The Impact Of Growth And Poverty

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The main issue about growth-versus-poverty debate remains central in the globalization. The impact of growth on poverty reduction depend country policies and strategies. In general, the number of poor people in the developing countries has been decreased in the recent years as a result of sustained economic growth. If economic growth provides equal benefits all in a society, then incomes have to grow at the same rate as an average income. From various empirical studies that have been done, there seems to be different results on the impact of growth on poverty reduction. Generally speaking, these results can be classified into three views:
Firstly, some views assume that growth is not sufficient for reducing poverty. According to World Bank (2014), economic growth is needed to reduce poverty, but rapid and high performance of growth in developing countries is not sufficient in fostering poverty reduction under 3 percent globally by 2030, without additional policies to support the poor. In every country but particularly in developing country, economic growth is more sufficient to encourage poverty reduction and broader prosperity if the scheme of growth becomes more labour intensive and if poor people can work productively. As a result of the labour productivity, the sectoral content of growth and its impact on job creation may reduce the poverty rate. In the short run, the significant input for poverty alleviation based on the increasing productivity, increasing demand for

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