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productivity improvement and poverty reduction

"Connor knows that the two "P" represent the key to sustained economic development for the low-income countries. The two "P" are labour productivity growth and poverty reduction.

Kelly argues that there are important key development strategies which would improve productivity growth and achieve poverty reduction at the same time. Kelly holds that these strategies should be emphasized and given prominence when development policies are created.

Write an in-depth analytical which directs attention to the economic important of these two important issues: productivity improvement and poverty reduction. evaluate two key economic strategies which would work to achieve these joint economic goals. clearly indicate how strategies would achieve economic growth, and at the same time engage in poverty reduction.

Solution Preview

In order to achieve productivity improvement and poverty reduction at the same time, the economy should have a strategy that place greater welfare weight on the well-being of the poor than on that of the rich. We should keep in mind that the economy's growth rate due to the improvements in productivity is not a sufficient statistic for welfare evaluations because it ignores the distribution of income. So the government should choose a strategy that that has greater potential payoff for the poor even if the aggregate growth impact is less assured. Poverty is directly proportional to the market imperfections and incompleteness. The economic condition of poor people remains the same because they cannot borrow against future earnings to invest in education, skills, new crops, and entrepreneurial activities. They are isolated from most of the economic ...

Solution Summary

This job reiterates productivity improvement and poverty reduction.

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