Previous poverty assessments of Burkina Faso neglected some important methodological issues. They were therefore misleading and led to the so-called 'Burkinabè Growth-Poverty Parado', i.e., increasing poverty despite sustained macro-economic growth and constant inequality. We estimate that poverty significantly decreased between 1994 and 2003, i.e., growth was in contrast to what previous poverty estimates suggested 'pro-poor'. However, we also demonstrate that between 1994 and 1998, poverty indeed increased despite a good macro-economic performance. This was caused by a severe drought and the devaluation of the CFA Franc, which led to a profound deterioration of the purchasing power of the poor, an issue, which was also overseen by previous studies.

Consumer Economics: Empirical Analysis (jel D12), Equity, Justice, Inequality, and Other Normative Criteria and Measurement (jel D63), Measurement and Analysis of Poverty (jel I32), Microeconomic Analyses of Economic Development (jel O12),
ISS Staff Group 1: Economics of Sustainable Development
Journal of African Economies
International Institute of Social Studies of Erasmus University (ISS)

Grimm, M, & Günther, I. (2007). Growth and poverty in Burkina Faso: A reassessment of the paradox. Journal of African Economies, 16(1), 70–101. doi:10.1093/jae/ejk018