The countries of Eastern Europe and Central Asia have made significant progress in reducing poverty in the past five years. Much of this poverty reduction derives from the growth rebound in the CIS countries. But poverty and vulnerability still remain a significant problem. This report documents this substantial reduction in poverty achieved over the period since 1998, and discusses why poverty has been more responsive to growth in some countries than in others. It explores the main channel--the labor market--through which resurgent growth has contributed to poverty reduction. Finally, it discusses future prospects for the reduction of both poverty and overall economic vulnerability, and what role public policy can play.
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