The Concept of Quality Growth

This chapter clarifies the definition of quality growth and examines its origins, presenting several key points that will be discussed in subsequent chapters. APEC first proposed a new approach to growth, referring to it as “quality growth.” The concept encompasses balanced, inclusive, sustainable, innovative, and secure growth as its main elements. In its 2015 Development Cooperation Charter, Japan defined quality growth as growth with inclusiveness, sustainability, and resilience, and made it the goal of Japan’s development cooperation. These Japanese and APEC conceptions of quality growth are largely aligned. In this chapter, I have identified the following core factors that underpin quality growth: first, that increases in income derived through economic growth are important for prosperity and poverty reduction; second, that growth and inclusiveness, sustainability, and resilience should be achieved simultaneously; and third, that these factors are interrelated. It is worth noting that the relationship between growth and the three above factors will involve discussions encompassing different time horizons, both short-term and long-term. Moreover, a new overarching policy framework will be necessary to achieve quality growth—as it will be necessary to measure the progress of quality growth—and lastly, the concept of quality growth applies to both developing and developed countries.