Notes from fostering pro poor growth
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Notes from “Fostering Pro-Poor Growth”. Sarfraz Khan Qureshi Director, Innovative Development Strategies. Fosu: Determinants of Pro-Poor Growth. Inequality reduction is crucial to poverty reduction Should strive to find policies that are growth promoting and inequality reducing

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Notes from “Fostering Pro-Poor Growth”

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Notes from “Fostering Pro-Poor Growth”

Sarfraz Khan Qureshi

Director, Innovative Development Strategies

Fosu: Determinants of Pro-Poor Growth

  • Inequality reduction is crucial to poverty reduction

    • Should strive to find policies that are growth promoting and inequality reducing

  • One potential type of policy-- policies that encourage growth in sub-sectors with high output elasticities with respect to employment

Huang- Rural Poverty Reduction and Determinants of Pro-Poor Growth

  • Studies the major driving forces behind massive poverty reduction in China

  • Finds negative association between the change in poverty incidence and change in agricultural output (over time)

    • Economic growth also essential

Diaz-Bonilla: Global Macroeconomy Developments: Implications for Poverty

  • Quality of growth is affected by world variables

  • Cycles and Trends can affect growth

    • Current cycle seems to be ending

    • Developing countries should be prepared for down cycle

  • Trend: Need to be aware that economic growth will continue to require (scarce) energy resources

Ahmed: Fiscal Policy Instruments and Political Economy of Designing Programs for the Poorest

  • Need a more subtle view of governance

    • Local officials may not have incentives to implement central “programs”

  • Taxation, when centralized, can redistribute, but…

    • If not centralized, poor areas lack resources to meet poverty spending

  • Transfers-- central government can lack monitoring ability over local regions

Keyzer-- Cost of Achieving MDG1

  • Declaration of MDG 1 missed a lot of potential costs in goals

    • Overlooked malaria, leprosy, infrastructure, supply side on education/health improvements

    • Assumed constant wages for teachers, etc.

  • Data basis for some MDG indicators unclear or wrong (FAO data vs. DHS)

  • Ignores lessons from Asia

Q&A: Highlights

  • Left off the table-- higher agricultural productivity as a source of poverty reduction

    • More subtle knowledge necessary for productivity improvements in Sub-Sarahan Africa than Asia

  • Should migration be more of an instrument for growth?

Q&A: More highlights

  • Fostering pro-poor growth-- discussion failed to mention role of women-- and could be a disaster if migration is promoted

    • However, migration is largely female in some countries (e.g. Philippines)

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