Economic growth has led to substantial reductions in poverty world‐wide, specifically in South‐East Asia and in large countries such as China, India and Brazil. The picture is more mixed in Sub‐Saharan Africa where poverty in some parts Has been reduced while in other parts such as theSahel region very recent forecasts suggest at least a stagnation if not an increase. While hencethe reduction in world‐wide poverty is remarkable, in many emerging economies, includingChina, growth and poverty reduction are accompanied by a significant increase in inequality in countries.

The first part of the course which is delivered by Michael Grimm discusses the statistical tools to investigate these dynamics and the underlying policies and external factors causing these changes. The course starts with a presentation of the theoretical foundations of the mainstream welfare measures and discusses the advantages and disadvantages of alternative approaches including Sen’s Capability Approach and the concept of happiness. In this context the course will also critically assess the poverty estimates produced by the World Bank.

The second block starts with the arithmetics linking growth, inequality and poverty and deals with the effects of growth on inequality. The discussions also cover Thomas Piketty’s recent book “Capital in the 21st century”. This block concludes with the inverse relationship, i.e. the effects of inequality and growth. Competing hypotheses are discussed and empirically validated.

The second part of the course which is delivered by Johannes Jütting focusses on how development policies and development co‐operation can help fighting poverty and addressing inequality. It starts with setting out the changing paradigms in development strategies and cooperation over the last decades from the more unilateral focus on poverty in the 70s to the more holistic Agenda 2030 with its ambition to leave no one behind. The course will then turn to the question how digitalization (development 4.0) can provide new opportunities for sustainable growth and improving well‐being of the population. The block ends with a reflection on the contours of a new narrative for development co‐operation in times of an emerging multi‐polar world, shifting wealth from west to east and rising populism in donor countries questioning the effectiveness of multilateral approaches.