Inclusive growth

Inclusive growth is economic growth that raises standards of livings for broad swaths of a population.{{Citation|last=Cerra|first=Valerie|title=An Inclusive Growth Framework|date=2021|url=https://oxford.universitypressscholarship.com/view/10.1093/oso/9780192846938.001.0001/oso-9780192846938-chapter-1|work=How to Achieve Inclusive Growth|pages=1–31|publisher=Oxford University Press|language=en|doi=10.1093/oso/9780192846938.003.0001|isbn=978-0-19-284693-8|doi-access=free}}{{cite journal|last1=Ranieri|first1=Rafael|last2=Ramos|first2=Raquel Almeida|title=Inclusive Growth: Building up a Concept|date=March 2013|volume=104|url=http://www.ipc-undp.org/pub/IPCWorkingPaper104.pdf|access-date=13 January 2015|series=Working Paper|publisher=International Policy Centre for Inclusive Growth|location=Brazil|issn=1812-108X}}{{cite news|last1=Anand|first1=Rahul|title=Inclusive growth revisited: Measurement and evolution|url=http://www.voxeu.org/article/inclusive-growth-revisited-measurement-and-evolution|access-date=13 January 2015|work=VoxEU.org|publisher=Centre for Economic Policy Research|date=17 August 2013|display-authors=etal}}{{cite web|last1=Anand|first1=Rahul|title=Inclusive Growth: Measurement and Determinants|url=http://www.imf.org/external/pubs/ft/wp/2013/wp13135.pdf|number=WP/13/135|publisher=International Monetary Fund|location=Asia Pacific Department|access-date=13 January 2015|series=IMF Working Paper|date=May 2013|display-authors=etal}} It is widely accepted that inclusive growth is challenging to be achieved in the real world.{{cite journal |last1=Waite |first1=David |last2=Roy |first2=Graeme |date=2 November 2022 |title=The promises and pitfalls of operationalizing inclusive growth |url=https://www.tandfonline.com/doi/full/10.1080/00343404.2022.2050201 |journal=Regional Studies |language=en |volume=56 |issue=11 |pages=1989–2000 |bibcode=2022RegSt..56.1989W |doi=10.1080/00343404.2022.2050201 |issn=0034-3404 |access-date=16 January 2024}} Both the intangibility and long term perspective make it less desirable than other more conspicuous economic targets for policymakers.{{cite journal |last1=Kamran |first1=Muhammad |last2=Rafique |first2=Muhammad Zahid |last3=Nadeem |first3=Abdul Majeed |last4=Anwar |first4=Sofia |date=2023 |title=Does Inclusive Growth Contribute Towards Sustainable Development? Evidence from Selected Developing Countries |url=https://ideas.repec.org/a/spr/soinre/v165y2023i2d10.1007_s11205-022-03020-6.html |journal=Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement |language=en |volume=165 |issue=2 |pages=409–429 |access-date=16 January 2024}}

There is a lack of a comprehensive and worldly recognised set of standards to systematically measure the inclusiveness of growth, which makes data collection and policy evaluation difficult.{{cite journal |last1=Sharafutdinov |first1=Rustam Ilfarovich |last2=Akhmetshin |first2=Elvir Munirovich |last3=Polyakova |first3=Aleksandra Grigorievna |last4=Gerasimov |first4=Vladislav Olegovych |last5=Shpakova |first5=Raisa Nikolaevna |last6=Mikhailova |first6=Mariya Vladimirovna |date=1 April 2019 |title=Inclusive growth: A dataset on key and institutional foundations for inclusive development of Russian regions |journal=Data in Brief |volume=23 |pages=103864 |bibcode=2019DIB....2303864S |doi=10.1016/j.dib.2019.103864 |issn=2352-3409 |pmc=6660622 |pmid=31372475}} Proponents for inclusive growth warn that inequitable growth may have adverse political outcomes.{{Citation|last1=Dutzler|first1=Barbara|title=The Political Economy of Inclusive Growth|date=2021|url=https://oxford.universitypressscholarship.com/10.1093/oso/9780192846938.001.0001/oso-9780192846938-chapter-15|work=How to Achieve Inclusive Growth|publisher=Oxford University Press|doi=10.1093/oso/9780192846938.003.0015|isbn=978-0-19-284693-8|last2=Johnson|first2=Simon|last3=Muthoora|first3=Priscilla|doi-access=free}}

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.Elena Ianchovichina and Susanna Lundstrom, [https://web.archive.org/web/20110125031120/http://siteresources.worldbank.org/INTDEBTDEPT/Resources/468980-1218567884549/WhatIsInclusiveGrowth20081230.pdf "What is Inclusive Growth?"], The World Bank, February 10, 2009.

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.Elena Ianchovichina and Susanna Lundstrom, 2009. [http://www-wds.worldbank.org/external/default/WDSContentServer/IW3P/IB/2009/03/03/000158349_20090303083943/Rendered/PDF/WPS4851.pdf "Inclusive growth analytics: Framework and application"], Policy Research Working Paper Series 4851, The World Bank.