Why Economic Growth Fails to Eradicate Poverty

Summary. Editor's Note Economic debate in Pakistan revolves around two contrasting narratives. The government insists that the national economy is achieving stability and improvement – rising gross national product (GNP), record high foreign exchange reserves and controlled inflation. The other side paints a bleaker reality – rising unemployment, persistent inflationary pressure and worsening poverty. Government's claims apart, one reality that no one can deny is: economic growth is not clearly visible in the daily lives of most Pakistani households. This widening gap between macroeconomic stability and household experience is now the central economic issue in Pakistan. In the following write-up, the author has analyzed in detail as to why economic stability and growth do not translate into better lives of the citizenry.