United Nations Development Programme

International Poverty Centre



Pro-Poor Growth Policies

One of three priority areas of IPC is to provide developing countries with policy advice and technical assistance to understand the nature and requirements for pro-poor growth as well as the policies that best promote it.

Objectives
Activities
Resources


Objectives

In recent years, many countries have approached UNDP for technical support and advisory services to assist them in better balancing national economic objectives with the deepening of pro-poor policies.

This has been true even in countries that have developed Poverty Reduction Strategy Papers (PRSPs) in response to the initiative launched by the World Bank and International Monetary Fund that links access to debt relief or concessional lending to the design of national pro-poor policy frameworks.

Independent assessments of the process have shown that most nations implementing PRSPs have not adequately reconfigured their macroeconomic policies to create the conditions required for rapid and sustained poverty reduction. General criticisms have suggested the PRSP timeline is too short and that the policy thrust still is too embedded in conventional fiscal and monetary concerns to favor human development goals.

IPC aims to enhance country capacities in designing and implementing effective policy frameworks that support pro-poor growth by encouraging the generation and dissemination of knowledge on the impacts of different policy interventions on poverty and inequality. It will also work to share country experiences where national capacities (institutional, research, political etc.) have been developed to analyze the linkages and policy options for ensuring a scenario of sustained growth with increased equity and declining poverty.

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Activities

To promote pro-poor growth policies, a major focus of IPC activities will be to enhance the coherence between macroeconomic, sectoral, and social policy regimes at the country-level by examining their distributive impacts among social groups.

Specific centre programs will be targeted at:


Assessing the effect of macroeconomic and sectoral policies to reduce poverty and inequality.

Assisting governments, civil society organizations, and national policy institutes to conduct research on the domestic determinants of poverty and inequality.

Providing technical assistance to country statistic agencies in calculating and establishing national poverty lines for the evaluation of pro-poor policies.

Analyzing the effects of trade and capital account liberalization and export-led economic strategies on national levels of employment, poverty, and inequality.

Assessing the effects of labor market policies and outcomes on poverty and inequality.

Building the institutional capacity of government ministries to coordinate macroeconomic and sectoral policy regimes that promote poverty reduction objectives (vis-à-vis PRSPs, Medium Term Expenditure Frameworks etc).

Supporting national research networks to ensure timely inputs are given to governments for the design of appropriate pro-poor growth policies.

Connecting developing countries with advisory services from recognized think tanks and specialists that offer policy recommendations from a human development perspective.

Strengthening the ability of senior policymakers to negotiate the content and sequencing of policy reforms with their multilateral partners to ensure a policy package for pro-poor growth.

The centre will give special priority to activities that provide opportunities for comparative policy analysis among the experiences of several developing countries.

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Resources

Recognized research centers and think tanks can be found both in the North and South that are pushing the policy debate on pro-poor growth. These include CGD (USA), HSRC (South Africa), IDSJ (India), IETS (Brazil), ODI (United Kingdom) and REPOA (Tanzania), among many others.

Some organizations - such as the Bretton Woods Project, Oxfam, the PRSP Monitoring and Synthesis Project, and the Third World Network - have both international reach and global backing. Others are region-specific, including AFRODAD (Sub-Saharan Africa), EURODAD (Africa and Latin America), and the Economic Research Forum (Middle East and North Africa).

Click here for a list of additional links on this topic.

As a contribution to advancing knowledge about designing pro-poor growth policies, IPC will post and constantly update recently released publications for public access through its website.

Among recent works on this topic are:


"The Macroeconomics of Transition: The Comparative Experience of Seven Transition Economies." Terry McKinley. UNDP. March 2004. Part I and Part II.

"Growth and Poverty Reduction in Ethiopia: Evidence from Household Panel Surveys."
Arne Bigsten, Bereket Kebede, Abebe Shimeles, and Mekonnen Taddesse. World Development. Vol. 31. No. 1. 2003.

"The Macroeconomics of Poverty Reduction in the Asia and Pacific Region." Terry McKinley, UNDP. August 2003.

"Exploring the Employment Nexus: Topics in Employment and Poverty."
S.R. Osmani. ILO and UNDP. June 2003.

"Pro-poor Growth Strategies in Africa: Pro-poor education policies and labour demand."
Aissatou Gueye and Adrian Gauci. UNECA and EPRC. June 2003.

"Failing Women, Sustaining Poverty: Gender in Poverty Reduction Strategy Papers."
Anne Whitehead. Report for the UK Gender and Development Network. Christian Aid. May 2003.

"Poverty Equivalent Growth Rate: With Applications to Korea and Thailand."
Nanak Kakwani, Hyun H. Son and Shahidur Khandker. Paper presented at "Inequality, Poverty and Human Well-being" conference. WIDER. May 30-31, 2003.

"Foreign Direct Investment and Income Inequality in Latin America."
Dirk Willem te Velde. ODI. April 2003.

"Children First in the Poverty Battle: A Review of Poverty Reduction Strategy Papers in the Southern African Region from a Child Rights Perspective."
Shirley Robinson. Save the Children. March 2003.

"Managing Public Expenditure for Development Results and Poverty Reduction."
John Roberts. Overseas Development Institute. February 2003.

"Reducing Poverty: Is the World Bank's Strategy Working?"
Panos Institute. 2002.

Click here for a list of additional works on this topic.

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