Assistant Professor, Department of Economics, Jatiya Kabi Kazi Nazrul Islam University, Trishal, Mymensingh, Bangladesh
This paper explores the propositions that economic growth is a necessary condition to achieve poverty reduction, but that a reduction in inequality may also be a precondition for sustained growth. Economic growth increase average per capita income, thereby reducing the rate of poverty. However, the pace of poverty alleviation depends on the increase of average income of the poor due to economic growth. If income level of the poor increases more than that of average income, rate of poverty decreases rapidly. Alleviation of relative poverty depends not only on economic growth but also on redistribution of national income. Alleviation of poverty reduces inequality which in turn stimulates economic growth. This paper confirms these growth, poverty and inequality propositions in the case of Bangladesh economy.
Economic growth, Bangladesh, poverty, inequality
