Growth is a prerequisite for poverty reduction, but growth alone does not suffice. Pro-poor policies and equitable growth are essential for vulnerable segments of society. This was the main message emanating from ‘Poverty and Inequality’ dialogue series being organised by the World Bank. Francois Bourguignon, director, Paris School of Economics, an eminent authority on micro determinants of poverty and a former chief economist of the World Bank Group, delivered the keynote presentation at the occasion.
“Absolute poverty reduction has to be the main goal of development,” said Bourguignon during his presentation entitled ‘Policies for Inclusive Development in a Globalising World.’ “Global experience shows that while globalisation and growth can lead to inequality, it needs not necessarily be so. Domestic policies can reduce inequality without impairing growth,” he added.
The last decade has seen remarkable growth, poverty reduction and improved education and health outcomes in the world, in general, and in South Asia, in particular. Pakistan was no exception to this progress. Both the poor and the rich populations enjoyed the growth benefits. Thus, it can be safely inferred that the decline in poverty has strictly relied on growth and that important challenges still remain on the inequality front for Pakistan.
In his speech, Federal Finance Minister Abdul Hafeez Shaikh reiterated the government’s resolve to accelerate growth, reduce poverty and address inequality.
He highlighted four measures the government has introduced for bridging inequity: 1) agricultural pricing policy that helps the farming sector; 2) increased expenditures on social safety nets with emphasis on better targeting of the poorest and vulnerable segments of society; 3) under the new formula for sharing federal resources with provinces and 4) deliberate effort is being made by the federal government to have regionally balanced development of infrastructure throughout the country. He welcomed the World Bank’s initiative of expanding the development discourse in Pakistan.