Chinas growth process in the 1990s has been used to illustrate our proposed measure of pro poor growth. First, it is effective in generating benefits for a. The report sketches an overall scorecard of the countries on the two basic dimensions of pro poor growth and pro poor policy intervention. Such a social contract would enable the states of poor countries to replace the welfare state concept with a more inspiring pro poor growth concept that could also help to mitigate the violence and 40 economic democracy through pro poor growth multifaceted crises globally, regionally and within individual saarc countries. Propoor growth, absolute and relative definition gridarendal. The particular focus of the paper is the recent discussion around the concept of pro poor growth, and its implications for policy and development cooperation. We can write the following simple equation for the rate of pro poor growth. The ways in which agriculture has driven and can drive pro poor growth.
Conceptualising empowerment as a process draws attention to issues of reversibility. We propose a poverty growth curve that measures whether economic growth is propoor or not propoor. Tendulkar and participants at the washington and bonn pro poor growth workshops fro helpful comments. Pro poor growth is a term used for primarily national policies to stimulate economic growth for the benefit of poor people primarily in the economic sense of poverty. However, poverty reduction with growth also depends on initial inequalities and assets. Ravallion and datt 1996 also find that primary and tertiary sector growth had greater impact on poverty than secondary sector growth. Promoting propoor growth is about increasing the contribution of economic. Toward fulfilling the dream of a world free of poverty noticeably enshrined in the lobby of. Propoor growth, absolute and relative definition grid. It shows that appropriate policies can free societies from povertys worst manifestations in a generation, a crucial message as democracy begins to influence the policy process. This paper contributes to this literature by examining pro poor growth using data from u. If governments implement pro poor policies that shift the share of income of. This paper has been prepared in the context of the propoor growth program. The findings indicate that laborusing technological change generates absolute and relative pro poor effects.
Pro poor agenda for prosperity and development papd. According to one view, growth is pro poor if the accompanying change in income. A new method to measure pro poor growth is presented and used on available data. Nevertheless, one should bear in mind that the term pro poor literally means in favor of the poor. This paper attempts to explain the concept of pro poor growth, and argues that it represents a major departure from the trickledownphenomenon. After the introductory points that follow, there are three main sections. This note is concerned with the measurement of the degree to which economic growth is propoor. Pro poor growth can be defined as absolute, where the poor benefits from overall growth in the conomy, or relative which refers to targeted efforts to increase the growth specifically among poor people. Finally, the paper argues that the emphasis on pro poor growth policies will reduce poverty more rapidly than simple reliance on the trickle down effect. This paper is a contribution to this literature and it is organized as follows. When poverty reduction is the objective for which economic growth. Indonesias longrun propoor growth record is among the best in asia. An important issue is whether these standards should be absolute or relative. Andrew shepherd, chiara mariotti, and laura rogriguez takeuchi.
This paper proposes a poverty growth curve that measures whether economic growth is propoor or not pro poor. These days it seems that almost everyone in the development community is talking about pro poor growth. The four studies that use the strict approach to defining pro poor growth can be further. The free africabib app for android is available here. Natural resources and propoor growth will be of interest to a wide audience and is specifically tailored for policy makers and economic decision makers, from development cooperation agencies to ministries of finance and planning in partner countries. Son, international poverty centre a recent ipc study analyses global growth rates and their extent of pro poorness. These programs would aim to increase income and provide jobs to a development programs targeted. Agricultural modernization, structural change and propoor. The growth rate by quantile varied from 3% for the poorest percentile to 10% for the richest, while the rate of pro poor growth was around 4%.
Pro poor growth a practical guide to ex ante poverty impact assessment. Pbg poverty bias of growth, pegr poverty equivalent growth rate, and the ppgi pro poor growth index. Gender equality and pro poor growth womenseconomic empowerment series october, 2010 the series four components. Poverty, growth, and inequality in subsaharan africa. Pro poor growth is good for poverty eradication if it can be achieved. Sep 27, 2009 and finally, it reflects a focus on the impacts on poor people themselves, not on processes of poverty reduction, in which, if adopting the four pillars of pro poor growth proposed by dfid, there might be a different weight attached to the transboundary diseases. Policies that promote higher growth which, with favourable output elasticity of. Ethiopias propoor growth trajectory alubachew dagne 051715 ethiopias gdp growth of the past decade has become an internationally recognized fact. A note on propoor growth hyun hwa son school of economics, macquarie university, sydney 2109, australia received 4 april 2003. It has in fact started to change the image of the country. Gender equality is not solely a fundamental human right but it is also essential for poverty reduction and sustained economic growth.
If growth is pro poor by definition 1 then the rate of pro poor growth exceeds the ordinary rate of growth. The axiom states that if one growth pattern is judged to be more pro poor than. Available through adb office of external relations. M easuring propoor growth q martin ravallion, shaohua chen world bank,msn mc 3306development research group, 1818h street nw,washington,dc 20433,usa received 27 may 2001. Nevertheless, one should bear in mind that the term propoor literally means in favor of the poor. This paper uses the pegr framework to assess the pro poorness of growth based on the poverty reducing and the relative definitions. China clearly scores well on the pro poor growth side of the card, but neither brazil nor india do. As with the other studies in this project, propoor growth is defined in two dimensions, one involving the average rate of growth in the economy, and the other reflecting how well the poor connect to that growth the elasticity of connection. Oecd ilibrary natural resources and propoor growth. In the pursuit of pro poor growth in poor rural areas it is therefore critically important that we understand. Purchase the print copy and get immediate access to the content online including option to download. A policy framework sets out the 4 pillars approach to stimulating pro poor growth. Wildlife and naturebased tourism for pro poor growth.
As is appears, the debate on the magnitude of pro poor growth is far from settled. In this regard, the concept and measure of propoor growth should be examined from a distributional perspective. Rates of propoor growth, ravallion and chen method, 1988 to 1996. Part i provides an overview of the economics and politics of natural resources. The importance of financial sector development for growth. Economic democracy through pro poor growth pdf free download. The impacts of livestock diseases and their control on growth. Asias experience strongly suggests that rapid and sustained economic growth leads to significant poverty reduction. Another issue is whether pro poor judgements should put relatively more emphasis on the impact of growth upon the poorer of the poor. Set of three indexes characterized by measuring how economic policies benefit the poor. Having formalized the treatment of these issues, the paper describes various ways for checking. Empirical evidence shows that genderbased inequalities limit both. Background information and program objective economic growth is a prerequisite for the reduction of poverty, but is not sufficient by itself. Oecd ilibrary poverty reduction and propoor growth.
When poverty reduction is the objective for which economic growth is one of the instruments. It is a great pleasure to present this first edition of the honduras diagnostic for economic dna national action prepared by the world bank. Web to pdf convert any web pages to highquality pdf. Is ordinary economic growth always propoor growth or is that some special kind of growth. The second task is to introduce the theme of pro poor led and range of municipal interventions that have been highlighted in international writings from pro growth to pro poor led. The policy context dfids pro poor growth briefing note 2. Get immediate access to the content online in all available formats, including pdf and epub to download. For economic growth to lead to reduced poverty and improved equality, people who live in poverty must have the possibility. Humberto lopez, and john page the world bank1 development practitioners and policy makers are fond of the term pro poor growth because, rather like humpty dumpty in alices wonderland, to each of them. Dac guidelines and reference series a dac reference document promoting pro poor growth.
The impacts of livestock diseases and their control on. This paper contributes to the literature of pro poor growth measurement by introducing a growth rate consistency axiom. These issues will be covered in a followup paper by dfids financial sector team, which will provide guidance on ways to promote pro poor fsd. In this regard, the concept and measure of pro poor growth should be examined from a distributional perspective. The role of agriculture in african development xinshen diao international food policy research institute, washington, dc, usa. First, is to locate pro poor led interventions as part of a wider range of led interventions that have been recognised in international research on led.
The purpose of this short guide is to introduce the concept of pro poor value chain development and. This seems consistent with the analysis of global crossnational data showing that the incomes of the poor move proportionately oneforone with overall average incomes dollar and kraay 2001. Pro poor growth and the poorest 4 1 summary this paper examines the relationship of the poorest with growth absolute sense, and whether or not the relationship the very poorest people have with growth is. As with the other studies in this project, pro poor growth is defined in two dimensions, one involving the average rate of growth in the economy, and the other reflecting how well the poor connect to that growth the elasticity of connection. From pro growth to pro poor led across the international experience, the range of led initiatives and responses in cities can take a combination of many forms. Negative per capita growth is quite frequent, while far too few growth spells are both positive and pro poor. Thus, further examination of the subject is necessary. Erdtechnical note series economics and research department no. These days it seems that almost everyone in the development community is talking about propoor growth. In these areas not only has agriculture not driven pro poor growth, but its failure to grow has held back wider growth and poverty reduction.
Section 4 presents measures of estimates of pro poor growth. According to one view, growth is propoor if the accompanying change in income. It describes the unique features of natural resources and resulting management challenges, the role of sustainable natural resource management in supporting pro poor growth, and the politics and governance of natural resources. This paper applies the framework for pro poor analysis to welfare changes from a cgemicrosimulation model to analyze what are the better or worse models for agriculture modernization, and to estimate the contribution of growth and redistribution to changes in poverty in drc. The approaches in measurement of propoorness of economic growth can be classified as partial or complete. Thus one can think of measure of propoor growth based on definition 2 as the product of a definition 1based measure and the ordinary. The four studies that use the strict approach to defining propoor growth can be further. If the distributional shifts go against the poor then it is lower than the ordinary rate of growth. From a policy standpoint, an implication might be that poverty reduction requires.
In the past few years, the term pro poor growth has become pervasive in discussions of development policy. Achieving zero hunger by investing in economywide growth 29 appendix 2. Brazil is a good example of a country where growth was pro poor between 1981 and 2014 but the pro poor growth was reversed in 2015. Consistent comparison of propoor growth buhong zheng department of economics university of colorado denver denver, colorado, usa april 2009 abstract. The purpose of this short guide is to introduce the concept of propoor value chain development and describe tools that can help development practitioners to design and implement value chain programs. Achieving pro poor growth a pace and pattern of growth that enhances the ability of poor women and men to participate in, contribute to and benefit from growth is critical. Is ordinary economic growth always pro poor growth or is that some special kind of growth. Conceptualising empowerment and the implications for pro. If growth is pro poor by definition 1 then the rate of propoor growth exceeds the ordinary rate of growth. Use pdf download to do whatever you like with pdf files on the web and regain control. Thus one can think of measure of pro poor growth based on definition 2 as the product of a definition 1based measure and the ordinary. Over 19901999, the ordinary growth rate of household income per capita was 6. This suggests that growth in some countries is more propoor than in other countries.
Human capital, inequality, and propoor growth in brazil. Despite the widespread use of the term, there appears to be much less consensus as to what exactly propoor growth means, let alone what its determinants are. What policy lessons can be learnt from cases of propoorest. And finally, it reflects a focus on the impacts on poor people themselves, not on processes of poverty reduction, in which, if adopting the four pillars of pro poor growth proposed by dfid, there might be a different weight attached to the transboundary diseases. From a policy standpoint, an implication might be that poverty reduction. What policy lessons can be learnt from cases of pro poorest growth. In the past few years, the term propoor growth has become pervasive in discussions of development policy. Promoting propoor growth is about increasing the contribution of economic growth to poverty reduction. Ethiopias pro poor growth trajectory alubachew dagne 051715 ethiopias gdp growth of the past decade has become an internationally recognized fact. The four studies that use the strict approach to defining pro poor growth. It is initiatives to respond to this challenge that will be treated in this report. Given the potentials for employmentintensive propoor growth and the constraints identified in the country studies bangladesh, bolivia and ethiopia for propoor growth and poverty reduction, there are three distinct sets of policies and strategies. Tendulkar and participants at the washington and bonn propoor growth workshops fro helpful comments.
561 277 287 883 709 1066 436 1392 588 1493 273 739 1303 706 1455 794 1258 288 141 875 758 268 1596 9 658 815 1285 897 1559 929 949 1586 1551 384 1503 322 718 412 1301 700 1031 1028 399 356 187 28 488 389 81