Growth is good for the poor - pro-poor growth is better

Poverty reduction has been the most important aim of development policy since the mid-1990s, and sustainable economic growth is a key precondition to achieving this aim. However, the poverty reduction effect of increases in average income depends primarily on who receives this additional income. If the rich are the prime beneficiaries and there is little subsequent redistribution of wealth, there will be no substantial reduction in poverty.

Experience in different countries shows that policies directed solely towards increasing macroeconomic growth do not automatically lead to a sustainable reduction in poverty. In many cases, the hoped-for trickle-down effect, which would improve the financial situation of the poor, does not kick in.

Pro-poor growth therefore aims to
a) achieve a sufficient rate of growth and
b) improve the participation of the poor in economic growth.

The crucial question is how developing countries can set sustainable growth processes in motion built on the broad and productive participation of the population.

With the aim of operationalising the pro-poor growth concept in development cooperation, GTZ took part in an joint international research programme that produced 14 country case studies and 6 theoretical papers. A summary report outlines the key recommendations for economic policy. The empirical findings of the research programme have been incorporated into GTZ's work in the field. By providing technical advice and promoting capacity development, GTZ is supporting the governments of Benin, Burkina Faso, Guinea, Cameroon, Malawi, Mali, Mauritania, Zambia and Senegal in designing and implementing pro-poor growth strategies.

Additional information on pro-poor growth is provided on the German website.