This report provides the most comprehensive and rigorous analysis of Iraqi income and expenditure in several decades. The report makes extensive use of the Iraq Household Socio-Economic Survey, the first nationwide income and expenditure survey since 1988. IHSES data is complemented income and expenditure data from a wide range of other measures of living standards, allowing us to analyze living standards in a holistic way. The analysis presented here was performed with two main goals first, to inform the Government s Poverty Reduction Strategy; and second, to serve as a baseline for future assessments of changes in living standards and the identification of critical issues for deeper examination. Iraqi living standards have two unusual characteristics. First, they have fallen over the past generation. Second, they feature surprisingly little inequality. These characteristics are both rooted in Iraq s recent history of authoritarian government, war, military occupation, insurgency, and civil strife leading to infrastructure destruction and population displacement. There have been few opportunities for individuals to prosper from professional or entrepreneurial activities. Decades of neglected investment have resulted in deterioration of social services and economic infrastructure. Consequently, individuals have lacked capabilities to prosper and an investment climate conducive to prosperity. School enrollment and life expectancy have declined. Extremely low returns to education reflect the combination of poor educational quality and lack of employment opportunities. In terms of economic infrastructure, access to reliable electricity and water, and even access to paved roads are low, are further reflections of decades of neglect. While the upper end of the distribution has been pulled down by a lack of opportunities, the lower end has been supported by direct government provision of food. The Public Distribution System (PDS) provides 85 percent of food needs. While PDS has been useful as a safety net for the poor and the vulnerable, the system is expensive, inefficient, and fiscally risky. Indeed, PDS food rations account for a far greater share of public spending than does education or health. Going forward, Iraq faces two main challenges. First, although Iraq does not have to develop from scratch, it faces a formidable challenge in re-development. Second, a shift by the Government is required from direct provision of basic subsistence toward investment in human capacities. The Government can provide an enabling environment through investments in economic infrastructure and services to business and citizens, thus allowing the population to make productive use of education and their own labor. Both challenges are now being taken up by the Poverty Reduction Strategy, which articulates a detailed set of required actions and outlines priorities for government spending.

Former Brookings Senior Fellow Susan E. Rice spearheads an investigation of the connections between poverty and fragile states and the implications for American security. Coedited by Rice and former Brookings colleagues Corinne Graff and Carlos Pascual, Confronting Poverty is a timely reminder that alleviating global poverty and shoring up weak states are not only humanitarian and economic imperatives, but key components of a more balanced and sustainable U.S. national security strategy. Rice elucidates the relationship between poverty, state weakness, and transnational security threats, and Graff and Pascual offer policy recommendations. The book's overarching conclusions highlight the need to invest in poverty alleviation and capacity building in weak states in order to break the vicious cycle of poverty, fragility, and transnational threats. Confronting Poverty grows out of a project on global poverty and U.S. national security that Rice directed at Brookings from 2002 through January 2009, before she became U.S. permanent representative to the United Nations.

Confronting Poverty is a text that introduces students to the dynamics of poverty and economic hardship in the U.S. It address four fundamental question: 1) What is the nature, prevalence, and characteristics of poverty; 2) Why does poverty exist; 3) What are the effects and consequences of poverty upon individuals and the wider society; and 4) How can poverty be reduced and alleviated? In clear and engaging writing, Confronting Poverty provides students with the most up-to-date research and thinking regarding American poverty and inequality. It includes the many insights of the author’s 30 years of writing and teaching on the subject. It is designed to be used as either a primary or secondary text in a wide range of courses across academic disciplines. In addition, Confronting Poverty makes use of an innovative companion website developed by the author. The focal point of the website is an interactive tool, called the Poverty Risk Calculator, that has been constructed with hundreds of thousands of case records extracted from the Panel Study of Income Dynamics (PSID) data set. The website also includes a discussion guide on various aspects of poverty along with many other interactive links and activities (short documentary films, video interviews and lectures, interactive data sources, research briefs, magazine and newspaper articles). Each chapter includes an on-line activity from the companion website for students to engage in, resulting in a dynamic learning experience.

This report revisits the theoretical concepts of inequalities including their measurements, analyzes their global trends, presents the policy makers' perception of inequalities in 15 countries and identifies various policy options in combating this major development challenge of our time. The report makes the basic point that in spite of the impressive progress humanity has made on many fronts over the decades, it still remains deeply divided. In that context, it is intended to help development actors, citizens, and policy makers contribute to global dialogues and initiate conversations in their own countries about the drivers and extent of inequalities, their impact, and the ways in which they can be curbed.

Inequality has drastically increased in many countries around the globe over the past three decades. The widening gap between the very rich and everyone else is often portrayed as an unexpected outcome or as the tradeoff we must accept to achieve economic growth. In this book, three International Monetary Fund economists show that this increase in inequality has in fact been a political choice—and explain what policies we should choose instead to achieve a more inclusive economy. Jonathan D. Ostry, Prakash Loungani, and Andrew Berg demonstrate that the extent of inequality depends on the policies governments choose—such as whether to let capital move unhindered across national boundaries, how much austerity to impose, and how much to deregulate markets. While these policies do often confer growth benefits, they have also been responsible for much of the increase in inequality. The book also shows that inequality leads to weaker economic performance and proposes alternative policies capable of delivering more inclusive growth. In addition to improving access to health care and quality education, they call for redistribution from the rich to the poor and present evidence showing that redistribution does not hurt growth. Accessible to scholars across disciplines as well as to students and policy makers, Confronting Inequality is a rigorous and empirically rich book that is crucial for a time when many fear a new Gilded Age.