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PRMPR & PRMED
Shared Growth Work Program
Ken Simler (PRMPR)
PREM Open Forum
October 4, 2007
The Why and The How

Objective: To improve the quality and policy
relevance of shared growth analysis to
accelerate poverty reduction.
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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.
Good Examples: Poverty Assessments
Examples of Good Practice:
Overall
Growth-Inequality-Poverty Decomposition
Country specific analysis of determinants of shared growth
Country specific analysis of priorities for shared growth
Micro-Macro Links
Poor as Economic Actors
Mobility Focus
Political Analysis
Integrated Poverty and Growth Analysis of:
Macroeconomic Stab.
Investment Climate
Financial Sector
Trade Policies
Government Inst.
Labor Markets
Migration
Infrastructure
Social Sectors
Public Transfers
Indonesia
X
X
X
X
X
X
X
Guinea-Bissau
X
Cambodia
Mongolia
Honduras
Nepal
Uganda
Domin. Republic
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
Good Examples: CEMs
Examples of Good Practice:
Overall
Growth-Inequality-Poverty Decomposition
Country specific analysis of determinants of growth
Country specific analysis of priorities for growth
Micro-Macro Links
Poor as Economic Actors
Mobility Focus
Political Analysis
Integrated Poverty and Growth Analysis of:
Macroeconomic Stab.
Investment Climate
Financial Sector
Trade Policies
Government Inst.
Labor Markets
Migration
Infrastructure
Social Sectors
Public Transfers
Angola
Turkey
Costa Rica
Domin. Republ.
Haitit
Djibouti
Morocco
West Bank and Gaza
Somalia
Iraq
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
Good Examples: PERs
Examples of Good Practice:
Albania
Overall
Link to PRS
Benefit Incidence Analysis
Turkey
Tanzania
Bosn. and Herzeg.
Romania
Cape Verde
X
Bulgaria
Ghana
Monten.
Ukraine
Swazil.
X
X
Public Service Delivery Assessment
Poor as Economic Actors
X
Mobility Focus
Poverty Analysis of:
Public Subsidies and Transfers
Social Sectors
Infrastructure
Institutions
Financial Sector
Labor Markets
X
X
X
X
X
Basic Principles
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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.
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.
Toolkit: Shared Growth Analytics

Recent growth and poverty trends (past 5 years & 20 years)
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Sources of growth and poverty reduction
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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 changes over time
Returns to labor & capital by sector; TFP residual
Microdeterminants of income and growth
Labor market analysis
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Human K wage premium and changes over time
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Labor force participation, internal and international migration
Decompositions of growth and poverty reduction
Spatial growth patterns
(Shared) Growth Diagnostics
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Setting priorities for policy interventions
Second stage analysis: Identifying
appropriate policy interventions
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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
Practical Approach
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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.
Main Activities and Outputs
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Country studies
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DFSG-funded country studies
Selected in-depth country studies (country teams + anchor
units)
Knowledge Management
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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
Questions for Discussion

Why is it so difficult to integrate growth and poverty
analysis?
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Does this approach (diagnose then drill down) meet
your needs?
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What kind of support do you need (if any) for
integrating poverty and growth analysis?
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What formats are most useful for disseminating this
information?