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Growth and Poverty in Burkina Faso: A Reassessment of the Paradox

Michael Grimm and Isabel Günther

Journal of African Economies, 2007, vol. 16, issue 1, 70-101

Abstract: Previous poverty assessments of Burkina Faso neglected some important methodological issues. They were therefore misleading and led to the so-called 'Burkinabè Growth--Poverty Paradox', i.e., increasing poverty despite sustained macro-economic growth and constant inequality. We estimate that poverty significantly decreased between 1994 and 2003, i.e., growth was in contrast to what previous poverty estimates suggested 'pro-poor'. However, we also demonstrate that between 1994 and 1998, poverty indeed increased despite a good macro-economic performance. This was caused by a severe drought and the devaluation of the CFA Franc, which led to a profound deterioration of the purchasing power of the poor, an issue, which was also overseen by previous studies. Copyright 2007, Oxford University Press.

Date: 2007
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Working Paper: Growth and Poverty in Burkina Faso. A Reassessment of the Paradox (2005) Downloads
Working Paper: Growth and Poverty in Burkina Faso: A Reassessment of the Paradox (2005) Downloads
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