PROPOOR GROWTH Linkages to transport infrastructure Mikael Sderbck

PRO-POOR GROWTH Linkages to transport infrastructure Mikael Söderbäck Development Co-operation Directorate 1

TRANSPORT AS A BARRIER TO GROWTH AND POVERTY REDUCTION 1994 2

TRANSPORT: THE PATTERN OF GROWTH "Good roads, canals and navigable rivers. . . . the greatest of all improvements” 1997 Adam Smith, An Inquiry into the Nature and Causes of the Wealth of Nations, 1776 3

OECD/DAC POVERTY REDUCTION NETWORK (POVNET) 2003 -2006 ECONOMIC Consumption Income Assets Focus on the economic dimension of poverty 4

WHAT IS PRO-POOR GROWTH? A pace and a pattern of growth that enhances the ability of poor people to participate in, contribute to and benefit from growth. “Promoting Pro-Poor Growth”, March 2006 5

WHAT IS PRO-POOR GROWTH? Annual change in poverty headcount (%) 8 On average 1% GDP growth reduced income poverty by about 1, 7% -8 -4 Annual GDP per cap. growth (%) - 10 Data from OPPG country case studies early (1990 s to early 20000 s) 6

WHAT IS PRO-POOR GROWTH? Annual change in poverty headcount (%) 8 1% GDP growth resulted in between 0. 7% and 2. 4% reduction in poverty -8 -4 Annual GDP per cap. growth (%) - 10 Data from OPPG country case studies early (1990 s to early 20000 s) 7

TASK TEAM ON INFRASTRUCTURE The Four Guiding Principles: 1. Use partner-led frameworks as a basis for coordinated donor support 2. Enhance infrastructure’s impact on poor people 3. Improve management of infrastructure investment to achieve sustainable outcomes 4. Increase infrastructure financing and use all financial resources efficiently 8