Financial Crises and Poverty in Emerging Market Economies”, Working Paper

This study examines the impact of the principal financial crises in emerging markets in recent years on the incidence of poverty in the countries in question. The growth impact is first identified by comparing average per capita growth in the two years prior to the crisis to that in the crisis year and the following year. The poverty impact is then measured by applying the elasticity of poverty with respect to growth. Alternative estimates consider results of surveys in the relevant periods, where available. The central estimate is that some 40 to 60 million people were placed in poverty by the financial crise