Inclusive Growth Essay

599 Words3 Pages
How do you define Inclusive Growth? Inclusive Growth refers both to the pace and pattern of growth, which are interlinked and must be addressed together. Rapid pace of growth is unquestionably necessary for substantial poverty reduction, 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 labor force. This definition implies a direct link between the macro and micro determinants of growth. Growth is inclusive when it creates economic opportunities along with ensuring equal access to them. Apart from addressing the issue of inequality, the Inclusive Growth may also make the poverty reduction efforts more effective by explicitly creating productive economic opportunities for the poor and vulnerable sections of the society. The Inclusive Growth by encompassing the hitherto excluded population can bring in several other benefits as well to the economy. The concept “Inclusion” should be seen as a process of including the excluded as agents whose participation is essential in the very design of the development process, and not simply as welfare targets of development programmes. Huge investments in education and health, and rural infrastructure were the key elements of the Inclusive Growth strategy as envisaged. Broadly, the policies aim at increasing the income and employment opportunities on the one hand and on the other; it tries to finance programs which are capable of making the growth more inclusive. There are supply side and demand side factors driving Inclusive Growth. Banks largely are expected to maintain the supply side processes that prevent poor and disadvantaged social groups from gaining access to the financial system. Apart from the supply side factors, demand side factors, such as lower income and /or asset holdings also have a significant bearing on financial
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