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Training Module: Financial Policy

Gerald Epstein, Ilene Grabel

International Poverty Centre (IPC)

July 2007

SARPN acknowledges the International Poverty Centre as a source of this document: www.undp-povertycentre.org
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Introduction: A pro-poor growth approach to financial policy

This module describes the current state of knowledge with respect to pro-poor growth financial policies.1 These policies are presented as alternatives to what, we argue, are the failed financial policies inspired by orthodox economics. Orthodox financial policies, also known as ‘Washington Consensus’ policies, have been implemented in a large number of developing countries over the last quarter century. We explore the logic of these financial policies and examine the diverse ways in which they have failed the developing world.

The principal goals of this module are to present a range of financial policies that have been utilized in some countries to promote pro-poor growth at various times, and also to present a set of more innovative policies that have not yet been utilized, but which we argue can also support pro-poor growth. We maintain, in fact, that there exists a wealth of such experiences and strategies available to practitioners in the developing world.



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