BLOG SURF: Growth and poverty
The countries with the highest average income growth but higher levels of inequality saw some of the largest reductions in poverty.
Millions of people have been lifted out of poverty in Bangladesh, the People’s Republic of China (PRC), Indonesia, and Viet Nam because these countries posted remarkable average income growth rates.
For instance, per capita income in the PRC has grown at an annual rate of 7% since the 1990s, while the annual growth rates for Viet Nam and Indonesia for the same period have been 6% and 4%, respectively.
Thus, it can be problematic to assume too much about a country’s development performance just because income growth is skewed to higher earners, without considering the impact of this on other SDGs such as ending poverty.
It is also conceivable that excessive focus on SDG 10 could render countries with declining incomes across the board.