Promoting Pro-Poor Growth

Policy Guidance for Donors

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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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Promoting the Supply-side Response: Technical and Financial Assistance for Pro-poor Growth

The economic reform programmes introduced in many developing countries during the 1980’s stressed the need for a propitious enabling environment for the private sector. Initially there were high expectations that a package of macroeconomic reforms (“getting the prices right”) would give quick dividends in terms of economic growth. There has been growing disappointment with the growth record in many developing countries. During the 1990’s only 18 out of 117 countries with populations of more than half a million people were able to sustain growth rates exceeding those of industrialised countries.1 Today, there is widespread awareness that much more comprehensive investment climate reforms are required and that such reforms are time consuming and challenging exercises.

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