Cameroon is engaged in the Poverty Reduction Strategy Paper (PRSP) process, which emphasizes increased focus on poverty reduction in the design and implementation of growth and adjustment strategies. The Integrated Macroeconomic Model for Poverty Analysis (IMMPA) recently developed at the World Bank provides an analytical structure for supporting the PRSP process and quantifying poverty reduction strategies. Drawing on that framework, the authors provide a detailed financial social accounting matrix (SAM) for the Cameroonian economy to serve as input into the construction of an IMMPA model for Cameroon. An analysis of this financial SAM shows that the dramatic fall in investment during the crisis period persisted in the post-devaluation growth period in the late 1990s. Continued low investment has implications for ongoing high unemployment rates and poor welfare indicators. The authors illustrate this with simulations based on fixed-price multiplier analysis that highlight the potential growth and welfare benefits of increased public investment, following hypothetical debt relief and reduction of external debt servicing within the framework of the heavily indebted poor countries initiative.

Agénor, Izquierdo, and Fofack present a dynamic, quantitative macroeconomic framework designed for analyzing the impact of adjustment policies and exogenous shocks on poverty and income distribution. They emphasize the role of labor market segmentation, urban informal activities, the impact of the composition of public expenditure on supply and demand, and credit market imperfections. Numerical simulations for a prototype low-income country highlight the importance of accounting for the various channels through which poverty alleviation programs and debt relief may ultimately affect the poor. This paper--a product of the Poverty Reduction and Economic Management Division, World Bank Institute--is part of a larger effort in the institute to understand the impact of adjustment policies on the poor.

Agenor, Izquierdo, and Fofack present a dynamic, quantitative macroeconomic framework designed for analyzing the impact of adjustment policies and exogenous shocks on poverty and income distribution. They emphasize the role of labor market segmentation, urban informal activities, the impact of the composition of public expenditure on supply and demand, and credit market imperfections. Numerical simulations for a prototype low-income country highlight the importance of accounting for the various channels through which poverty alleviation programs and debt relief may ultimately affect the poor.This paper - a product of the Poverty Reduction and Economic Management Division, World Bank Institute - is part of a larger effort in the institute to understand the impact of adjustment policies on the poor.

This training guide introduces development practitioners, policy analysts, and students to social accounting matrices (SAMs) and their use in policy analysis. There are already a number of books that explain the System of National Accounts and SAM multipliers-some of these are recommended at the end of this training guide. However, most books tend to be quite technical and move quickly from an introduction to more complex applications. By contrast, this guidebook uses a series of hands-on exercises to gradually introduce SAMs and multiplier analysis. It therefore complements more theoretical SAM and multiplier literature and provides a first step for development practitioners and students wishing to understand the strengths and limitations of these economic tools. It is also useful for policy analysts and researchers embarking on more complex SAM-based methodologies. One such methodology is computable general equilibrium (CGE) modeling, for which IFPRI has also developed a series of introductory exercises and a standard modeling framework.To download the exercises, go to www.ifpri.org/publication/social-accounting-matrices-and-multiplier-analysis

Agenor describes a specialized and less data-intensive version of the Integrated Macroeconomic Model for Poverty Analysis (IMMPA) developed by Agenor, Izquierdo, and Fofack (2003) and Agenor, Fernandes, Haddad, and van der Mensbrugghe (2002). The mini-IMMPA focuses only on the real side but it offers a more detailed treatment of the labor market (by accounting, for instance, for public education, employment subsidies, and job security provisions) and the tax structure. Simulations of a cut in payroll taxes on unskilled labor show the importance of accounting for the fiscal implications of labor market reforms when assessing their effects on unemployment and poverty.This paper - a product of the Poverty Reduction and Economic Management Division, World Bank Institute - is part of a larger effort in the institute to analyze the interactions between micro and macro factors in the design of poverty reduction strategies.

The author describes a specialized and less data-intensive version of the Integrated Macroeconomic Model for Poverty Analysis (IMMPA) developed by Agenor, Izquierdo, and Fofack (2003) and Agenor, Fernandes, Haddad, and van der Mensbrugghe (2002). The mini-IMMPA focuses only on the "real" side but it offers a more detailed treatment of the labor market (by accounting, for instance, for public education, employment subsidies, and job security provisions) and the tax structure. Simulations of a cut in payroll taxes on unskilled labor show the importance of accounting for the fiscal implications of labor market reforms when assessing their effects on unemployment and poverty.