Promoting Pro-Poor Growth

Policy Guidance for Donors

image of Promoting Pro-Poor Growth
For aid donors, the pro-poor growth agenda is not business as usual and more of the same will not be sufficient. Focusing on pro-poor growth and income poverty, Promoting Pro-Poor Growth: Policy Guidance for Donors identifies binding constraints and offers policies and strategies to address them. Policy recommendations aim to help change donor behaviour and pave the way for more effective development co-operation in these areas. This compendium pays special attention to the role of private sector development, agriculture and infrastructure in pro-poor growth – areas that were neglected by many donors during the 1990s but are currently receiving renewed attention in the international development agenda. It also presents a methodology for conducting ex-ante poverty impact assessment, a valuable tool for those whose aim is to maximise the poverty reducing impacts of development interventions.

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Agriculture - Executive Summary

In most poor countries, agriculture is a major employer and source of national income and export earnings. Growth in agriculture tends to be pro-poor – it harnesses poor people’s key assets of land and labour, and creates a vibrant economy in rural areas where the majority of poor people live. Agriculture connects economic growth and the rural poor, increasing their productivity and incomes. The importance of agriculture for poverty reduction, however, goes well beyond its direct impact on rural incomes. Agricultural growth, particularly through increased agricultural sector productivity, also reduces poverty by lowering and stabilising food prices; improving employment for poor rural people; increasing demand for consumer goods and services; and stimulating growth in the non-farm economy.

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