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Reaching the Bottom 40 Percent: Do National Goals Translate Subnationally?

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  • Onder, Harun

    (World Bank)

Abstract

Promoting shared prosperity is at the center of the new World Bank Group Strategy. To this effect, a shared prosperity index will help monitor the income growth of the bottom 40 percent of the population in every developing country. However, many developing countries exhibit substantial economic and demographic heterogeneities across subnational regions. Does the national target of the bottom 40 percent translate to a target of the bottom 40 percent in each subnational region? This note discusses how regional disparities can lead to contradictory results in the interpretation of a shared prosperity index with a national and subnational focus. Accordingly, policy lessons that are derived from nationwide analyses may be misleading for subnational regions, and vice versa.

Suggested Citation

  • Onder, Harun, 2013. "Reaching the Bottom 40 Percent: Do National Goals Translate Subnationally?," World Bank - Economic Premise, The World Bank, issue 130, pages 1-4, November.
    • Handle: RePEc:wbk:prmecp:ep130
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    References listed on IDEAS

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    1. Rosenblatt, David & McGavock, Tamara J., 2013. "A note on the simple algebra of the shared prosperity indicator," Policy Research Working Paper Series 6645, The World Bank.
    2. Narayan, Ambar & Saavedra-Chanduvi, Jaime & Tiwari, Sailesh, 2013. "Shared prosperity : links to growth, inequality and inequality of opportunity," Policy Research Working Paper Series 6649, The World Bank.
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    Cited by:

    1. World Bank Group, 2015. "Poverty and Shared Prosperity in Brazil's Metropolitan Regions," World Bank Publications - Reports 22316, The World Bank Group.

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    More about this item

    JEL classification:

    • R0 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General
    • R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics

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