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Growth and Poverty in Burkina Faso. A Reassessment of the Paradox

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  • Michael Grimm

    ()
    (University of Göttingen, Department of Economics, DIW and DIAL)

  • Isabel Günther

    ()
    (University of Göttingen, Department of Economics)

Abstract

Previous poverty assessments for Burkina Faso were biased due to the neglect of some important methodological issues. This led to the so-called ‘Burkinabè Growth-Poverty-Paradox’, i.e. relatively sustained macro-economic growth, but almost constant poverty. We estimate that poverty significantly decreased between 1994 and 2003 at least on the national level, i.e. growth was in contrast to what previous poverty estimates suggested ‘pro-poor’. However, we also demonstrate that between 1994 and 1998 poverty indeed increased despite a good macro-economic performance. This was due to a severe drought and a resulting profound deterioration of the purchasing power of the poor; an issue which was also overseen by previous studies. _________________________________ Les analyses existantes du développement de la pauvreté en Burkina Faso ont été biaisées par l’ignorance d’aspects méthodologiques importants. Ces biais ont conduit à un paradoxe de croissance et pauvreté, c'est-à-dire une situation où une croissance macro-économique relativement soutenue n’était pas accompagnée d’une réduction de la pauvreté. Au contraire, nous estimons que la pauvreté a diminué significativement entre 1994 et 2003 au moins au niveau national, c'est-à-dire que la croissance a été, contrairement à ce que les analyses auparavant ont suggéré, ‘pro-poor’. Cependant, nous montrons également qu’entre 1994 et 1998 la pauvreté a effectivement augmenté malgré la performance macro-économique favorable. Cela a été dû à une sécheresse sévère et à une détérioration importante du pouvoir d’achat des pauvres. Cet aspect a été ignoré par les analyses précédentes.

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Paper provided by DIAL (Développement, Institutions et Mondialisation) in its series Working Papers with number DT/2005/07.

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Length: 21 pages
Date of creation: Jul 2005
Date of revision:
Handle: RePEc:dia:wpaper:dt200507

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Keywords: Poverty; Pro-poor Growth; Differential Inflation; Burkina Faso; Pauvreté; Croissance en faveur des pauvres; Inflation différentielle.;

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References

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  1. Angus Deaton, 2003. "Measuring Poverty in a Growing World (or Measuring Growth in a Poor World)," NBER Working Papers 9822, National Bureau of Economic Research, Inc.
  2. Ravallion, Martin & Chen, Shaohua, 2003. "Measuring pro-poor growth," Economics Letters, Elsevier, vol. 78(1), pages 93-99, January.
  3. Angus Deaton & Salman Zaidi, 1999. "Guidelines for Constructing Consumption Aggregates For Welfare Analysis," Working Papers 217, Princeton University, Woodrow Wilson School of Public and International Affairs, Research Program in Development Studies..
  4. Lanjouw, Jean Olson & Lanjouw, Peter, 2001. "How to Compare Apples and Oranges: Poverty Measurement Based on Different Definitions of Consumption," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 47(1), pages 25-42, March.
  5. Tarozzi, Alessandro, 2007. "Calculating Comparable Statistics From Incomparable Surveys, With an Application to Poverty in India," Journal of Business & Economic Statistics, American Statistical Association, vol. 25, pages 314-336, July.
  6. Ravallion, Martin, 2001. "Growth, inequality, and poverty : looking beyond averages," Policy Research Working Paper Series 2558, The World Bank.
  7. Michael Grimm & Charlotte Guénard & Sandrine Mesplé-Somps, 2001. "What has happened to the urban population in Côte d'Ivoire since the eighties ? An analysis of monetary poverty and deprivation over 15 years of household data," Working Papers DT/2001/14, DIAL (Développement, Institutions et Mondialisation).
  8. Fofack, Hippolyte & Monga, Celestin & Tuluy, Hasan, 2001. "Household welfare and poverty dynamics in Burkina Faso : empirical evidence from household surveys," Policy Research Working Paper Series 2590, The World Bank.
  9. Dollar, David & Kraay, Aart, 2002. " Growth Is Good for the Poor," Journal of Economic Growth, Springer, vol. 7(3), pages 195-225, September.
  10. Ravallion, Martin, 2004. "Pro-poor growth : A primer," Policy Research Working Paper Series 3242, The World Bank.
  11. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-66, May.
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Citations

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Cited by:
  1. Johannes Gräb & Michael Grimm, 2008. "Spatial inequalities explained - Evidence from Burkina Faso," Ibero America Institute for Econ. Research (IAI) Discussion Papers 173, Ibero-America Institute for Economic Research.
  2. Michael Grimm, 2008. "Food price inflation and schooling," Ibero America Institute for Econ. Research (IAI) Discussion Papers 174, Ibero-America Institute for Economic Research.
  3. Jean-Pierre Lachaud, 2006. "La mesure de la croissance pro-pauvres en Afrique : espace de l’utilité ou des capacités ? Analyse comparative appliquée au Burkina Faso," Documents de travail 122, Groupe d'Economie du Développement de l'Université Montesquieu Bordeaux IV.
  4. Grimm, Michael, 2011. "Does household income matter for children's schooling? Evidence for rural Sub-Saharan Africa," Economics of Education Review, Elsevier, vol. 30(4), pages 740-754, August.
  5. Montfort Mlachila & Tidiane Kinda, 2011. "The Quest for Higher Growth in the WAEMU Region," IMF Working Papers 11/174, International Monetary Fund.
  6. Sakurai, Takeshi & Savadogo, Kimseyinga, 2009. "Covariate Shocks and Rural Poverty in Burkina Faso," 2009 Conference, August 16-22, 2009, Beijing, China 51722, International Association of Agricultural Economists.
  7. Michael Grimm, 2008. "Food Price Inflation and Children's Schooling," Discussion Papers of DIW Berlin 844, DIW Berlin, German Institute for Economic Research.
  8. Arndt, Channing & Hussain, M. Azhar & Salvucci, Vincenzo & Tarp, Finn & Osterdal, Lars, 2013. "Advancing small area estimation," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  9. Jean-Pierre Lachaud, 2005. "A la recherche de l’insaisissable dynamique de pauvreté au Burkina Faso. Une nouvelle évidence empirique," Documents de travail 117, Groupe d'Economie du Développement de l'Université Montesquieu Bordeaux IV.
  10. Salem Kanoun, 2012. "Linkages Between Fiscal Debt Sustainability, Growth And Poverty: An Application To Tunisia," Book Chapters, Institute of Economic Sciences.
  11. Nouve, Kofi & Bambio, Yiriyibin & Kabore, Samuel & Wodon, Quentin, 2010. "Risque et mesures de la pauvreté rurale au Burkina Faso
    [Risk and Measures of Rural Poverty in Burkina Faso]
    ," MPRA Paper 34374, University Library of Munich, Germany.
  12. World Bank, 2010. "Burkina Faso - Promoting Growth, Competitiveness and Diversification : Country Economic Memorandum, Volume 3. Enhancing Growth Factors," World Bank Other Operational Studies 12359, The World Bank.
  13. Chandra, Vandana & Osorio Rodarte, Israel, 2009. "Options for Income-Enhancing Diversification in Burkina Faso," MPRA Paper 20928, University Library of Munich, Germany.

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