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1. A.R. Khan (2004). Growth, Inequality and Poverty: A Comparative Study of China’s Experience in the Periods Before and After the Asian Crisis. Issues in Employment and Poverty: Discussion Paper 15.

The objective of this study is to compare performance of poverty reduction in China before and after the Asian economic crisis of 1997. Comparison of the ‘pre-Asian crisis period’ (1988-1995) and ‘post-Asian crisis period’ (1995-2002) reveals that a high rate of economic growth during the pre-Asian crisis period was not associated with a correspondingly high rate of poverty reduction. In spite of strong economic growth prior to the Asian crisis, China’s track record in reducing poverty was inferior to that of the post-Asian crisis period, a time of low economic growth and yet associated with correspondingly high rates of poverty reduction.

Based on new poverty threshold estimates, the author’s findings reveal that the difference in poverty performance was predominantly due to: (a) faster growth in personal income, albeit highly skewed in favour of urban areas and (b) better performance with respect to distribution of income in the post-crisis period, suggesting that higher, more equitable distribution of income played a greater role in poverty reduction than high rates of growth alone.

The paper demonstrates that redistributive economic policies initiated in response to rising unemployment and poverty following the Asian crisis (e.g. unemployment insurance and pension provisions), substantially improved China’s poverty outcome by reducing overall income inequality. In concluding, the author discusses potential strategies that could bring about better income distribution and thus faster poverty reduction with respect to China, such as a program for the rapid promotion of rural non-farm activities to improve access of the poor to non-farm activities; and a more rapid and non-discriminatory system of migration from rural to urban areas.

2. K.I.B. Kabananukye, A.E.K. Kabananukye, J. Krishnamurty & D. Owomugasho (2004). Economic Growth, Employment, Poverty and Pro-poor Policies in Uganda Issues in Employment and Poverty: Discussion Paper 16.

The objective of this paper is to explore issues and dynamics in growth, employment, poverty and pro-poor policies in Uganda since the 1980s.  Once the civil war ended and order was restored, Uganda was able to achieve impressive rates of economic growth and poverty reduction in the 1990s.  The paper illustrates how the fall in poverty occurred at a time when benefits of stable conditions were unfolding, i.e. the return to law and order, economic reforms and favourable world markets for export commodities (in particular coffee).  However, from 1997 there was a marked change whereby GDP growth decreased, and poverty and inequality increased.  The authors attribute these recent trends to limitations that have remained from the 1990s, namely the lack of structural change in the economy, especially in employment; reforms and the initial effects of economic liberalisation wearing off; and international prices for major export commodities declining. 

The final section of the paper summarises the main findings and focuses on the policy implications of Uganda’s experience.  The authors highlight a number of measures that could be employed to combat volatility in the world market for agricultural commodities including increasing access of the poor to basic social services, land and credit, and strengthening the human resource base by promoting education and skills countrywide. 

3.    Productive Employment for Poverty Reduction discussed at the Governing Body of the International Labour Office

Productive Employment for Poverty Reduction and Development is one of the “ten core elements” of the Global Employment Agenda (GEA) formulated by the ILO in 2003.  The agenda of the Employment and Social Policy Committee of the ILO’s Governing Body includes detailed discussion on each of the ten elements of the GEA mentioned above. As part of that agenda, the topic of employment for poverty reduction featured in the discussion of the Committee at the 289^th Session of the Governing Body held in March 2004. For an abstract of the paper that formed the basis of that discussion.

4.  Rizwanul Islam (2004): The Nexus of Economic Growth, Employment and Poverty Reduction: An Empirical Analysis. Issues in Employment and Poverty: Discussion Paper 14.

The present paper argues that although economic growth is a necessary condition for poverty reduction, it is not sufficient; the pattern of growth, especially in terms of its employment and labour market outcome, is extremely important in reducing poverty.  The paper provides a framework for analysing the growth, employment and poverty reduction linkage whereby employment is the linking element. Cross country empirical analysis demonstrates the link between poverty reduction and employment intensity of growth (defined in terms of employment elasticity with respect to output), and the impact of employment and labour market related variables on poverty reduction.   Findings point to the positive impact that structural transformation of employment towards manufacturing and other non-farm sectors, education and lowering of the dependency burden (i.e. increase in labour force participation) has on poverty reduction. 

Furthermore, using in-depth studies on Bangladesh , Bolivia , Ethiopia , India , Indonesia , Uganda and Vietnam , the paper illustrates that there is no invariant relationship between economic growth and the incidence of poverty.   Results show that the poverty reducing impact of growth depends on a variety of factors that characterise the pattern of growth, for instance, the degree of employment intensity of growth and the nature of policies pursued, in particular, the formulation of macroeconomic policies and policies relating to specific sectors.

The study highlights a number of points concerning the ingredients of pro-poor growth.  These concern the role of agriculture: policies in support of the growth of smallholder agriculture, diversification of the sources of livelihood away from agriculture, and of raising the productivity and real wages of agricultural labourers.  From the supply side, investing in human capital through education and skills plays a major role in boosting economic growth that could benefit the poor and significantly improve access of the poor to employment opportunities that are created.  

5. Rasheda Selim (2006) Employment-poverty linkages and pro-poor growth: A synthesis paper based on country studies of Bangladesh, Bolivia and Ethiopia. Issues in Employment and Poverty: Discussion Paper 23.

This paper forms part of the outputs of a collaborative project between the ILO and the Swedish International Development Cooperation Agency (Sida) under which research and policy oriented studies are being conducted on the topic of linkage between economic growth, employment and poverty reduction. The present paper provides a synthesis of country studies of Bangladesh, Bolivia and Ethiopia on operationalizing pro-poor growth by using the employment route. The paper starts by providing an overview of trends in economic growth, employment intensity of growth, and poverty in the three countries under study. It then explores the potentials that exist for making growth more pro-poor in those countries, and analyzes the constraints that they face. Based on that analysis, the paper provides a synthesis of the strategies for achieving the potential pro-poor growth.