For most of its formative period, the field of development economics was concerned with one overriding, and one related, objective. The former was growth, the latter poverty reduction. Since about the mid-nineties, the focus has shifted to the second, derived goal of poverty reduction. While it is recognized that growth is essential, it nevertheless is felt that growth can have differential effects on poverty; in particular, differences can result because of the important mediation on poverty reduction of both the levels, and changes, in inequality.