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

  • Michael Grimm

    ()

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

  • Isabel Günther

    ()

    (University of Göttingen, Department of Economics)

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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File URL: http://www.dial.ird.fr/media/ird-sites-d-unites-de-recherche/dial/documents/publications/doc_travail/2005/2005-07
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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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  1. Ravallion, Martin, 2004. "Pro-poor growth : A primer," Policy Research Working Paper Series 3242, The World Bank.
  2. Ravallion, Martin, 2001. "Growth, Inequality and Poverty: Looking Beyond Averages," World Development, Elsevier, vol. 29(11), pages 1803-1815, November.
  3. Ravallion, Martin & Shaohua Chen, 2001. "Measuring pro-poor growth," Policy Research Working Paper Series 2666, The World Bank.
  4. Angus Deaton & Salman Zaidi, 2002. "Guidelines for Constructing Consumption Aggregates for Welfare Analysis," World Bank Publications, The World Bank, number 14101, August.
  5. 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.
  6. 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).
  7. 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.
  8. 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.
  9. Dollar, David & Kraay, Aart, 2001. "Growth is good for the poor," Policy Research Working Paper Series 2587, The World Bank.
  10. 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.
  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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