1. Introduction
The question of whether economic growth leads to a reduction of poverty is an issue of great controversy today. The neo-liberal view, this problem is that growth for the poor is good, and that poverty through economic growth can be alleviated. In this essay, I argue that if the poor to participate in importance in the economy and the constraints that hinder their participation from the labor force, growth can not only help in reducing poverty. The state shouldalso play an important role in the poor benefit from growth through the pursuit of poor policies. In the following paragraphs, I will define what is pro-poor growth, to spell out the constraints, pro-poor growth, and what can be done to ensure growth that benefits the poor.
2. Definition of: pro-poor growth
After Ravillion and Datt (1991:19), pro-poor growth can be defined as "growth, and includes benefits the poor." In other words, pro-poor growth requires the maximumParticipation of marginalized groups in all areas. Ravallion and Datt further argue that pro-poor growth, characterized by, inter alia, as they call it "deliberate transfers to the extreme poor who are not in a position themselves out of poverty. Is essentially the argument that it has made progress have is that the poor need help or intervention, thus it means to benefit from growth. This is that pro-poor growth is a deliberate measure to the poor benefit from growth, rather thanLeaving the poor to the fate of the "invisible hand of the market. This is the definition of an enabling environment to do, where the poor have the opportunity to participate meaningful in the economy.
Occur by Kydd et al (2001:10) pro-growth, under the following conditions:
price or increase productivity in tradable products with a high average share in the poor spending.
prices and increasing productivity in tradable products withexcellent work performance of the poor.
changes in technology or reduce barriers to entry, so do not lead the poor in the production of non-tradable goods, which they previously did not participate or have that
gains in a significant number of non-poor, the extended requirements for goods or services produced by the poor as a result of the cause before spending or connections.
It is important to note that not all growth is pro-poor. Here are some of the characteristics orAspects of growth that are not in favor of the poor:
Differences in the distribution of wealth
Increases in rural poverty
growth, agricultural development, despite the role he ignored in the fight against poverty
Lack of investment in health and education, which play a crucial role in the fight against poverty
Failure to reduce inequalities and lack of programs to the needs of the poor are(www.seurities.com).
As Acocella (1998:162) notes, it is important to remember that the growth does not always lead to the fact that human development. The growth can occur without significant impact on human development, particularly in view of the poor. Acocella also claims that the real development or growth occurs when improving the welfare of the people. Growth do not lead to improving the welfare of the people who can not be said to be developmental in nature. Real growth, such as ferro -et al (2002:4) note, the development lead of the people, which means "the poor contribute to and benefit from this growth. It is clear that pro-poor growth is not automatic, without the implementation of the appropriate measures be helpful to facilitate the manifestation of their experience. There are policies and practices that may impede pro-poor growth instead of to. I investigate some of the next section.
3. Restrictions on pro-poor growth
For the poorGrowth occur in any society, it is important to ensure that all barriers to prevent the poor from achieving their goals. Failure or reluctance to go with these obstacles can thwart the progress of poor people and hinder ultimately a strategy to combat poverty successfully with the issue of poverty. Here are some of the constraints that may negatively affect pro-poor growth:
3.1 Inequality and lack of access to market
It is difficult to trackPolicy in favor of the poor in the countries which are characterized by inequality. Stewart argues (1995:209) that it is difficult to develop pro-poor policies in unequal societies. He gives an example of unequal societies such as Ghana, Mexico and the Philippines, where he argues that the growth has not made any impact on the poor. These companies are starting with Indonesia, "with an egalitarian structure, and a pro-poor pattern of growth as opposed to. Other examples are purely East AsianCompanies because of their effective strategies for dealing with inequality could reduce the extent of poverty in a dramatic way. This means that there is a correlation between poverty and inequality. May (2002:2) also shows that the policies were pursued by the inequality of the apartheid government in South Africa not good for poverty reduction, since they exclude certain groups from participation in the economy of the country. The spread of inequality resulted loss of assets such as landand use by animals and the denial of opportunities to these advantages, by limiting access to markets, infrastructure and education.
The problem with inequality is that it leads to social exclusion, in which certain groups have no chance or services. The exclusion of the poor from participating in importance in the economy can adversely affect their welfare. In an economy where inequality is high, the poor typically receive a higher share of benefits fromGrowth compared to an economy that is characterized by a high degree of inequality. View as Ravallion and Datt (1997:7), "Inequality in the possession of material and human resources are likely to influence the prospects for poor people to participate in economic growth". A policy that is pro-poor is to ensure that poor access to markets and infrastructure. It is clear that in cases where there is no equality between different socio-economic classes, depending onMarket forces and the invisible hand of Adam Smith to meet basic needs is just wishful thinking.
3.2 fiscal constraints
Governments, especially in developing countries find it difficult to pursue pro-poor growth strategies and approaches to alleviating poverty by fiscal constraints. Structural Adjustment Programs are in most cases makes things worse. The reality is that governments generally with the challenge faced is to reduce spending, socialServices, which are supposed to benefit the poor. This means that spent less money for essential services such as health, education and other basic services. Cuts in public spending, which directly impact on the poor 2001:57 (Howard). However, it is important to note that the state is to address global challenges and limitations in their attempt to take measures that are faced in the fight against poverty, pursue good. It is a global pressure on the state to a less "directive" role in the takeoverEconomy.
3.3 Reducing the role of the state
The liberalization of markets, which goes with globalization, is a rollback, inter alia, lobbying for the state, the lifting of restrictions on prices and quantities to be moved and stored. As Howard (2001:57) rightly observes that "financial liberalization increases poverty and inequality". In the context of globalization, governments are forced to liberalize their markets. However, the crucial question of whetherLiberalization of markets to benefit the poor. There are different reactions to them. There are those who view globalization as beneficial for the poor, particularly in terms of opportunities it provides for trade and new markets. On the other hand there are those who view it as harmful.
As shown Levinson (2001:11), Globalization 'pro-poor in some countries and harm other countries. Although there is a general call for rollback of the state "to give way tomarkets to work (if they work at all), the state has a role to play not to do, especially in terms of things people for themselves. It is especially among the poor, to people who are not in employment based on age, disability, chronic illness or otherwise unable to socially excluded or discriminated against can participate. The poverty of these people by Streeten (1995:253) can not be removed, or by facilitating the market, but by deliberate "pressurefor social services and transfer payments and elimination of discrimination. The focus on reducing the role of government in the economy can have negative effects on pro-poor growth.
Held for pro-poor growth, the state should play a crucial role in protecting the redistribution of resources and opportunities through the transfer of assets, prioritization of the poor in public spending and liberalizing the market in addressing the livelihoods of vulnerable people. As Ferro et al(2002:19) point out, is "an instrument of government, people in the development process. Therefore, government can play a crucial role to play in the pro-poor growth by developing the right strategies for dealing with poverty.
4. What can be done to get the poor benefit?
The following are some of the things that have to be done in order to benefit the poor:
There is a need for the development of human capital is concentrated, especially among the poor in order to prepare them to be useful in the participationEconomy.
The poor need better access to markets, are mainly in terms of credit --
There is a need for bias against the poor in public spending, taxation, trade and regulatory environment is corrected.
5. Conclusion
Pro-poor growth policies are essential for a meaningful reduction in poverty. The 2015 target of halving income poverty can only be achieved if countries can adopt pro-poor growth strategies. It would be difficult to achieve the 2015Destination without "pro-poor shift in distribution pattern (Mutum 2000). Something needs to be done to improve the condition of the poor, by ways that make improving access to markets easier for them. It is noteworthy that even in cases in which markets operate, they can not always pro-poor work, given the constraints discussed above.
If these constraints are not treated or removed, growth is no significant effect on the lives of the poor. It is necessary to learnfrom past mistakes with regard to the relationship between growth and poverty reduction. Sen (1986, cited in Sachs show 1991:292) this clear: "country after another, the hard way that the so-called trickle-down" is false theory learned that growth can immiserizing that famines in times of boom also happen when people claim not allowed to buy and / or food are needed to stay alive, "producing
Given the level of poverty in the world today, there areFor this reason it is necessary for change in strategy or approach in dealing with poverty reduction, by the pro-poor growth. This means, among other things, an understanding that growth alone is not to combat poverty. The Director of the World Bank, Ian Goldin indicated the importance come the pro-poor growth: "We have to understand economic growth, if necessary, is not enough to deal with poverty" (Sunday Times, 1 September 2002: 15 ).
6. References
Acocella, N. 1998th TheBasic economic values. Cambridge: Cambridge University Press.
Ferro, M, Rosenbatt, D, and Stern, N. 2002nd Conditions for pro-poor growth in India. http://www.arts.cornell.edu/eco/India
Howard, J.2001. Making Globalization Work for the people. Fundamental rights at work: overview and perspectives, 122: 55-60
Kydd J, Dorward, A, Marrison, J and Cadisch, G. 2001. The role of agriculture in pro-poor growth. http://www.wye.ac.uk/Ag
Levinson. J. 2000.Globalization and poverty. University of Michigan. Ford School of Public Policy, National Bureau of Economic Research.
May, J. 2000. Growth, development and inequality in Phillip, D () ed. Poverty and inequality in South Africa: the challenge. Cape Town and London: Zed Press.
Mutum G. 2001. Finance: are the IMF and World Bank policy in favor of the poor? http://www.oneword.org/ips2/angoo.
Pieterse, JN 2000th Development of the theory: deconstruction and reconstruction.London: Sage Publications.
Ravallion, M and Datt, G. 1999. If the pro-poor growth: evidence from the diverse experiences of the states in India? http://netec.mcc.ac.ukl/wopec/data/papers
Stewart, F. 1995th Adjustment and poverty. London: Routledge
Streeten, PP 1995th Thinking about the development. Cambridge: Press Syndicate of the University of Cambridge.
Sachs, I. 1991st Poverty, progress and development. London: Kegan Paul International and UNESCO.
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