Pro-poor Growth: A Primer
World Bank, Development Research Group, Poverty Team, 2004 - Crecimiento economico - 28 pages
These days it seems that almost everyone in the development community is talking about "pro-poor growth." What exactly is it, and how can we measure it? Is ordinary economic growth always "pro-poor growth" or is that some special kind of growth? And if it is something special, what makes it happen? Ravallion first reviews alternative approaches to defining and measuring "pro-poor growth." He then analyzes evidence on whether growth is pro-poor, what factors make it more pro-poor (including the role played by both initial inequality and changing inequality), and whether the factors that make the distribution of the gains from growth pro-poor come at a cost to growth. The author identifies some priorities for future research. This paper--a product of the Poverty Team, Development Research Group--is part of a larger effort in the group to contribute to knowledge about the link between economic growth and poverty reduction.
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absolute poverty aggregate economic censored income changes in distribution changes in poverty consumption or income correlation Dart and Ravallion Datt developing countries differing rates distribution neutral distributional changes distributional shift economic growth elasticity of poverty factors growth elasticity growth incidence curve growth is pro-poor growth more pro-poor growth on poverty growth process growth Ravallion growth tends headcount index high inequality countries household income India initial Gini index initial inequality instrumental variable l/day literature longest available spells Lorenz curve Low inequality March 2004 March market failures mean growth rate mean income measure of poverty national accounts neutral on average Ordinary growth rate ordinary rate partial elasticity pattern of growth poorest percentile poverty line poverty measures poverty rate poverty to growth pro-poor growth rapid poverty reduction rate of growth rate of pro-poor rates of poverty Ravallion 2002 Ravallion and Chen relative poverty Research Working Paper sector Sundaram and Tendulkar Watts index World Bank