Abstract

The paper analyzes the theory and construction of four indicators of pro-poor growth and applies them to Bangladesh over two time periods, 2000-2005 and 2005-2010. The following indicators were used: pro-poor growth index (Kakwani and Pernia, 2000), poverty equivalent growth rate (Kakwani and Son, 2008), poverty growth curve (Son, 2004), and the rate of pro-poor growth (Ravallion and Chen, 2003). Applied to Bangladesh, the results of the four indicators mostly point in the same direction. While the conditions for the pro-poor growth in the strict (relative) sense were rarely met, all the indicators suggest there was a certain degree of pro-poor element in the growth process. However, there were noticeable differences between the two periods. In the first period, the growth led to a faster reduction in absolute poverty while inequality increased, whereas in the second period the poor benefited relatively more from growth but the reduction of poverty was less pronounced (since the growth in the mean income was lower in the second period). The results also show that the relatively richer part of the poor population (those not far below the poverty line) benefited more from the growth process than the poorest of the poor.

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