Promoting Pro-Poor Growth: Policy Guidelines for Donors

This policy statement discusses how donors can help reduce economic poverty by supporting pro-poor growth. The 2001 Development Assistance Committee Guidelines on Poverty Reduction show that poverty has multiple and interlinked causes and dimensions. The document suggests that policies for pro-poor growth need to interact with other policy areas in order to make sustainable inroads into poverty reduction. It states that:

• Rapid and sustained poverty reduction requires pro-poor growth;
• Policies need to promote a pace and pattern of economic growth that is ideal for long-term growth and sustained poverty reduction;
• Policies that tackle multiple dimensions of poverty are mutually reinforcing;
• Empowering the poor is essential for introducing policies and investments that promote pro-poor growth and address multiple dimensions of poverty;
• Government and its policy making processes must be open, transparent and accountable in order to empower the poor.

Donors must remember that the poor are not a homogenous group, country contexts vary considerably and policy implementation must be based on a sound understanding of poor peoples livelihoods. Policy choices for pro-poor growth should be guided by assessments of their expected impact on poor peoples income and assets.