What is Pro-Poor Growth and Why Do We Need to Know?

This Pro-Poor Growth Briefing Note 1 discusses the meaning of "pro-poor growth" of income and suggests the most appropriate measure to use.The paper describes two definitions of "pro-poor growth":

• Absolute definition: Pro-poor growth is judged on how fast the incomes of the poor rise;
• Relative definition: Growth is pro-poor if the incomes of poor people grow faster than those of the population as a whole.

The paper states that in light of DFID's commitment to the Millennium Development Goal of halving absolute income poverty by 2015, the absolute definition of pro-poor growth is preferable.The paper also highlights:

• Higher rates of growth usually result in more rapid poverty reduction;
• Lowering high levels of inequality is important for poverty reduction and for improving other aspects of social well-being;
• Pro-poor growth strategies enable poor people to participate in, and benefit from, the growth process.