Abstract
This paper analyzes the effects of economic reform for different income groups. Our interest is spurred by the international debate on the social consequences of reforms and the potential adverse effects on poverty in particular. We find that the poor are in general positively affected by inflationary control, structural reforms and trade reforms, while reducing government consumption affect the poorest income quintile negatively. In countries having undertaken World Bank financed reforms actual income of the poor was higher than predicted. Moreover, as the impact of reforms was strongest on the poor, World Bank support appears to reduce income inequality.