Tuesday, May 27, 2008

Economic growth

The anti-poverty strategy of the World Bank depends heavily on reducing poverty through the promotion of economic growth. The World Bank argues that an overview of many studies shows that:
Growth is fundamental for poverty reduction, and in principle growth as such does not affect inequality.
Growth accompanied by progressive distributional change is better than growth alone.
High initial income inequality is a brake on poverty reduction.
Poverty itself is also likely to be a barrier for poverty reduction; and wealth inequality seems to predict lower future growth rates.