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Pro-poor SustainedPro-poor SustainedEconomic Growth Policies:Economic Growth Policies:Asia-Pacific PerspectivesAsia-Pacific Perspectives
ByByKim Hak-SuKim Hak-Su
UN Under-Secretary-General UN Under-Secretary-General &&
Executive Secretary of ESCAPExecutive Secretary of ESCAP
High-level Dialogue of theHigh-level Dialogue of theExecutive Secretaries with ECOSOCExecutive Secretaries with ECOSOC
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OVERVIEWOVERVIEW
Poverty & growth
How macroeconomic policies affect growth
Achieving pro-poor growth: policy recommendations
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RAPID POVERTY REDUCTION:RAPID POVERTY REDUCTION:HIGH & SUSTAINED GROWTH NEEDEDHIGH & SUSTAINED GROWTH NEEDED
Growth rates & poverty levels
Average annual GDP
growth
Population below $1
poverty line (%)(1993-2002) 1993 2002
China 9.7 28.4 16.6
Viet Nam
7.3 14.6 2.2
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MACROECONOMIC POLICIES, MACROECONOMIC POLICIES, GROWTH & EQUITYGROWTH & EQUITY
Growth process: increases the poor’s
incomes faster
More public expenditure on health & education: benefits the poor, increases their
productivity
Labour-intensive sectors: engines of economic growth
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POLICIES IMPACTING ON POLICIES IMPACTING ON GROWTH & EQUITYGROWTH & EQUITY
Fiscal Monetary Trade Structural adjustment Human resources development Sectoral: agriculture,
construction & small- & medium-enterprises
Redistribution of land & other assets
Population Pro-poor targeting
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PRO-POOR GROWTH – MACRO ECONOMIC POLICIES
Fiscal policy: to reduce inequalities
Promote sectors with more employment opportunities
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POVERTY REDUCTION: MAJOR DETERMINANTSPOVERTY REDUCTION: MAJOR DETERMINANTSDependent variable: Population below dollar (PPP) a day per capita poverty lineExplanatory variables Coefficie
ntt-
valuesGDP per capita (constant 2000 US$)
-0.8584 (-4.85)
Trade (% of GDP) -0.6744 (-3.52)Agriculture, value added (% of GDP)
-0.7296 (-2.45)
Population density (people per km2)
0.0972 (1.14)
Age dependency ratio (dependents to working-age population)
1.4822 (2.55)
Number of observations 79R-squared 0.51F-statistic 41.35Notes: i. Estimation is by ordinary least squares with robust standard errors.ii. All variables are in natural logarithms.
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ACHIEVING PRO-POOR GROWTH: POLICY RECOMMENDATIONS
Pro-poor growth strategies
Ensure that the rural poor benefit from growth
Invest in agricultural R&D, including rural infrastructure, rural education, health, water & sanitation
Remove barriers to service delivery
Role of ESCAP
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