Measuring Pro-poor Growth
Measuring Pro-poor Growth

Author: Martin Ravallion

Publisher:

Published: 2001

Total Pages: 16

ISBN-13:

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New tools allow one to study the incidence of economic growth by initial level of income, and to measure the rate of pro-poor growth in an economy. An application is provided using data for China in the 1990s.

Economic Growth and Poverty Reduction
Economic Growth and Poverty Reduction

Author: Stephan Klasen

Publisher:

Published: 2005

Total Pages: 55

ISBN-13:

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The aim of this Working Paper is to broaden the debate on "pro-poor growth". An exclusive focus on the income dimension of poverty has neglected the non-income dimensions. After an examination of prominent views on the linkages between economic growth, inequality, and poverty reduction this paper discusses the proper definition and measurement of pro-poor growth. Bolivia serves as a case study to illustrate the usefulness of applying the analytical toolbox for pro-poor growth to non-income dimensions of poverty and offers some important new insights about differences in the evolution of both poverty dimensions. Growth in Bolivia has been more pro-poor in the non-income than in the income dimension. The analysis furthermore shows that extending use of the pro-poor growth toolbox to non-income dimensions of poverty greatly improves our understanding of the trends in non-income indicators. Such understanding is pivotal for a careful assessment of the linkages between income and non-income poverty along the entire income distribution. It is equally important for poverty monitoring and for defining policy interventions. It also allows deeper analysis of the relative merits of economic growth, compared to direct intervention aimed at improving non-income dimensions of poverty. (A bibliography is included. Contains 25 footnotes, 14 figures and 8 tables.).

Economic Growth and Poverty Reduction
Economic Growth and Poverty Reduction

Author: Stephan Klasen

Publisher:

Published: 2014

Total Pages: 0

ISBN-13:

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The aim of this Working Paper is to broaden the debate on "pro-poor growth". An exclusive focus on the income dimension of poverty has neglected the non-income dimensions. After an examination of prominent views on the linkages between economic growth, inequality, and poverty reduction this paper discusses the proper definition and measurement of pro-poor growth. Bolivia serves as a case study to illustrate the usefulness of applying the analytical toolbox for pro-poor growth to non-income dimensions of poverty and offers some important new insights about differences in the evolution of both poverty dimensions. Growth in Bolivia has been more pro-poor in the non-income than in the income dimension. The analysis furthermore shows that extending use of the pro-poor growth toolbox to non-income dimensions of poverty greatly improves our understanding of the trends in non-income indicators. Such understanding is pivotal for a careful assessment of the linkages between income and non-income poverty along the entire income distribution. It is equally important for poverty monitoring and for defining policy interventions. It also allows deeper analysis of the relative merits of economic growth, compared to direct intervention aimed at improving non-income dimensions of poverty.

When is Growth Pro-poor?
When is Growth Pro-poor?

Author: Aart Kraay

Publisher: World Bank Publications

Published: 2004-03

Total Pages: 41

ISBN-13:

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Growth is pro-poor if the poverty measure of interest falls. This implies three potential sources of pro-poor growth: (a) a high rate of growth of average incomes; (b) a high sensitivity of poverty to growth in average incomes; and (c) a poverty-reducing pattern of growth in relative incomes. I empirically decompose changes in poverty in a large sample of developing countries into these components. In the medium run, most of the variation in changes in poverty is due to growth, suggesting that policies and institutions that promote broad-based growth should be central to pro-poor growth. Most of the remainder is due to poverty-reducing patterns of growth in relative incomes, rather than differences in the sensitivity of poverty to growth in average incomes. Cross-country evidence provides little guidance on policies and institutions that promote these other sources of pro-poor growth.

Delivering on the Promise of Pro-poor Growth
Delivering on the Promise of Pro-poor Growth

Author: Timothy Besley

Publisher: World Bank Publications

Published: 2007

Total Pages: 271

ISBN-13: 0821365169

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Economic growth is the most important determinant of poverty reduction. But countries with similar rates of growth can experience different poverty reduction rates.

A Unified Framework for Pro-poor Growth Analysis
A Unified Framework for Pro-poor Growth Analysis

Author: Boniface Essama-Nssah

Publisher: World Bank Publications

Published: 2004

Total Pages: 36

ISBN-13:

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"Starting with a general impact indicator as an evaluation criterion, Essama-Nssah offers an integrative framework for a unified discussion of various concepts and measures of pro-poor growth emerging from the current literature. He shows that whether economic growth is considered pro-poor depends fundamentally on the choice of evaluative weights. In addition, the author's framework leads to a new indicator of the rate of pro-poor growth that can be interpreted as the equally distributed equivalent growth rate. This is a distribution-adjusted rate of growth that depends on the chosen level of inequality aversion. Illustrations based on data for Indonesia in the 1990s show a strong link between growth and poverty reduction in that country. A decomposition of the observed poverty outcomes reveals the extent to which changes in inequality have blunted the poverty impacts of both growth and contraction. Finally, the results also demonstrate that absolute and relative indicators of pro-poor growth can lead to conflicting conclusions from the same set of facts. This paper'-- a product of the Poverty Reduction Group, Poverty Reduction and Economic Management Network-- is part of a larger effort in the network to understand the distributional implications of economic growth"-- World Bank web site.

On Various Ways of Measuring Pro-poor Growth
On Various Ways of Measuring Pro-poor Growth

Author: Joseph Deutsch

Publisher:

Published: 2011

Total Pages:

ISBN-13:

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This paper examines three possible approaches to pro-poor growth. The first one assumes that the poverty line remains constant in real terms over time. The second perspective examines the case where the poverty line is equal to half the median of the income distribution but assumes that such a poverty line is determined exogenously. Finally we also propose a third type of decomposition of the change in poverty, one which is obtained when the poverty line is assumed to be endogenous. In addition, whatever the assumption made concerning the poverty line, we take both a relative and an absolute approach to inequality measurement when defining pro-poor growth. With a relative approach to pro-poor growth it is assumed that inequality does not to vary when all incomes are multiplied by a constant whereas, with an absolute approach to pro-poor growth, inequality is supposed not to vary when an equal sum is added to all incomes. The empirical illustration covers the period 1990-2013;2006 in Israel and the analysis is based on the use of the FGT poverty index. It turns out that the assumptions made concerning the way the poverty line is defined and the choice between a relative and an absolute approach to pro-poor growth greatly affect the results. As a whole however growth was pro-rich in Israel during the 1990-2013;2006 period. -- inequality ; Israel ; pro-poor growth ; Watts index