A unified framework for pro-poor growth analysis
AbstractStarting with a general impact indicator as an evaluation criterion, The author offers an integrative framework for a unified discussion of various concepts and measures of pro-poor growth emerging from the current literature. He shows that whether economic growth is considered pro-poor depends fundamentally on the choice of evaluative weights. In addition, the author's framework leads to a new indicator of the rate of pro-poor growth that can be interpreted as the equally distributed equivalent growth rate. This is a distribution-adjusted rate of growth that depends on the chosen level of inequality aversion. Illustrations based on data for Indonesia in the 1990s show a strong link between growth and poverty reduction in that country. A decomposition of the observed poverty outcomes reveals the extent to which changes in inequality have blunted the poverty impacts of both growth and contraction. Finally, the results also demonstrate that absolute and relative indicators of pro-poor growth can lead to conflicting conclusions from the same set of facts.
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Bibliographic InfoPaper provided by The World Bank in its series Policy Research Working Paper Series with number 3397.
Date of creation: 01 Sep 2004
Date of revision:
Public Health Promotion; Economic Conditions and Volatility; Health Monitoring&Evaluation; Services&Transfers to Poor; Environmental Economics&Policies; Achieving Shared Growth; Governance Indicators; Economic Conditions and Volatility; Poverty Assessment; Health Monitoring&Evaluation;
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