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The private sector, after shifting fortunes in development theory and practice over the years, is now widely recognised as the key to economic growth, which itself is indispensable for poverty reduction. The Development Studies Association (DSA) Annual Conference in 2006 brought together academics, private sector actors, NGOs and policy makers to share insights and experiences on how this vital contribution to growth, development and poverty reduction can be realised. This paper summarises the main themes and discussions of the conference and introduces the papers selected for inclusion in this conference issue. Copyright © 2007 John Wiley & Sons, Ltd. [ABSTRACT FROM AUTHOR]

This paper examines the factors explaining the sustained fall in poverty experienced in Kazakhstan in the period 2001-2009. It examines the contribution of economic growth and redistribution policies to poverty reduction through an analysis of household survey data. It finds that growth has been strongly pro-poor. Growth was the main driver behind the fall in poverty in the first half of the decade, but redistribution gained in importance in the latter part of the decade. Copyright © 2017 John Wiley & Sons, Ltd. [ABSTRACT FROM AUTHOR]

The paper examines the pattern of poverty, growth and inequality in Ethiopia in the recent decade. The result shows that growth, to a large extent depends on structural factors such as initial conditions, vagaries of nature, external shocks and peace and stability both in Ethiopia and in the region. Using a rich household panel data, the paper also shows that there is a strong correlation between growth and inequality. In such set up, the effect of implementing a pro-poor growth strategy, compared to allowing the status quo to prevail, can be quite dramatic. On the basis of realistic assumptions, the paper shows that from a baseline in 2000 of a 30 per cent poverty share, over 10 years at growth of 4 per cent per capita, poverty would decline from 44 to 26 per cent for distribution neutral growth (DNG) (i.e. no change in the aggregate income distribution). In contrast, were the growth increment distributed equally across percentiles (equally distributed gains of growth, EDG), the poverty would decline by over half, to 15 per cent, a difference of almost eleven percentage points. Thus, ‘distribution matters’, even, or especially in a poor country like Ethiopia. On the basis of these results the paper outlines policies that could help to design a sustainable pro-poor growth strategy. Copyright © 2008 John Wiley & Sons, Ltd. [ABSTRACT FROM AUTHOR]

Who benefits from economic growth? This paper analyses the distributional impact of different types of growth within a two-sector model. The paper first presents necessary and sufficient conditions for unambiguous changes in wage inequality in a dual economy, based on analysis of the entire Lorenz curve. These conditions are then applied to the Harris–Todaro model with an urban non-agricultural sector and rural agriculture. It is shown that capital accumulation or technical progress in agriculture can shift the Lorenz curve inwards and reduce wage inequality, while the effects of development in non-agriculture are typically ambiguous. [ABSTRACT FROM AUTHOR]

According to most classifications, Sub‐Saharan Africa is the region of the world with the highest presence of fragile states. In this paper we examine the relationship between fragility and poverty, suggesting that countries may become trapped in a vicious circle of fragility and low levels of wellbeing. We consider fragility as a continuum and begin by reviewing available measures. These show the high presence of fragility in Sub‐Saharan Africa and allow the more fragile countries to be identified. There is seen to be a strong association between fragility, poor growth performance, and lower wellbeing in Sub‐Saharan Africa. Building on the strong evidence for the two‐way relationship between economic growth and poverty, we present an analysis of how the vicious circle linking poorer welfare outcomes and fragility may be able to be broken. We argue that building successful institutions is key here, and this can be enabled by specific policy interventions that are both poverty reducing and productive. [ABSTRACT FROM AUTHOR]

An income growth pattern is pro-poor if it reduces a (chosen) measure of poverty by more than if all incomes were growing equiproportionately. Inequality reduction is not sufficient for pro-poorness. In this paper, we explore the nexus between pro-poorness, growth, and inequality in some detail using simulations involving the displaced lognormal, Singh- Maddala, and Dagum distributions. For empirically relevant parameter estimates, distributional change preserving the functional form of each of these three-parameter distributions is often either pro-poor and inequality reducing, or pro-rich and inequality exacerbating, but it is also possible for pro-rich growth to be inequality reducing. There is some capacity for each of these distributions to show trickle effects (weak pro-richness) along with inequality-reducing growth, but virtually no possibility of pro-poorness for growth which increases overall inequality. Implications are considered. [ABSTRACT FROM AUTHOR]

If development assistance targeted at specific sectors is not used as intended, aid is said to be fungible. While fungible aid is in general perceived as being less effective than aid used as specified, this has not been formally tested. This paper attempts at filling this gap and hence, tries to assess to what extent fungibility is something donors should be concerned about. Country-specific estimates of fungibility are obtained for 57 aid-recipient countries, suggesting that sectoral aid is indeed fungible on average. These estimates are then incorporated into an empirical model of aid and economic growth. I do not find any evidence of non-fungible sectoral aid working better than fungible aid. Then, I focus on sectoral aid to ‘pro-poor’ government expenditure sectors to assess the effect on infant mortality. While the results indicate that non-fungible aid is welfare improving, this is not robust to small changes in the specification. My results suggest that the concept of fungibility may be too narrow and should possibly not be the most central concern when aid is debated or given. Copyright © 2007 John Wiley & Sons, Ltd. [ABSTRACT FROM AUTHOR]

This paper decomposes changes in poverty into growth and redistribution components and employs several pro-poor growth concepts to explore the growth, poverty and inequality nexus in Sri Lanka over the period 1990-2010. We find a 'trickle-down' situation, in which the poor have received proportionately less benefits from growth than the non-poor. All pro-poor measures suggest that economic growth in Sri Lanka was particularly beneficial for those located at the top of the distribution. Regression-based decompositions suggest that variation in expenditure by education characteristics that persist after controlling for other factors to account for around two-fifths of total household expenditure inequality. Copyright © 2015 John Wiley & Sons, Ltd. [ABSTRACT FROM AUTHOR]

This article studies the distribution of well-being and, specifically, the degree of poverty and deprivation in Albania, in the years 2002 and 2005, using Living Standard Measurement Surveys ( LSMS). The distribution analysis is performed by applying both one-dimensional and multidimensional approaches, in particular to better examine the link between economic growth, inequality and poverty in Albania. Furthermore, by estimating a non-monetary indicator, as proposed by Bossert et al. (), and a nonlinear principal component model together with a probit model, the paper focuses on the multidimensional measures of poverty to address the relationship between poverty and socio-economic factors. Our evidence shows that absolute poverty decreased from 2002 to 2005 while national relative poverty increased; economic growth reduced poverty in Albania over the observed period; and living in rural and mountain areas, being female, poorly educated and with a large family increased the probability of suffering from deprivation. [ABSTRACT FROM AUTHOR]

This paper analyses poverty and calorific undernourishment in the Indian state of Gujarat, where high and market-led industrial growth has resulted in rapid economic improvement. The study is carried out through a combination of secondary and survey-based data. We conclude that the neoliberal agenda of uncontrolled, outward-looking growth has not resulted in significant reduction of poverty or malnourishment in rural areas. Furthermore, while land ownership is officially used as a proxy for wealth distribution, class position appears a better predictor of poverty status in the rural areas than landownership per se. At the policy level, there is a need to revive the agrarian economy and create new non-agricultural assets, and the primary focus in the state must shift to the distribution of created assets rather than a single-minded focus on growth. [ABSTRACT FROM AUTHOR]

By comparison with most African countries, post-apartheid South Africa appears to be characterised by growth-oriented cooperation between state and business. Economic growth has remained weak, however, and income poverty persists as the economy continues down an inegalitarian growth path that fails to reduce unemployment and thus has little effect on poverty. This paper argues that the appearance of close state-business relations is misleading: selectively pro-market public policies have not reflected a pro-business orientation on the part of the state. The governing African National Congress concurred with established business on the need for increased productivity and selective state interventions in a mixed economy. But most of the political elite overestimated the commandist powers of the state in the short-term, viewed established South African business with deep suspicion if not hostility, and was unwilling to deliberate or negotiate on distributional issues in either formal bilateral or corporatist institutions, or even informally. The state sought to discipline and transform business, not work with it. Unable to sustain an active growth coalition, a pro-poor, developmental coalition was far out of reach. The politics of the governing party precluded substantive concessions on labour market regulation and pushed it towards ever more interventionist 'black economic empowerment' policies. The result was that economic growth remained modest, and of little benefit to the poor. Copyright © 2011 John Wiley & Sons, Ltd. [ABSTRACT FROM AUTHOR]

Thinking on economic policy for development has undergone many shifts in response to the perceived weak results of earlier adjustment reforms. A new donor consensus has emerged based around the central themes of economic growth, good governance and social development. This article examines the logic behind this new aid paradigm, revealing a nuanced story with country circumstances playing a critical role and particular interventions varying in impact. For example, growth does not always lead to gains for the poor that match the national average; public expenditure needs to be targeted to achieve social development, but effective targeting is difficult; governance reform may be critical but there is no simple governance blueprint, and the corruption-growth association need not always be negative. [ABSTRACT FROM AUTHOR]

We provide a comprehensive approach for analyzing the evolution of poverty using Mozambique as a case study. Bringing together data from disparate sources, we develop a novel “back-casting” framework that links a dynamic computable general equilibrium model to a micro-simulation poverty module. This framework provides a new approach to explaining and decomposing the evolution of poverty, as well as to examining rigorously the coherence between poverty, economic growth, and inequality outcomes. Finally, various simple but useful and rarely-applied approaches to considering regional changes in poverty rates are presented. [ABSTRACT FROM AUTHOR]

Yemen is an oil-exporting and food-importing country with the highest levels of poverty in the Middle East and North Africa. The impacts of the triple crisis are likely to further complicate pre-existing conditions of conflict, oil depletion and governance failure. Using a dynamic CGE model, this article finds that oil-driven growth in 2008 dominated the negative growth impacts of the food crisis, but that growth was not pro-poor. The financial crisis of 2009 slowed growth sharply and raised the poverty rate to 42.8%, up from 34.8% in 2005/6. Poverty continues to be higher in rural areas, where almost half the population live in poverty. [ABSTRACT FROM AUTHOR]