Abstract
Economic growth, inequality and poverty are closely linked. Although economic growth can contribute to the increase in general well-being, increasing inequality often reduces the effectiveness of economic progress and increases the level of poverty.
The triangle model (poverty-growth-inequality triangle) developed by Bourguignon (2004) remains one of the most important theories in the analysis of developing economies. Its main advantage is the understanding of the interaction of growth and inequality as a determining factor in the dynamics of poverty. Economic growth is not enough to eliminate poverty if it is not evenly distributed. However, critics emphasize that the analysis of global poverty needs to take into account more complex factors, including the impact of education, financial stability, and economic cycles.
The Bourguignon Triangle model shows that poverty reduction is possible only when economic growth is distributed evenly across the population. Accordingly, economic policies should focus on the equitable distribution of income in order to achieve sustainable socio-economic development.