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

Michael Grimm and Isabel Günther

No 482, Discussion Papers of DIW Berlin from DIW Berlin, German Institute for Economic Research

Abstract: Previous poverty assessments for Burkina Faso were due to the neglect of some important methodological issues misleading and led to the so-called 'Burkinabè Growth-Poverty-Paradox', i.e. relatively sustained macro-economic growth, but almost constant poverty. We estimate that poverty significantly decreased between 1994 and 2003 at least on the national level, 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 due to a severe drought and a resulting profound deterioration of the purchasing power of the poor; an issue which was also overseen by previous studies.

Keywords: Poverty; Pro-poor growth; Differential inflation; Sub-Saharan Africa; Burkina Faso (search for similar items in EconPapers)
JEL-codes: D12 D63 I32 O12 (search for similar items in EconPapers)
Date: 2005
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Related works:
Journal Article: Growth and Poverty in Burkina Faso: A Reassessment of the Paradox (2007)
Working Paper: Growth and Poverty in Burkina Faso. A Reassessment of the Paradox (2005) Downloads
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