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Poverty, Incentive Alignment and Resilience to Economic Shrinking - A Conceptual Proposal

Rohne Till, Emelie LU and Andersson, Martin LU orcid (2026)
Abstract
Recent research has highlighted the importance of reducing economic shrinking—periods of negative per capita growth—for long-term development. Building on this literature, this chapter proposes a new framework explicitly connecting the dynamics of poverty eradication to the dynamics of resilience to economic shrinking. It argues that a key driver of this resilience is the alignment of incentives between political and economic elites toward national development. Drawing on three bodies of literature—on economic growth, inequality and poverty, and elite bargains—the chapter develops a conceptual framework on how such incentive alignment can trigger a virtuous cycle of increased resilience to shrinking, stronger economic performance, and... (More)
Recent research has highlighted the importance of reducing economic shrinking—periods of negative per capita growth—for long-term development. Building on this literature, this chapter proposes a new framework explicitly connecting the dynamics of poverty eradication to the dynamics of resilience to economic shrinking. It argues that a key driver of this resilience is the alignment of incentives between political and economic elites toward national development. Drawing on three bodies of literature—on economic growth, inequality and poverty, and elite bargains—the chapter develops a conceptual framework on how such incentive alignment can trigger a virtuous cycle of increased resilience to shrinking, stronger economic performance, and reduced poverty. The framework is tested through a Popperian empirical exercise using eight country cases. Findings support the claim that elite incentive alignment is a necessary condition for developing resilience, offering a novel lens on how poverty reduction and societal transformation unfold across contexts. (Less)
Please use this url to cite or link to this publication:
author
and
organization
publishing date
type
Chapter in Book/Report/Conference proceeding
publication status
in press
subject
host publication
Geography of Poverty
editor
Hall, Ola and Wahab, Ibrahim
publisher
Edward Elgar Publishing Ltd.
language
English
LU publication?
yes
id
4a350a32-4c5e-42bd-a712-6fa91b86158c
date added to LUP
2025-11-24 13:28:50
date last changed
2025-11-24 14:09:39
@inbook{4a350a32-4c5e-42bd-a712-6fa91b86158c,
  abstract     = {{Recent research has highlighted the importance of reducing economic shrinking—periods of negative per capita growth—for long-term development. Building on this literature, this chapter proposes a new framework explicitly connecting the dynamics of poverty eradication to the dynamics of resilience to economic shrinking. It argues that a key driver of this resilience is the alignment of incentives between political and economic elites toward national development. Drawing on three bodies of literature—on economic growth, inequality and poverty, and elite bargains—the chapter develops a conceptual framework on how such incentive alignment can trigger a virtuous cycle of increased resilience to shrinking, stronger economic performance, and reduced poverty. The framework is tested through a Popperian empirical exercise using eight country cases. Findings support the claim that elite incentive alignment is a necessary condition for developing resilience, offering a novel lens on how poverty reduction and societal transformation unfold across contexts.}},
  author       = {{Rohne Till, Emelie and Andersson, Martin}},
  booktitle    = {{Geography of Poverty}},
  editor       = {{Hall, Ola and Wahab, Ibrahim}},
  language     = {{eng}},
  publisher    = {{Edward Elgar Publishing Ltd.}},
  title        = {{Poverty, Incentive Alignment and Resilience to Economic Shrinking - A Conceptual Proposal}},
  year         = {{2026}},
}