The Impact of Climate Change on Pro-Poor Growth
Department for International Development (DFID) (2004)
How will climate change affect the economies of developing countries? What can governments and donors do in preparation?
This DFID key sheet examines the impact of climate change on pro-poor growth. It clarifies the link between economic growth and poverty reduction and sets out recommended action to build flexibility into economic policy, illustrating how effects on agricultural productivity, health and resources such as water all impact on growth prospects. It notes that impacts on economies are likely to be influenced by:
How far they are dependent on climate and weather-sensitive sectors for growth – especially agriculture, whose development is recognised as critical to the success of pro-poor economic growth.
The actual impact on important resources such as water; damage to infrastructure; and the effects of disruption on government revenues and relief expenditure.
The key sheet recommends ‘mainstreaming’ climate issues into economic planning and the budget process by:
Maintaining a policy environment conducive to changing market trends and including contingencies for climatic variability within budget planning processes.
Encouraging individuals to move away from geographical areas or sectors most affected by climate change and removing restrictions that confine the poor to increasingly unsustainable livelihoods or marginal areas.
Support technological development and the provision of information in sectors that will allow individuals and markets to adapt to, or mitigate the impact of climate change.
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