs through capacity development, policy and advisory, research and development, and project preparatory technical assistance.