What is 'Inclusive Growth' about?


Inclusive Growth focuses on economic growth which is a necessary and crucial condition for poverty reduction.
Inclusive Growth adopts a long term perspective and is concerned with sustained growth.
  1. For growth to be sustained in the long run, it should be broad-based across sectors. Issues of structural transformation for economic diversification therefore take a front stage. Some countries may be an exception and continue to specialize as they develop due to their specific conditions (e.g. small states).
  2. It should also be inclusive of the large part of the country’s labor force, where inclusiveness refers to equality of opportunity in terms of access to markets, resources and unbiased regulatory environment for businesses and individuals.
Inclusive Growth focuses on both the pace and pattern of growth. How growth is generated is critical for accelerating poverty reduction, and any IG strategies must be tailored to country-specific circumstances.
Inclusive Growth focuses on productive employment rather than income redistribution. Hence the focus is not only on employment growth but also on productivity growth.
Inclusive Growth has not only the firm, but also the individual as the subject of analysis.
Inclusive Growth is in line with the absolute definition of pro-poor growth, not the relative one.
Inclusive Growth is not defined in terms of specific targets such as employment generation or income distribution. These are potential outcomes, not specific goals.
Inclusive Growth is typically fueled by market-driven sources of growth with the government playing a facilitating role.

1 comment:

Jyeshtha Tiwari said...

after reading this article i am able to understand inclusive growth's meaning very simply

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