Inequality and the Fragility of Growth

International audienceOver the long run, sustained growth is central to poverty reduction. The rapid growth seen in much of the world over the past few decades — notably, but not only, in China and India — has led to an unprecedented reduction in poverty. And, in general, increases in per capita income tend to translate into proportionate increases in income of the poor. As Dollar and Kraay (2002) memorably put it, “Growth Is Good for the Poor.” All the more reason, then, to place sustainability of growth at the center of any poverty reduction strategy