Growth and inequality at the micro scale: an empirical analysis of farm incomes within smallholder irrigation systems in Zimbabwe, Tanzania and Mozambique

Abstract

ABSTRACT The mechanisms linking growth and inequality are critical for poverty reduction, yet they remain poorly understood at the micro level, as current knowledge is dominated by country-wide studies. This article evaluates farm income growth and changes in inequality among five smallholder irrigation communities in Mozambique, Tanzania and Zimbabwe. Over the period of study, the poorest sections of the population became better-off. Over an income growth spell, at low levels of growth, relative inequality increases, but it starts to drop as growth rises beyond a certain rate. Thus, careful design is required to ensure that pro-growth strategies also become inequality-reducing.