scholarly journals POVERTY AND ECONOMIC GROWTH: A REVIEW

2016 ◽  
Vol 22 (1) ◽  
pp. 156-175 ◽  
Author(s):  
Marinko ŠKARE ◽  
Romina PRŽIKLAS DRUŽETA
Keyword(s):  
Economic Growth ◽  
Poverty Reduction ◽  
Relevant Literature ◽  
Causal Link ◽  
Poor Growth ◽  
Research Issues ◽  
The Poor ◽  
The Rich ◽  
Similar Growth

The objective of this paper is to review and attempt a synthesis of the relevant literature on growth versus poverty, and to analyze the causal link between the two phenomena. Research issues that drive our study are: Does economic growth tend to “raise all boats” as Kuznets (1955) pointed out? What is the role of the pattern of growth in the process of development? Which factor must we consider in designing appropriate pro-poor growth policies? This paper finds considerable variation in the poverty–reducing effectiveness of growth across time and authors. Also, our analysis speaks in favour of the fact that as growth occurs poverty reduces, no matter the level of inequality. Identically, similar growth pattern has different effects on poverty reduction. We conclude that growth is good for poverty alleviation but it is not enough. The extent to which growth reduces poverty depends upon how we measure poverty, and upon absorptive capacity of the poor, the pace and pattern of growth. In times when the rich are getting richer and the poor are getting poorer, “trickle-down” effect becomes a scenario that need to be reviewed.

scholarly journals Pro-poor Growth: Concepts and Measurement with Country Case Studies (Distinguished Lecture)

2003 ◽  
Vol 42 (4I) ◽  
pp. 417-444 ◽  
Author(s):  
Nanak Kakwani ◽  
Hyun H. Son
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
Poverty Reduction ◽  
Poor Growth ◽  
The Poor ◽  
Actual Growth Rate ◽  
Actual Growth ◽  
The Republic ◽  
Increasing Function ◽  
Proportional Reduction

This paper looks into the interrelation between economic growth, inequality, and poverty. Using the notion of pro-poor growth, we examine the extent to which the poor benefit from economic growth. First, various approaches to defining and measuring propoor growth are scrutinised using a variety of criteria. It is argued that the satisfaction of a monotonicity axiom is a key criterion for measuring pro-poor growth. The monotonicity axiom sets out a condition that the proportional reduction in poverty is a monotonically increasing function of the pro-poor growth measure. The paper proposes a pro-poor growth measure that satisfies the monotonicity criterion. This measure is called a ‘poverty equivalent growth rate’, which takes into account both the magnitude of growth and how the benefits of growth are distributed to the poor and the non-poor. As the new measure satisfies the criterion of monotonicity, it is indicative that to achieve rapid poverty reduction, the poverty equivalent growth rate—rather than the actual growth rate—ought to be maximised. The methodology developed in the paper is then applied to three Asian countries, namely, the Republic of Korea, Thailand, and Vietnam.

scholarly journals Making Business Work for Development: Issues for Small to Medium Enterprises

2021 ◽  
Author(s):  
◽  
Paul Thompson
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Poverty Alleviation ◽  
Global Economy ◽  
Poverty Reduction ◽  
Significant Proportion ◽  
Global Market ◽  
The Poor ◽  
The Rich ◽  
Medium Enterprises

<p>This thesis examines the question of whether business can be made to work for development. Can the standards that are used to measure development projects be applied to the outcomes of business ventures in developing countries? Proponents of neoliberal economic globalisation claim that economic growth is, by definition, good for the poor, and that the opening of global markets gives unprecedented opportunities for poverty reduction. 'Aid for Trade' is now a significant proportion of ODA funding. This is aid that is directed at assisting developing countries to be able to enter the global market. The claim is that the removal of trade barriers and the facilitation of smooth trade processes will be the key to achieving the MDG targets for poverty alleviation. Literature however suggests that such claims are much exaggerated, and that the global market does not automatically work to benefit the poor. Even where good rates of growth are achieved in a country, the poor are left behind, with widening income gaps between the rich and poor. This thesis examines these issues before investigating the concept of 'pro-poor business'. Economic growth can be structured to have positive benefits for the poor. It does not happen automatically, but it can be intentionally built into economic growth structures. There are some basic and fairly simple steps which all business could adopt to assist in poverty alleviation. Beyond this there are business ventures that are proactive in targeting the needs of poor communities. The thesis looks at case studies of six businesses started by expatriate entrepreneurs in six Asian countries. The businesses are investigated by a qualitative study that uses an emailed questionnaire followed up by further email and phone discussions. The businesses have been chosen to illustrate the possibilities over a range of types and sizes of business, and the degree to which they are intentional in targeting specific poverty issues. The businesses are asked questions both about their business structures and also about the extent to which they achieve development oriented goals. Issues faced by the businesses in this melding of business and development concerns are examined. The conclusion is that there are opportunities arising from globalisation that can be taken and shaped to enable the poor to become participants in the global economy.</p>

The Politics of Poverty

Social Change ◽  
2019 ◽  
Vol 49 (2) ◽  
pp. 232-240
Author(s):  
Digvijay Kumar
Keyword(s):  
Economic Growth ◽  
Poverty Reduction ◽  
Poverty Line ◽  
Poverty Rate ◽  
Social Dimensions ◽  
Welfare Policies ◽  
The Poor ◽  
The Social ◽  
The Rich ◽  
Poverty Levels

The reduction in the official poverty rate seen in relation with increasing morbidity status, a mammoth income gap between the rich and the poor, ambiguous methodology followed to calculate Below Poverty Line Census and government policies on poverty reduction tends to question the whole poverty line debate. The official commitment to higher economic growth may reflect booming economic growth but it also has led to a large gap between the rich and the poor in both regional and social dimensions. To look into the causes and ameliorate poverty levels, various committees and policies have identified poverty levels. Using different criteria and methods, they still have failed to look at the social and political aspects. It is politics that has engulfed the whole discourse over universalisation of social welfare policies as some sort of justification behind the nation’s fiscal deficit and subsidy constraint-related questions.

scholarly journals Making Business Work for Development: Issues for Small to Medium Enterprises

2021 ◽  
Author(s):  
◽  
Paul Thompson
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Poverty Alleviation ◽  
Global Economy ◽  
Poverty Reduction ◽  
Significant Proportion ◽  
Global Market ◽  
The Poor ◽  
The Rich ◽  
Medium Enterprises

<p>This thesis examines the question of whether business can be made to work for development. Can the standards that are used to measure development projects be applied to the outcomes of business ventures in developing countries? Proponents of neoliberal economic globalisation claim that economic growth is, by definition, good for the poor, and that the opening of global markets gives unprecedented opportunities for poverty reduction. 'Aid for Trade' is now a significant proportion of ODA funding. This is aid that is directed at assisting developing countries to be able to enter the global market. The claim is that the removal of trade barriers and the facilitation of smooth trade processes will be the key to achieving the MDG targets for poverty alleviation. Literature however suggests that such claims are much exaggerated, and that the global market does not automatically work to benefit the poor. Even where good rates of growth are achieved in a country, the poor are left behind, with widening income gaps between the rich and poor. This thesis examines these issues before investigating the concept of 'pro-poor business'. Economic growth can be structured to have positive benefits for the poor. It does not happen automatically, but it can be intentionally built into economic growth structures. There are some basic and fairly simple steps which all business could adopt to assist in poverty alleviation. Beyond this there are business ventures that are proactive in targeting the needs of poor communities. The thesis looks at case studies of six businesses started by expatriate entrepreneurs in six Asian countries. The businesses are investigated by a qualitative study that uses an emailed questionnaire followed up by further email and phone discussions. The businesses have been chosen to illustrate the possibilities over a range of types and sizes of business, and the degree to which they are intentional in targeting specific poverty issues. The businesses are asked questions both about their business structures and also about the extent to which they achieve development oriented goals. Issues faced by the businesses in this melding of business and development concerns are examined. The conclusion is that there are opportunities arising from globalisation that can be taken and shaped to enable the poor to become participants in the global economy.</p>

Generating Prosperity for Working Families in Affluent Countries

2018 ◽  
Keyword(s):  
Economic Growth ◽  
Real Income ◽  
Living Standards ◽  
Financial Strain ◽  
Inclusive Growth ◽  
Working Families ◽  
The Rich ◽  
Rich Countries ◽  
Analysis Of Performance

This book addresses the central challenge facing rich countries: how to ensure that ordinary working families see their living standards and the prospects for their children improve rather than stagnate over time. It presents the findings from a comprehensive analysis of performance over recent decades across the rich countries of the OECD, in terms of real income growth around and below the middle. It relates this performance to overall economic growth, exploring why these often diverge substantially, and to the different models of capitalism or economic growth embedded in different countries. In-depth comparative and UK-focused analyses also focus on wages and the labour market and on the role of redistribution. Going beyond income, other indicators and aspects of living standards are also incorporated including non-monetary indicators of deprivation and financial strain, wealth and its distribution, and intergenerational mobility. By looking across this broad canvas, the book teases out how ordinary households have fared in recent decades in these critically important respects, and how that should inform the quest for inclusive growth and prosperity.

The Role of Education and Technology Adaptation in Poverty Reduction in Indonesia

2021 ◽  
Vol 1 (1) ◽  
pp. 124-127
Author(s):  
Novi Firmawati ◽  
◽  
Budi Sasongko
Keyword(s):  
Economic Growth ◽  
Poverty Alleviation ◽  
Poverty Reduction ◽  
Moving Average ◽  
Negative Relationship ◽  
Secondary Data ◽  
Technological Adaptation ◽  
Education Investment ◽  
The People

This study examines the role of education in improving technology adoption as reflected in technology inclusion, poverty alleviation and efforts to increase community income which is reflected in economic growth. This study uses secondary data from world banks and processed regression using the moving average autoregression method. We found that education investment and technology inclusion were positively related to economic growth. And,negatively related to probability. This indicates that education plays a role in encouraging technological inclusion which reflects technological adaptation and encourages economic growth which is an indicator of the prosperity of the people in Indonesia which is strengthened by a negative relationship with poverty which indicates that education plays an important role in poverty alleviation

scholarly journals THE RICH AND THE POOR IN A SIMPLE MODEL OF GROWTH AND DISTRIBUTION

2016 ◽  
Vol 20 (7) ◽  
pp. 1934-1952 ◽  
Author(s):  
Kirill Borissov
Keyword(s):  
Economic Growth ◽  
Steady State ◽  
Simple Model ◽  
Disposable Income ◽  
State Equilibrium ◽  
Positional Concerns ◽  
The Poor ◽  
The Rich ◽  
Intertemporal Equilibrium ◽  
Unique Steady State

We consider a model of economic growth with altruistic agents who care about their consumption and the disposable income of their offspring. The agents' consumption and the offspring's disposable income are subject to positional concerns. We show that, if the measure of consumption-related positional concerns is sufficiently low and/or the measure of offspring-related positional concerns is sufficiently high, then there is a unique steady-state equilibrium, which is characterized by perfect income and wealth equality, and all intertemporal equilibira converge to it. Otherwise, in steady-state equilibria, the population splits into two classes, the rich and the poor; under this scenario, in any intertemporal equilibrium, all capital is eventually owned by the households that were the wealthiest from the outset and all other households become poor.

scholarly journals Spatial Dimensions of Economic Growth, Redistribution, and Poverty Reduction During the Yudhoyono Period in Indonesia

2020 ◽  
Vol 2 (1) ◽  
Author(s):  
Witri Mukti Aji
Keyword(s):  
Economic Growth ◽  
Regional Differences ◽  
Decomposition Method ◽  
Poverty Reduction ◽  
Growth Index ◽  
Growth Indices ◽  
Poor Growth ◽  
Household Expenditures ◽  
Spatial Dimensions ◽  
Capital Development

This research explores the spatial dimensions of economic growth, redistribution, and poverty reduction in Indonesia during the Susilo Bambang Yudhoyono period (i.e., from 2004 to 2014) using the poverty decomposition method, the growth incidence curve, and several pro-poor growth indices. I gathered my data from the annual National Socio-economic Surveys conducted in Indonesia between 2004 and 2014. Analyzing this data, my thesis presents three key economic insights about the Susilo Bambang Yudhoyono period:1) poverty incidence significantly declined between 2004 and 2014, 2) the economic growth that occurred during this period was generally not pro-poor, made evident by an upward sloping growth incidence curve, and 3) regional differences exist in the shape of the growth incidence curve; the pro-poorness of economic growth therefore varies between provinces. Using the classification system proposed by Kakwani and Pernia (2000), I classify provinces into the following five groups with respect to their pro-poor growth index (PPGI). Our empirical results support the pro-poor growth in a nation. However, some provinces such as North Maluku, Gorontalo and Bengkulu experienced non-pro-poor growth and weakly pro-poor. To promote the pro-poor growth in all provinces, the governmental supports in infrastructure and human capital development are essential for the above lagged provinces. Keywords: Household Expenditures; Economic Growth; Redistribution; Poverty Reduction; Spatial Dimensions; Inequality; Poverty Decomposition Method; Growth Incidence Curve; Pro-Poor Growth Indices.

scholarly journals Where does Pro-Poor Growth Occur in Vietnam?

2015 ◽  
Vol 22 (1) ◽  
pp. 20-41
Author(s):  
Bao Nguyen Hoang
Keyword(s):  
Economic Growth ◽  
Gini Coefficient ◽  
Poverty Alleviation ◽  
Poverty Reduction ◽  
Equation System ◽  
Simultaneous Equation ◽  
Poverty Index ◽  
Poor Growth ◽  
Simultaneous Equation System ◽  
The Impact

Although Vietnam’s economic growth and poverty reduction for almost three decades have been remarkable, growth for poverty reduction is unequally distributed across the nation. The paper examines the cause of poverty and the impact of provincial economic growth on poverty alleviation, using the data of 63 provinces in Vietnam. The elasticity of poverty with respect to provincial economic growth is employed (the elasticities of headcount index, poverty gap index, and squared poverty index with respect to provincial economic growth) to identify the provinces where pro-poor growth has occurred. The elasticity of poverty with respect to provincial Gini coefficient is examined to identify the impact of expenditure inequality on poverty. The simultaneous equation system is estimated to analyze not only direct and indirect effects of the related variables, but also the causality effect between economic growth and the poverty elasticity with respect to both growth and the Gini coefficient.

Role of Institutional Governance in Protecting the Natural Environment

2020 ◽  
pp. 359-375
Author(s):  
K. K. Yadav ◽  
Kumud Dhanwantri
Keyword(s):  
Local Communities ◽  
State Governments ◽  
National Capital Region ◽  
Institutional Governance ◽  
The Poor ◽  
National Capital ◽  
The Rich ◽  
Insight Into

In the present age of industrialization and unregulated urbanization, the Aravali ranges in India are facing deforestation and degradation. The major reasons behind this are the needs of the poor, and greed of the rich. Therefore, part of the Aravalli Ranges falling in different sub-regions of the National Capital Region, has been taken as case study. The chapter intends to provide an insight into the scenario of forests and wildlife in the sub-regions; the challenges, responses, and immediate initiatives taken up by the constituent state governments. It also discusses ways forward to engage the governments and local communities in the protection of forests and wildlife. The conclusion strives to provide probable strategies that can be adopted to transform the transitions of Aravalli into a positive one and ways for engaging government machinery for better governance to escape the grim future we foresee.

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