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Working Paper 52 - Poverty Reduction in sub - Saharan Africa: Is There a Role for the Private Sector?
Restoration of adequate economic growth and improvement of people’s welfare has been a primary objective in Sub-Saharan Africa since the 1960’s. At the time, it was believed that the benefits of higher rates of economic growth would “trickle down” to the lower income groups of the population. However, existing evidence concludes that, although higher economic growth is a sine-qua-non for sustained poverty reduction, it has often resulted in a “trickle up”, in favor of the small middle class and the very rich.