Yojana Magazine: Issue October 2013
A dignitary visiting Brazil in 1971 asked its head of state
Emilio Medicin about the economic situation of the country to which he replied ,
‘The economy is doing fine, but the people are not.’ This captures the paradox
of growth that does not create employment and reduces poverty. The close
interrelationship between growth, employment and poverty has long been a matter
of debate and dispute among economists. The ‘trickle down’ theory of economic
growth has long lost its relevance and it is now well recognized that growth may
not be enough to achieve the objectives of employment and reduction of poverty.
The impact of growth on employment and poverty depends upon a multitude of
factors and the proper dynamics of the relationship between these three goals
needs to be understood in a broader context.
Courtesy: Yojana Magazine