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Growth and Inclusiveness

In: Introduction to Quality Growth

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  • Koki Hirota

Abstract

This chapter reviews and discusses growth and inclusiveness. Inclusive growth—a concept derived from pro-poor growth—addresses the issue of inequality that must be dealt with through the efforts of society as a whole. There are two challenges in achieving this goal: eliminating structural inequalities and correcting income inequalities that have arisen as a result of economic activities. Specific groups, such as women and ethnic minorities, are more susceptible to structural inequalities in education, healthcare, and employment opportunities, thereby constraining a country’s growth. Regarding income inequalities, there are three key points for consideration: how growth affects income inequality, why income inequalities arise and change, and whether the magnitude of income inequalities affects growth. Recent social and economic changes in developed countries have structurally widened income inequalities. As these trends could affect developing countries, there is an urgent need for greater global attention. There are two opposing views regarding whether income inequality has a positive or negative impact on growth, but recent studies tend to support the latter view. Policies addressing inequality have two pillars: correcting inequality of opportunity and adjusting income inequalities that have arisen. The SDGs also draw on these two pillars to address both domestic and international inequality.

Suggested Citation

  • Koki Hirota, 2026. "Growth and Inclusiveness," Springer Books, in: Koki Hirota (ed.), Introduction to Quality Growth, chapter 0, pages 37-71, Springer.
    • Handle: RePEc:spr:sprchp:978-981-95-6220-6_3
    DOI: 10.1007/978-981-95-6220-6_3
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