Yet the role of minimum wage fi xing in
reducing poverty in developing countries
has been questioned. Sharp criticisms and
warnings have emerged within the framework
of the Poverty Reduction Strategy
Papers (PRSP), which coordinate all development
policy. It has been argued that
government spending should be focused
on poor people, including workers in the
informal economy, and that in the context
of developing countries, a minimum wage
does not protect the poorest workers in the
informal economy, but covers only the formal
and better-off workers