This publication is a part of a series on the findings of work in progress of the programme to encourage exchange of ideas on pro-poor economic policies. One objective of the series is to circulate the findings asquickly as possible to policy makers and others, even if the studies are not fully finalised. The studies carry the names of the authors and should be cited accordingly. The findings, interpretations, and conclusions expressed in these studies are entirely those of the authors, and do not necessarily represent the views of the UNDP, who headed this study.