Tag Archives: assets

A Case Study about Pro-Poor Growth: Concepts and Measurement

Abstract: This paper looks into the interrelation between economic growth, inequality, and poverty. Using the notion of pro-poor growth, this study examines to what extent the poor benefit from economic growth. First, various approaches to defining and measuring pro-poor growth are scrutinized using a variety of criteria. It is argued that the satisfaction of a monotonicity axiom is a key criterion for measuring propoor growth. The monotonicity axiom sets out a condition that the proportional reduction in poverty is a monotonically increasing function of the pro-poor growth measure. This paper proposes a pro-poor growth measure that satisfies the monotonicity criterion.

Introduction: The most important goal for the developmental effort has become poverty reduction, which can be achieved by economic growth and/or by the distribution of income. Issues related to the benefits of growth accrued to the poor have also been a priority of development policy in the 1990s. An emerging consensus is that growth alone is a rather blunt tool for poverty reduction. In addition to the emphasis on poverty reduction, policies of redistribution of income and assets have become increasingly important. A policy agenda that addresses both distributional concerns and poverty reduction could lead to the enhancement of both economic growth and equity. Indeed, the relation among growth, inequality and poverty is complex and interdependent one. Keep reading…