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WP/47 Concepts and Operationalization of Pro-Poor Growth

Growth that reduces poverty is often considered pro-poor regardless of whether the poor benefit from it more than the non-poor. Such growth could simply be termed poverty-reducing growth. This paper argues that for growth to be pro-poor it should disproportionally benefit the poor. The paper proposes an operational definition of pro-poor growth that restricts it to the cases in which the mean income of the poor increases proportionally more than that of the non-poor. A new index is proposed based exclusively on the redistributional component of poverty-gap changes obtained through an exact decomposition. It is then shown that this component measures how pro-poor growth is over a given period based on the above mentioned definition. The paper further presents several indicators for evaluating and monitoring the ‘pro-poorness’ of growth over time and concludes with an empirical illustration for the case of Honduras.
Publisher:
UNU-WIDER
Series:
WIDER Working Paper
Volume:
2010/47
Title:
WP/47 Concepts and Operationalization of Pro-Poor Growth
Authors:
Mario Negre
Publication date:
May 2010
ISBN 13 Web:
978-92-9230-284-9
Copyright holder:
© UNU-WIDER
Copyright year:
2010
Keywords:
pro-poor, growth, income, inequality, poverty decomposition, Honduras
JEL:
C16, D31, D63, I32, O15, O54
Project:
Promoting Entrepreneurial Capacity
Sponsor:
UNU-WIDER acknowledges the financial contributions to the research programme by the governments of Denmark (Royal Ministry of Foreign Affairs), Finland (Ministry for Foreign Affairs), Sweden (Swedish International Development Cooperation Agency—Sida) and the United Kingdom (Department for International Development).
Format:
online and printed copies
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