Can promoting shared prosperity help to reduce global poverty?

This was the question recently asked by World Bank researcher Mario Negre during a research seminar at MSM held on 5th of March.
Dr. Negre’s seminar is based on recent research of his that simulates the global poverty headcount under three growth scenarios for the bottom 40 percent up to 2030.

With “shared prosperity” defined as the income growth of the bottom 40 percent of the population within a country, his study finds that the global poverty rate could either reach the 3 percent target, or be close to 10 percent, depending on the “shared prosperity premium.” Shared prosperity could thus indeed reduce global poverty.

The context for the study is that in 2013, the World Bank adopted two goals: First, reduce global extreme poverty to 3 percent by 2030. Second, promote shared prosperity defined as the income growth of the bottom 40 percent of the population within a country.
The Economist recently covered the findings of this research.