Income inequality and poverty reduction in Sub-Saharan Africa
The European Union’s EDF programme - Study
Poverty reduction remains a cornerstone of development policy. Increasingly, this focus is complemented with concerns about the potential negative economic and social impact of inequalities or relative poverty. This is evident in the new Sustainable Development Goals, which introduced a new focus on inequalities with SDG 10 “Reduce inequality within and among countries”. Globally, income inequality between countries has been falling, reflecting a certain degree of catch up by developing countries. However, recent data shows that inequality within countries has risen in return. But what are the... inequality trends in Sub-Saharan Africa where poverty reduction remains a key challenge, and where relative poverty is one of the key drivers of migration? What are the links between poverty reduction, inequality and economic growth? And what are the key drivers of inequality from an empirical point of view? This study focusses on these key questions in relation to income and consumption inequality. Other forms of inequality, for example in relation to inequality of opportunities, are outside the scope of this study.