Integrating Social and Economic Policies

Abstract

While economic growth is essential for sustainable poverty reduction, economic growth in itself is not enough. The reasons for this are manifold, even if we restrict ourselves to a narrow income-based definition of poverty: the figures on the relationship between economic growth and poverty reduction are averages, the deviations from these averages are large, and inequalities are important and in many cases rising. Moreover, and a core concern in this chapter, economic growth is the result of a range of public policies and private actions. Many economic policies have been shown to impact distribution — or are perceived to do so, which may be equally important for public policy-making. On the other hand, social policies impact both growth and distribution.