Computable General Equilibrium Models, Adjustment and the Poor in Africa

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Periodical article

Title:	Computable General Equilibrium Models, Adjustment and the Poor in Africa
Authors:	Maio, Lorenzo de Stewart, Frances Hoeven, Rolph van der
Year:	1999
Periodical:	World Development
Volume:	27
Issue:	3
Period:	March
Pages:	453-470
Language:	English
Geographic terms:	Africa Tanzania Madagascar
Subjects:	econometrics economic policy poverty Peoples of Africa (Ethnic Groups) Economics and Trade
External link:	https://doi.org/10.1016/S0305-750X(98)00143-0
Abstract:	David E. Sahn, Paul A. Dorosh and Stephen D. Younger of the Cornell Nutrition Programme have conducted a major research programme on the impact of adjustment policies on the poor in Africa, making use of computable general equilibrium (CGE) models. Their work was summarized in 'World Development', vol. 24, no. 4 (April 1996), p. 719-747. They concluded that adjustment policies have not hurt and may have helped the poor. This paper shows that these conclusions are largely derived from their CGE models and not by looking at what actually happened to the poor. Moreover, in Madagascar and Tanzania, where the Cornell models suggest the poor benefited from adjustment, there is evidence of worsening social and economic indicators. The present authors conclude that the Cornell results are more a reflection of the assumptions made in developing the CGE models than of reality. The paper is followed by a reply by Sahn, Dorosh and Younger (p. 471-475). Bibliogr., notes, ref., sum.