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

Author

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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.

Suggested Citation

  • Michael Grimm & Isabel Günther, 2005. "Growth and Poverty in Burkina Faso. A Reassessment of the Paradox," Working Papers DT/2005/07, DIAL (Développement, Institutions et Mondialisation).
  • Handle: RePEc:dia:wpaper:dt200507
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    References listed on IDEAS

    as
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    Cited by:

    1. Montfort Mlachila & Tidiane Kinda, 2011. "The Quest for Higher Growth in the WAEMU Region; The Role of Accelerations and Decelerations," IMF Working Papers 11/174, International Monetary Fund.
    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. Luc Christiaensen & Peter Lanjouw & Jill Luoto & David Stifel, 2012. "Small area estimation-based prediction methods to track poverty: validation and applications," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, pages 267-297.
    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. 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.
    6. 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.
    7. Salem Kanoun, 2012. "Linkages Between Fiscal Debt Sustainability, Growth And Poverty: An Application To Tunisia," Book Chapters, Institute of Economic Sciences.
    8. Johannes Gräb & Michael Grimm, 2008. "Spatial Inequalities Explained: Evidence from Burkina Faso," Discussion Papers of DIW Berlin 843, DIW Berlin, German Institute for Economic Research.
    9. UNDP Regional Bureau for Africa, "undated". "Building an Integrated Inequality Dataset and the ÔSeven SinsÕ of Inequality Measurement in sub-Saharan Africa," UNDP Africa Policy Notes 2017-16, United Nations Development Programme, Regional Bureau for Africa.
    10. Channing Arndt & Azhar M. Hussain & Vincenzo Salvucci & Finn Tarp & Lars Peter Østerdal, 2016. "Poverty Mapping Based on First‐Order Dominance with an Example from Mozambique," Journal of International Development, John Wiley & Sons, Ltd., pages 3-21.
    11. 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.
    12. Rémi BAZILLIER & Victoire GIRARD, 2017. "The gold digger and the machine. Evidence on the distributive effect of the artisanal and industrial gold rushes in Burkina Faso," LEO Working Papers / DR LEO 2545, Orleans Economics Laboratory / Laboratoire d'Economie d'Orleans (LEO), University of Orleans.
    13. 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.
    14. Luc Christiaensen & Peter Lanjouw & Jill Luoto & David Stifel, 2012. "Small area estimation-based prediction methods to track poverty: validation and applications," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, pages 267-297.
    15. 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.
    16. Michael Grimm, 2008. "Food Price Inflation and Children's Schooling," Discussion Papers of DIW Berlin 844, DIW Berlin, German Institute for Economic Research.
    17. Arndt, Channing & Salvucci, Vincenzo & Tarp, Finn & Østerdal, Lars Peter & Hussain, M. Azhar, 2013. "Advancing Small Area Estimation," WIDER Working Paper Series 053, World Institute for Development Economic Research (UNU-WIDER).
    18. Chandra, Vandana & Osorio Rodarte, Israel, 2009. "Options for Income-Enhancing Diversification in Burkina Faso," MPRA Paper 20928, University Library of Munich, Germany.

    More about this item

    Keywords

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

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

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