When is Economic Growth Pro-Poor? Experiences in Malaysia and Pakistan

IMF Working Papers, May 1, 2002

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When is Economic Growth Pro-Poor? Experiences in Malaysia and Pakistan

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Bibliographic details

• Authors: Mahmood Hasan Khan
• Published: May 1, 2002
• Series: IMF Working Papers
• DOI: https://doi.org/10.5089/9781451850765.001

Central research questions

• Examines two central issues related to the contrasting experiences of Malaysia and Pakistan regarding poverty reduction:
  • The structure of economic growth and its proximate determinants in the two countries, including the initial conditions, institutional changes, and macroeconomic policies.
  • The links between economic growth and poverty reduction, with particular focus on public policy mechanisms to reduce poverty and inequality.

Key findings

• Malaysia sustained rapid economic growth alongside an equally impressive reduction in poverty.
• Pakistan experienced contrasting outcomes, with less successful poverty reduction despite growth.
• The divergence is attributed in part to policy design and implementation:
  • Malaysia’s governments included the poverty reduction goal in national development plans and pursued policies consistent with the twin goals of growth and poverty reduction.
  • Pakistan did not follow the same integrated policy approach.

Policy implications and recommendations

• Integrate poverty reduction explicitly into national development planning.
• Pursue policies that are consistent with the twin goals of sustaining rapid economic growth and reducing poverty and inequality.
• Focus public policy mechanisms to strengthen the transmission from economic growth to poverty reduction (institutional changes, macroeconomic policy alignment, targeted government programs).

Subject areas and keywords

• Subject: Education, Income, National accounts, Population and demographics, Poverty, Poverty reduction
• Keywords: a number of government policy, absolute poverty, Alliance government, budget deficit, development authorities, Economic Growth, foreign exchange, government bureaucracy, government intervention, government program, Income, inflation rate, labor market, land reform, Malaysia, Middle East, open economy, Pakistan, Poverty, Poverty reduction, poverty reduction program, private sector, structural adjustment, WP

Content in this bundle

• When Is Economic Grwth Pro-Poor? Experiences in Malaysia and Pakistan - WP/02/85
  • When Is Economic Grwth Pro-Poor? Experiences in Malaysia and Pakistan - WP/02/85 (Markdown version)
  • When Is Economic Grwth Pro-Poor? Experiences in Malaysia and Pakistan - WP/02/85 (PDF)