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The Demands of Inclusive Growth: Lessons from South Asia (The Mahbub Ul Haq Memorial Lecture)

Author

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  • S. R. Osmani

    (Professor of Development Economics, School of Economics, University of Ulster, United Kingdom.)

Abstract

This paper examines the concept of inclusive growth, compares and contrasts it with related concepts such as pro-poor growth and equitable growth, and analyses the recent experience of South Asia through the lens of this concept. A common experience of the region is that spells of rapid growth have been marked by accelerated poverty reduction on the one hand rising income inequality on the other. The contrasting movements in poverty and inequality render intriguing the question of whether South Asia has experienced inclusive growth or not. The reduction in poverty suggests inclusiveness, while the rise in inequality suggests otherwise. The implication is that the growth process has been inclusive in some dimensions but not in others. Closer examination shows that in each country of the region horizontal equity (between groups) has been served better than vertical equity (within groups). Thus, while the growth process has opened up plentiful opportunities for most groups of people to enjoy the benefits of growth, thereby making poverty reduction possible at an accelerated pace, in every group some individuals have failed to link up with the growth process, thereby exacerbating inequality. The problem was that within each group some individuals lacked the skills and endowments required to integrate with the growth process. Improving the ‘integrability’ of these people is an essential demand of inclusive growth.

Suggested Citation

  • S. R. Osmani, 2008. "The Demands of Inclusive Growth: Lessons from South Asia (The Mahbub Ul Haq Memorial Lecture)," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 47(4), pages 381-402.
  • Handle: RePEc:pid:journl:v:47:y:2008:i:4:p:381-402
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    File URL: http://www.pide.org.pk/pdf/PDR/2008/Volume4/381-402.pdf
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    References listed on IDEAS

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    1. Ramani Gunatilaka & Duangkamon Chotikapanich & Brett Inder, 2006. "Impact of Structural Change in Education, Industry and Infrastructure on Income Distribution in Sri Lanka," Monash Econometrics and Business Statistics Working Papers 21/06, Monash University, Department of Econometrics and Business Statistics.
    2. Rashid Amjad & A.R. Kemal, 1997. "Macroeconomic Policies and their Impact on Poverty Alleviation in Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 36(1), pages 39-68.
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    Cited by:

    1. Lawrence Sáez, 2013. "Methods in governance research: a review of research approaches," Brooks World Poverty Institute Working Paper Series esid-017-13, BWPI, The University of Manchester.

    More about this item

    Keywords

    Inclusive Growth; Poverty; Inequality; South Asia;

    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

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