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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Constructing Inclusive Public-private Dialogue

Whether economic growth is pro-poor depends on the extent to which the rate and pattern of growth provide opportunities for the poor and the degree to which they are able to take advantage of these opportunities. Governments in developing countries have a responsibility to ensure that a favourable business environment exist for all private sector actors. They therefore need to be aware of the key constraints for different private sector entities in realising their potential to contribute to pro-poor economic growth. Targeting services to poorer entrepreneurs, mostly composed of micro, small and medium-sized enterprises (MSMEs), informal firms and workers and smallholder farmers, is one approach towards accelerating pro-poor growth and generating employment (OECD, 2004).

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