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4 That finding suggests that our focus on growth as the core of a poverty-reduction strategy is well-founded. Changes in income distribution still could be important sources of changes in poverty within countries, however, even if they tended to average out across countries (Ravallion 2001). Moreover, if faster growth were associated with worsening income distribution, there would be a limit on how much improvement in poverty we could expect from growth alone. In fact, neither concern turns out to challenge the primacy of growth in driving poverty reduction.
Moreover, if faster growth were associated with worsening income distribution, there would be a limit on how much improvement in poverty we could expect from growth alone. In fact, neither concern turns out to challenge the primacy of growth in driving poverty reduction. The variance in income distribution through time is much smaller than the variance in average per capita income. Moreover, changes in the income distribution and real income per capita through time are weakly, if at all, correlated.
One recent example is advocacy in favor of dismantling trade barriers in wealthy countries. For example, the Bank’s Global Economic Prospects 2002 report and its policy research report on Globalization, Growth, and Poverty last year were oriented toward the WTO talks in Doha, and explored how rich-country subsidies, tariffs, and nontariff barriers hinder progress in the developing world. Doha only opened the door to this dialogue; the challenge is now to open minds in rich countries to the great waste and damage those policies K E Y N O T E A D D R E S S : S C A L E , R E S U LT S , A N D D E V E L O P M E N T | 29 cause.