Growth and the poor: a comment on Dollar and Kraay

In a recent paper Dollar and Kraay come to sweeping conclusions about economic growth and the poor. On the basis of empirical work they assert that standard World Bank and IMF policy packages are good for the poor. This paper demonstrates that (i) the empirical work is based on theoretically unsound equations; (ii) the data are seriously flawed; and (iii) the policy variables are not defined appropriately, nor are they tested in a consistent manner. These problems imply that the policy conclusions of the authors are unsafe.