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PRO-POORPRO-POOR GROWTHGROWTH

Linkages to Linkages to transport infrastructuretransport infrastructure

Mikael SöderbäckDevelopment Co-operation Development Co-operation DirectorateDirectorate

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TRANSPORT AS A BARRIER TO GROWTHTRANSPORT AS A BARRIER TO GROWTH AND POVERTY REDUCTION AND POVERTY REDUCTION

19941994

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19971997

TRANSPORT: THE PATTERN OF GROWTHTRANSPORT: THE PATTERN OF GROWTH

"Good roads, canals Good roads, canals and navigable and navigable rivers....... the rivers....... the greatest of all greatest of all improvements”improvements”

Adam Smith, An Inquiry Adam Smith, An Inquiry into the Nature and into the Nature and Causes of the Wealth of Causes of the Wealth of Nations, 1776Nations, 1776

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OECD/DAC POVERTY REDUCTION OECD/DAC POVERTY REDUCTION NETWORK (POVNET) NETWORK (POVNET) 2003-20062003-2006

Focus on the Focus on the economic economic dimension of dimension of povertypoverty

ECONOMICConsumption

IncomeAssets

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WHAT IS PRO-POOR GROWTH?WHAT IS PRO-POOR GROWTH?

A pace and a pattern of growth A pace and a pattern of growth that enhances the ability of poor that enhances the ability of poor people to participate in, people to participate in, contribute to and benefit from contribute to and benefit from growth.growth.

““Promoting Pro-Poor Growth”, March 2006Promoting Pro-Poor Growth”, March 2006

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Annual GDP per cap. growth (%)

Annual change in poverty headcount (%)

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WHAT IS PRO-POOR GROWTH?WHAT IS PRO-POOR GROWTH?

Data from OPPG country case studies early (1990s to early 20000s)

On average 1% GDP growth reduced income poverty by about 1,7%

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Annual GDP per cap. growth (%)

Annual change in poverty headcount (%)

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WHAT IS PRO-POOR GROWTH?WHAT IS PRO-POOR GROWTH?

1% GDP growth resulted in between 0.7% and 2.4% reduction in poverty

Data from OPPG country case studies early (1990s to early 20000s)

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The Four Guiding The Four Guiding Principles:Principles:

TASK TEAM ON INFRASTRUCTURETASK TEAM ON INFRASTRUCTURE

1.1. Use partner-led frameworks as Use partner-led frameworks as a basis for coordinated donor a basis for coordinated donor support support

2.2. Enhance infrastructure’s Enhance infrastructure’s impact on poor peopleimpact on poor people

3.3. Improve management of Improve management of infrastructure investment to infrastructure investment to achieve sustainable outcomesachieve sustainable outcomes

4.4. Increase infrastructure Increase infrastructure financing and use all financial financing and use all financial resources efficientlyresources efficiently

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• The curse of remotenessThe curse of remoteness

• Infrastructure and Infrastructure and inequalityinequality

• Market accessMarket access

• Risk and vulnerabilityRisk and vulnerability

TRANSPORT: THE PATTERN OF GROWTHTRANSPORT: THE PATTERN OF GROWTH

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CHALLENGES TO TRANSPORTCHALLENGES TO TRANSPORT

How to make How to make existing existing transport transport service service markets work markets work better for the better for the poor?poor?

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CHALLENGES TO TRANSPORTCHALLENGES TO TRANSPORT

How to improve How to improve efficiency of efficiency of existing existing transport transport utilities?utilities?

Klein et. al. 1994“Back to the future”

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CHALLENGES TO TRANSPORTCHALLENGES TO TRANSPORT

Infrastructure Infrastructure back on the back on the development development agenda: how to agenda: how to avoid the old avoid the old mistakes?mistakes?

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www.oecd.org/dac/www.oecd.org/dac/povertypoverty

Thank you!Thank you!

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