Structural change, growth and poverty reduction in Asia: Pathways to inclusive development

Growth alone does not guarantee sustained poverty reduction, and it may also create threats to social cohesion that in turn can undermine growth. While development thinking remains dominated by a 'growth-first'paradigm, Asian experience helps to moderate this view, illustrating the important role of government policy in creating pro-poor growth, providing public goods and social protection mechanisms, and creating the institutional conditions for more inclusive and equitable development. This article examines the structural transformations which accompany growth, and their implications for appropriate policies to progress towards the MDGs.