Comparing and evaluating poverty reduction approaches : USAID and the evolving poverty reduction paradigm

Analyses of the areas of overlap and differences between the two approaches to poverty reduction are presented under the following 12 categories: (1) the importance of economic growth; (2) the degree to which poverty reduction id a central priority; (3) definition and measurement of poverty and its reduction; (4) openness to trade, capital, and information flows; (5) poverty reduction and the role of government; (6) the vulnerability of the poor; (7) the priority assigned to agricultural development; (8) empowerment of the poor; (9) health and education; (10) environmental sustainability; (11) direct versus indirect approaches to poverty reduction; and (12) policy coherence. A companion paper evaluates the effectiveness of these approaches in reducing poverty in a sample of eight developing countries.