Question

"There is a strong link between economic growth and poverty reduction".Explain

Answer 1

Economic growth at micro or macro level both are linked with poverty reduction.
At the macro level, economic growth of a nation implies an increase in domestic production which will result in the decrease in import. The more production increases our own capacity and the products are available within the country. Less export means less expensive products. The high-quality production or the surplus being exported will improve our balance of trade. This will increase per capita income and further increase in standard of living.
At micro level, economic growth implies more earning in a family, which makes an individual less dependent on taking loans. Increase in earning gives more choices, choice to take better product, choice to spend on high quality education, choice to save more for the future.
All this reduces poverty.

Answer 2

There is a definite link between economic growth and poverty reduction. If a country grows economically, it can generate jobs in both the service as well as the manufacturing sectors. Consequently productive employment of the masses ensures poverty reduction. In addition to employment in the manufacturing and service sectors, a lot of employment is also generated in the infrastructure sector which aids in removing poverty.