The (Indispensable) Middle Class in Developing Countries; or, The Rich and the Rest, Not the Poor and the Rest
AbstractInclusive growth is widely embraced as the central economic goal for developing countries, but the concept is not well defined in the development economics literature. Since the early 1990s, the focus has been primarily on pro-poor growth, with the “poor” being people living on less than $1 day, or in some regions $2 day. The idea of pro-poor growth emerged in the early 1990s as a counterpoint to a concern with growth alone (measured in per-capita income) and is generally defined as growth which benefits the poor as much or more than the rest of the population. Examples include conditional cash transfers, which target the poor while minimizing the fiscal burden on the public sector, and donors’ emphasizing primary over higher education as an assured way to benefit the poor while investing in long-term growth through increases in human capital. Yet these pro-poor, inclusive policies are not necessarily without tradeoffs in fostering long-run growth. In this paper I argue that the concept of inclusive growth should go beyond the traditional emphasis on the poor (and the rest) and take into account changes in the size and economic command of the group conventionally defined as neither poor nor rich, i.e., the middle class.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Center for Global Development in its series Working Papers with number 207.
Length: 38 pages
Date of creation: Mar 2010
Date of revision:
Contact details of provider:
Web page: http://www.cgdev.org
middle class; developing countries; growth; economics; development; poverty; human capital;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-08-28 (All new papers)
- NEP-DEV-2010-08-28 (Development)
- NEP-LTV-2010-08-28 (Unemployment, Inequality & Poverty)
- NEP-PKE-2010-08-28 (Post Keynesian Economics)
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Eduardo Lora & Johanna Fajardo, 2013.
"Latin American Middle Classes: The Distance Between Perception and Reality,"
JOURNAL OF LACEA ECONOMIA,
LACEA - LATIN AMERICAN AND CARIBBEAN ECONOMIC ASSOCIATION.
- Eduardo Lora & Johanna Fajardo, 2011. "Latin American Middle Classes: The Distance between Perception and Reality," IDB Publications 65158, Inter-American Development Bank.
- Eduardo Lora & Johanna Fajardo, 2011. "Latin American Middle Classes: The Distance between Perception and Reality," IDB Publications 66198, Inter-American Development Bank.
- Eduardo Lora & Deisy Johanna Fajardo, 2011. "Latin American Middle Classes: The Distance between Perception and Reality," Research Department Publications 4727, Inter-American Development Bank, Research Department.
- Mustafa Yavuz Cakir & Alain Kabundi, 2011.
"Trade Shocks from BRIC to South Africa: A Global VAR Analysis,"
250, Economic Research Southern Africa.
- Çakır, Mustafa Yavuz & Kabundi, Alain, 2013. "Trade shocks from BRIC to South Africa: A global VAR analysis," Economic Modelling, Elsevier, vol. 32(C), pages 190-202.
- Lukas Schlogl & Andy Sumner, 2014. "How Middle Class are the ‘Emerging Middle’ or ‘Scooter Class’ in Indonesia? A Household Asset Approach to Social Stratification," Working Papers in Economics and Development Studies (WoPEDS) 201407, Department of Economics, Padjadjaran University, revised May 2014.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (David Roodman) The email address of this maintainer does not seem to be valid anymore. Please ask David Roodman to update the entry or send us the correct address.
If references are entirely missing, you can add them using this form.