Table Of ContentPathways Out of Poverty
Private Firms and Economic Mobility in Developing Countries
Pathways Out of Poverty
Private Firms and Economic Mobility in
Developing Countries
Edited by
Gary S. Fields and Guy Pfeffermann
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We wish to express ourgratitude to ourcolleagues,without whose generous support
this book would not have seen the light ofday.
Cary S. Fields and Guy Pfiffermann
Contents
List ofContributors IX
Preface: PeterWoicke XV
Foreword: Nicholas Stern XVll
PART I. THE ROLE OFTHE PRIVATE SECTOR:STUDIESAND EVIDENCE
1. Reducing Poverty:The Overall Framework 3
GUY PFEFFERMANNAND GARY S.FIELDS
2. Escapingfrom Poverty: Household IncomeDynamics in
Indonesia,SouthAfrica,Spain,andVenezuela 13
GARY S. FIELDS,PAUL L.ClCHELLO,SAMUEL FREIJE,MARTA MENENDEZ,
AND DAVID NEWHOUSE
3. Long-term Economic Mobilityand the Private Sectorin
DevelopingCountries: NewEvidence 35
GARY S. FIELDSANDWALTER S.BAGG
4. Informal Self-Employment:PovertyTrap orDecentAlternative? 65
WILLIAM F. MALONEY
PART II. THE PRIVATE SECTORATWORK:CASES FROMAROUNDTHEWORLD
5. Generating Upward Mobility:The Case ofKorea and
Private Sector Development 85
SE-IL PARK
6. The Central Role ofEntrepreneurs inTransition Economies 105
JOHN McMILLANAND CHRISTOPHERWOODRUFF
7. Opportunities offthe Farm as aSpringboard Out ofRural Poverty:
Five Decades ofDevelopment in an IndianVillage 123
PETER LANJOUW AND NICHOLAS STERN
8. The Problem ofAfrican EntrepreneurialDevelopment 155
TYLER BIGGSAND MANJU SHAH
viii Contents
PART m. THEBUSINESSENVIRONMENT
9. The Firms Speak:What theWorldBusinessEnvironmentSurveyTells Us
about Constraintson PrivateSectorDevelopment 193
GEETA BATRA,DANIEL KAUFMANN,ANDANDREW H.W.STONE
10. Obstacles FacingSmallerBusiness in DevelopingCountries 215
BEATRICEWEDER
PART IV. PUBLIC POLICYAND PUBLICATTITUDES
11. BringingSMEs into Global Markets 229
KRIS HALLBERGANDYASUO KONISHI
12. The Role ofGovernmentinEnhancingOpportunityfor the Poor:
Economic Mobility,PublicAttitudes,and Public Policy 247
CAROLGRAHAM
Index 283
Contributors
Walter S. Bagggraduated from Cornell University with honors in 2002 withaB.S.
in Industrial and Labor Relations. He is now teaching English in Korea and learning
about long-term economic mobility first-hand.
Geeta Batra isseniorprivatesectordevelopmentspecialistin the Foreign Investment
Advisory Service ofthe World Bank Private Sector Advisory Services Group. Her
main areas ofwork include research, technical assistance,and policy analysis on proj
ects related to private sector skills upgrading, competitiveness,and assessments ofthe
businessenvironmentand investmentclimate in developingcountries.ShehasaPh.D.
in economicsfrom PennsylvaniaState University,where herresearchfocused on inter
national trade, development,and econometrics.
TylerBiggscreatedand managedtheRegional ProgramforEnterpriseDevelopment,
alarge firm-level research and technicalassistance programin theAfrica Region ofthe
World Bank. He has held senior positions at the Rockefeller and Ford Foundations,
the Harvard Institute for International Development at Harvard University, and the
World Bank. He has taught economics at the University ofCalifornia, Berkeley, and
Harvard Universityand has been avisiting professorat universities in Kenya, Nigeria,
and Pakistan.He hasaPh.D.ineconomicsfrom the UniversityofCalifornia,Berkeley.
Dr. Biggs is currently retired from theWorld Bank and is an independent consultant
living in McLean,Virginia.
Paul L. Cichello is an assistant professor in the Economics and Human Resources
Department at Xavier University. His research interests include labor market dynam
ics,educational investment,and their impacton household well-being,primarilyinan
African context. He holds a Ph.D. in economics from Cornell University and aB.A.
from Boston College.
Gary S. Fields is professor in the Department ofLabor Economics and chair ofthe
DepartmentofInternationaland ComparativeLaboratCornellUniversity.Hisresearch
interests lie in the areas oflabor markets and income distribution in comparative per
spectiveandlaboreconomicsformanagers.Hislatestbook,Distributionand Development: