Why does growth reduce poverty despite increased inequality?
-Growth creates more employment, also for poor, unskilled workers. Apart from direct employment, the poor benefit at least partially from the “trickle down” effect of growth. -Growth generates more resources for the government to deploy for provision of extensive public services such as preventive and primary health care, education, rural infrastructure (e.g. roads, water resources development) etc., which benefit the poor. -With greater availability of resources, governments are in a stronger position to expand the coverage of programs specifically targeted to redress the plight of the poor. Policy implications for Bangladesh – Bangladesh needs to accelerate growth in order to alleviate poverty at a faster rate. At the present stage of development, poverty alleviation should receive the highest priority, not inequality of income distribution. -Measures aimed at accelerating growth should be complemented by further strengthening of the existing social protection measures specifically d
