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PRMPR & PRMED Shared Growth Work Program

This program aims to improve shared growth analysis quality. It focuses on integrating growth and poverty analysis for sustainable poverty reduction. Key tools include CEMs, PERs, and Poverty Assessments.

kennethwthompson
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PRMPR & PRMED Shared Growth Work Program

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  1. PRMPR & PRMEDShared Growth Work Program Ken Simler (PRMPR) PREM Open Forum October 4, 2007

  2. The Why and The How • Objective: To improve the quality and policy relevance of shared growth analysis to accelerate poverty reduction. • Means: Promoting and facilitating the use of existing and emerging analytical tools to better integrate analysis of growth and poverty by Bank country teams, governments, and donors.

  3. Good Examples: Poverty Assessments

  4. Good Examples: CEMs

  5. Good Examples: PERs

  6. Basic Principles • Growth is essential for poverty reduction, but some patterns of growth lead to more poverty reduction than others. • Growth and poverty reduction should be viewed as interrelated processes. • Improving opportunities for the poor can be through raising labor productivity and earnings in their current sector, or enhancing mobility across sectors. • Equality of opportunity is a central consideration for efficiency and growth reasons as well as poverty reduction reasons.

  7. Two stages of country-specific shared growth analytics • Diagnostic stage: A combination of macro and micro perspectives to identify the country-specific binding constraints for shared growth, and prioritize the most important areas for policy intervention. • Response/Intervention stage: In-depth analysis of the relevant sectors or markets identified in the first stage, in order to formulate a country-specific policy response.

  8. Toolkit: Shared Growth Analytics • Recent growth and poverty trends (past 5 years & 20 years) • GNI & GDP; SI (public, private); GDP and employment shares by sector; SX and patterns; imports (SM); RER; shares in aggregate demand (SI, SX, SG) • Poverty profiles, Growth Incidence Curves, Rate of pro-poor growth, growth elasticity of poverty • Compare against benchmark countries (regional or otherwise) • Sources of growth and poverty reduction • Sources of growth and changes over time • Returns to labor & capital by sector; TFP residual • Microdeterminants of income and growth • Labor market analysis • Human K wage premium and changes over time • Labor force participation, internal and international migration • Decompositions of growth and poverty reduction • Spatial growth patterns • (Shared) Growth Diagnostics • Setting priorities for policy interventions

  9. Second stage analysis: Identifying appropriate policy interventions • In-depth analysis of the markets, institutions, and policies that are associated with the binding constraints to shared growth. • An array of relevant and practical tools depending on the constraint and country specific circumstances • CGE-Microsimulations • Special attention to win-win policies

  10. Practical Approach • Develop core ‘toolkit’ and guidance for integrating growth and poverty analysis, drawing heavily on existing tools and literature. • Test toolkits and learning material in a series of country studies to ensure relevance and practicality. Use a flexible, demand-driven approach. PRMED and PRMPR anchors working closely with country teams. • Revise and re-test. • Disseminate the key lessons in shared growth analytics, highlight good practices, and develop additional learning materials. • Continuous feedback on the processes and subject matter from stakeholders.

  11. Main Activities and Outputs • Country studies • DFSG-funded country studies • Selected in-depth country studies (country teams + anchor units) • Knowledge Management • Shared growth toolkit • PREM Learning course(s) and workshop(s) • BBLs, on-demand country clinics, PREM notes • Community of practice on shared growth • Annual review of ESW & PRS • Web site

  12. Questions for Discussion • Why is it so difficult to integrate growth and poverty analysis? • Does this approach (diagnose then drill down) meet your needs? • What kind of support do you need (if any) for integrating poverty and growth analysis? • What formats are most useful for disseminating this information?

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