This collection of essays honors a remarkable man and his work. Erik Thorbecke has made significant contributions to the microeconomic and the macroeconomic analysis of poverty, inequality and development, ranging from theory to empirics and policy. The essays in this volume display the same range. As a collection they make the fundamental point that deep understanding of these phenomena requires both the micro and the macro perspectives together, utilizing the strengths of each but also the special insights that come when the two are linked together. After an overview section which contains the introductory chapter and a chapter examining the historical roots of Erik Thorbecke's motivations, the essays in this volume are grouped into four parts, each part identifying a major strand of Erik's work—Measurement of Poverty and Inequality, Micro Behavior and Market Failure, SAMs and CGEs, and Institutions and Development. The range of topics covered in the essays, written by leading authorities in their own areas, highlight the extraordinary depth and breadth of Erik Thorbecke's influence in research and policy on poverty, inequality and development. Acknowledgements These papers were presented at a conference in honor of Erik Thorbecke held at Cornell University on October 10-11, 2003. The conference was supported by the funds of the H. E. Babcock Chair in Food, Nutrition and Public Policy, and the T. H. Lee Chair in World Affairs at Cornell University.

Economists have traditionally concentrated on aggregate economic growth to measure a country's development, but previously they have also considered income distribution performance. In this book Gary Fields reverses conventional approaches by using income distribution as the primary indicator. He examines what is known about the distribution of income and poverty, inequality, and development. He explores the main causes of poverty and inequality and the extent to which they have been reduced by individual countries in the course of their economic growth. Recognizing that conclusions vary with the type of income distribution measure used, Fields proposes that changes in absolute poverty be adopted as the primary index of a developing nation's progress and suggests that the growth rate of the GNP and character of that growth be regarded as the principal determinants of the levels of poverty and inequality. This framework calls for new models new data. and new microanalytic techniques in order to understand the results of development efforts. Fields employs evidence from case studies of six developing nations to suggest some explanations for differing patterns of development and calls for development planning founded on a firm commitment to helping the poor.

In this book Edward and Sumner argue that to better understand the impact of global growth on poverty it is necessary to consider what happens across a wide range of poverty lines. Starting with the same datasets used to produce official estimates of global poverty, they create a model of global consumption that spans the entire world’s population. They go on to demonstrate how their model can be utilised to understand how different poverty lines imply very different visions of how the global economy needs to work in order for poverty to be eradicated.

Economists have traditionally concentrated on aggregate economic growth to measure a country's development, but previously they have also considered income distribution performance. In this book Gary Fields reverses conventional approaches by using income distribution as the primary indicator. He examines what is known about the distribution of income and poverty, inequality, and development. He explores the main causes of poverty and inequality and the extent to which they have been reduced by individual countries in the course of their economic growth. Recognizing that conclusions vary with the type of income distribution measure used, Fields proposes that changes in absolute poverty be adopted as the primary index of a developing nation's progress and suggests that the growth rate of the GNP and character of that growth be regarded as the principal determinants of the levels of poverty and inequality. This framework calls for new models new data. and new microanalytic techniques in order to understand the results of development efforts. Fields employs evidence from case studies of six developing nations to suggest some explanations for differing patterns of development and calls for development planning founded on a firm commitment to helping the poor.

Is there a tradeoff between raising growth and reducing inequality and poverty? This paper reviews the theoretical and empirical literature on the complex links between growth, inequality, and poverty, with causation going in both directions. The evidence suggests that growth can be effective in reducing poverty, but its impact on inequality is ambiguous and depends on the underlying sources of growth. The impact of poverty and inequality on growth is likewise ambiguous, as several channels mediate the relationship. But most plausible mechanisms suggest that poverty and inequality reduce growth, at least in the long run. Policies play a role in shaping these relationships and those designed to improve equality of opportunity can simultaneously improve inclusiveness and growth.

While Asia’s growth record in recent decades is remarkable, it has been marred by rising inequalities. This book looks at recent trends of income and non-income inequalities in developing Asian countries, discusses their underlying driving forces, and examines key policy issues that need to be addressed to ensure that the benefits of growth will be more equitably shared in Asia. The book also presents a set of country studies that provide rich information on growth, poverty and inequality dynamics and the policy challenges that arise in marching toward inclusive growth.