Dhaka, March 20 -- There was a general consensus during the middle of last century that economic growth measured by GDP growth is the most powerful instrument to reduce poverty, and therefore by implication reduces income inequality and also improves the quality of life of the people in developing countries. Empirical evidence based on cross-country and individual country case studies by many researchers provided support to the hypothesis. Both the World Bank (WB) and the International Monetary Fund (IMF) also have lent their full support to such a hypothesis. In fact, economic growth measured by GDP still continues to be these two institutions' mantra for global poverty alleviation and reducing income inequality.

Indeed, over the last f...