Inclusive growth

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Inclusive growth is a concept that advances equitable opportunities for economic participants during economic growth with benefits incurred by every section of society.[1][2][3] This concept expands upon traditional economic growth models to include focus on the equity of health, human capital, environmental quality, social protection, and food security.[4]

The definition of inclusive growth implies direct links between the macroeconomic and microeconomic determinants of the economy and economic growth. The microeconomic dimension captures the importance of structural transformation for economic diversification and competition, while the macro dimension refers to changes in economic aggregates such as the country’s gross national product (GNP) or gross domestic product (GDP), total factor productivity, and aggregate factor inputs.[5]

Sustainable economic growth requires inclusive growth. Maintaining this is sometimes difficult because economic growth may give rise to negative externalities, such as a rise in corruption, which is a major problem in developing countries. Nonetheless, an emphasis on inclusiveness—especially on equality of opportunity in terms of access to markets, resources, and an unbiased regulatory environment—is an essential ingredient of successful growth. The inclusive growth approach takes a longer-term perspective, as the focus is on productive employment as a means of increasing the incomes of poor and excluded groups and raising their standards of living.[6]


References[edit]

  1. ^ Ranieri, Rafael; Ramos, Raquel Almeida (March 2013). "Inclusive Growth: Building up a Concept" (PDF). Working Paper. 104. Brazil: International Policy Centre for Inclusive Growth. ISSN 1812-108X. Retrieved 13 January 2015. 
  2. ^ Anand, Rahul; et al. (17 August 2013). "Inclusive growth revisited: Measurement and evolution". VoxEU.org. Centre for Economic Policy Research. Retrieved 13 January 2015. 
  3. ^ Anand, Rahul; et al. (May 2013). "Inclusive Growth: Measurement and Determinants" (PDF). IMF Working Paper. Asia Pacific Department: International Monetary Fund. Retrieved 13 January 2015. 
  4. ^ Hasmath, Reza, ed. (2015). Inclusive Growth, Development and Welfare Policy: A Critical Assessment. Routledge. pp. 2–3. ISBN 9781138840799. 
  5. ^ Elena Ianchovichina and Susanna Lundstrom, "What is Inclusive Growth?", The World Bank, February 10, 2009.
  6. ^ Elena Ianchovichina and Susanna Lundstrom, 2009. "Inclusive growth analytics: Framework and application", Policy Research Working Paper Series 4851, The World Bank.

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