A Connection Between Social Progress and Pro-poor Growth

This study examines the relationship between social progress and pro-poor growth in developing countries over 2010-2020. Using the latest data from the World Bank’s PIP database, the Poverty Equivalent Growth Rate (PEGR) is calculated to measure pro-poor growth. Social progress is proxied by the Social Progress Index (SPI) for the same countries over the same time period. Pooled OLS regression is employed to analyze the association between the two variables. The results indicate a significant positive relationship between measures of pro-poor growth and social progress, suggesting that as the rate of PEGR increases, the SPI change also tends to increase. In addition, the findings show that when compared to non-pro-poor development, both relative pro-poor growth as well as (weak) absolute pro-poor growth, are associated with a higher SPI increases. These findings may underscore the importance of focusing on pro-poor growth to enhance the rate of social progress in developing countries.