Inclusive growth - Definition
- Opportunity: Is the economy generating more and varied ways for people to earn a living and increase their incomes over time?
- Capability: Is the economy providing the means for people to create or enhance their capabilities in order to take advantage of available opportunities?
- Access: Is the economy providing the means to bring opportunities and capabilities together?
- Security: Is the economy providing the means for people to protect themselves against a temporary or permanent loss of livelihood?
Consistent with this definition, 'inclusive growth' is a process, in which, economic growth, measured by a sustained expansion in GDP, contributes to an enlargement of the scale and scope of all four dimensions.
To return briefly to the relationship between inequality and exclusiveness/inclusiveness, income enters the picture primarily through the 'opportunity' dimension. However, it is critical to understand that 'income' is the result of an opportunity being exploited.
Inclusive growth by its very definition implies an equitable allocation of resources with benefits accruing to every section of society, which is a utopian concept. But the allocation of resources must be focused on the indented short and long terms benefits and economic linkages at large and not just equitable mathematically on some regional and population criteria.