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Pro-Poor Growth in Pakistan

Author

Listed:
  • Muhammad Omer

    (Muhammad Omer is a Research Analyst at the Economics Analysis Department, State Bank of Pakistan, I.I. Chundrigar Road, Karachi-74000. Email: muhammad.omer@sbp.org.pk)

  • Sarah Jafri

    (Sarah Jafri is an Economic Analyst at Arif Habib Investments Management Ltd, 2/1, R.Y. 16, Old Queens Road, Karachi-74400. Email: sarah.jafri@gmail.com)

Abstract

This study assesses the impact of economic growth on absolute poverty in Pakistan over the last four decades. The article attempts to answer the relatively ignored basic question: is economic growth in Pakistan pro-poor? In addition, an attempt has been made to evaluate the distribution of income within poor, a step necessary to determine the sensitivity of different income groups, below poverty line, to the economic growth. These assessments are conducted through Growth Incidence Curves—a superior poverty measure—and calculation of the Rate of Pro-Poor Growth (RPPG) and the Ordinary Rate of Growth (ORG). This study finds that economic growth in Pakistan is not intrinsically pro-poor. Although it was pro-poor in the seventies and is also the same in the current decade, and strongly pro-poor in the eighties, a positive growth in the nineties was, however, anti-poor. The analysis shows that the first decile is most sensitive to economic growth and most vulnerable to economic shocks.

Suggested Citation

  • Muhammad Omer & Sarah Jafri, 2008. "Pro-Poor Growth in Pakistan," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 9(1), pages 51-68, June.
    • Handle: RePEc:sae:soueco:v:9:y:2008:i:1:p:51-68
    DOI: 10.1177/139156140700900102
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    References listed on IDEAS

    as
    1. Pernia, Ernesto & Kakwani, Nanak, 2000. "What is Pro-poor Growth?," MPRA Paper 104987, University Library of Munich, Germany.
    2. World Bank, 2002. "Pakistan Development Policy Review : A New Dawn?," World Bank Publications - Reports 15425, The World Bank Group.
    3. Hafiz A. Pasha & T. Palanivel, 2003. "Pro-poor Growth and Policies: The Asian Experience," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 42(4), pages 313-348.
    4. World Bank, 2002. "Poverty Assessment : Poverty in Pakistan - Vulnerabilities, Social Caps, and Rural Dynamics," World Bank Publications - Reports 15335, The World Bank Group.
    5. 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.
    6. Sen, Amartya K, 1976. "Poverty: An Ordinal Approach to Measurement," Econometrica, Econometric Society, vol. 44(2), pages 219-231, March.
    7. Mr. Mahmood Hasan Khan, 2002. "When is Economic Growth Pro-Poor? Experiences in Malaysia and Pakistan," IMF Working Papers 2002/085, International Monetary Fund.
    8. Rashid Amjad & A.R. Kemal, 1997. "Macroeconomic Policies and their Impact on Poverty Alleviation in Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 36(1), pages 39-68.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Jamal, Haroon, 2014. "Growth and Income Inequality Effects on Poverty: The Case of Pakistan (1988-2011)," MPRA Paper 59897, University Library of Munich, Germany.
    2. Ikram Ali & Armando Barrientos & Abdul Saboor & Atta Ullah Khan & Jazib Nelson, 2017. "A Decade of Sub-national Pro-poor Growth in Pakistan," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 133(1), pages 47-65, August.
    3. Aadil Hameed Shah & Atta Ullah Khan & Liurong Pan & Asad Amin & Abbas Ali Chandio, 2022. "Reflections of Pro-Poor Growth across Agro-Climatic Zones for Farming and Non-Farming Communities: Evidence from Punjab, Pakistan," IJERPH, MDPI, vol. 19(9), pages 1-16, May.
    4. Ademola Obafemi YOUNG, 2019. "Why Has Growth Not Trickled Down to the Poor? A Study of Nigeria," Review of European Studies, Canadian Center of Science and Education, vol. 11(1), pages 156-156, December.
    5. Zaman, Khalid & Khilji, Bashir Ahmad, 2013. "The relationship between growth–inequality–poverty triangle and pro-poor growth policies in Pakistan: The twin disappointments," Economic Modelling, Elsevier, vol. 30(C), pages 375-393.

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    More about this item

    Keywords

    JEL: D3; JEL: I32; JEL: I38; JEL: O4; JEL: O5; Growth Incidence Curve; Pakistan; Poverty; Pro-Poor Growth; South Asia;
    All these keywords.

    JEL classification:

    • D3 - Microeconomics - - Distribution
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
    • O5 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies

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