It is an economic growth that is distributed fairly across society and creates opportunities for all.
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.
Equity
The idea of equity recognises that some groups have not been treated fairly in the past and may not have had the same chances as others. To make things fair, it’s important to address these historical imbalances and ensure that everyone has equal opportunities for success.
Elements of Inclusive Growth
Drivers of Inclusive Growth
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- Economic Growth: Higher economic growth increases the size of economy activity and associated benefits which can be shared with various sections of the society.
- Education and skill development: It increases the productivity of human resources and creates opportunities for them to be contributors to the economic process.
- Infrastructure development: It reduces the gap between physical assets needed to create growth drivers in underdeveloped regions of any country.
- Financial inclusion: It helps larger unbanked section of society to get access to credit and other financial product for enterprise development.
- Technological advancement: It lowers the cost of product and services thus making it more affordable for a large section of the society.
Significance of Inclusive Growth
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- Poverty alleviation: Inclusive growth directly reduces poverty by ensuring the benefits economic development reaches the poorest segments of the society.
- Reduced Income Inequality: It helps create a more equitable distribution of wealth, reducing disparities in income and wealth accumulation.
- Human Capital Development: Investment in human capital results in a more educated and healthier workforce, which is essential for long-term economic growth and competitiveness.
- Gender Equality: It addresses gender disparities by promoting equal opportunities for women in education, employment, and entrepreneurship.
- Entrepreneurship and Innovation: Inclusive growth encourages entrepreneurship and innovation which can lead to the creation of new businesses, job opportunities, and economic dynamism.
- Sustainable Development: It emphasizes environmentally responsible practices and ensures that economic development does not compromise the environment or future generations’ well-being.
