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)
dx.doi.org/10.1093/jae/ejk018, hdl.handle.net/1765/34775
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