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GDN 14th Annual Global Development ConferenceInequality, Social Protection and Inclusive Growth
Global Development Medals Competition: Theme 3 - Inclusive Growth
Inclusive Growth: Building up a Concept
Rafael RanieriSecretariat of International Affairs; Ministry of Planning, Budget and Management of Brazil
Raquel RamosCentre d’Economie de Paris Nord; Sorbonne Paris Cité, France
19-21 June 2013Asian Development Bank Headquarters, Manila, the Philippines
Building up a Concept
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How far have we got in building up an understanding of Inclusive Growth (IG)?
What needs further consideration?
Motivation
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• Mapping IG performance in developing countries
• What to measure?
• How to measure?
INDEX ?
Policy Relevance
Objectives
Policy
OutputOutcomes
Impacts
Evaluation
Definition
Implementation
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Building blocks
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• Changing development thinking
• Pro-poor growth
• Inclusive growth
What we know
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Poverty 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)
What we know
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Poverty and Inequality Reduction
Beyond 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)
What else we need to know
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Poverty and Inequality Reduction
Beyond income outcomes
What else?
ADDRESSING KEY ISSUES
Addressing Key Issues
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What is the meaning of inclusion?
• Equality? Of what? - Opportunity?- Empowerment?
• Participation?• Satisfation?• Something else?
Addressing Key Issues (II)
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• How to combine a number of elements of inclusion 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, not combined?
Addressing Key Issues (III)
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• How to assess the relationship between growth and any element of inclusion? – Can it be established that changes in inclusion result
from growth?– Must it be done to identify inclusive growth episodes? – Or does it suffice to identify positive changes in
inclusion that accompany growth?– Or what matters is just increases in inclusion,
regardless of economic growth (or contraction)?
Addressing Key Issues (IV)
GDN 14th Annual Global Development Conference
• Are results in benefit and participation enough or is intent also necessary? – Circumstantial; vs.– Resulting from national concerns and social forces
shown in policies
• How to deal with crises?– Worsening due to hardship non-inclusive? – Or the extent of mitigation of negative impacts and
policy orientation matter?
12/13
Policy Relevance
Objectives
Policy
OutputOutcomes
ImpactsEvaluation
Definition
Implementation
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References
GDN 14th Annual Global Development Conference
AfDB (2012). Briefing Notes for AfDB’s Long-Term Strategy – Briefing Note 6: Inclusive Growth Agenda. Tunis, African Development Bank.
Ali, I. and Son, H.H. (2007). ‘Measuring Inclusive Growth’, Asian Development Review, Vol. 24, No. 1: 11–31.
Berg, A. and Ostry, J. (2011). ‘Equality and Efficiency: Is there a trade-off between the two or do they go hand in hand?’, Finance and Development, 48(3), 12–15.
Grosse, M., Harttgen, K. and Klasen, S. (2008). ‘Measuring Pro-Poor Growth in Non-Income Dimensions’, World Development, Vol. 36, No. 6: 1021–1047.
Habito, C.F. (2009). ‘Patterns of Inclusive Growth in Asia: Insights from an Enhanced Growth-Poverty Elasticity Analysis’, ADBI Working Paper Series, No. 145. Tokyo, Asian Development Bank Institute.
Ianchovichina, E. and Lundstrom, S. (2009). ‘Inclusive Growth Analytics: Framework and Application’, Policy Research Working Paper, No. 4851. Washington, DC, World Bank.
Kakwani, N., Khandker, S. and Son, H. H. (2004). ‘Pro-poor Growth: Concepts and Measurement with Country Case Studies’, IPC-IG Working Paper, No. 1. Brasília, International Policy Centre for Inclusive GrowthKlasen, S. (2010). ‘Measuring and Monitoring Inclusive Growth: Multiple Definitions, Open Questions, and Some Constructive Proposals’, ADB Sustainable Development Working Paper Series, 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, International Monetary Fund.
References
GDN 14th Annual Global Development Conference
Kuznets, S. (1955). ‘Economic Growth and Income Inequality’, The American Economic Review, Vol. 45, No. 1: 1–28.
Lopez, J.H. (2004). Pro-poor growth: a review of what we know (and of what we don’t know). Washington, DC, World Bank.
McKinley, T. (2010). ‘Inclusive Growth Criteria and Indicators: An Inclusive Growth Index for Diagnosis of Country Progress’, ADB Sustainable Development Working Paper Series, No. 14. Mandaluyong City, Philippines, Asian Development Bank.
Ramos, R.A., Ranieri, R. and Lammens, J.W. (2013). ‘Mapping Inclusive Growth in Developing Countries’, IPC-IG Working Paper, No. 105. Brasília, International Policy Centre for Inclusive Growth.
Rauniyar, G. and Kanbur, R. (2010). Inclusive
Development: Two Papers on Conceptualization, Application, and the ADB Perspective. Mandaluyong City, Philippines, Asian Development Bank.
Ravallion, M. (2004). Pro-poor Growth: A Primer. Washington, DC, World Bank Development 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). ‘International Development: Is it Possible?’, Foreign Policy, Issue 110: 138–151.
Zepeda, E. (2004). ‘Pro-poor Growth: What Is It?,’ IPC-IG One Pager, No. 1. Brasília, International Policy Centre for Inclusive Growth.
