IDEAS home Printed from https://ideas.repec.org/a/pid/journl/v51y2012i1p1-21.html
   My bibliography  Save this article

The Idea of Inclusive Growth and Development Policy

Author

Listed:
  • Syed Nawab Haider Naqvi

    (Federal Urdu University, Islamabad)

Abstract

This paper explores the idea of Inclusive Growth as it has evolved over time since the Industrial Revolution in the West, and in the developing countries since 1950, when development economics and development policy were officially born. It is defined as a policy that deliberately seeks to achieve concurrently a dynamic relationship between the growth of per capita income, the distribution of income and the level of poverty in a growing society. The active pursuit of this three-pronged objective must, therefore, be the basic aim of development policy. Experience shows that this relationship, though generally true, is by no means automatic, nor is it amenable to quick fixes. The main premise of the present paper is that without inclusive growth the standard of living of a people cannot be raised on a permanent basis. The paper argues that to succeed in grasping the Holy Grail will require a major rethinking of development policies to guide developing countries along a high-growth trajectory. In particular, development policies that the fast-growers (especially the miracle-growers of East Asia and now China) have pursued must also form part of the policy-packages of developing countries together with measures to promote high rates of saving to finance the investment requirements of a fast-growing economy, and government-supported import-substituting industrialisation, among others. Yet, the policies of the fast-growers need not be imitated blindly. But they should be adjusted to take into account new knowledge about the development process. To institutionalise growth on a long-term basis, governments must also prepare a new social contract to lay firm foundations of a dynamic society based on social justice; which, in turn, requires a creative synergy of economic, political and social forces at work in the society.

Suggested Citation

  • Syed Nawab Haider Naqvi, 2012. "The Idea of Inclusive Growth and Development Policy," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 51(1), pages 1-21.
  • Handle: RePEc:pid:journl:v:51:y:2012:i:1:p:1-21
    as

    Download full text from publisher

    File URL: http://www.pide.org.pk/pdf/PDR/2012/Volume1/1-21.pdf
    Download Restriction: no

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pid:journl:v:51:y:2012:i:1:p:1-21. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Khurram Iqbal). General contact details of provider: http://edirc.repec.org/data/pideipk.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.