Pro-Poor Growth and the Poorest

Abstract

This paper examines the relationship of the poorest with growth (absolute sense), and whether or not the relationship the very poorest people have with growth is different from that for the poor as a whole (relative). Impacts of economic growth on the poorest are routed through direct channels (raising their production or income levels) and indirect channels (due to increased public spending or remittances). However, benefits are not guaranteed to all people, and in some cases the impact of growth on the poorest may be adverse. The paper begins the process of assembling data on this relationship and unpacking some explanation for patterns.