Country selectivity and extreme poverty

The author discusses appropriate indicators for these concepts when the goal of aid is broad-based development, and point out that other goals will generally require distinct indicators. In the case of ending extreme poverty, however, an assessment of domestic resource availability leads us away from conventional poverty indicators as selectivity criteria, despite their indispensable role in monitoring progress. The author argues that the need for extreme-poverty assistance is a function of real income per capita -- the same as for development assistance; and that the appropriate indicators of effectiveness also correspond to those for development assistance. These conclusions are strengthened by the multi-dimensional nature of extreme poverty. Finally, the author examines alternative selectivity criteria that will loom large in debates on extreme poverty strategy, with an eye to understanding and explaining the differences. (Author abstract, modified)