keteka
Senior Member
- May 12, 2013
- 149
- 52
DR. WEBIRO LUCAS WEBIRO :- STATEMENT ON WHY ECONOMIC GROWTH IS IMPORTANT FOR POVERTY REDUCATION.
Economic growth appears to be one of the best ways to reduce poverty. The poor do better in countries that grow quickly, even if income distribution deteriorates slightly.
The redistribution income at the expense of economic growth may have very low payoffs in terms of poverty reduction. While the evidence suggests that countries with more equal income distributions grow more quickly, the evidence also indicates that economic policy can compensate for inferior initial income distributions.
That more outwardly oriented countries grow more quickly, leading to greater poverty alleviation. While it is quite difficult statistically to separate the effects of poverty on openness from those of economic growth the poor fare better in open economies.
This effect does depend on economic structure and in those countries with more resource-intensive economies where wealth can be more concentrated, governments will have to make a determined effort to distribute the benefits of growth more widely, and should have the resources to do so.
Thus there is every reason to believe that economic growth reduces poverty. There is little evidence to support the contention that economic growth and outward-oriented policies will hurt the poor. Countries with higher rates of economic growth over the last 30 years have achieved greater reductions in poverty.
Economic growth appears to be one of the best ways to reduce poverty. The poor do better in countries that grow quickly, even if income distribution deteriorates slightly.
The redistribution income at the expense of economic growth may have very low payoffs in terms of poverty reduction. While the evidence suggests that countries with more equal income distributions grow more quickly, the evidence also indicates that economic policy can compensate for inferior initial income distributions.
That more outwardly oriented countries grow more quickly, leading to greater poverty alleviation. While it is quite difficult statistically to separate the effects of poverty on openness from those of economic growth the poor fare better in open economies.
This effect does depend on economic structure and in those countries with more resource-intensive economies where wealth can be more concentrated, governments will have to make a determined effort to distribute the benefits of growth more widely, and should have the resources to do so.
Thus there is every reason to believe that economic growth reduces poverty. There is little evidence to support the contention that economic growth and outward-oriented policies will hurt the poor. Countries with higher rates of economic growth over the last 30 years have achieved greater reductions in poverty.
