Economic growth has led to substantial reductions in poverty world-wide, specifically in South-East Asia and in large countries such as China and India and until recently also in Brazil. The picture is more mixed in Sub-Saharan Africa where poverty in some parts has been reduced, while in other parts such as the Sahel region, very recent forecasts suggest at least a stagnation if not an increase. In many emerging economies, including China, growth and poverty reduction are accompanied by a significant increase in inequality. The first part of the course discusses the statistical tools to investigate these dynamics. The course starts with a presentation of the theoretical foundations of the mainstream welfare measures. This is followed by a detailed discussion of inequality measures and the role of different dimensions of inequality. Then the course focuses on the World Bank’s approach to measure poverty. It follows a discussion of the advantages and disadvantages of alternative approaches including Sen’s Capability Approach, the Human Development Index and the concept of happiness. The last two chapters discuss theoretical channels linking inequality and economics growth and empirical results testing these channels. The second part of the course 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 co-operation over the last decades from the unilateral focus on poverty in the 70s to the more holistic Agenda 2030 with its ambition to leave no one behind.