This is one of the main ideas proposed today in the presentation at the World Bank of the new flagship report from the Latin America and the Caribbean Region "Poverty Reduction and Growth: Virtuous and Vicious Circles".
The report provides new evidence on the virtuous relationship between growth and poverty reduction: growth is key for poverty reduction. But it also suggests that the relationship can be vicious too: poverty may be hindering growth in Latin America. The report estimates that a ten percent decrease in poverty levels could increase economic growth by one percent in the region.
In the words of the World Bank's Chief Economist for Latin America and the Caribbean and co-author of the report, Guillermo Perry, in a recent interview:
The report defends the idea that poverty and growth are part of the same problem and therefore growth and direct poverty reduction strategies have to be part of the same solution.