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295 Industrial development and economic growth : Implications for poverty reduction and incomeinequalityMatleena Kniivil *1. IntroductionThe share of poor people in the global population has declined during recentdecades. According to Chen and Ravallion (2004), one-third of the popula-tion of the world lived in poverty in 1981, whereas the share was 18 per centin 2001. The decline is largely due to rapid economic growth in population-rich countries like China and india . There are, however, remarkable differ-ences between countries and between regions in the developing world.
Industrial development and economic growth 299 tion in overall poverty in the 1981-2001 period. In India, the Gini coeffi-cient of household consumption expenditure fell in the 1950s as a result of
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