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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Removing Barriers to Formalisation

The informal economy forms a large part of the economies of many developing and transition countries. It comprises 42% of value added in Africa, 41% in Latin America and 35% in the transition economies of Europe and the former Soviet Union, compared with 13.5% in OECD countries. The informal economy provides employment and income for many who lose or cannot find work in the formal economy, and it includes a disproportionate number of women, young people and others from disadvantaged groups. For example, it has been estimated that informal employment accounts for 84% of women’s employment in sub-Saharan Africa.

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