Poverty reduction is considered one of the most essential development goals for both developing and developed countries (United Nations, 2000). However, poverty outcomes vary considerably between countries depending on the particular success of their development strategies. Research comparing the experiences of a wide range of developing countries finds strong and consistent evidence that rapid and sustained growth is the most important way to reduce poverty. A typical estimate from these cross-national studies is that a 10% increase in a country's average income will reduce the poverty rate by between 20 and 30% (Adams, R, 2002). Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an original essay Initial levels of income inequality are important in determining how powerful the effect of growth is in reducing poverty. For example, it has been estimated that a 1% increase in income levels could result in a 4.3% decrease in poverty in countries with very low inequality or a decrease in poverty of only 0.6% in highly disparate countries (Ravallion 2007). .Such calculations must be interpreted with caution, given the multitude of variables involved. Even if inequality increases alongside growth, it is not necessarily the case that the poor will not benefit, only that they will benefit less from growth than other families. But contrary to popular belief, growth does not necessarily lead to increased inequality. While some theoretical research suggests a causal relationship between growth and inequality (and vice versa), the consensus of the most recent empirical research is that there is no consistent relationship between inequality and changes in income. The experiences of developing countries in the 1980s and 1990s suggest that there is a more or less equal probability that growth will be accompanied by an increase or decrease in inequality (Ravallion 2001). In many developing countries, inequality rates are similar to or lower than those in developed countries. A number of studies using cross-national data suggest that growth has neither a positive nor negative effect on inequality (Chen and Ravallion 1997). Please note: this is just an example. Get a custom paper from our expert writers now. Get a Custom EssayThis is not to say that increased growth has not led to increased inequality in some countries. Both China and India saw rising inequality as their growth rates increased throughout the 1990s. Both Bangladesh and Uganda would have experienced higher rates of poverty reduction if growth had not widened the income distribution between 1992 and 2002. For example, one study suggests that the percentage of people living in poverty in Uganda at the end of this period it would have been 30% instead of 38%, if the poor had benefited proportionally from the growth (Besley and Cord 2007). Works Cited: American Psychological Association. (2010). Publication manual of the American Psychological Association (6th ed.). Miller, A. (1953). The Crucible: comedy in four acts. Viking Press. National Institute of Mental Health. (2021). Schizophrenia. https://www.nimh.nih.gov/health/topics/schizophrenia/index.shtmlNational Institute of Mental Health. (2021). Psychosis. https://www.nimh.nih.gov/health/topics/schizophrenia/index.shtmlNolen-Hoeksema, S. (2014). Abnormal psychology. McGraw-Hill Education.Singer, I. (1993). The Crucible: context, themes and literary elements. McDougal Littell.Smith, C..
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