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Redistribution and Growth for Poverty Reduction

Author

Listed:
  • Hulya Dagdeviren

    () (University of Hertfordshire, UK)

  • Rolph van der Hoeven

    () (International Institute of Social Studies, Erasmus University Rotterdam, Netherlands)

  • John Weeks

    () (Department of Development Studies, SOAS, University of London, UK)

Abstract

In the late 1990s the bilateral and multilateral development agencies placed increasing emphasis on poverty reduction in developing countries. This emphasis led to the establishment by the United Nations of the so-called International Development Targets for poverty reduction. The achievement of a target requires policies, and policies are most effective within an overall, coherent strategy. A poverty target might be achieved through faster economic growth alone, redistribution, or a combination of the two. This paper presents an analytical framework to assess the effectiveness of growth and redistribution for poverty reduction. It concludes that redistribution, either of current income or the growth increment of income, is more effective in reducing poverty for a majority of countries than growth alone.

Suggested Citation

  • Hulya Dagdeviren & Rolph van der Hoeven & John Weeks, 2001. "Redistribution and Growth for Poverty Reduction," Working Papers 118, Department of Economics, SOAS, University of London, UK.
  • Handle: RePEc:soa:wpaper:118
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    File URL: http://www.soas.ac.uk/economics/research/workingpapers/file28860.pdf
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    1. World Bank, 2000. "Global Economic Prospects and the Developing Countries 2000," World Bank Publications, The World Bank, number 14776, March.
    2. World Bank, 2001. "Global Economic Prospects and the Developing Countries 2001," World Bank Publications, The World Bank, number 14779, March.
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