POVERTY: Economic growth, poverty reduction go hand in hand’

ISLAMABAD: The UK chief economist and world leading specialist Professor Alan Winters on Thursday stressed the inextricable link between economic growth and poverty reduction. He expressed these views in a seminar on “Growth Policy Seminar”. Professor Winters is in Pakistan on the invitation of Deputy Chairman of the Planning Commission Dr Nadeem Ul Haque, as part of the development of a new growth strategy for Pakistan, which would help the country improve competitiveness, promote investment based on innovation and entrepreneurship, and better exploit the potential of Pakistan’s large domestic market. Economic growth needs to be more than double to eight percent to create enough jobs for Pakistan’s surging working age population. Professor Alan Winters said “Economic growth and poverty reduction go hand in hand; getting more people on jobs helps them fight poverty, creates more consumers, drives more production and demand for services, increase tax returns, and allows the government to improve everyone’s living standards by investing in schools, hospitals, and other infrastructure.” “Governments can’t achieve growth all by themselves, but can surely play a pivotal role in helping the private sector expand and diversify through setting appropriate and fair policy; implementing effective regulation; and allowing firms the flexibility to innovate – all critical for a vibrant, stable, and competitive economy,” he said. He further said in Pakistan half the adult population cannot read and write, “under-employment is high in many areas, and the population will increase by half again in the next twenty years. This means there is a vast mine of hidden talent and productivity which needs to be developed and tapped, even as the country wrestles with painful but essential reforms to cut waste and increase tax returns, if Pakistan is to become the prosperous and dynamic country it has the potential to prove.” staff report
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