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
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Inclusive Growth: Building up a Concept
1. GDN 14th Annual Global Development Conference
Inequality, Social Protection and Inclusive Growth
Global Development Medals Competition: Theme 3 - Inclusive Growth
Inclusive Growth: Building up a Concept
Rafael Ranieri
Secretariat of International Affairs; Ministry of Planning, Budget and Management of Brazil
Raquel Ramos
Centre d’Economie de Paris Nord; Sorbonne Paris Cité, France
19-21 June 2013
Asian Development Bank Headquarters, Manila, the Philippines
2. Building up a Concept
2/13GDN 14th Annual Global Development Conference
How far have we got in building up an understanding of Inclusive Growth (IG)?
What needs further consideration?
3. Motivation
3/13GDN 14th Annual Global Development Conference
• Mapping IG performance in developing countries
• What to measure?
• How to measure?
INDEX ?
5. Building blocks
5/13GDN 14th Annual Global Development Conference
• Changing development thinking
• Pro-poor growth
• Inclusive growth
6. 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)
7. What we know
7/13GDN 14th Annual Global Development Conference
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)
8. What else we need to know
8/13GDN 14th Annual Global Development Conference
Poverty and Inequality Reduction
Beyond income outcomes
What else?
ADDRESSING KEY ISSUES
9. Addressing Key Issues
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What is the meaning of inclusion?
• Equality?
Of what?
- Opportunity?
- Empowerment?
• Participation?
• Satisfation?
• Something else?
10. Addressing Key Issues (II)
10/13GDN 14th Annual Global Development Conference
• 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?
11. 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)?
12. 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
14. Thank you!
GDN 14th Annual Global Development Conference
rafael.ranieri@planejamento.gov.br
raquelalmeidaramos@yahoo.com.br
15. 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 Growth
Klasen, 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.
16. 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.