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2020 | OriginalPaper | Buchkapitel

2. The Quest for an Inclusive Growth Strategy

verfasst von : Muhammed Muqtada, Fahmida Khatun

Erschienen in: Quest for Inclusive Growth in Bangladesh

Verlag: Springer Singapore

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Abstract

The chapter explores some key issues and concepts that have led to the emergence of inclusive growth as a development paradigm, and the considerations that need to be given in the design of an inclusive growth strategy. It reviews the literature, which does not provide a universally accepted definition, rather some consensus on its characterisations, such as the outcome and process dimensions of inclusive growth. The study argues that these dimensions are interrelated, and that achieving outcomes (e.g. a declining inequality) would be hard without appropriate participation and bargaining rights, especially of the poor and underprivileged. Institutions and governance reforms would be key to ensuring the latter; hence must be seen as an additional goal of inclusive growth. The study further argues that growth and equality can be complements, but that would require a policy framework to address the multidimensionality of poverty and inequality. Based on these perspectives, the study forwards seven key goals, subsumed within an employment-focused strategy, and which are also central to the UN’s 2030 Agenda. It further suggests a simple strategy framework, with three interrelated sub-strategies, that could provide a platform to relate economic, structural and institutional policies for an approach to inclusive growth.

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Vorheriges Kapitel Inclusive Growth: Background Considerations and Key Themes

Nächstes Kapitel Inclusive Growth in Bangladesh: Evidence and Issues

Dabla-Norris et al. (2015).

Several studies of the World Institute for Development Economics Research (WIDER), based on extensive empirical work, tend to confirm the growing inequality within the developing countries, especially since the 1980s (see Cornia 2004).

See Cornia et al. (1987).

See among others, Berg and Ostry (2011), WEF (2015).

See Easterly (2000), among others.

See Ravallion (2009) who places this group as those who earn between USD 2–USD 13 a day, warns that bulk of this population is often nearer the USD 2 dollar (median poverty threshold of developing countries), and often vulnerable to risks.

UN Agenda 2030 for pledges, “As we embark on this great collective journey, we pledge that no one will be left behind” (UN 2015, p. 5, italics added).

See for example, Rauniyar and Kanbur (2010).

In particular, the World Bank, Department for International Development (DFID); French Development Agency (AFD) and German Technical Cooperation Agency (GTZ) were among the lead institutions.

See Bourguignon (2004) for a well-known treatment of the nexus.

See World Bank (2008).

Cf. WEF (2015).

See for example, Islam and Islam (2015).

Cf. ADB (2012).

See among others, ADB (2012), Klasen (2010), de Haan and Thorat (2013).

See de Haan and Thorat (2013).

See Klasen (2010) op. cit.

See Acemoglu and Robinson (2013).

Cf. Khan (2019); also see Chap. 8.

See McKinley (2009) for a summary account of the reasons that Kuznets forwarded to explain how and why inequality would decline as an economy attains higher growth.

See Dabla-Norris et al. (2015).

Ibid.

Cf. Milanovic (2016).

See Milanovic (2016) op. cit.

This is the title of the article, Dollar and Kraay (2002).

From the title in Ravallion (2005).

“In total, 248.4 million (under the US$3.20 poverty line) and 145.09 million (under the US$1.90 poverty line) Asians could have been lifted out of poverty but were not, due to rising inequality in the region. This cost largely came from China (212.57 million and 114.18 million), followed by India, Indonesia, and Bangladesh” (Wan and Wang 2019, p. 262).

See Ravallion (2001).

“…far from being either necessary or good for economic growth, excessive inequality tends to lead to weaker economic performance” (p. 134).

Ostry et al. (2014).

Ibid.

Stiglitz (2016) op. cit.; similar views are expressed in Ali and Zhuang (2007).

See for example, Bourguignon (2004) op. cit. Ravallion (2005, p. 6) contends that even if there were no robust correlation between inequality and growth, this would not imply that, “policy makers aiming to fight poverty in any given country can safely focus on growth alone”.

McKinley (2009) raised concern whether inclusive growth may have a tendency to relax weights on policies that have been traditionally understood to be pro-poor.

Cf. Sen (1997).

See Ravallion (2001) for an exposition.

See ILO (2009).

Piketty (2014).

Sobhan (2010).

See Chap. 1 for a brief discussion on pro-poor growth. Also see World Bank (2005).

Khan (2015) maintained that, in the instance of Bangladesh, a relatively higher rate of poverty reduction would have been achieved if the rising inequality as observed over the past several years could have been moderated.

See Bhaduri (2019).

See Sobhan (2010), Stiglitz (2016).

Piketty (2006), who maintained that inequality dynamics depend primarily on the policies and institutions adopted by governments.

For example, World Summit on Social Development, 1995; the MDGs in 2000, etc.

ILO (2010), op. cit.

Many national and international development strategies have embraced the call for attaining the goal of full employment and decent work. A global call to such a commitment, which was made at the ILO Philadelphia Declaration 1944, was renewed at the World Social Summit (Copenhagen Declaration 1995), and yet again in the 2030 Agenda for Sustainable Development.

World Bank (2012, p. 29, ff.).

See the ILO Convention No. 122, calling on all countries to pursue the goal of full employment.

In a recent contribution, Bhaduri (2019, p. 235) contends that the “foremost requirement of inclusiveness in development is rapid expansion of employment and livelihood opportunities in situations of huge surplus labour and mass unemployment.” Also see Nayyar (2014), Islam and Islam (2015), Felipe (2012).

Also see Bhalla (2007), Ianchovichina and Lundstrom (2009), Klasen (2010) op. cit.

Also see Islam and Islam (2015) op. cit.; Felipe (2012) op. cit.

The formulation of a growth strategy is best done through “a dedicated team of policy makers and economists, working on a single economy over time” (World Bank 2008, p. 31).

In the following Chap. 3, the progress of Bangladesh towards inclusive growth has been examined based on these seven goals and selected indicators of the respective goals.

UN (2015).

Bourguignon (2004) op. cit.

See Islam and Islam (2015) op. cit.

For example, see commitment 3 of the Copenhagen declaration, 1995; the MDG Target 1b; and now the SDG 8. The goal of full employment is enshrined in ILO Convention No. 122, which has been ratified by a large number of countries.

See van Zon and Muysken (2003), among many others.

For example, Hanushek and Wößmann (2007).

This is being promoted and pursued through an ILO-UN initiative. Also note SDG 1.3.

Cf. Acemoglu and Robinson (2013).

See Chap. 8 for further details.

UN (2015) op. cit.

“It may be possible to have a smaller set of normative statements or imperatives that would sit alongside (or above, chapeau-like) the official goals, acting as a summary of their vision and clustering issue areas. Easy to communicate and therefore inspire, the imperatives could act as a glue that brings together the sprawling narrative” (Norton and Stuart 2014).

There may also be conflicting ideological positions among planners, e.g. with regard to relationship between growth and inequality (see Sect. 2.2).

See Islam and Islam (2015) op. cit.

See Chap. 7 of this book.

For example, various ILO Conventions which member countries have ratified.

One example is The European Employment Strategy (now part of Europe 2020 Growth Strategy).

These are many and take varied forms: The Full Employment and Balanced Growth Act, 1978 in the US; the Employment Equity Act, 1998 in South Africa; the Employment Promotion Law in China, etc.

The ILO’s pursuit of this goal, in its broad elements, is encapsulated in Decent Work, the Director-General’s report to the International Labour Conference, Geneva, 1999.

Also see WEF (2015).

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Titel: The Quest for an Inclusive Growth Strategy
verfasst von: Muhammed Muqtada
Fahmida Khatun
Verlag: Springer Singapore
Buch: Quest for Inclusive Growth in Bangladesh
Print ISBN: 978-981-15-7613-3

Electronic ISBN: 978-981-15-7614-0

Copyright-Jahr: 2020
DOI: https://doi.org/10.1007/978-981-15-7614-0_2

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