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inclusive growth

Making growth inclusive: Challenges and opportunities

Vinaya Swaroop's picture
Many advanced economies are experiencing rising income inequality which has raised questions about the benefits of globalization.  Given the growing backlash against perceived job losses associated with the free movement of goods and people particularly in the US and Europe, economists and other development practitioners are renewing their efforts in making economic growth more inclusive and have focused their attention on how to share prosperity equitably.

Postcards from Quito on the New Urban Agenda

Sameh Wahba's picture
Also available in: Español

Photos: World Bank

More than two months have passed since the whirlwind that was Habitat III, the UN’s once-every-20-year summit on cities and urban development. From big data to climate change, public spaces to municipal finance, the conference truly seemed to have something for everyone. Long queues to enter the conference aside, what was striking was also the sheer number of young participants at the event, many of whom were students, planners and architects from Quito.

So what did people in Quito really think about the future of cities? We asked visitors to the World Bank’s booth at the Habitat III exhibition to tell us, by writing on postcards, what they thought was needed to create sustainable cities for all. Of the more than 200 postcards received, several recurring themes were clear:

Postcards from Quito on the New Urban Agenda (World Bank Group)

What is your most urgent question on reducing poverty in Vietnam? Ask the World Bank Vietnam Country Director

Ousmane Dione's picture

As we commemorate the International Day for the Eradication of #Poverty and #Vietnam’s Day for the Poor today, think what’s the most important question you want to ask about reducing poverty in Vietnam. What do you want to know about ensuring equal opportunities? About social #inclusion? Shared prosperity?  

Post your questions at www.facebook.com/worldbankvietnam and we will collect the top 5 questions asked within the next two days.  

Supporting inclusive growth in Cambodia

Victoria Kwakwa's picture
A Cambodian farmer. photo by the World Bank
A Cambodian farmer. Photo: The World Bank

Today, Cambodia is among the world’s fastest growing economies. Its gross national income per capita increased by more than threefold in two decades, from $300 in 1994 to $1,070 in 2015.

Strong economic growth has helped lift millions of people out of poverty.

The Cambodian people have benefited as the economy diversified from subsistence farming into manufacturing, tourism and agricultural exports. Poverty fell to 10% in 2013, from 50% in 2004. Cambodians enjoy better school enrollment, literacy, life expectancy, immunization and access to water and sanitation.

Can growth benefit all?

Felipe Jaramillo's picture



As an economist, I always thought that sustained growth over many years was the key to reduce poverty and promote development. Now I know, that while growth is important, it is a particular type of growth, the one that is inclusive, that is key for sustained development to take place.

As policy makers we are now focusing all our efforts in identifying and promoting policies targeted at boosting the incomes of the bottom 40 percent of the population. We need to ensure that growth provides benefits to those that are in the lowest deciles of the income distribution.

Evidence for better-informed decisions and more inclusive policies

Simona Palummo's picture
 Arne Hoel/World Bank
Photo: Arne Hoel/World Bank
Why do we need evidence?
 
The sustainable development agenda adopted by world leaders in September 2015 set a series of ambitious goals to end poverty, ensure equal economic growth, and tackle climate change by 2030. Rising inequalities, especially in developing countries, remind us that if we want to achieve these goals, we need more inclusive policies which consider the needs of the most vulnerable and disadvantaged populations.
 
Policymakers are constantly trying to identify better solutions to address global challenges, and that implies considering different policy options, and making a choice that can benefit each group of the population, which sometimes is extremely difficult. Even well-designed policies might have adverse impacts, particularly on the poor and the most socially excluded groups. That is why we need evidence to support better policy decisions, and that’s when Poverty and Social Impact Analysis (PSIA) gets in the picture. What is exactly PSIA? The World Bank defines it as “an approach to assess the distributional and social impacts of policy reforms on the well-being of different groups of the population, in particular the poor and vulnerable.”

How can Zambia’s growth be re-energized?

Gregory Smith's picture
Shoppers at the newly opened East Park Mall in Lusaka
Shoppers at the newly opened East Park Mall in Lusaka.
​(Photo Credit: Arne Hoel/World Bank)


If you lived in Zambia or have been closely following the news about the country, you would know that Zambia had been growing at a steady pace in the last few years. Riding on the back of higher copper production, foreign direct investment in the manufacturing and mining sectors, government investment in infrastructure, and expanding private sector investment in construction and services, Zambia grew at an average annual rate of 6.4% between 2010 and 2014, which was more than the average overall growth rate of Sub-Saharan Africa.

How can Latin America and the Caribbean keep up inclusive growth?

Louise Cord's picture
The Latin America and Caribbean (LAC) region has been the most inclusive region in the world over the last decade: not only did it cut extreme poverty in half, it also realized the highest income growth rate among the bottom 40 percent of income earners in absolute terms, as well as relative to the total population. Between 2006 and 2011, the average growth rate per year in the mean income of LAC’s bottom 40 was approximately 5.2%. Moreover, when compared with the rest of the world, the region’s bottom 40 enjoyed the most rapid income growth relative to the total population (Figure 1).

Inclusive growth for shared prosperity

Vinaya Swaroop's picture
Announced in April 2013, the twin global goals of the World Bank – eliminating extreme poverty by 2030 and boosting shared prosperity – have become the guiding principles of its development work.  While reducing poverty has always anchored the Bank’s work, the goal of boosting shared prosperity – measured by the income of the bottom 40 percent – is new.

Weekly Wire: The Global Forum

Roxanne Bauer's picture

These are some of the views and reports relevant to our readers that caught our attention this week.

#Davosproblems: The financial crisis isn‘t over, and the inequality crisis is just beginning
Quartz
The World Economic Forum’s annual meeting has kicked off in Davos, Switzerland under the banner of “The New Global Context.” Falling in the long shadow of the financial crisis, the WEF’s theme reflects as much hope as a creeping sense that economic turmoil is the new normal. Some seven years into the current crisis, the participants at Davos are acutely aware that the world economy still hasn’t recovered its past momentum.

The Power of Market Creation, How Innovation Can Spur Development
Foreign Affairs
Most explanations of economic growth focus on conditions or incentives at the global or national level. They correlate prosperity with factors such as geography, demography, natural resources, political development, national culture, or official policy choices. Other explanations operate at the industry level, trying to explain why some sectors prosper more than others. At the end of the day, however, it is not societies, governments, or industries that create jobs but companies and their leaders. It is entrepreneurs and businesses that choose to spend or not, invest or not, hire or not.


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