Financial crises and the attainment of the SDGs

An adjusted multidimensional poverty approach

Dados Bibliográficos

ID12950456
AutoresΑνδρέας Αντωνιάδης (0000-0002-6240-7389, University of Sussex, autor correspondente), Indra Widiarto (0009-0007-4342-7521, Loughborough University), Alexander S Antonarakis (0000-0003-3194-1682, University of Sussex)
Ano2019
Volume15
Fascículo6
Páginas1683-1698
Data de publicação2019-12-28
Peer ReviewedSim
Open AccessSim
TipoARTICLE
PeriódicoSustainability Science (JOURNAL)
Identificadores do periódicoISSN: 1862-4057 • E-ISSN: 1862-4065
EditoraSpringer Science+Business Media (PUBLISHER • DE)
DOI10.1007/s11625-019-00771-z
OpenAlexW2997941683
IdiomaEN
Citações recebidas15
Referências citadas50

This paper analyses the impact of financial crises on the Sustainable Development Goal of eradicating poverty. To do so, we develop an adjusted Multidimensional Poverty Framework (MPF) that includes 15 indicators that span across key poverty aspects related to income, basic needs, health, education and the environment. We then use an econometric model that allows us to examine the impact of financial crises on these indicators in 150 countries over the period 1980–2015. Our analysis produces new estimates on the impact of financial crises on poverty’s multiple social, economic and environmental aspects and equally important captures dynamic linkages between these aspects. Thus, we offer a better understanding of the potential impact of current debt dynamics on Multidimensional Poverty and demonstrate the need to move beyond the boundaries of SDG1, if we are to meet the target of eradicating poverty. Our results indicate that the current financial distress experienced by many low-income countries may reverse the progress that has been made hitherto in reducing poverty. We find that financial crises are associated with an approximately 10% increase of extreme poor in low-income countries. The impact is even stronger in some other poverty aspects. For instance, crises are associated with an average decrease of government spending in education by 17.72% in low-income countries. The dynamic linkages between most of the Multidimensional Poverty indicators, warn of a negative domino effect on a number of SDGs related to poverty, if there is a financial crisis shock. To pre-empt such a domino effect, the specific SDG target 17.4 on attaining long-term debt sustainability through coordinated policies plays a key role and requires urgent attention by the international community

Basic needs · Development economics · Economic growth · Economics · Financial crisis · Macroeconomics · Political science · Poverty · Public economics · Sustainable development · Human Rights and Development · Income, Poverty, and Inequality · International Development and Aid