Inclusive Growth: Building up a Concept


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This presentation is about building a concept of inclusive growth. It also addresses the relationship between growth and elements of inclusion.
Presentation by Rafael Ranieri, Secretariat of International Affairs; Ministry of Planning, Budget and Management of Brazil
GDN 14th Annual Conference
Manila, Philippines
June 19-21, 2013

Published in: Technology, Economy & Finance
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Inclusive Growth: Building up a Concept

  1. 1. GDN 14th Annual Global Development ConferenceInequality, Social Protection and Inclusive GrowthGlobal Development Medals Competition: Theme 3 - Inclusive GrowthInclusive Growth: Building up a ConceptRafael RanieriSecretariat of International Affairs; Ministry of Planning, Budget and Management of BrazilRaquel RamosCentre d’Economie de Paris Nord; Sorbonne Paris Cité, France19-21 June 2013Asian Development Bank Headquarters, Manila, the Philippines
  2. 2. Building up a Concept2/13GDN 14th Annual Global Development ConferenceHow far have we got in building up an understanding of Inclusive Growth (IG)?What needs further consideration?
  3. 3. Motivation3/13GDN 14th Annual Global Development Conference• Mapping IG performance in developing countries• What to measure?• How to measure?INDEX ?
  4. 4. Policy RelevanceObjectivesPolicyOutputOutcomesImpactsEvaluationDefinitionImplementation4/13GDN 14th Annual Global Development Conference
  5. 5. Building blocks5/13GDN 14th Annual Global Development Conference• Changing development thinking• Pro-poor growth• Inclusive growth
  6. 6. What we know6/13GDN 14th Annual Global Development ConferencePoverty and Inequality Reduction-Poverty and relative inequality - relative pro-poor growth(Rauniyar and Kanbur 2010)-Benefit everyone, while pro-poor growth below poverty line(Klasen2010)-Interchangeable with pro-poor growth; multidimensional poverty(Habito 2009)
  7. 7. What we know7/13GDN 14th Annual Global Development ConferencePoverty and Inequality ReductionBeyond income outcomes-Opportunities and their distribution(Ali and Son 2007)-Enlarge economy and increase productive employment(Ianchovichina and Lundstrom 2009); (AfDB 2012)PROCESS MATTERS-Growth in employment and productivity(Bhalla 2007)-Benefit-sharing and participation(Kakwani and Pernia 2000)-Outcomes and process(Klasen 2010)-Multiple dimensions (McKinley 2010)
  8. 8. What else we need to know8/13GDN 14th Annual Global Development ConferencePoverty and Inequality ReductionBeyond income outcomesWhat else?ADDRESSING KEY ISSUES
  9. 9. Addressing Key Issues9/13GDN 14th Annual Global Development ConferenceWhat is the meaning of inclusion?• Equality?Of what?- Opportunity?- Empowerment?• Participation?• Satisfation?• Something else?
  10. 10. Addressing Key Issues (II)10/13GDN 14th Annual Global Development Conference• How to combine a number of elements ofinclusion into a composite index?– Does it make sense to do it?• How many?• Relative weights and interrelationships?• Common unit of measurement?• Data availability issues to operationalize– Or should elements be considered on their own, notcombined?
  11. 11. Addressing Key Issues (III)11/13GDN 14th Annual Global Development Conference• How to assess the relationship between growthand any element of inclusion?– Can it be established that changes in inclusion resultfrom growth?– Must it be done to identify inclusive growthepisodes?– Or does it suffice to identify positive changes ininclusion that accompany growth?– Or what matters is just increases in inclusion,regardless of economic growth (or contraction)?
  12. 12. Addressing Key Issues (IV)GDN 14th Annual Global Development Conference• Are results in benefit and participation enough or isintent also necessary?– Circumstantial; vs.– Resulting from national concerns and social forcesshown in policies• How to deal with crises?– Worsening due to hardship non-inclusive?– Or the extent of mitigation of negative impacts andpolicy orientation matter?12/13
  13. 13. Policy RelevanceObjectivesPolicyOutputOutcomesImpactsEvaluationDefinitionImplementation13/13GDN 14th Annual Global Development Conference
  14. 14. Thank you!GDN 14th Annual Global Development
  15. 15. ReferencesGDN 14th Annual Global Development ConferenceAfDB (2012). Briefing Notes for AfDB’s Long-Term Strategy – Briefing Note 6: InclusiveGrowth Agenda. Tunis, African DevelopmentBank.Ali, I. and Son, H.H. (2007). ‘Measuring InclusiveGrowth’, Asian Development Review, Vol. 24,No. 1: 11–31.Berg, A. and Ostry, J. (2011). ‘Equality andEfficiency: Is there a trade-off between the twoor do they go hand in hand?’, Finance andDevelopment, 48(3), 12–15.Grosse, M., Harttgen, K. and Klasen, S. (2008).‘Measuring Pro-Poor Growth in Non-IncomeDimensions’, World Development, Vol. 36, No.6: 1021–1047.Habito, C.F. (2009). ‘Patterns of InclusiveGrowth in Asia: Insights from an EnhancedGrowth-Poverty Elasticity Analysis’, ADBIWorking Paper Series, No. 145. Tokyo, AsianDevelopment Bank Institute.Ianchovichina, E. and Lundstrom, S. (2009).‘Inclusive Growth Analytics: Framework andApplication’, Policy Research Working Paper, No.4851. Washington, DC, World Bank.Kakwani, N., Khandker, S. and Son, H. H. (2004).‘Pro-poor Growth: Concepts and Measurementwith Country Case Studies’, IPC-IG WorkingPaper, No. 1. Brasília, International Policy Centrefor Inclusive GrowthKlasen, S. (2010). ‘Measuring and MonitoringInclusive Growth: Multiple Definitions, OpenQuestions, and Some Constructive Proposals’,ADB Sustainable Development Working PaperSeries, No. 12. Mandaluyong City, Philippines,Asian Development Bank.Kraay, A. (2004). ‘When Is Growth Pro-Poor?Cross-Country Evidence’, IMF Working Paper,No. 4-47. Washington, DC, InternationalMonetary Fund.
  16. 16. ReferencesGDN 14th Annual Global Development ConferenceKuznets, S. (1955). ‘Economic Growth andIncome Inequality’, The American EconomicReview, Vol. 45, No. 1: 1–28.Lopez, J.H. (2004). Pro-poor growth: a review ofwhat we know (and of what we don’t know).Washington, DC, World Bank.McKinley, T. (2010). ‘Inclusive Growth Criteriaand Indicators: An Inclusive Growth Index forDiagnosis of Country Progress’, ADB SustainableDevelopment Working Paper Series, No. 14.Mandaluyong City, Philippines, AsianDevelopment Bank.Ramos, R.A., Ranieri, R. and Lammens, J.W.(2013). ‘Mapping Inclusive Growth inDeveloping Countries’, IPC-IG Working Paper,No. 105. Brasília, International Policy Centre forInclusive Growth.Rauniyar, G. and Kanbur, R. (2010). InclusiveDevelopment: Two Papers onConceptualization, Application, and the ADBPerspective. Mandaluyong City, Philippines,Asian Development Bank.Ravallion, M. (2004). Pro-poor Growth: APrimer. Washington, DC, World BankDevelopment Research Group.Rostow, W.W. (1956). ‘The Take-Off Into Self-Sustained Growth’, The Economic Journal, Vol.66, No. 261: 25–48.Stiglitz. J.E. and Squire, L. (1998). ‘InternationalDevelopment: Is it Possible?’, Foreign Policy,Issue 110: 138–151.Zepeda, E. (2004). ‘Pro-poor Growth: What IsIt?,’ IPC-IG One Pager, No. 1. Brasília,International Policy Centre for Inclusive Growth.