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In Search of The Holy Grail: How to Achieve Pro-Poor Growth ?

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Abstract

Pro Poor Growth has become a central concern to achieve sustainable poverty reduction in developing countries. Despite being widely used, the term is not well-defined nor has there been a clear policy document that would summarize the determinants and policy implications of pro poor growth. This paper seeks to fill this void by first proposing a definition of pro poor growth, then summarizing the linkages between inequality, poverty, and pro poor growth, before proceeding to analyze the micro and sectoral determinants of pro poor growth. The final section spells out the recently emerging consensus on policy implications for pro poor growth, with particular emphasis on policy issues in Sub Saharan Africa and points to remaining disagreements and areas for further research. The paper emphasizes the particular importance of inequalityreducing policies for pro poor growth as well as the need to further analyze the scope of activist state policies to deliver a pro poor agenda.

Suggested Citation

  • Stephan Klasen, 2003. "In Search of The Holy Grail: How to Achieve Pro-Poor Growth ?," Ibero America Institute for Econ. Research (IAI) Discussion Papers 096, Ibero-America Institute for Economic Research.
    • Handle: RePEc:got:iaidps:096
    Note: This paper is a revised version of a paper commissioned by Deutsche Gesellschaft für Technische Zusammenarbeit (GTZ) for the \"Growth and Equity\" Task Team of the Strategic Partnership with Africa (SPA). I would like to thank Helmut Asche, Ulrike Maenner, Renate Kirsch, Jenny Klugman, John Page, Bertil Tungodden, two anonymous referees, and participants at a workshop at the GTZ, the World Bank, Harvard’s Center for Population and Development Studies, and the World Bank’s ABCDE Europe Conference in Oslo, and the World Bank’s Pro Poor Growth workshop in South Africa for helpful comments and discussions on earlier versions of this paper and François Bourgignon and Martin Ravallion for helpful discussions. The views expressed here are those of the author and do not necessarily represent those of the GTZ.
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    More about this item

    Keywords

    Pro Poor Growth; Inequality; Sub Saharan Africa; Sectoral and regional policies;
    All these keywords.

    JEL classification:

    • E6 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook
    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

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