From poverty to power - Oxfam-Québec

3 POVERTY AND WEALTH GOING FOR GROWTHRights and citizenship: Historically, growth generally strengthenedactive citizenship because greater economic security led to increaseddemand for rights, often led by new middle classes. However, in recentyears, measures to achieve growth have weakened the security of poorpeople and at times have explicitly undermined rights, for example byoutlawing unions in export-processing zones. Such measures limit thecapacity of growth to reduce poverty and inequality. An active citizenryis essential to ensure that the benefits of growth are evenly spread.Effective states: Pro-growth strategies in recent decades have viewedthe state as part of the problem – an obstacle to the smooth functioningof markets. Because effective states are central both to enable growthto take place and to ensure a fair distribution of its benefits, measuresto promote growth must strengthen rather than undermine stateeffectiveness, for example by increasing its tax take and enhancinggovernance and state institutions.There is no single policy path for poor countries to achievewelfare-enhancing growth. Strategies initially driven by ideology,whether state-centric or market-centric, have shown some success,but only to the degree that ideology has taken a back seat to thepragmatic long-term task of building public institutions and citizens’rights. The way forward lies not in policy prescriptions, but in statesthat are ever more capable of experimenting and learning from theirmistakes, and in citizens actively defending their interests. Effectivestates and active citizens offer the best guarantee that the market candeliver both wealth creation and improved human welfare.191