Growth, Poverty, and Income Distribution

1. Growth, Poverty, and Income Distribution Chapter 5

2. The Growth Controversy: Five Critical Questions • What is the extent of relative inequality, and how is this related to the extent of poverty? • Who are the poor? • Who benefits from economic growth? • Does rapid growth necessarily cause greater income inequality? • What policies can reduce poverty?

3. Some Basic Concepts • Size distributions

5. Some Basic Concepts • Size distributions • Lorenz curves

7. Some Basic Concepts • Size distributions • Lorenz curves • Dualistic development: some stylized typologies

10. Some Basic Concepts • Size distributions • Lorenz curves • Dualistic development: some stylized typologies • Gini coefficients

13. Some Basic Concepts • Size distributions • Lorenz curves • Dualistic development: some stylized typologies • Gini coefficients • Functional distributions

16. Inequality and Absolute Poverty in Third World Countries: A Review of the Evidence • Inequality: variations among countries

19. Inequality and Absolute Poverty in Third World Countries: A Review of the Evidence • Inequality: variations among countries • Absolute poverty: extent and magnitude

24. Inequality and Absolute Poverty in Third World Countries: A Review of the Evidence • Inequality: variations among countries • Absolute poverty: extent and magnitude • The human poverty index

26. Economic Characteristics of Poverty Groups • Rural Poverty

28. Economic Characteristics of Poverty Groups • Rural poverty • Women and poverty • Ethnic minorities, indigenous populations, and poverty

30. Income Levels, Growth, and the Extent of Poverty • The Kuznets hypothesis

32. Income Levels, Growth, and the Extent of Poverty • The Kuznets hypothesis • Economic growth and inequality

35. Redefining Development Goals: Growth With Improved Income Distribution • Growth is necessary, but not sufficient for poverty reduction • Objective: the generation of broad-based income growth while targeting the incomes of particular groups

36. The Role of Economic Analysis: Redistribution From Growth • Growth versus income distribution • GNP growth as a biased index of national development and well-being • Constructing a poverty-weighted index of social welfare

38. The Role of Economic Analysis: Redistribution From Growth • Growth versus income distribution • GNP growth as a biased index of national development and well-being • Constructing a poverty-weighted index of social welfare • Combining the economics of growth and distribution

39. The Range of Policy Options • Areas of intervention • Policy options • changing relative factor prices • asset redistribution • progressive taxation • transfer payments and public provision of goods and services • The need for a “package” of policies

40. Absolute poverty Asset ownership Character of economic growth Deciles Disposable income Distributive share index Equal-weights index Factor-price distortions Factor share distribution of income Factors of production Functional distribution of income Concepts for Review

41. Gini coefficient GNP growth rate index Headcount index Human Poverty Index Income inequality Indirect taxes Kuznets curve Land reform Lorenz curve Personal distribution of income Poverty gap Poverty-weighted index Progressive income tax Concepts for Review, cont’d

42. Public consumption Quintiles Redistribution policies Regressive tax Size distribution of income Subsidy Concepts for Review, cont’d