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The Growth, Inequality, and Poverty Nexus : Lessons from Long-term Trends in Tanzania, 1961–2017

Klocke, Sascha LU and Jerven, Morten LU (2025) In Forum for Development Studies
Abstract

This paper analyses the growth-inequality-poverty nexus in Tanzania. We provide a unique long-term study covering six decades of Tanzanian independence and disentangle the competing narratives concerning growth, inequality, and poverty in the country. We do this by carefully assessing the existing–and at times contradictory–data on growth, inequality, and poverty and by introducing the inequality extraction ratio, which has so far received little attention in the development literature. Contrary to the popular belief that inequality is bad for growth, our analysis shows that the role of inequality in the development process is ambiguous. Observed levels of income inequality in developing country contexts are difficult to interpret and... (More)

This paper analyses the growth-inequality-poverty nexus in Tanzania. We provide a unique long-term study covering six decades of Tanzanian independence and disentangle the competing narratives concerning growth, inequality, and poverty in the country. We do this by carefully assessing the existing–and at times contradictory–data on growth, inequality, and poverty and by introducing the inequality extraction ratio, which has so far received little attention in the development literature. Contrary to the popular belief that inequality is bad for growth, our analysis shows that the role of inequality in the development process is ambiguous. Observed levels of income inequality in developing country contexts are difficult to interpret and while income inequality in Tanzania was generally low, this was due limited inequality possibilities rooted in low levels of average incomes. Instead of relying on pre-determined assumptions concerning the interrelations between growth, inequality, and poverty, we point to the role of policy as the key element determining how these interrelations manifest.

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Please use this url to cite or link to this publication:
author
and
organization
publishing date
type
Contribution to journal
publication status
epub
subject
keywords
economic growth, income inequality, poverty, Tanzania
in
Forum for Development Studies
publisher
Taylor & Francis
external identifiers
  • scopus:105019984580
ISSN
0803-9410
DOI
10.1080/08039410.2025.2574642
language
English
LU publication?
yes
additional info
Publisher Copyright: © 2025 The Author(s). Published by Informa UK Limited, trading as Taylor & Francis Group.
id
39ce0542-700c-435f-a0a5-612922f1cbc1
date added to LUP
2026-01-15 12:46:04
date last changed
2026-01-15 12:46:43
@article{39ce0542-700c-435f-a0a5-612922f1cbc1,
  abstract     = {{<p>This paper analyses the growth-inequality-poverty nexus in Tanzania. We provide a unique long-term study covering six decades of Tanzanian independence and disentangle the competing narratives concerning growth, inequality, and poverty in the country. We do this by carefully assessing the existing–and at times contradictory–data on growth, inequality, and poverty and by introducing the inequality extraction ratio, which has so far received little attention in the development literature. Contrary to the popular belief that inequality is bad for growth, our analysis shows that the role of inequality in the development process is ambiguous. Observed levels of income inequality in developing country contexts are difficult to interpret and while income inequality in Tanzania was generally low, this was due limited inequality possibilities rooted in low levels of average incomes. Instead of relying on pre-determined assumptions concerning the interrelations between growth, inequality, and poverty, we point to the role of policy as the key element determining how these interrelations manifest.</p>}},
  author       = {{Klocke, Sascha and Jerven, Morten}},
  issn         = {{0803-9410}},
  keywords     = {{economic growth; income inequality; poverty; Tanzania}},
  language     = {{eng}},
  publisher    = {{Taylor & Francis}},
  series       = {{Forum for Development Studies}},
  title        = {{The Growth, Inequality, and Poverty Nexus : Lessons from Long-term Trends in Tanzania, 1961–2017}},
  url          = {{http://dx.doi.org/10.1080/08039410.2025.2574642}},
  doi          = {{10.1080/08039410.2025.2574642}},
  year         = {{2025}},
}