Economic growth is often cited as a necessary condition for improvement of living standards. Persistent income inequalities, however, have led to the recognition that economic growth alone may not reduce poverty and income inequality; one must also take into account the distribution of benefits from economic growth among different segments of the population, especially the poorest households. Real GDP may grow by 5% in a given year, but this figure doesn't tell policy-makers which households benefit from this increase in national income. For example, the additional income may go mostly to middle or upper-income households, may go mainly to poor households, or may benefit all households equally. As a country with an extremely unequal household income distribution, it is critical for Namibia to monitor this aspect of economic development. It is also important to assess the likely impacts of policy actions on income distribution, and to design long-term development strategies that target poverty.