Download Pro-poor growth

Growth, development and
wellbeing
Buapun Promphakping
[email protected]
Questions
• Is growth equated to development?
• Is development necessarily achieved through
growth?
• Is development and/growth a precondition for
improving quality of life of the population?
• How development, growth and wellbeing are
linked? How these implicate on poverty or
wellbeing?
• What does your government do in trying to cope
with the worlds’ economy recession
People and their village
Modernization: rural urbanization
The conventional mode of growth
• There are unemployed or underemployed
(surplus) labour in rural areas.
• Growth can be achieved by removing
these labourers to be employed in modern
economy.
• The non-poor will first enjoys benefits of
growth which will be eventually ‘trickledown’ to the poor.
How conventional growth helps to
remedy poverty
• Employment
• The remittances send home will lead to
the improvement of living standards
• The removal of surplus labour from rural
areas will give ways to improvement in
productivity
Some evidences
• Dollar and Kraay (2004): there is a positive
relationship between growth in per capita
income and income of the poor.
– Data from 40 countries
– Period of 4 decades
• The study confirmed that the poor benefits
from growth
Troubles with irrigated dam
• It causes flooding and displacement
• Forests in the reservoir are completely
destroyed
• There were 3 years continually floods after
the Kong-Chi-Mun Project.
• Inland fishery resources are depleted
• Spread of salinity
Troubles with irrigated dam
• Dams were usually built without proper
consultation and participation of people.
• Local knowledge of water management is
disregarded.
• Pollution
• Impact on health, physically and mentally.
• Human rights is usually violated.
Trouble with roads
• Improving transport links tend to accentuate inequalities and
promote social differentiation
• There are sometimes (relatively and, sometimes, absolutely) losers:
women, the elderly, ethnic minorities, and the poor
• The spatial poverty traps of women and men, poor and non-poor,
are different
• Improving roads can, paradoxically and counter-intuitively, increase
isolation (roads connect and disconnect)
Some Issues?
• The persistent of small producers in rural
areas.
• The remittances were spent on excessive
consuming goods.
• Income gap – the rich and the poor has
been widened.
• Environment deteriorated.
General statements
• Growth is necessary or a pre-condition for
poverty reduction.
• Recession will harm to the poor.
• Growth is sometimes accompanied with
inequality and growth can intensify
poverty.
• It must be specific kinds of growth that
promote wellbeing of the poor.
Definition of pro-poor growth
• Ravallion (2004): any increase in GDP that
reduce poverty (poverty outcome).
• Kakwani, Khandker and Son: income of
the poor-grows more than average income
(inequality outcome)
Definition
• Kakani and Pernia define pro-poor growth
by following to the notion of functioning
and capability of Sen:
– Growth is pro-poor when it improves
wellbeing of the poor: growth that enables the
poor to participate meaningfully in economic
activities and lead their live
Growth can be pro-poor with
• Growth that occurs through the removal of
institutions that discriminates the poor, for
example:
– Currency exchange rate policy.
– Investment on rural infra-structure rather than
urban infra-structures.
– Abolish subsidiary for the rich
– Investment and expanding health services
and education to the poor.
Environment and wellbeing
Car Growth in China
200
150
Millions of Cars
(est.)
150
100
50
0
~
0
1980
5
2000
10
14
2002
Year
2003
2015
2. The Dark Side of growth
Rethinking development
Human WB
Maximum
Score
Enviro WB
Total WB
100
Similar Human
80WB,
but different
Enviro WB:
60
How a nation
40
meets its
development goals
as important
20as
whether it meets
them 0
79
78
64
22
(1st)
52
50
49
Sweden
(Rank out of
180 countries)
73
31
Netherlands United States
(24th)
(27th)
Environment and Wellbeing
Key issues
• Sustainability
• Growth and/or development not
matched by increase in wellbeing
• stability
• Change in behaviour and attitude
Wellbeing according to WeD
• “Wellbeing is a state of being with others, where
human needs are met, where one can act
meaningfully to pursue one’s goals, and where
one enjoys a satisfactory quality of life”
• Building blocks: needs, socially meaningful
goals, satisfaction with life
• 3 dimensions:
– material
– relational
– affective/cognitive
Aspects of Well-being
Basic Needs Food, shelter, secure livelihood
Good Health Physical and mental health and
a robust natural environment
Healthy Social
A supportive social network
Relations
Security Personal safety and security of
one’s possessions
Freedom The capacity to achieve one’s
development potential
State Policy
Good governance
Good Health
Knowledge
Wellbeing
Environment
Working
Family
Income and
การกระจายรายได้
Source: National Economic and Social Development Board (www.nso.go.th)
Index of Well Being
Ecological Footprint
• Footprint is a measure of people’s
demand on nature. It compares the
amount of resources we consume with
nature’s ability to provide resources and
absorb waste. It is not a measure of the
physical size of the municipality.
It is about a balance
of supply and
demand.
Ecological Footprint - Methodology
• International standard for calculation
and guidelines for communication
• Utilizes international and national
statistical information
• Assumptions and allocations are explicit
and entail a conservative bias.
• Includes life cycle consumption
(creation – use - disposal)
• Puts consumption in a land area context
Ecological Footprint - Overshoot
2008 Earth
Overshoot Day =
September 23
Ecological Footprint By Region, 1999
 The size of each box is proportional to the aggregate footprint of
each region
 The height of each box is proportional to the region's average
footprint/capita
 The width of the box is proportional to the population of the
region
Canada
Calgary
Ecological Footprint of Nations
Can growth reduce poverty?
• It depends on
– How growth and development are defined and
measured
– How poverty is defined and measured