Part of the Contributions to Economics book series (CE)


The question how to alleviate poverty in low-income countries has been discussed broadly and with plenty of controversies in the literature on de-velopment economics. Traditional proposals are dominated by two major arguments: First, economic growth is regarded as the most important driver to reduce poverty, and second, an outward-oriented development strategy focusing on international trade and investment flows is claimed to lead to a higher domestic growth path. These ideas have been derived from classical economic theory, suggesting that the accumulation of capital is the central ingredient for increased savings and investment, which in turn results in a higher economic growth rate. An assumed trickle-down process then ensures that also poor social groups within the economy will receive a higher income.


Poverty Reduction Recipient Country Debt Relief Official Development Assistance Bilateral Donor 
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  1. 2.
    Heller (2005), p. 9.Google Scholar
  2. 3.
    Easterly (2003), p. 40.Google Scholar
  3. 4.
    See Burnside and Dollar (2000) and Collier and Dollar (1999).Google Scholar
  4. 5.
    Burnside and Dollar (2000).Google Scholar
  5. 6.
    Easterly (2003), p. 24 illustrates vividly how the Burnside/Dollar results made their way to other official (Word Bank) reports, newspapers, media reports and finally UN conferences.Google Scholar
  6. 7.
    Ibid., p. 25.Google Scholar
  7. 8.
    Easterly (1997).Google Scholar
  8. 9.
    Easterly (2003), p. 33.Google Scholar
  9. 12.
    See Gong and Zou (2001), p. 117.Google Scholar

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© Physica-Verlag Heidelberg 2007

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