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Can Africa Reduce Poverty by Half by 2015?

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Author Info
Arne Bigsten
Abebe Shimeles

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Abstract

This article uses simulations to explore the possibility of halving the number of people in Africa living in extreme poverty by 2015. It shows that initial levels of inequality and per capita consumption determine the cumulative growth and reductions in inequality required to achieve this target, and finds that on average Africa needs only a relatively modest annual rate of growth in per capita household consumption, if inequality remains unchanged. The trade-off between the two varies greatly among countries, and their policy choices are thus quite different: in some cases small changes in income distribution can have a large effect on poverty, while in others a strong focus on growth is the only viable option. Copyright 2007 Blackwell Publishing Ltd.

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Publisher Info
Article provided by Overseas Development Institute in its journal Development Policy Review.

Volume (Year): 25 (2007)
Issue (Month): 2 (03)
Pages: 147-166
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Handle: RePEc:bla:devpol:v:25:y:2007:i:2:p:147-166

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  1. Alemayehu Geda, 2006. "Openness, Inequality and Poverty in Africa," Working Papers 25, United Nations, Department of Economics and Social Affairs. [Downloadable!]
  2. Arne Bigsten & Sven Tengstam, 2008. "Smallholder Income Diversification In Zambia: The Way Out Of Poverty?," International Development Collaborative Working Papers ZM-FSRP-WP-31, Department of Agricultural Economics, Michigan State University. [Downloadable!]
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