Roman Saini is teaching live on Unacademy Plus
Inclusive Growth and Issues Arising From It Lesson-1 Presented By: Roman Saini
In This Lesson Inclusive Growth Introduction Definitions Importance Of Inclusive Growth Benefits of Inclusive Growth
Inclusive Growth The concept of Inclusive Growth must be traced back to post World War lI development theories, when it was thought that development followed a pre-determined path. .The idea was that with rise in income growth inequality would eventually decline as economies grew. After this theory was challenged by countries where growth produced more inequality The idea that poverty and inequality, constrained growth gave way to the emergence of an understanding that equity should be a part of the growth process, as reducing inequality can contribute to both reducing and making growth more sustainable. .
Inclusive Growth How Inclusive Growth Is Different from Pro-poor Growth? Pro-poor growth is a growth that improves the conditions of the poor to growth where the poor benefit more than the rich; or . Even from the creation of policies to benefit the poor to ones that stress the importance of adding non-income dimensions to policies, as poverty is a multidimensional phenomenon . Although Inclusive Growth can oftentimes be interchangeable with definitions of pro-poor growth, it is actually a broader concept. . It wants growth to benefit all stripes of society, including the poor, the near-poor, middle income groups, and even the rich.
Inclusive Growth Inclusive growth is growth that reduces the disadvantages of the most disadvantaged while benefiting everyone Whereas pro-poor growth may be obtained either in the absence of benefits to one or more groups or at the expense of one or more groups. . Inclusive growth is not limited to income outcomes, as pro-poor growth is, it also includes the manner through which growth takes place. . Inclusive growth has been thought of as growth that promotes development, with development understood as comprehensive improvements in multiple dimensions contemplating both living conditions and empowerment.
Inclusive Growth Definitions: The World Bank refers to Inclusive Growth to denote both the pace and pattern of economic growth, which are interlinked and assessed together. Rapid pace of economic growth is necessary for reducing absolute poverty. But, for this growth to be sustainable in the long run, it should be broad-based across sectors, and inclusive of the large part of a country's labour force. . According to Asian Development Bank (ADB), it is "growth that not only creates new economic opportunities, but also one that ensures equal access to the opportunities created for all segments of society, particularly for the poor"
Inclusive Growth In the United Nations Development Programme (UNDP) perspective, inclusive growth is seen as both an outcome and a process. . On the one hand, it ensures that everyone can participate in the growth process, both in terms of decision-making as well as in terms of participating in growth itself. . .On the other hand, inclusive growth is one whose benefits are shared equitably. Inclusive growth thus implies participation and benefit-sharing. In the Europe 2020 Strategy, Inclusive Growth is understood as "empowering people through high levels of employment, investing in skills, fighting poverty and modernising labour markets, training and social protection systems so as to help people anticipate and manage change, and build a cohesive society. .
Inclusive Growth Importance Of Inclusive Growth .For ethical considerations of equity and fairness, growth must be shared and should be inclusive across different segments of populations and regions. Economic and other shocks hurt the poor and the vulnerable most, and growth that results in high disparity is unacceptable. . Growth with persisting inequalities within a country may endanger social peace, force poor and unemployed people into criminal activities. . It also make women more vulnerable to prostitution, force children into undesirable labor, and further weaken other disadvantaged and vulnerable sections of population
Inclusive Growth This results in a wastage of vast human capital that could otherwise be used productively in creating economic outputs for sustainable growth. Continued inequalities in outcomes and access to opportunities in a country may result in civil unrest and violent backlash from people who are continually deprived, derailing a sustainable growth process. This may create political unrest and disrupt the social fabric and national integration, undermining the potential for long-term, sustained growth
Inclusive Growth Benefits Of Inclusive Growth Reducing poverty, improving the quality of life, and ensuring that all parts of the society benefiting from the economic growth of the country is the primary motive of an inclusive growth plan. .There is a positive relationship between inclusive institutions and long-ternm growth. There are several evidences that the impact of inclusive growth approaches on reducing poverty, inequality and employment rates. . It also have positive impacts on macro level growth, human capital and labour agricultural productivity.
Inclusive Growth Inclusiveness is not just about bringing those below an official fixed poverty line to a level above it. It is also about a growth process which is seen to be 'fair' by different socio-economic groups that constitute our society. .Inclusiveness from a group perspective obviously goes beyond a poverty reduction perspective and includes consideration of the status of the group as a whole relative to the general population. Ending of gender based inequities, discrimination and all forms of violence against girls and women is at the core of Inclusive growth.