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. Despite the widespread use of the term, there appears to be much less consensus as to what exactly pro poor growth means, let alone what its determinants are. According to the weak definition, growth is propoor if it leads to any reduction in poverty e. Project muse economic democracy through propoor growth. The need not only to generate employment opportunities to sustain economic growth, but also to transform institutions and governance in support of inclusive growth. The approaches in measurement of propoorness of economic growth can be classified as partial or complete. Oecd ilibrary poverty reduction and propoor growth. Conceptualising empowerment and the implications for pro. How does integrity and good governance impact propoor. Such policies may include a supportive public investment programme and progressive tax and transfer systems.
In particular, the evolution in the concept of poverty is discussed followed by a section on the mechanical and empirical links between income poverty, inequality and growth. For instance, if as a consequence of economic growth, there is a marked improvement in. As regards the definition of propoor growth, a separating line is commonly drawn between two approaches, respectively, strong and weak pro poor growth. This sustained period of strong economic growth over time has allowed most of countries around the world to lift millions of people out of extreme. The pro poor growth concept came up in the economic literature recently and in the last decade a lot of researches have been dedicated to this study from many important international institutions and organizations. There is also a general consensus that pro poor policy processes are those that allow poor people to be directly involved in the policy process, or that by their nature and structure lead to pro poor outcomes. Propoor growth and policies united nations development. When poverty reduction is the objective for which economic growth is one of the instruments. First, various approaches to defining and measuring pro poor growth are scrutinized using a variety of criteria. Asias experience strongly suggests that rapid and sustained economic growth leads to significant poverty reduction.
Ravallion and chens 2003 approach tends to fall under this definition. 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. In the final section, we summarise our results and draw some conclusions about strategies for poverty reduction. Growth elasticity of poverty in different countries in different decades 9 4. Was economic growth propoor in spain and its regions, between 20 and 2017. Was propoor economic growth in australia for the income. Was propoor economic growth in australia for the incomepoor. Under the absolute definition, growth is considered to be propoor as long as poor people benefit in absolute terms, as reflected in some agreed measures of. Pdf this paper attempts to explain the concept of propoor growth, and. We can write the following simple equation for the rate of pro poor growth. Son, international poverty centre a recent ipc study analyses global growth rates and their extent of pro poorness. Given that improving the efficiency of agricultural production is a key to pro poor economic growth, improvements in agricultural technology are the principal means of doing this.
Policy guidance for donors identifies binding constraints and offers policies and strategies to address them. Jul 20, 20 we investigate the propoorness of australias strong economic growth in the first decade of the twentyfirst century using anonymous and nonanonymous approaches to the measurement of propoor growth. Using the notion of propoor growth, this study examines to what extent the poor benefit from economic growth. A new method to measure pro poor growth is presented and used on available data. Another issue is whether propoor judgements should put relatively more emphasis on the impact of growth upon the poorer of the poor. This paper will refer to the relative definition of propoor growth when discussing to what extent growth benefitted the poor in egypt between 2005 and 2008. The approaches in measurement of propoorness of economic growth can be classified as partial.
It is argued that the satisfaction of a monotonicity axiom is a key crit erion for measuring pro poor growth. Over 19901999, the ordinary growth rate of household income per capita was 6. This definition is vague and provides little guidance to its measurement or to its policy implications. To be most accurate, the measurement must remove the effects of inflation. However, there are still disagreements on how we should intend the propoor growth and what kind of policies shall be implemented for it. Rogerson university of the witwatersrand, johannesburg september 2002 introduction in international debates about planning for local economic development led there. Public debt and propoor economic growth evidence from. Under the absolute definition, growth is considered to be pro poor as long as poor people benefit in absolute terms, as reflected in some agreed measures of poverty ravallion and chen, 2003.
Our measure of inclusive growth is in line with the absolute definition of propoor growth, but not the relative definition. After the introductory points that follow, there are three main sections. What has driven inclusive growth in emerging markets. Agricultural technology can affect smallholder income, labour opportunities for the. A new method to measure propoor growth is presented and used on available data. There is also a general consensus that propoor policy processes are those that allow poor people to be directly involved in the policy process, or that by their nature and structure lead to propoor outcomes. Propoor growth is about changing the distribution of relative incomes through the growth process to favour the poor. This has led to a moderate increase in inequality at the national level, as demonstrated by. This leads into the second section in which the distinctive. Pdf over the past few years propoor growth has become a very popular topic.
Our measure of inclusive growth is in line with the absolute definition of pro poor growth, but not the relative definition. Given that improving the efficiency of agricultural production is a key to propoor economic growth, improvements in agricultural technology are the principal means of. Negative per capita growth is quite frequent, while far too few growth spells are both positive and propoor. Sustainable poverty reduction needs poor people to be both the agents and beneficiaries of economic growth to directly participate in, contribute to and benefit from growth processes.
Accelerating propoor growth through support for private. In the past few years, the term propoor growth has become pervasive in discussions of development policy. Was economic growth pro poor in spain and its regions, between 20 and 2017. Ernesto pernia at national economic and development authority, republic of. 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. Another issue is whether pro poor judgements should put relatively more emphasis on the impact of growth upon the poorer of the poor. According to one view, growth is propoor if the accompanying change in income. We investigate the propoorness of australias strong economic growth in the first decade of the twentyfirst century using anonymous and nonanonymous approaches to the measurement of propoor growth. The impact of good governance on propoor growth remains a subject of debate among.
Propoor growth, absolute and relative definition gridarendal. Historically, the concept of pro poor economic growth gained currency in the 1990s world development report, 1990. This concession was the 12 for an overview of the propoor policy literature, see dagdeviren and others. Having formalized the treatment of these issues, the paper describes various ways for checking whether broad classes of ethical judgements will declare a distributional change to be pro poor. The purpose in this article is to evaluate if economic growth was propoor in the republic of congo over the period 20052011. The current definition used by the civil society partnership programme is that the aim of propoor policies is to improve the assets. Hyun son is economist in the economic analysis and operations support division of. Having formalized the treatment of these issues, the paper describes various ways for checking whether broad classes of ethical judgements will declare a distributional change to be propoor. The measurement of welfare and economic development the concept of development has been debated for a long time, and has major. It provides an analytical framework for practitioners in development agencies and concerned governments to help them to understand the factors that matter for propoor growth and the processes needed to bring it about.
Measuring propoor growth economic research forum erf. But, according to kakwani and pernia 2000, the idea of pov. The second discards the literal interpretation of the concept for a more general, but very much less strict formulation. Rates of per capita income growth and changes in incidence of poverty in sample countries in different decades % 6 2.
Economic growth that is good for the poor is known as propoor growth. This paper uses the pegr framework to assess the propoorness of growth based on the poverty reducing and the relative definitions. Economic growth is an increase in the production of goods and services over a specific period. That gives companies capital to invest and hire more employees. A first requirement of such a definition is that it should clearly differentiate between pro poor growth and other types of economic growth while at the same time. Economic growth creates more profit for businesses. On the other hand, the strict definition of propoor growth emphasizes how the benefits of growth are distributed among the poor and nonpoor in society. On the other hand, the strict definition of propoor growth emphasizes how the benefits of growth are distributed among the poor. According to one view, growth is pro poor if the accompanying change in income. Focusing on pro poor growth and income poverty, promoting pro poor growth. The second section provides the definition of pro poor growth. The second section provides the definition of propoor growth. Countercyclical policies, although potentially important.
Digression on definition of propoor growth poverty alleviation is one of the major objectives of public policy in developing countries. The average of these growth rates is the rate of propoor growth. If the rate of growth accelerates, then all standard measures of income poverty fall faster, including the extent and depth of poverty. Public debt and propoor economic growth evidence from south.
F or in stance, if as a consequence of econom ic growth, there is a marked improv ement in. Whatever definition is used, ultimately poverty reduction is at the heart of propoor growth. Erdtechnical note series economics and research department no. The other broad definition of propoor growth is stranger and emphasizes inequality reduction that occurs with poverty reduction during economic growth. The extent to which growth reduces poverty depends on the degree to which the poor participate in the growth process and share in its proceeds. In the past few years, the term pro poor growth has become pervasive in discussions of development policy. Negative per capita growth is quite frequent, while far too few growth spells are both positive and pro poor. A lively debate has ensued over the definition of propoor. It provides an analytical framework for practitioners in development agencies and concerned governments to help them to understand the factors that matter for pro poor growth and the processes needed to bring it about. Propoor 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. The purpose in this article is to evaluate if economic growth was pro poor in the republic of congo over the period 20052011. 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. Inequitable power relations exclude poor people from decisionmaking and prevent them from taking action. We can write the following simple equation for the rate of propoor growth.
The current definition used by the civil society partnership programme is that the aim of pro poor policies is to improve the assets. The concept of propoor growth is introduced thereafter and defined as growth which. Historically, the concept of propoor economic growth gained currency in the 1990s world development report, 1990. The sensitivity of propoor growth evaluations to the definition of poverty is evaluated by comparing the results for the standard incomepoverty measure with those based on a multidimensional. Through a series of illustrative case studies drawn from the field across five different countries in south asia, this book offers a refreshing alternative perspective of economic development that seeks to convince the. Policy recommendations aim to help change donor behaviour and pave the way for more. Propoor growth, absolute and relative definition grid. The most recent compilation of the case studies coming out of this network is economic democracy through propoor growth. Focusing on propoor growth and income poverty, promoting propoor growth. Propoor 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. Then the fourth section presents the statistical sources and. This briefing note from the department for international development dfid examines the relationship between growth and poverty.
For aid donors, the pro poor growth agenda is not business as usual and more of the same will not be sufficient. This concession was the 12 for an overview of the pro poor policy literature, see dagdeviren and others. Digression on definition of pro poor growth poverty alleviation is one of the major objectives of public policy in developing countries. The growth rate by quantile varied from 3% for the poorest percentile to 10% for the richest, while the rate of propoor growth was around 4%.
Simple theory and empirical evidence indicate that poverty reduction can be achieved by accelerating economic growth andor by changing the distribution of. From a policy standpoint, an implication might be that poverty reduction requires. Chinas growth process in the 1990s has been used to illustrate our proposed measure of propoor growth. Poverty reduction and propoor growth the role of empowerment. However, propoor policies must by definition not merely promote growth, but promote growth that benefits the poor. Using this second definition, average income growth will always result in pro poor growth except when the incomes of the poor are stagnant or decline. We pay particular attention to economic empowerment. The sensitivity of propoor growth evaluations to the definition of poverty is evaluated by comparing the results for the standard incomepoverty measure with those based on a. Rate of pro poor growth definition 2 distributional x correction definition 1 ordinary growth rate when poverty reduction is the objective for which economic growth is one of the instruments then the rate of pro poor growth defined above is the. This note presents a measure of inclusive growth that is in line with the absolute definition of pro poor growth, but not the relative definition. The propoor growth concept came up in the economic literature recently and in the last decade a lot of researches have been dedicated to this study from many important international institutions and organizations. Propoor growth and development overseas development institute. This note presents a measure of inclusive growth that is in line with the absolute definition of propoor growth, but.
Given dfids aim of eliminating absolute poverty, it argues that the most appropriate measure of propoor growth is. This paper has been prepared in the context of the propoor growth. Using this second definition, average income growth will always result in propoor growth except when the incomes of the poor are stagnant or decline. Using this second definition, average income growth will always result in propoor growth, except when the incomes of the poor are stagnant or decline. For aid donors, the propoor growth agenda is not business as usual and more of the same will not be sufficient. Sussex, united kingdom attempted to arrive at a simple operational definition of pro. Son, international poverty centre a recent ipc study analyses global growth rates and their extent of propoorness. Rate of propoor growth definition 2 distributional x correction definition 1 ordinary growth rate when poverty reduction is the objective for which economic growth is one of the instruments then the rate of propoor growth defined above is the. Evidence from education policies in india and brazil 1. The first definition would basically require that the income share of the poor population. This paper will refer to the relative definition of propoor growth when discussing to what extent growth. While all sections of society enjoyed a rapid annual increase in consumption between the sample periods, the rate of growth in consumption was slightly higher for richer households. 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. This policy brief summarizes what is currently known about the definition, measurement, and determinants of such propoor growth, primarily drawing on results from a recently completed multidonor research program called operationalizing.
5 760 55 1375 505 983 1202 1156 439 861 1470 236 1463 1057 209 76 274 426 1062 407 781 1055 1610 475 218 1451 1494 841 1318 1086 648 388 858 1376 1467 654 635 333 292