Louise Cord - Böcker

Policy makers who seek to reduce poverty should implement policies that enable their countries to achieve a higher rate of growth. Examining the relationship between growth and poverty reduction among eight countries in the 1990s and early 2000s, countries with rapid growth saw the most poverty reduction. In contrast, poverty levels rose in many developing countries where growth stagnated or was negative for this period. But growth is more effective in reducing poverty in some countries than in others. This volume provides important lessons about what has and has not worked in these countries to increase the participation of poor households in growth.

Over the last decade, the Latin America and the Caribbean (LAC) region has experienced a steady decline in poverty rates. This trend has been accompanied by strong income growth of the bottom 40 percent, which is the World Bank Group's indicator for measuring shared prosperity. Nonetheless, further poverty reduction and steady income growth of the bottom 40 percent face challenges as LAC has witnessed both a slowdown of economic activity and a decline in the pace of inequality reduction. This book recognizes that the emphasis on improving the welfare of the less well-off in LAC requires transformational policies that restore growth and preserve macroeconomic stability, while at the same time reinforcing the ability of the less advantaged groups to participate in and contribute to growth.This book unpacks the trends and drivers of poverty reduction and shared prosperity in eleven LAC countries while also discussing the sustainability of development patterns at the country level. An overview chapter takes a comprehensive look at the heterogeneity of social outcomes and development challenges across this region of the world. Drawing upon the country chapters, four policy areas emerge which are relevant for reinforcing the links between growth and equity in LAC: equitable and sustainable fiscal and macroeconomic policies; fair and accountable public institutions capable of delivering quality basic services; accessible and competitive markets; and (4) adequate risk management.